Thursday, February 09, 2017

I'm Not Co-Signing Loans for My Children

A friend of mine recently co-signed a loan for a child.   He did it so that his child would get a better interest rate on a car.  I know his intentions were good.  Even so, he probably sensed the disapproval in my voice when I commented.

In my case, I wouldn't co-sign a loan for my children, not even a college loan.   Here's a general article on 10 reasons not to co-sign a loan.

Rather than be a co-signer for my children, I'd lend them the money (provided I agree with the reason for the loan) and have them pay me back.  That way if they default, it won't affect my credit rating.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial or parenting advice. Please consult a professional advisor.

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