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When looking for a financial institution, or whatever other institution offering you a car loan, you might be faced with the need for a co-signer.
This is someone who will take on a car loan contract, along with you.
They will be assuming equal responsibility on carrying out all the terms of your contract. In other words, this is a person who will assume your car loan payments, if you default in payment. The account payment history will appear on both yours and the co-signer’s credit reports.
One should always be careful when choosing a co-signer. OR, that co-signer might be you!
Be careful, and thoroughly analyze to whom you’ll be co-signing for. Co-signers are legally obligated to carry out the contract.
It is best to enter such agreements with people you can trust such as friends and family.