Cosigning for Kids

[pennypinch]

Have any you cosigned a loan or credit card for your kids? If so, what was your experience?

Should we cosign for our kids? It's a pretty risky thing, even if you feel that your child is responible.

Before you cosign for anything keep in mind that if your child is unable to make payments at any point then you become responsible to make them.

If payments are late or not paid then your credit takes a major dive.

If you plan on applying for some sort of loan yourself creditors see the cosigned loan and it does count against you as unpaid debt.

There are so many things to consider.

Think about whether your child even makes enough money to cover the payments plus other life expenses. Will they be able to make the payments if they lose their job?

Very risky.