One of the absolutely most risky financial decisions you can make is to cosign a loan for someone.
The FTC has even done research to show consumers exactly how atrocious of a decision cosigning a loan is. It can be really hard to turn down the need to cosign a loan; usually the person asking you is a relative or very close friend. They are promising that it won’t be a big deal and they’ll be able to pay on time.
But is that true?
Should you ever cosign a loan?
The Risks of Cosigning a Loan
Here are three risks of accepting the offer to cosign a loan.