Co-Signer

Co-signers commit their own credit profile + income to support a loan application that wouldn't qualify on the primary borrower's profile alone. If the primary borrower misses payments, the co-signer is legally on the hook for the entire balance.

Common co-signer scenarios: - Parent co-signs a child's first auto loan or student loan to enable approval - Spouse with stronger credit co-signs a mortgage when the household income is split - Family member co-signs an apartment lease for someone with thin credit

Risks for the co-signer: - Full legal liability for the debt if primary borrower defaults - The debt appears on the co-signer's credit report — affects their DTI when they apply for their own credit - Late payments by the primary borrower damage the co-signer's credit too - Removing yourself as co-signer typically requires the primary borrower to refinance the loan into their own name only (which requires their credit to have improved enough to qualify)

Co-signing should be a deliberate, high-trust decision. Never co-sign for anyone you'd not personally lend the money to with no expectation of repayment.

The CFPB's guide to co-signers (https://www.consumerfinance.gov/ask-cfpb/what-is-a-co-signer-en-1826/) explains co-signer rights and obligations under federal consumer credit law. The FTC's guide to credit rights (https://consumer.ftc.gov/credit-loans-debt) covers how co-signed debt affects credit reports under the Fair Credit Reporting Act.