Co-signing means you add your name and credit standing to another person's application That makes you legally responsible for the full balance and fees if the primary borrower cannot pay Lenders will run a hard credit check which can briefly lower your score You do not get the funds when you co-sign the borrower does Yet the account and payments show on your credit report Missed payments can hurt your credit and may prompt collections or legal action that targets you Removing your name later is often hard and depends on lender policy and the borrower's payment history Learn what paperwork to review which questions to ask up front and how this choice can affect your future financing timeframes Key Takeaways You become fully liable if the borrower misses payments A hard credit inquiry may lower your score temporarily The account appears on your credit report even if you never get funds Ask clear questions about notifications access and removal options Removing a co-signer later is often difficult and not guaranteed Before You Sign How Co-Signing Works and What It Really Means Agreeing to co-sign creates equal legal liability for the debt even if you never receive the funds You become a backup payer missed payments will be reported on your credit report and can harm your credit The lender evaluates both your and the primary borrower s credit score credit history income and debts during the application process This underwriting step affects approval chances and the loan terms you... Login to read full