Ask Consumer Ed: Should you co-sign a loan? - FOX 10 News | myfoxphoenix.com

Ask Consumer Ed: Should you co-sign a loan?

Posted: Updated:
ATLANTA -

You may have been tempted to help a friend or family member by co-signing a loan for them, but is it really a good idea?  

The Governor's Office of Consumer Protection pens a consumer column called Ask Consumer Ed, and their lawyers research and answer your questions.  In this case, they received a letter from a parent who wrote,"My daughter wants me to co-sign a loan for a car.  If she is late on a payment, will this affect my credit, as well as hers?"

Department Head John Sours says absolutely.  If there's a late or missed payment, it will go on your credit report, too.  As a co-signer, you're as legally liable as the person you're cosigning for.  

That doesn't mean you don't do it, but it does mean you have to ask a lot of questions up front.  The main reason for co-signing is to help a young person establish a credit rating or to get ahead a little bit, but everyone involved needs to be aware of the risks.

  • I-Team Story ArchiveMore>>

  • Fox 5 I-Team

    Cheap vs. Frugal

    Cheap vs. Frugal

    Wednesday, April 23 2014 9:15 AM EDT2014-04-23 13:15:25 GMT
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
  • Fox 5 I-Team

    Save on Vacation

    Save on Vacation

    Monday, April 21 2014 9:56 AM EDT2014-04-21 13:56:05 GMT
    Thinking about vacation is a lot of fun. Thinking about what it'll cost you is not so fun. Here are some ideas for cutting costs.
    Thinking about vacation is a lot of fun. Thinking about what it'll cost you is not so fun. Here are some ideas for cutting costs.
  • Get Financially Fit: A Step-By-Step Plan

    Get Financially Fit: A Step-By-Step Plan

    Monday, April 14 2014 9:15 AM EDT2014-04-14 13:15:13 GMT
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions. Do you know how much you spend each month?  How much of your check should you save?
    April is Financial Literacy Month, so it's time to think about getting financially fit.  Let's start with two questions:  Do you know how much you spend each month?  How much of your check should you save?
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

  • Good Day ArchiveMore>>

  • Dine Out for Project Open Hand

    Dine Out for Project Open Hand

    Wednesday, April 23 2014 9:39 AM EDT2014-04-23 13:39:13 GMT
    Head out to the a participating restaurant to celebrate the 22nd anniversary of Dining Out For Life.
    Head out to the a participating restaurant to celebrate the 22nd anniversary of Dining Out For Life.
  • Fox 5 I-Team

    Cheap vs. Frugal

    Cheap vs. Frugal

    Wednesday, April 23 2014 9:15 AM EDT2014-04-23 13:15:25 GMT
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
    There is nothing wrong with saving a buck, but can you cross the line? There is a difference between being cheap and being frugal.
  • Mountain Festival Brings Music, Dancing To Dahlonega Square

    Mountain Festival Brings Music, Dancing To Dahlonega Square

    Wednesday, April 23 2014 9:08 AM EDT2014-04-23 13:08:13 GMT
    The North Georgia town of Dahlonega is best-known for its gold. But this weekend, music will bring more than 50,000 people to the historic town square.
    The North Georgia town of Dahlonega is best-known for its gold. But this weekend, music will bring more than 50,000 people to the historic town square.
Powered by WorldNow

KSAZ-TV & KUTP
511 W. Adams St.
Phoenix, AZ 85003

Phone: (602) 257-1234
Fax: (602) 262-0177

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices