When it comes to co-signing loans for friends or family, the risks are enormous. While it might make sense to help out someone you care about who doesn’t have the credit necessary to obtain a loan, the consequences, if they don’t live up to her obligations of repaying the loan, can potentially lead you to financial suicide. The most dangerous thing about co-signing on someone else’s loans is your own credit score. But that is only part of the risk.
Here is are three types of loans that, if you are asked to be a co-signer, you should consider very carefully and then take the necessary precautions before agreeing to help out.Read the rest of the article here.