Health & Medical Healthy Living

Can a Non-Relative Co-sign for a Credit Card?

    Identification

    • Anybody can co-sign on your credit card but not everyone qualifies to be a co-signer. Lenders usually look at the credit history and finances of a borrower and co-signer. If the primary borrower does not meet the lending standards of the bank, it will consider the reduced risk that a co-signer brings to approve the application. Some of the most common types of co-signers are spouses, relatives, friends and close co-workers.

    Responsibility

    • You should warn any co-signer about his duties to the account. If you default on the debt, the co-signer may have to pay the tab if the lender pursues him for the loan. Also, negative and positive items appear on the credit reports of all borrowers on an account. Thus, a non-relative may be more wary of co-signing a credit card after learning of his responsibilities. Even close relatives, such as a parent, often decline the request to be co-signer because of the high risk.

    Considerations

    • Having a co-signer on a credit card is just as big a risk for you as it is for the other borrower. The co-signer has the same rights to the account as you. This means the co-signer can make purchases on the account and if he chooses not to pay the balance, you must pay it. If a non-relative is on the account, it might be easy for him to evade you if you ask him for repayment.

    Tip

    • If you cannot acquire a credit card on your own, this is a sign you may be a risky borrower. Consider becoming an authorized user on another person's account to build your credit rating. The primary borrower can give you your own card and remove you from the account much more easily than if you were a joint borrower, and you are not responsible for the bill. You should have source of verifiable income if you are under 21, because the 2009 Credit CARD Act of 2009 requires this for a lender to approve you for an account. If you have some income, you may qualify for a starter credit card, such as department store account or credit card secured by a savings account, on your own.

SHARE
RELATED POSTS on "Health & Medical"
How to Configure ANT for Weka
How to Configure ANT for Weka
Diet Planning After Colon Surgery
Diet Planning After Colon Surgery
How to Treat Warts With Alternative Remedies
How to Treat Warts With Alternative Remedies
Why Use Bee Pollen for Cooking?
Why Use Bee Pollen for Cooking?
The Effects of Eating Diatomaceous Earth
The Effects of Eating Diatomaceous Earth
How to Stop Menstrual Spotting
How to Stop Menstrual Spotting
Medicare Physical Therapy Regulations
Medicare Physical Therapy Regulations
Woodworking Safety Checklist
Woodworking Safety Checklist
Homemade Mosquito Repellent With Listerine
Homemade Mosquito Repellent With Listerine
What Is the Difference Between Trans Fat & Saturated Fat?
What Is the Difference Between Trans Fat & Saturated Fat?
Pearl Powder & Acne
Pearl Powder & Acne
How to Treat Gum Disease (Gingivitis) Naturally with Herbal Remedies 2
How to Treat Gum Disease (Gingivitis) Naturally with Herbal Remedies 2
How to Cure ADD Symptoms Naturally
How to Cure ADD Symptoms Naturally
The Best Well-Kept Secret Herbs to Cure Depression
The Best Well-Kept Secret Herbs to Cure Depression
What Foods Are Bad for Arthritis?
What Foods Are Bad for Arthritis?
How Much Fish Oil to Take for Heart or Cholesterol?
How Much Fish Oil to Take for Heart or Cholesterol?
The Dangers of a High-Protein Diet
The Dangers of a High-Protein Diet
AA Pros & Cons
AA Pros & Cons
How to Apply for Food Stamps in Polk County, Florida
How to Apply for Food Stamps in Polk County, Florida
Exercises to Reduce Breast Size at Home
Exercises to Reduce Breast Size at Home
How to Store Bee Pollen
How to Store Bee Pollen
Contac Side Effects
Contac Side Effects

Leave Your Reply

*