I’ve been approached twice about co-signing on loans, once for a close friend and once for a family member. Thankfully I said no both times. Fast forward a few years and although one of them found another co-signer and the other was able to get the loan on their own, they both ended up defaulting.
Talk about dodging bullets!!
All of that to say, my answer would ALWAYS be no when it comes to co-signing loans. However, if you want to let them down gently, just say that you’re planning to buy a (*insert large purchase: house, car, etc.*) in the next year and really can’t afford to have any additional debt on your credit report.
Hi Antoinette! I think some of Carla Dearing’s advice on lending money to family and friends might also apply to co-signing on a loan. Carla wrote about how important it is to be able to respond with a loving no when we can’t afford to do what’s being asked of us, and also to remember: there are other ways of helping besides giving financial support (eg giving advice and encouragement).