We all know cosigning on a loan is not a decision to be made lightly. When deciding, here’s something else you’ll want to consider: 38 percent of cosigners end up paying the debt they sign off on.


We’ve told you when you should (and shouldn’t) cosign, but a new survey from CreditCards.com found that 4 in 10 cosigners lose money. They interviewed over 2,000 cosigners and found:

Lost money: 38 percent of co-signers had to pay some or all of the loan or credit card bill because the primary borrower did not. Credit damage: 28 percent experienced a drop in their credit score because the person they co-signed for paid late or not at all. Hurt relationships: 26 percent of respondents said the co-signing experience damaged the relationship with the person they co-signed for.


Of course, you should think twice before cosigning in general, but it’s an even riskier option if you’re already struggling financially and the borrower has a shaky financial history. For more on their survey, head to the link below.

Poll: 4 in 10 co-signers lose money | Creditcards.com