Co-Signing Loans Annapolis MD

If you have good credit, you may be asked to co-sign for a loan in Annapolis at some point. Perhaps your child needs to borrow money to buy her own car but has never had any credit in her name. Or maybe your cousin is recently divorced and needs to borrow money to make a new start.

Thaddeus Toal
Rockwood Wealth Management
(410) 224-0097
200 Harry S Truman Parkway, Suite 300
Annapolis, MD
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, Estate & Generational Planning Issues, Retirement Plan Investment Advice, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, CFP®

Martin Hopkins
Hopkins Investment Management, LLC
(410) 757-7980
12 Francis Street
Annapolis, MD
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Estate & Generational Planning Issues, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CFP®

James Ludwick
MainStreet Financial Planning, Inc.
(410) 695-1556
2327 Sandy Walk Way
Odenton, MD
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Real Estate Investments, Retirement Planning & Distribution Rules, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, CFP®

Mr. Joseph M. Feldman, CFP®
(301) 261-1666
1206 West St
Annapolis, MD
Firm
Feldman Wealth Advisory

Data Provided by:
Mr. Robert E. Saunders, CFP®
(443) 837-1064
180 Admiral Cochrane Dr Ste 550
Annapolis, MD
Firm
Ameriprise Financial Inc.
Areas of Specialization
Business Succession Planning, Comprehensive Financial Planning, Education Planning, Estate Planning, Insurance Planning, Investment Management, Retirement Income Management
Key Considerations
Average Net Worth: $1,000,001 - $5,000,000

Average Income: $250,001 - $500,000

Profession: Business Executives

Data Provided by:
Brian Booth
Rockwood Wealth Management
(410) 224-0097
200 Harry S Truman Parkway, Suite 300
Annapolis, MD
Expertises
High Net Worth Client Needs, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, CFP®

Patricia Currey
Currey Financial Consulting, LLC
(410) 956-0655
810 Caroline Lane
Edgewater, MD
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CEBS, CFP®

Mr. Joshua P Goldsmith, CFP®
(410) 573-5700
441 Defense Hwy.
Annapolis, MD
Firm
Scarborough Capital Management, Inc.
Areas of Specialization
Asset Allocation, Education Planning, Employee and Employer Plan Benefits, General Financial Planning, Insurance Planning, Investment Planning, Long-Term Care

Data Provided by:
Mr. Russell R. Harada, CFP®
(443) 837-1066
180 Admiral Cochrane Dr
Annapolis, MD
Firm
Ameriprise Financial

Data Provided by:
Mr. Michael T. Long, CFP®
(410) 266-5250
170 Jennifer Rd Ste 270
Annapolis, MD
Firm
Long Financial Services
Areas of Specialization
Retirement Income Management, Retirement Planning

Data Provided by:
Data Provided by:

Co-Signing Loans

co sign loansFor those with flawed or non-existent credit records, it can be quite difficult to borrow money. In many cases, the only way for them to do so is to obtain a co-signer. This allows the lender the opportunity to collect from someone with a better credit record if the borrower defaults.

If you have good credit, you may be asked to co-sign for a loan at some point. Perhaps your child needs to borrow money to buy her own car but has never had any credit in her name. Or maybe your cousin is recently divorced and needs to borrow money to make a new start. Whatever the reason may be, it’s important to know the potential consequences of co-signing for a loan before you go through with it.

Co-signing subjects you to a number of risks, including the following:

  • If the borrower misses payments, your credit could be adversely affected. Even though you’re not the one making the payments, you’re still on the hook for them. And in most cases, the lender is not required to notify a co-signer of missed payments. Your credit rating could be taking a nosedive through no fault of your own and without your knowledge.

  • The lender is not required to attempt to collect the debt from the borrower before going after the co-signer. The bills and late notices may come to the borrower, but if there is a default, the co-signer may be the one who starts receiving calls from a collection agency. Lenders know that they are more likely to receive payment from someone with good credit, so use their resources to pursue the co-signer rather than going after someone who is less likely to pay up.

  • Co-signing for a loan can prevent you from borrowing money for yourself. Even if the borrower makes every payment on time, the outstanding balance is displayed on your credit report. This raises your debt-to-income ratio, and could result in denial of credit when you need it.

  • If the borrower fails to repay his debt and you can’t pay it for him, you could lose your property. The lender could take any collateral that you put up for the loan and sell it. Even if property obtained with the loan is repossessed, you could still be liable for the difference between the selling price and the amount owed. If you don’t pay, the lender may be able to put a lien on your home or garnish your wages.

  • Co-signing a loan for anyone is risky business. Lenders require a co-signer because they do not believe that the borrower will repay the loan, and in many cases, they’re right. Before you sign on the dotted line, think about the ramifications. You might be helping someone you care about in the short term, but it could seriously damage your relationship (and your credit record) in the long term.

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