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Does Co-Signing for a Loan Affect My Credit?
Many people are afraid to co-sign for a loan for friends or family members. Doing so can have an impact on your credit score. There are a few things you should be aware of before you co-sign for a loan for someone else. This can save you a lot of headaches and a lot of money later on.
First, co-signing for someone else's loan can affect your credit score. The number of open accounts you have will impact your score. If you open a lot of accounts in a short period of time, your credit score can plummet. If you have opened several accounts of your own recently, you should probably pass on co-signing for someone else.
If you do decide to act as a co-signer on someone else's loan, be aware that you are responsible for paying back the loan in the event the other person defaults on the debt. Never sign unless you are willing and able to repay the money in the event that the other person cannot or will not do so themselves.
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