Cosigning Loans—A Good Idea?

He or she might be your friend, but think twice before cosigning someone else’s loan. If the other person doesn’t pay up, you’ll have to.

And if you need a cosigner, remember that liking you as a friend isn’t the same as trusting you to pay your debts. You should provide your would-be cosigner with proof of your financial responsibility, to make matters more comfortable for you both.