Archive for June, 2008
Being a co-signer on a personal loan for a friend or family member is a very generous offer as it will likely mean the difference between them being able to qualify for such a loan and not being eligible. However, the decision of being a co-signer for a personal loan should not be made lighter. It is the responsibility of potential co-signers to educate themselves about how this situation affects them, especially with regard to their responsibility to the loan should the borrower default.
Most co-signers don’t realize that this loan is going to show up on their credit report. Keep in mind that this might affect your ability to get your own loan down the road as the personal loan you co-signed on with by used to calculate your debt to income ratio. It can also affect the interest rate you get your own loans at. If you feel it is a good idea to co-sign a personal loan for a friend or family member, do so with the understanding that after a set amount of making on time payments the borrower will attempt to redo the loan under their own name only. The more money you co-sign for, the longer you can expect to be a part of that loan.
Since the loan can both positively and negatively impact the credit rating of the co-signer it is important to set the loan up so that they co-signer can access the account information. This will allow you to find out what has been paid on the loan and what is still owed. Make sure the lender will inform you of any late payments or non-payment issues with the borrower as soon as they happen. Too often co-signers aren’t aware there was an issue with the loan until it has already impacted their credit.
While co-signing a loan for a friend or family member can help them, be aware of how it will affect not only your credit but your relationship as well. Nothing can sour relationships faster than money issues. It is important for a co-signer to look at the circumstances that lead to the individual needing one in the first place. If it comes down to simple money mismanagement, then you aren’t doing them or yourself any favors. However, it is the result of circumstances they had no control over you may want to consider it.
To minimize your risk as a co-signer, don’t make it habit of offering to do so for friends and family. The word will spread like wildfire with more requests heading your direction. If you don’t feel your own credit and finances can’t hold up if the borrower doesn’t repay the loan, then do not co-sign for a personal loan. It can be difficult to say no, but it is important you are able to.
You might consider having the borrower provide your with verification that payments are being made including regular statements or cancelled checks. To further reduce your risk as a co-signer insist the borrower purchases personal loan insurance that can cover loan payments for a particular amount of time due to unemployment, illness, or death.
Co-signing a personal loan for someone is more than giving your signature. You are putting your financial history and worthiness on the line for that person. It is important that you carefully review the borrowers need for the money as well as their spending patterns. If they owe other people money or continually live beyond their means, walk away with a clear conscious. There are times that being a co-signer on a personal loan is the right thing to do. Only you can make that decision. If you decide to go forward with it make sure you can afford the cost of any missed payments and that the lender is going to keep you informed on the payment status on the personal loan.
To get more loan advice tips and resources please visit The-Loan-Insider.com
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UPDATE: US Senate Votes To Proceed On Climate Change Bill
CNNMoney.com - By Siobhan Hughes WASHINGTON -(Dow Jones)- The US Senate voted Monday to go forward with legislation to cut greenhouse-gas emissions dramatically by … US coal lobbyists unveil nightmarish vision of life after cap-and … The real price of climate change Q&A: the Climate Security Act |
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San Luis Obispo fraternity house goes green
San Francisco Chronicle, USA - A fraternity at Cal Poly San Luis Obispo has a plan that's more "green" house than "Animal House." Lambda Chi Alpha members at the polytechnic university … |
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An extremely green house in Poquoson
The Virginian-Pilot, VA - He and his wife, Trina Duncan, live in a green home in a green neighborhood that they developed. Garden Atriums of Poquoson isn't big - it's a cluster of … |
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Taiwan pledges to reduce greenhouse gases by planting trees …
International Herald Tribune, France - AP TAIPEI, Taiwan: Taiwan may allow its industries to plant trees in mainland China and other countries to help reduce "greenhouse" gases blamed for global … |
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Of greenhouse gases and greenbacks
Los Angeles Times, CA - seeks to reduce greenhouse gas emissions to 66% below 2005 levels by midcentury. Companies that cut gases even more than that could sell pollution rights to … US Senate Opens Debate on Climate Change Bill Senate agrees to debate climate bill Bush criticises Senate emissions reduction bill |
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Green Thumb wants to put retail store in 1940 Los Gatos house
San Jose Mercury News, USA - Town planners say the house was built in 1940, but it has not been lived in for at least five years. Green Thumb's manager, Kathy Brigante, currently uses a … |
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Economy woes weigh on UN climate talks
Swissinfo, Switzerland - The present Kyoto pact caps the greenhouse gases of some 37 industrialised countries, but not those of the world's top two emitters — the United States and … EU urges climate change action New round of climate talks opens in Germany Soaring living costs cloud UN climate talks |
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AM Greenlist: Reducing illegal dumping, greenhouse gases
Los Angeles Times, CA - A bill to reduce greenhouse gases to 66% below 2005 levels will hit the Senate floor this week. Richard Simon of the LA Times reports that the argument … Warner's greenhouse-gas bill clears first hurdle in Senate Cap And Trade Comes To Congress  Comment by Dr. Frank Ackerman, Economist Tufts University & Stockholm Environment Institute |
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Rick Green: Clean Up This Mess, Please
Hartford Courant, United States - Paint your house. Fix the broken windows. Don't store piles of debris all around the place. Keep the rats out. Do that and we get along fine, … |
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