Craigslist Loan Co-Signer Borrower Desperation Move
Craigslist Loan Co-Signer Never a Good Move
I’ve been hearing about this one for a while. Would be borrowers with either no credit history or truly terrible credit have been advertising on Craigslist for co-signers. It seems as though anyone stupid enough to fall for this scheme probably deserves what they get. These requests are usually found in Craigslist’s “Financial Services” section. is it worth jeopardizing your credit score for a few quick dollars?
Borrowers looking for co-signers finding Scammers
These borrowers are easy targets for scammers. The Craigslist Loan Co-Signer answering the ad is going to ask for enough personal information to steal their identity as well as the money they are offering for the service. Anyone naive enough to respond to one of these ads is likewise at risk of identity theft as well as loss of their money. It is self evident that the one placing the ad has already been deemed a very bad risk by all lenders. This is anything but the promise of easy cash that it claims to be.
Co-Signing Never a Good Idea
Is co-signing ever really a good idea anyway? The FTC says that as many as 3 out of 4 co-signers are called upon to pay loans that are in default. It can be hard to say no to a family member or close friend who has fallen on hard times. Especially hard when these hard times are through no fault of their own. Make sure that you yourself are willing and able to lose your money when the inevitable time comes for you to pony up yourself as you are legally obligated to do. Be especially careful to stay on top of the situation before your own credit is harmed by someone else’s problem. Even if the borrower and co-signer sign a contract that says the co-signer is not responsible for the debt the bank can still go after the co-signer when the borrower defaults.
I have written at a little more length regarding the pros and cons of co-signing for a child or close relative. To summarize my thinking I say why not make a separate independent loan to increase their down payment for that home or auto they just have to have? Unless they are really not ready at all or not even close to qualifying for the loan that should make the difference for them. You could take out a separate private recorded mortgage if you are smart. If that won’t do it you are really not doing them any favors by co-signing. They simply are not ready.