Loan co-signers are responsible for any payments that the borrower misses. If the borrower defaults, the co-signer is also responsible for the full amount of the loan.The act of simply co-signing a loan will not impact your credit scores. However, that doesn’t mean co-signing is without risks. Because a co-signer co-owns the debt alongside the primary borrower, the debt will appear on a co-signer’s credit history along with a record of any loan payments. If the lender reports the debt to any of the three nationwide credit agencies (Equifax®, Experian® and TransUnion®), the loan will be reflected on the co-signer’s credit reports. The co-signers credit scores may be impacted if payments aren’t made on time. Negative behavior — such as a missed payment or a default — can hurt the co-signer’s credit scores just as badly as (if not worse than) the primary borrower’s credit scores. Additionally, in the event of a default, lenders and collections agencies may attempt to collect the debt directly from the co-signer.

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