08.14.07 | If you need a co-signer, be careful who you ask!
If you decide to apply for a credit card which happens to be your first, you most likely have a low or non-existent credit score. Therefore, in order for credit card companies to feel more comfortable with you spending their money, they may require a more qualified credit holder to co-sign for this card. What does this mean? Simple - if the primary card holder defaults on paying back balances, not only is their credit score hurt, but the co-signer’s is as well. But, if you need one, what should you do?
Ask first!
Don’t just put your roommate’s name down without asking him/her! Of course, you intend to pay the card balance back each month, but things happen and that balance may carry over. If your roomie decides to check their credit report, and finds it slightly damaged from your excessive spending, they might get more than a little upset!
Parents are good bets
Provided they have strong credit, try mom or dad. They should be more than willing to help you out, and you might be a bit more wary about overspending since you’re riding on their credit line as well as yours.
Want more details on co-signers for credit cards as well as for student loans.
You are right, credit card applications cosigner is a very serious question. If you let down your co-signor and it is your friend, it can even ruin your friendship. That is what happened to me… So, think twice before asking a friend to become your cosigner!
November 12th, 2007 | #