Cosigner for an unsecured personal loan?
September 26, 2013 7:21 PM Subscribe
I need to borrow about $20,000 to $25,000 in order to clean up high interest rate debt and get back on my feet. I can't do this on my credit and I have no assets to secure a loan. I do, however, have a dear friend who is wealthy and who, I am pretty sure, would cosign on a loan for me. How does that work?
posted by anonymous to work & money (17 answers total)
I have terrible credit for a variety of reasons that I am trying to resolve. This question isn't directly about my bad credit.
I would rather not approach my friend with the cosigning request unless I already know the ins and outs. I am also really freaked out by the idea of going to my bank with this question. I would rather know before talking to either what the process, possibilities, and ramifications are.
My friend comes from a wealthy family and his income is from a trust. He doesn't have a job, and I'm not sure what assets he owns. He recently sold his home and is in a long term lease at the moment, but it is possible that he is listed as an owner on other family real estate. However, the trust probably has the greatest amount of assets. He has perfect credit, of course.
Would a bank lend me that much with him cosigning? What are the things I'm not considering? I know, for example, that any amount for which he cosigns will decrease his ability to get credit by an equal amount, as he will be on the hook for the whole thing if I default. I don't think that would be an issue for him. Is there any hope for me and my screwed up credit?