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A cosigner can help you qualify for a loan, but there are risks including impacting the cosigner’s credit score or finances.
Some lenders allow borrowers to apply for cosigner release after several years of on-time monthly payments and a credit check to determine the main borrower can take on the loan without your support.
If your child is seeking a private student loan, you’ll likely need to act as their student loan cosigner. Plus, the loan will appear on your credit report and hike up your debt-to-income ratio.
Credit history, credit score, income, debts, employment and other financial details are all likely to be considered as part of the loan application when you agree to become a co-signer for someone.
New credit: If you apply for a private student loan, the resulting hard inquiry (when a lender asks to see your credit report) may have a slight negative impact on your score. FICO will also ...
With Sallie Mae, a student can apply to release you as a cosigner after they make 12 on-time principal and interest payments and meet certain credit requirements — like passing a credit review ...
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