Before you co-sign, you need to ask yourself what you`re going to do if your friend or family isn`t ultimately able to fulfill their obligations. If you are doing the very serious step of co-sign, you should be prepared to take the financial hit if the rent has to be paid. This may be the only way to secure your credit. You should also talk about it seriously with your friend in order to determine how it might affect your relationship. « It`s not uncommon for tenants to have to compensate for the alleged damages, » says Gerri Detweiler, director of consumer education at Credit.com. « The landlord can use a collection office to ask for money for damages, which would affect the co-signer`s credit. » Do you have a question about co-signting housing rental contracts? Ask ApartmentSearch on Facebook or Twitter. Remember how unpleasant Thanksgiving dinner would be if your brother couldn`t afford the property, then he was late and owed you money. Usually, it turns out that one or the other does not appear because the situation is too unpleasant. Co-igning a housing rental agreement is similar to co-igning a loan.
If you sign a lease or loan for someone, you guarantee payment of the lease or loan. If the person whose housing rental agreement you co-signed does not dream of this lease, you are expected to make the rents. Co-signatories to housing rental contracts often experience the same risk of negative credit impact as people who are actually late in these leases. Adding a positive account can be beneficial for you.