Should You Co-Sign for That Credit Card?
Banks and credit card issuers ask for co-signers when they believe an applicant's income or credit scores makes him or her a particularly risky borrower. While co-signing for a credit card may be a nice gesture, it puts you at serious financial risk of ultimately paying for someone else's spending.
But there are ways you can help someone establish credit history and get access to credit without co-signing for a credit card. Here's why you shouldn't co-sign for a card, and how you can help without putting your financial life at risk.
You have to have a really bad credit score or low income not to qualify for a credit card in your own name. When a bank asks an applicant to get a co-signer, what it's really saying is, "We don't want to risk lending you money, even if we can earn 18% or more in interest."
Source: Fool.com
