Difference between revisions of "Co-Signing or Guaranteeing a Loan"

Co-Signing or Guaranteeing a Loan (view source)

268 bytes removed , 22:52, 16 November 2023

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 ==Protect yourself==
-===The steps involved===
+===Step 1. Ask questions before guaranteeing or co-signing a loan===
-Taking these steps can prevent problems when co-signing or guaranteeing a loan.
-'''Step 1.''' Ask questions<br>
-'''Step 2.''' Ask the lender to keep you informed<br>
-'''Step 3.''' When the loan is paid off
-===More on each step===
-'''Step 1. Ask questions before guaranteeing or co-signing a loan'''<br>
 Before putting yourself at risk, ask questions like:
 * Why does the lender want a co-signer or guarantor?
@@ Line 44: / Line 37: @@
 * Can you afford to pay off the loan if the borrower can’t?
-'''Step 2. Ask the lender to keep you informed'''<br>
+===Step 2. Ask the lender to keep you informed===
 Ask the lender (in writing) to keep you informed in writing of all activity on the loan. This can help you catch a problem before it’s too late.
-'''Step 3. When the loan is paid off'''<br>
+===Step 3. When the loan is paid off===
 Once the loan is fully repaid, take steps to end your responsibility. For example, ask the lender to return the original loan document to you. Or ask for a document releasing you from all liability for the debt. This could be a letter of acknowledgment, a copy of the borrower’s discharge, or a release.