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A co-signer is a person—such as a parent, close family member, or friend—who pledges to pay back the loan if you do not. This can be a benefit both to you and your lender. A co-signer takes full responsibility to pay back the loan. Having a co-signer on your loan gives your lender additional assurance that the loan will be repaid. If you do not repay your loan, your co-signer will be liable for repayment even if the co-signer never drove your vehicle. If you’ve been asked to co-sign a loan, you should consider how it will impact your finances.

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