Why do bank’s or other lenders want co-signers?
Because they’re pretty sure they’ll need one!
Banks and other lenders are in the business of making money. If they lose out too often, the go out of business. So, when they are concerned about someone who wants a loan for a car or just about anything else, they’ll ask for a co-signer.
What they’re saying is they EXPECT it’s pretty likely the person taking the loan WON’T PAY IT BACK!
And when that happens, the co-signer is on the hook. It protects the bank; not the person borrowing!
Did you know the Bible actually says it’s STUPID to co-sign or guarantee someone else’s loan?
Don’t co-sign a loan for anyone, for anything. It’s “stupid,” “poor judgement” and “poor sense.”
Don’t believe the Bible says that? Take a look.
For more really, really good advice on staying out of debt, building wealth and being generous, take a look at Dave Ramsey’s website. It’s got tons of good information.
Scripture link: Proverbs 17:18 (Yea, it’s in the Bible!)
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