Will Cosigning Hurt My Credit?

If youve ever been asked by a friend or family member to cosign on a loan, you might have wondered whether it could hurt your credit. In a strict sense, the answer is no. The fact that you are a cosigner in and of itself does not necessarily hurt your credit. However, even if the cosigned account is paid on time, the debt may affect your credit scores and revolving utilization, which could affect your ability to get a loan in the future.

The effect of cosigning a loan can vary with each situation. Here’s what you need to know before you sign.