If you need to obtain a loan or rent an apartment but can only do so if you can find a cosigner, you should begin considering your options. Most people find a cosigner among their family, friends, and acquaintances. You will need to select somebody who is financially stable and who has good credit. Another consideration is your relationship with this individual. If you find yourself unable to meet the obligations of the loan or lease for which you need a cosigner, a significant financial burden may be transferred to your cosigner. Many times, this can adversely affect your relationship with this person, and in some cases damage to a relationship may be irreversible.
When attempting to find a cosigner, you should prepare yourself by putting together a thorough explanation of your circumstances and why it is you need a cosigner. You should also develop a plan that you can show to a potential cosigner, explaining how you intend to meet your obligations. By having a plan in writing to show a potential cosigner, you may better be able to put the cosigner's mind at ease. You may wish to offer the potential cosigner demonstrations of accountability, such as providing him or her with monthly statements showing that you are making payments as agreed. It is also a good idea to find out the qualification requirements set by a lender or a landlord before setting out to find a cosigner so that you can find out if a potential cosigner will actually qualify you for the loan or lease that you want.
Many people first attempt to find a cosigner by contacting immediate family members. These family members often have an emotional involvement in the borrower or renter and are genuinely motivated by a desire to assist him or her in finding a place to live or getting the money that he or she needs. Other family members may also be good candidates as cosigners, particularly if they are in a very good financial position and may not suffer significant damages if the primary bower or renter defaults on his or her obligation. Some people may also approach friends for assistance, once again because a friend may be financially much better off than either the borrower or his or her family members and may not only qualify for a better lease or loan, but may be better able to withstand the consequences of default.