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This month's finance tip is
all about cosigning an auto loan. Before you do it, you might
want to think twice. Aside from the obvious risks of falling
out with the per-son who you signed the loan with, there are more
difficulties in refinancing an auto loan when more than one person
is on it. First of all, it is important that both per-sons
have good credit in order to make refinancing work. If one
person's credit is bad, that could make refinancing difficult.
Secondly, auto loans are secured loans, meaning if you borrow more
than the loan is worth, you are looking at higher inter-est rates to
begin with. |
