AUSTIN, Texas, June 6, 2016 /PRNewswire/ -- 38% of co-signers had to pay some or all of the bill because the primary borrower did not, according to a new CreditCards.com report. 28% experienced a drop in their credit score because the other person paid late or not at all. And 26% of co-signers said the experience damaged their relationship with the person they co-signed for.
- Auto loans accounted for 51% of all co-signings. Personal loans (24%), student loans (19%) and credit cards (16%) followed.
- About half of those who co-signed did so on behalf of a child or stepchild. Co-signing for a friend was a distant second.
"With a 38% chance of losing money and a 26% chance of damaging a relationship, co-signing doesn't sound like a very good bet," according to Matt Schulz, CreditCards.com's senior industry analyst. "If you absolutely have to co-sign, then at least be aware there's a sizable chance you'll lose some money and/or get your feelings hurt."
About one in six U.S. adults have co-signed a loan or credit card for someone else.
The survey was conducted by Princeton Survey Research Associates International on behalf of CreditCards.com. Click here for more information:
CreditCards.com is a leading online credit card marketplace, bringing consumers and credit card issuers together. At its free website, consumers can compare hundreds of credit card offers from America's leading issuers and banks and apply securely, online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards. Offering advice, news, features, statistics and tools, CreditCards.com helps consumers make smart choices about credit cards. In 2015, over 27 million unique visitors used CreditCards.com to find the right credit card to suit their needs.
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