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When a friend or family member’s credit score isn’t up to par to get a loan or line of credit by themselves, they may ask you to co-sign on a loan. Co-signing on a loan is using your own credit score and history to take legal responsibility of the line of credit, according to credit bureau TransUnion.  The obligation to repay the loan is not only the borrowers, but also yours. Co-signing a loan for someone else is something you should not take lightly. Your credit score, history and budget will also be impacted by the borrower’s failure or success to repay the loan or line of credit.

Here are a few details you need to know before signing on the dotted line to help someone else financially.

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