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Finance: What is a Co-signer? 7 Views
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Description:
What is a Co-signer? A Co-signer is a 3rd party who agrees to also be held liable for a financial obligation in the event that the primary signer defaults. This is often the case with students, where a parent will co-sign a lease for off campus housing, car loans, or other types of finance when the primary signer runs a higher risk of default.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Banking
- Terms and Concepts / Board of Directors
- Terms and Concepts / Company Management
- Terms and Concepts / Credit
- Terms and Concepts / Derivatives
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Financial Theory
- Terms and Concepts / Investing
- Terms and Concepts / Regulations
- Terms and Concepts / Stocks
- Terms and Concepts / Tech
- Terms and Concepts / Trading
- Terms and Concepts / Trusts and Estates
Transcript
- 00:00
Finance a la shmoop what is a cosigner? well it's just this oh wait
- 00:08
that goes in the trigonometry video people why don't you do this all right [Man discussing trigonometry]
- 00:13
never mind cosigner it's this... okay all right we're in finance so a cosigner is
- 00:19
this there we go it's your mom you really wanted that
- 00:24
condo with the nice view of the park the cool arts district and the local dentist [Dentist office building]
Full Transcript
- 00:29
office nearby for some weird reason but the building owners just didn't trust
- 00:33
you alone to make the payments yourself which makes sense given that you're a
- 00:37
part-time barista who takes at least one sick day every week you blame them so [Sick days marked on calendar]
- 00:42
your condo dream seems a well a bit out of reach luckily for you the bomb
- 00:48
or Bank of mom came in handy when she co-signed the loan along with you all [Mum signing loan agreement]
- 00:54
right what does that co-signing mean well it means that you are the first one
- 00:59
obliged to pay the monthly payments on your loan but if you don't well then the
- 01:03
Bank of America way bigger than the bank of mom can come after mom and she is
- 01:09
directly legally obligated to pay the loans that you promised - hey so yeah
- 01:16
you got your condo dream but mom's living quarters aren't so spacious yeah [Mum laying in a car backseat]
- 01:21
well you made her co-sign for your deadbeat self hanging her butt up to dry
- 01:26
and now she's well enjoying the view from her SUV parked on the curb of the [SUV window winds down and Mum appears]
- 01:31
road outside the dentist hang in there mom you'll get a better
- 01:35
parking lot slot with a view someday
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