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Co-Signer
A person who signs a loan or credit application with the primary borrower, accepting responsibility for the debt if the primary borrower defaults.
More Details
A co-signer is an individual who agrees to assume the responsibility of repayment if a borrower defaults on payments of a loan or line of credit.
Example
You need a personal loan but a financial institution may require a co-signer to jointly sign with you in order to approve your loan, which gives them greater security that the amount will be repaid.
Related Terms
Available Credit
The amount of credit currently accessible on a credit card or line of credit. It is the amount that can be borrowed and used for transactions.
Checking Account
A type of bank account that allows the owner to deposit, withdraw, and manage their money using checks, debit cards, and electronic banking services.
Overdraft
A situation in which an account holder writes a check or makes an electronic transaction for more money than is available in their account.

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