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
Trust
A legal arrangement in which one party transfers ownership of property to another person or entity to be managed for the benefit of a third party.
Secured Credit Card
A credit card designed to help repair or establish credit with a predetermined credit limit secured by a collateral savings account.
Clearing House
An institution that processes financial transactions, such as the exchange of securities, between two parties.

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