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
Individual Retirement Account (IRA)
A type of savings account designed to help individuals save for retirement.
Canceled Check
A physical check that has been paid by the bank and cannot be used again. It may be returned to the payer with their bank statement.
Asset
A resource owned by an individual or organization that has economic value, such as cash, investments, and property.

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