Co-signing for Loans

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What does co-signing mean?

When you co-sign for a loan, you are agreeing to be responsible for the loan. This means that if the primary borrower (the other person on the loan) stops paying the loan, the loan holder can hold you fully responsible for that debt. 

Why should I AVOID co-signing for a friend/family member?

A loved one may ask for you to co-sign for a loan, such as an auto loan, because they are unable to qualify on their own. Co-signing a loan makes you equally responsible for the debt. If the primary borrower stops making payments on the loan for any reason, you become responsible for repaying the loan. Consider carefully whether you could manage payments by yourself before cosigning any loan.

When should you consider co-signing a loan?

Only consider co-signing a loan if you are financially secure and able to assume full responsibility for the loan payments. 

Will this show up on my credit report?

Yes.

Can I be sued as a co-signer?

Yes.

When would I be sued? Can the lender sue me for the full amount of the loan?

The lender does not care who makes payments; it cares about receiving payments. If no one makes payments on the loan, the loan will go into default. When a loan is in default, the lender can sue the primary borrower, the co-signer, or both for the entire amount of the loan. 

How can I check the loan payment status?

You can call the lender and ask for the payment status as a co-signer. You can also request a copy of your credit report, which will show if any payments have been missed.

How can I be removed as a co-signer? 

You can ask the lender to remove you as a co-signer, but it is unlikely. Lenders rarely grant requests for co-signers to be removed. The Consumer Financial Protection Bureau has a sample letter template that you can use to request the lender to remove you as a co-signer.

What if I only co-signed the loan because I was in an abusive relationship?

New York recently passed a law that allows survivors of certain types of abuse to request to be removed from debts that the survivors took on because they were in an abusive relationship. This is called “coerced debt.” Under the new law, survivors can submit documentation that shows debt was coerced debt. The lender then must review the documentation, conduct an investigation, and, if the lender determines it was coerced debt, hold the right person accountable. 

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This article provides general information about this subject. Laws affecting this subject may have changed since this article was written. For specific legal advice about a problem you are having, get the advice of a lawyer. Receiving this information does not make you a client of our office.

Last Reviewed Date: May 2026