Turned down by a Bank? Try Craiglist

NNMoney reports the latest twist on Craigslist is people looking for co-signers on loans because they do not have good enough credit on their own. A would be borrower in Ohio is offering a tractor and a car as collateral for someone to co-sign a $5,000 personal loan. A student in New Jersey who offered $2,000 to anyone who will loan him $8,000 received numerous responses from scammers, and even paid a matchmaking service to hook him up with someone who would help, but to no avail. While borrowers can easily lose their payment and/or their credit identity, the risk is greater for the lender who may lose their identity, their money, and if the lender defaults, may be on the hook for collection fees, garnishment of wages, and a black mark on their own credit score. John Ulzheimer of SmartCredit says, “You’re co-signing for someone a bank has already identified as someone who doesn’t deserve the loan.” As MHProNews has learned, according to the Federal Trade Commission (FTC), three out of four co-signers are asked to repay loans that have defaulted. A signed agreement between the borrower and lender disavowing the responsibility of the lender will not deter the bank from going after the co-signer.

(Image credit: TotalMortgage)

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