Cosign
The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain financing.
This term is also commonly spelled "co-sign". Investopedia Says:
A cosigner's obligation to repay debt arises only after the borrower has defaulted on the loan; however, cosigning a loan is not without risk. A person cosigning a loan should be comfortable with the borrower's ability to repay the debt. Related Terms:
Co-borrower
Credit Rating
Credit Risk
Impaired Credit
Mortgagor
Subprime Loan
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