Credit Card Co-Signers

[californiaboy935]

Why have most big banks done away with co-signed credit card approvals? Just my own observation. Not an Objective researched view. The only time ive seen it offered is through Credit Unions. 

[Anonymous]

I believe BoA and US Bank still offer co-signers. 

As for why the majority of banks don't? Probably because of added unnecessary risk. It doesn't make much sense with a credit card honestly. There are secured products, products geared for students, and there are authorized user accounts available if one needs revolving credit. Installment loans don't tend to have as many options so co-signers are much more likely to be necessary there.

[californiaboy935]

Thanks @Saeren your always a huge help. 

[soxfaininfl]

BOA offers it. I was just told last month that was the only way I would get approved for a secured card with them. They declined me because of my BK7.

[Anonymous]

I have noticed the same thing. It's probably not as needed as it once was, or just creates more headaches than it's worth. Especially when it comes time for seperation, or even default?

Most Banks advertised it as a means for people with subpar credit to possibly get a boost from a friend/family member with better credit.

With so many credit products geared towards those lower tier credit applicants these days, it really isn't needed. 

A fee months back I was considering being a co-applicant for someone who couldn't get one on their own, but had found out that not many do that anymore.

[CreditInspired]

I would never co-sign for any type of credit unless it was for my spouse and then that's not guaranteed.

The downside is too great if/when the relationship sours, whether it's a best friend, relative, significant other, grown children, or even a parent. Stuff just always seem to happen that ends up negatively impacting the co-signor no matter the good intentions of the co-signee. 

In hindsight, it's really a good thing that it's not widely offered. This gives the intended co-signor an opportunity to say no without looking like the bad guy, although I can easily say no--even with an "are you serious" look--without a second thought. 

[recoveringfrombk7]

My mother cosigned my student loan refinance because I was stuck in crazy predatory private loans (12%+) and after the bk understandably no one wanted to help me out even though I had graduated with an advanced degree and was now making 6 figures. I'm paying it down really aggressively because my mom is overextended with her own credit and I feel really terrible that I'm affecting her DTI to the degree I am (started at 48k last year, at 34k now, so I'm just hopeful that after the next 12k I pay off this year it will potentially help her or at least have neutral effect by the end of the year).

I would not have blamed her if she had said no. I regret doing it anyhow because it wasn't really her problem to begin with.

[Anonymous]

US Bank does it. Citibank does it, at least through DSNB.

[Anonymous]

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@CreditInspired wrote:

I would never co-sign for any type of credit unless it was for my spouse and then that's not guaranteed.

The downside is too great...

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100% agree. If someone needs money I would probably just give them cash and have a private side agreement contract. I would consider co-signing for an apartment only for my child if they were living alone and only if I could cover the rent easily in addition to my own housing expenses and if there was a way to get out of lease if need be by finding a new tenant. 

There are plenty of co-signing companies out there these days for many products. Banks have pretty tight algorithms and honestly if someone isn't approved for a loan/credit product more often than not they shouldn't be getting it. I know from experience.