Hmmm. This is a highly situational topic. Life is rough as it is, and even when you think you've figured things out financially, it's still difficult to maintain. I'll explain what we did.
First and foremost, my credit and finance is the world to me. I defend it fiercy, as it opens the world to many advantages. I taught my children this early, and by tying them as a additional cardholder, they acquired all the benefits of what we had acquired over the years. Both came out with an 800+ credit score at the time they needed it. Now, this isn't the end all, they still need to provide an income to back up loan requirements.
Before I proceed, I should emphasis that federal loans verses private loans, offer both pros and cons. Federal loans offer cheaper rates, but they don't often provide the entire cost of the loan in full, without being divided up among multiple instituations with multiple loan requests. A private loan will offer you the full amount, at a rate that is higher. Less pieces to deal with, and sometimes the repayment amount may not be as significant as all financial entities piled one upon another.
My eldest went to a community college, where we along with her shared the financial costs together to secure what would be two years worth of college, paid in full. It was manageable, and was able to secure 80 credit hours before transferring into a four year. The balance of the four year, we privatized the loan at an interest only rate until graduation, plus the six month delay on top of it. I co-signed for this one because she showed me over multiple years, how disciplined she was with her finances. Upon her four year graduation, we refinanced the loan into a new loan with a reduction of 3% interest, with myself removed as co-signer. By paying the interest payments, this reduced the accumulation of principle. Instead of graduating with a repayment of perhaps 35k-40k, she only owes 25k at a payment of $210 or so per month. She currently holds a vehicle payment of $135 per month, in which she will pay off in full to offset the new school loan, essentually only costing her $75 more per month in cost.
As a background, she was hired in as a financial intern, earning respectable money for the work she does in finance. The balance of what she earns, minus costs, goes into a CD interest bearing account. Annually, her accumulation of deposits, will surpass her student loan balance. By year two or three she should be able to pay in full, but it's the compound effect of the CD laddering that makes holding out worthwhile. Essentially, she's reducing her student loan down to only two percent owed, while still controlling ALL of her money. It provides options especially after year three.
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My other went through a program that I went through decades before him, only he had the best of all worlds due to it's evolution since then. He started trade school while in high school, as well as early college. Because of this, he barely spent any time in high school in his last two years. Additionally, we acquired a work based program to mix in with this schedule, where he started as an intern in his 11th year. He went to his trade school for a half of day, then co-op worked the other half for a paycheck in a highly respectable field - related to his study. As a senior, he went to college, and he co-op work the other half. This program also provided two years of a paid associates degree in his field. We are now working on the four year program, like we did with our other child.
I may not need to co-sign on a loan with him, but I may. It's going to depend on what the financial institutions say. I believe he has a credit history that satisfies his standing alone, with some financials to support. But to get there, everything has a time and place. You do the best you can with what you know, and you push this knowledge onto your children. I never had this financial education with my parents, I had to learn everything on my own, and walk a path with no guidance. I want my children to have the experience and knowledge that I've accumulated, so they can also replicate it to their children.
So, co-signing on a loan? I say it's situational. How well does your child do with financial obligations? How well have you taught them? What is their temperment in getting things done? What is their drive to succeed? I don't believe you need to place your financial future at risk, but if you feel there is a high chance of success, then plug the numbers and see if it works. In both of my cases, I think it was a grand slam so far. I don't do well with uncertainty, so I plug the numbers. I guide as best as humanly possible, as I want to help ensure results.
I will say, not everyone wants this guidance in life. Some, simply aren't suited for this. I know of a few people that worked in engineering, their children didn't want anything to do with that path. They wanted something else. They fell off the tree for some years, until suddenly, they figured things out later in life. You can only be the guide. It's up to them to accept, deny, or find their own way.
$XXX,XXX in credit lines. First digit isn't a one or two.
4-5 weeks in free credit reward vacations, booked through 2028.
$X,XXX in bank rewards in only 12 months.
I like FREE...
800+ FICO.
Making all numbers dance on a financial ledger.
Abuse that score responsibility for maximum gain.
