Sharing Daily Discoveries About Personal Finance And Business Topics

Putting Other People’s Loans In Your Name

I heard this a few times this week where people who are desperately seeking personal and business loans try to find friends or family members to apply for the loans for them. Essentially, it puts all the risk on them as opposed to the person who is intending to use the money. Generally speaking, this is never a good idea I think. Even from all the stories I hear it often ends up getting people in trouble.

As well, chances are the person asking you to take out a loan under your name isn’t too good with money to begin with. One may say they need it for business for example and that they promise to pay you back. Like in that case though I think it’s better to only loan money conditionally if you already have it on hand or that they should simply find ways to run the business with less overhead. If they have a good business too going up to an investor would be a common route to go with as well.

Granted there are exceptions, but odds are you are asking for trouble if you offer someone else to use your name and credit score. Remember to look out for yourself too.

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