Cosigner

(redirected from Cosigners)
Also found in: Dictionary, Thesaurus, Legal.

Cosigner

A term referring to a person, other than the principal borrower, who signs for a loan. The cosigner(s) assumes equal liability for the loan.

Cosigner

A third party to a loan who provides a guarantee that a loan will be repaid. The guarantee by the cosigner reduces the risk that the lender will lose the money he/she has distributed to the borrower. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability for it. A cosigner may be an institution, but is often a relative or friend of the borrower, especially for personal loans. Persons with little or poor credit history sometimes cannot receive a loan without a cosigner. See also: Surety.

cosigner

A person who signs a promissory note in such a capacity that he or she has equal and primary liability with another. Contrast with a guarantor, who is liable only if the original obligor defaults. A cosigner must list the promissory note as a liability on financial statements; a guarantor has only contingent liability which may never ripen into full liability.

References in periodicals archive ?
Applying with a cosigner may increase the likelihood of approval and access a more favorable interest rate.
Seventeen percent of their cosigners did not find out about the problems right away
Seven percent of cosigners took on the debt once the primary signer faulted
March 31, 2014 /PRNewswire/ -- Nine in 10 Millennials are familiar with cosigning and nearly two thirds used a cosigner in the past, according to a new survey from Experian Consumer Services.
In today's market, young adults will likely need a cosigner at some point and will turn to their parents for help," said Ken Chaplin, senior vice president of marketing for Experian Consumer Services.
Survey results indicate that two in three Millennials needed a cosigner in the past, which most often was for college loans (35 percent) or residential leases (32 percent).
During the last four academic years, more than 90 percent of undergraduate and 75 percent of graduate private student loans included a cosigner.