Overview

• Young people usually need a bit of help establishing credit, and many credit card companies recognize this fact. Although people with little credit history, or bad credit, can build credit on their own by applying for department store credit cards and gas station cards, this process takes time. Having a cosigner who's willing to use her good credit to assist can make a line of credit accessible in less time than building credit without a cosigner. Cosigners can also benefit from cosigning if the person they cosign for uses the line of credit responsibly.
  
  

Credit Cards

• Many major credit card companies allow cosigners to guarantee a line of credit. Credit card companies that are willing to accept cosigners often use separate applications for those seeking credit with a cosigner. It's important to make payments on time and to avoid maxing out the credit card, as cosigners can be affected negatively if the credit card is used irresponsibly. When researching credit card companies that accept cosigners, it's important to find a company offering reasonable interest rates.
  
  

Student Loans

• The majority of undergraduates can get federal student loans without a cosigner. However, sometimes a cosigner is necessary. Oftentimes, parents cosign private student loans for their children, particularly when the child needs a larger loan to cover living expenses. Parents do risk hurting their credit scores in the event their child defaults.
  
  

Other Considerations

• Individuals in need of a line of credit can often look to cosigners to assist. Oftentimes, loans and lines of credit can be obtained through credit unions for automobile purchases, home repair and credit consolidation. It's important to make sure any line of credit obtained with the help of a cosigner is used in a responsible manner.