Co-Applicant and Co-signing a loan. is this the same thing?

[autumnrain]

as title states, i am helping a family member get approved for a LOC but the girl from President choice said that Co-sgning and co-applicant is the same thing.
Anyone have any advice where i shoudl go?

[adam c]

a co-applicant is 2 people applying together for the same loan

a co-signer is someone who is securing the loan in case the applicant decides not to pay or cannot pay, then the bank has someone to come after and get their money

[canuckcarguy]

Same thing. Either way, you're on the hook if the account doesn't get paid. and it will affect your own debt servicing ratios, if you go to get financed yourself. Make sure you're absolutely certain about the person you're helping out, and that your own borrowing ability won't be damaged sufficiently to inconvenience you. You should also know why she doesn't qualify on her own - if it's credit history, I'd shy away. Ask the lender when she'll qualify on her own, and make sure that you can get yourself removed from her account after a period of good payments, etc.

[Xtrema]

Is the difference only access to the loan?

Co-sign = no access

Co-app = access

[autumnrain]

oh so no matter what it affects my debt service ratios the same?
mmmm i thought if i was a co-signer it wouldn't have a big effect on my borrowing ability when i make large purchases.

[benyl]

Never co-sign anything unless you are married to the person. Even then, it doesn't guarantee the relationship won't go south.

It will affect your credit.

Can you imagine if you stopped talking to this person for one reason or another. They could take out all the money in the LOC, not make payments and then you would have to make them if you don't want your credit to go bad. Money ruins friendships.

[01RedDX]

.

[benyl]

Oh and remember kids.

If you can't afford it, it is never a good deal... no matter how much you might want it.