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Marlon has a great credit score. Marlon’s cousin has no credit history, and has asked Marlon to co-sign a new car loan with him. Before he agrees to the request, what should Marlon keep in mind if he wants to protect his own credit score?

a. His cousin might end up with a nicer car than Marlon.
b. Does his cousin have a driver’s license?
c. Why should he help his cousin out when Marlon doesn’t even own a car?
d. If his cousin doesn’t make the payments, it can hurt Marlon’s credit score.

User Swuk
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1 Answer

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Final answer:

Marlon should keep in mind that if his cousin doesn't make the payments, it can hurt Marlon's credit score. When Marlon co-signs a car loan with his cousin, he becomes equally responsible for repaying the loan.

should carefully consider the financial responsibility and assess if his cousin has a stable income and repayment history.

Step-by-step explanation:

Marlon should keep in mind that if his cousin doesn't make the payments, it can hurt Marlon's credit score.

When Marlon co-signs a car loan with his cousin, he becomes equally responsible for repaying the loan. If his cousin fails to make the payments on time or defaults on the loan, it will reflect negatively on Marlon's credit history, potentially lowering his credit score.

This can make it difficult for Marlon to secure future loans or receive favorable interest rates.

It is important for Marlon to carefully consider the financial responsibility he is taking on by co-signing the loan and assess if his cousin has a stable source of income and a reliable repayment history.

Marlon should also communicate openly with his cousin about their mutual financial obligations and discuss a plan for making timely payments to protect both of their credit scores.

Marlon should keep in mind that if his cousin doesn't make the payments, it can hurt Marlon's credit score. When Marlon co-signs a car loan with his cousin, he becomes equally responsible for repaying the loan.

should carefully consider the financial responsibility and assess if his cousin has a stable income and repayment history.

User DJIDave
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