Having a co-signer on a loan application can either be a good thing or a bad thing. The co-signer can be anyone that you know such as a friend or family member who agrees to share the responsibility for repaying the loan or mortgage if you cannot make the payments for some reason. Usually it is a parent that will co-sign for a child who has no credit or low credit. It can be a good way to build your good credit up and get the results that you are looking for. In other cases, the co-signer's good credit may help someone with poor credit get a loan or mortgage that they would otherwise be denied for.

We all start out with a credit score of 0. Having no credit score is almost as bad as having a low credit score. There is no record of your credibility, which is not very convenient if you are a young adult trying to get a loan for a home or car or college education. There are some parents or guardians who will understand the meaning of having credit and will put their child's name on a utility bill and let them make payments from a job or pay for it themselves. As long as the bill is paid in full and on time, it will put a positive reflection on the person's credibility. It will be a lot easier to move into the world of making a large purchase like a first home when you have good credit to your name. Usually, any long term bills that are being paid on a consistent month to month basis can be used for determining credit.

For those who have poor credit and are in need of a loan, they may have to rely on a co-singer to help them out. No one wants to be in debt and a family member or friend will be more understanding than the institution from where you want to borrow the money. A co-signer must have a good credit score and they must be willing to take over the remaining money that is owed on the loan if, for any reason, the primary borrower cannot make payments.

If you have poor or low credit, a co-signer could be what you are looking for. No matter what your reason for poor credit, it is up to the lender to approve or deny you based on the facts of your credit report. As long as you know someone who has good credit and enough trust in your ability to repay the loan that you are applying for, you may have a good chance to get back to where you want. A co-singer is a good way to establish or re-build good credit for you.