Co-signing or guaranteeing a loan

Myth or fact?

Someone who co-signs a loan has the same responsibilities as someone who guarantees a loan.
  • Myth
  • Fact

When lending money to someone with a shaky financial track record, a lender may ask for someone else to “co-sign” or “guarantee” the loan. Often it’s a friend or family member who’s approached. They may not realize what they’re getting into. Learn what you should consider before co-signing or guaranteeing a loan. 

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  • This information applies to British Columbia, Canada
  • Reviewed for legal accuracy in December 2019
  • Time to read: 14 minutes

Reviewed for legal accuracy by

Mario Garcia, CarbonCure Technologies and Ari Wormeli, YLaw Group

Mario Garcia
Ari Wormeli

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