At Transform Credit our customers mean everything to us - so we work hard to be as open as possible. We've made this bit of the website for current and potental cosigners, so you'll have all the information about what's expected from you. The most important thing for us is that you feel comfortable, treated in a fair and honest way and that you know what you are saying yes to. That's why we never pay out a loan without going through responsibilities and expectations with you. Being a cosigner is a serious commitment, so it's important that you truly understand the consequences.
A cosigner is responsible for paying the monthly repayments on time and immediately in any event that the borrower does not make the payment.
The cosigner is responsible for keeping in touch with us on the loan and contacting us if we ask them to.
The cosigner understands that they are legally responsible for making sure the full loan contract is stuck to, and cannot leave that responsibility at all until the loan is repaid in full.
If we don't receive the monthly loan repayments, ie if both you and the borrower don't pay, then the loan becomes what's called a "bad loan". If that happens, we'll pass the loan onto a debt collection company. This means that the entire loan must be paid back in one go, immediately. So you won't be able to pay back in smaller monthly repayments any more.
If you also fail to pay back the debt collection company, then both yourself and the borrower could be asked to appear in court. Here, a judge will decide how you'll have to pay back the loan.
It also means that the credit rating of both you and the borrower could be negatively affected. Banks and other credit companies will check your credit score - and if it's too low, they will not lend to you in the future. There may be consequences you don't even consider - such as phone companies declining to start a new credit with you, or having to pay your insurance annually rather than monthly.
This will only happen if you don't keep up with the monthly repayments on the loan. If the borrower fails to make the payments, then you will have to. Of course things happen sometimes and stuff just goes wrong. If you for some reason fall behind on a payment, we will of do everything we can to find a solution together with you. Before debt collection and RKI even become options, we'll have exhausted all other options. And we'll never just do something, we'll always let you know what's about to happen before we do anything. But it's really important that you understand these consequences. This will happen if both of you fail to get the account up to date.
To help you as much as possible, we've put together a simple test which can help you with your decision. Think of it as a "should I be a cosigner? " test.
If for some reason the borrower can't (or won't) pay the monthly installments, are you prepared to do it? Can you afford it?
Do you understand that you'll be responsible for repaying the loan if for some reason the borrower doesn't?
Do you understand that if the loan isn't repaid on time, then there'll be serious consequences for both you and the borrower: we'll pass the case onto debt collection, which means that you'll have to repay the entire loan amount at once. Your credit score will also be negatively affected, which will make it very difficult for you to borrow in the future.
It sounds like you know the borrower really well and trust them. You want to support them in their loan application, and that is also a great thing to help with - as long as you are safe.
If you are ready to register then enter your Transform Credit Loans unique cosigner link given to you by the borrower then enter it here.
For more information check out our Cosigner Responsibility article.