Cosigned Loan
A loan where a second person (the co-signer) agrees to take equal legal responsibility for repayment. If the primary borrower misses payments, the co-signer's credit is damaged and they become liable for the debt. Cosigned loans appear on both the primary borrower's and the co-signer's credit reports.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Co-Signer
A person who signs a loan application along with the primary borrower, agreeing to be equally responsible for repaying the debt if the primary borrower defaults. Both the borrower's and co-signer's credit reports and scores are affected by the account's payment history.
- Installment Loan
A loan repaid in fixed monthly payments (installments) over a set period of time. Examples include mortgages, auto loans, student loans, and personal loans. Unlike revolving credit, installment loans have a fixed balance that decreases with each payment.
Frequently Asked Questions About Cosigned Loan
What does Cosigned Loan mean?
A loan where a second person (the co-signer) agrees to take equal legal responsibility for repayment. If the primary borrower misses payments, the co-signer's credit is damaged and they become liable for the debt. Cosigned loans appear on both the primary borrower's and the co-signer's credit reports.
Is Cosigned Loan important for my FICO® score?
Understanding Cosigned Loan helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.