A recent survey focusing on the credit behavior of Millennials (age group 18 to 30) shows that 90 percent are familiar with cosigning and two-thirds have used a cosigner in the past. Cosigning was utilized most frequently for college loans (35 percent), residential leases (32 percent) and auto loans (19 percent).
Of respondents who reported having used a cosigner for a loan or a lease, the majority handle the responsibility of credit fairly well, paying off their account or keeping it active in good standing. The net total of contracts with a cosigner reported in bad standing due to late or missed payments is 8 percent. Lenders may find reassurance in knowing that 54 percent of survey respondents worried about negatively impacting their cosigner’s credit score.
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The majority of Millennials are familiar with cosigning and have tapped a cosigner in the past
