Co-signing a $50K loan may affect credit profile
A recent college graduate is being asked by her parents to co-sign a $50,000 personal loan to consolidate credit card balances with high interest rates.
The parents, who earn a combined $90,000, cannot qualify for a favorable rate on their own.
The graduate is hesitant, fearing the loan could impact her debt-to-income ratio and reduce financial flexibility.
She is also concerned about the potential consequences if her parents fail to make payments.