UAE: I plan on standing guarantee for a loan. What are the risks?

UAE: I plan on standing guarantee for a loan. What are the risks?

Dubai: There's more to standing guarantee or co-signing a loan than just lending your signature. Before you help a family member or a loved one, make sure you understand the impact co-signing a loan can have on your finances and credit score. When you stand guarantee or co-sign on a loan or credit card application, you formally take on legal responsibility for the account, which means any debt and payments will appear on your credit report. But let's briefly walk through what exactly co-signing entails. When you co-sign a loan, you are guaranteeing to pay off somebody else's debt if the borrower stops making payments for any reason. The most significant reason a co-signer is involved when taking a loan is that a co-signer helps a borrower get approved by adding their name to the application. In addition to being responsible for repaying the loan, if the borrower cannot or does not repay, a co-signer may also have to repay interest amounts that get accumulated, any late fees that may have piled up, or charges incurred by any debt collection agency - if they have been assigned to collect dues. Being a co-signer is different from being a co-applicant as