There is a concerning increase in co - signers on auto loans in the US ; a recent survey revealed that of the 2,000 co - signers , over half helped someone obtain a car loan , more than twice as many as had helped with a personal loan , according to CreditCards.com . The fear is that , as we recently noted , auto loans topped $ 1tn for the first time for Q1 2016 with increases in both the share of subprime borrowers and loans that are 30 - 60 days delinquent ; co - signing could put someone on the hook for the entire amount outstanding if the primary borrower can not , or wo n't , pay up . In fact , the Federal Trade Commission has warned that in some US states they can even try and extract the money owing from the co - signing first . ... Of the co - signers in the CreditCards.com survey , nearly 40 % ended up having to pay for at least part of the bill , while 28 % of them saw a drop in their credit score due to the primary borrower 's bad credit habits .
There is a concerning increase in co - signers on auto loans in the US ; a recent survey revealed that of the 2,000 co - signers , over half helped someone obtain a car loan , more than twice as many as had helped with a personal loan , according to CreditCards.com . The fear is that , as we recently noted , auto loans topped $ 1tn for the first time for Q1 2016 with increases in both the share of subprime borrowers and loans that are 30 - 60 days delinquent ; co - signing could put someone on the hook for the entire amount outstanding if the primary borrower can not , or wo n't , pay up . In fact , the Federal Trade Commission has warned that in some US states they can even try and extract the money owing from the co - signing first . Of the co - signers in the CreditCards.com survey , nearly 40 % ended up having to pay for at least part of the bill , while 28 % of them saw a drop in their credit score due to the primary borrower 's bad credit habits .