Who is a co-signer?

A co-signer is an individual who signs a loan or credit agreement alongside the primary borrower, thereby sharing the responsibility for the debt. This person essentially agrees to pay back the loan if the primary borrower fails to do so. Co-signers are often required when the primary borrower has limited credit history or a low credit score, providing a form of assurance to lenders that the loan will be repaid.

In this context, the definition of a co-signer specifically highlights their role in contributing to the creditworthiness of the primary borrower by backing the loan agreement, which is critical for understanding loan dynamics and responsibilities. By having a co-signer, lenders may feel more secure, as they have another party to pursue for repayment if necessary.