A friend offered to co-sign a loan for me. She has excellent credit, homeowner with more than 75% equity, checking, savings and never a bad mark on any CRA. I applied for a personal loan (at her bank) of $500 with her as the co-signer. She had the money in the bank to cover the loan in savings. I have bad credit - that is why I needed a co-signer. The bank refused me the loan even with the co-signer. When my friend asked what was the purpose of a co-signor if not to secure a loan for someone who's credit is not reliable, they were very short and said (to her) "We will give YOU the loan! We will NOT give him the loan!" How common is this?
I would have asked what do you suggest I do to make myself more loan worthy? What didn't they like and could it be corrected?
I wouldn't . . . those rates are along the lines of loan sharks. Focus on cleaning up the previous train wreck.
