Before 02: Before You Co-Sign a Loan

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Before you co-sign a loan for that friend or family member, it’s a really good idea to think twice. There is a reason the bank needs your signature. The people who work with money every day and earn money from loaning it out think that this person is risky for a reason. No matter how much you love them, that is the case! So ask yourself:

  • Will I still be able to love this person if they walk off with all the money and I get all the debt?
  • Are you ok if your ability to take out loans in the future is impacted?
  • Are you able to forgive that person if you have to bail them out of the whole amount?

Ask the other person:

  • Do you have any other debts at all?
  • Why have the bank said they will not give you this loan?
  • What will happen if you cannot pay and I have to? Will you then pay me? How?

I never recommend that someone co-signs for another, and the Bible says it is a foolish idea (Proverbs 22.26), but at the very least do not do it unless you ask some questions.

Published by

Tree of Life Church

We are a growing network of growing churches, with services weekly in Dagenham, Guildford, Watford, Croydon, Brentwood and Dorset. We are also planting churches in Cambridge, Suffolk, West Midlands and Hemel. Find out more at, and

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