Cosigning a Loan: Definition, Responsibilities & Risks

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is a cosigner agreeing to do?

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1. What is the biggest responsibility of the cosigner?

2. What is the biggest risk to the cosigner?

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About This Quiz & Worksheet

Working through each section of the quiz and worksheet helps you check your understanding of loans and the process of cosigning them. Cosigning rules and responsibilities of the cosigner are some topics you will be quizzed on.

Quiz & Worksheet Goals

The multiple-choice quiz assesses your knowledge of:

  • The biggest risk to the cosigner
  • Why you would cosign for someone
  • What happens to the cosigner if the loan isn't paid
  • The purpose of cosigning something

Skills Practiced

  • Information recall - access the knowledge you have gained about the biggest role of the cosigner
  • Critical thinking - apply relevant concepts to examine information about risks of cosigning in a different light
  • Interpreting information - verify that you can read information regarding what cosigning is and interpret it correctly

Additional Learning

Take some time to explore more topics in the lesson Cosigning a Loan: Definition, Responsibilities & Risks. The lesson helps you:

  • Examine the benefits of getting a loan cosigned
  • Identify the risks of cosigning
  • Learn who can cosign for people
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