What does co sign mean Meaning and Definition
What does co sign mean?
Pronunciation
/ˈkoʊ saɪn/
Part of Speech
Noun
Definition
In financial credit, co-signing refers to the act of signing an agreement to assume equal responsibility for another person’s debt, typically for a loan or credit application. This means that the co-signer is liable for the debt and will be held accountable for payments if the primary borrower defaults.
Etymology
The term “co-sign” originates from the financial industry, where it was used to describe the act of signing a document in tandem with another person, often to facilitate access to credit or financial services.
Usage Notes
When co-signing, it’s essential to understand the terms and conditions of the agreement, including the potential risks and consequences of default. Co-signers should carefully consider their ability to repay the debt and weigh the potential impact on their own credit score.
Cultural References
Co-signing has been featured in various forms of media, including films and television shows. A notable example is the movie “The Big Short,” where co-signing is shown as a risky financial strategy.
Idiomatic Expressions or Phrases
- Take someone else’s credit for a ride
- Co-sign and get burned
Related Words or Phrases
- Guarantor
- Endorsement
- Assumer
Collocations
- Co-sign a loan
- Co-sign a credit application
- Co-sign responsibility
Frequency of Use
The term “co-sign” is commonly used in financial contexts and has become a widely recognized term in consumer and business finance.
Common Misspellings
- Co sing
- Co sighn
- Co signe