Traditional cosigning is a great way for anyone with a poor credit score, or little to no credit history borrow money, but it can be a risk for the cosigner. At Backed, we have reinvented cosigning. For us, It's not just about the bottom line, it's about the relationship. Unlike traditional cosigning, Backed, Inc. offers several layers of cosigner protection throughout the length of the loan.
In a traditional loan, a cosigner will be alerted of a failed loan only after the loan past it's delinquency and fell into default. At this point. the loan has been loaded with additional late fees, interest, non-sufficient funds (nsf) fees, and more. Then the real trouble begins.
What cosigners don't know is that the default goes on their credit report along with the borrowers. Their credit score is impacted as well, effecting the cosigners ability to get new credit. The lower credit score also means the cosigner will have to pay a higher interest rate on new credit. The worst part is the cosigner won't know about this until an application for a credit card, business loan, or mortgage is either accepted with conditions or outright rejected.
Even if a cosigner pays, a derogatory item stays on the credit record. They do their job right, and are still penalized severely. How fair is that?
When a payment is made, Backed will inform the cosigner. If a payment is missed, the cosigner will be immediately informed. Quite often, after too much time on a single payment passes, the lender will report the delinquency to the credit bureau. It will immediately impact the borrowers credit score. Backed, Inc. will give the borrower and the cosigner a 15-day grace period to make the payment before any type of action becomes necessary. Since the cosigner has also been informed, there are two people working on the solution.
By keeping the cosigner in the loop at every step, both the borrower and cosigner have time to make sure every payment is made, saving all involved money and effort. A cosigner will know well in advance if a payment is not being made, or if a debt is about to go into default. A debt can be paid, refinanced, or transferred without anyone's credit score being touched.
We at Backed strive to protect your most important asset: the trust between the borrower and the cosigner. To protect your financial independence, we make sure everyone involved has every opportunity to make sure each payment is taken care of on time, enabling the borrower to service the debt and increase his credit score. A cosigner can be a borrower's mother, best friend, fraternity brother, roommate, or co-worker. Making sure this experience ends with the same peace of mind that it began is the best way to protect, and nurture these lifelong bonds.
Here are Backed, Inc. rates and fees: