Question

question 2 of 9
what is the correct defintion of a cosigner for a loan?
someone who will pay a loan for a borrower.
someone who will pay the electric bills for a borrower
someone who will promise to pay a loan if the borrower doesnt.
someone who signs the loan documents.

Explanation:

A cosigner is a person who agrees to be responsible for a loan if the primary borrower defaults. The first option is incorrect as the cosigner doesn't automatically pay but is liable if the borrower fails. The second option about electric bills is irrelevant. The fourth option is too vague as just signing documents doesn't capture the liability aspect.

Answer:

C. Someone who will promise to pay a loan if the borrower doesn't.