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Question
isabel is a young student trying to buy a new car. she does not have a credit history, so her mom has agreed to include her name on the loan application along with isabel.
choose an answer from each dropdown list that correctly completes the sentence.
isabels mom is acting as a , which means tha if isabel defaults on the loan.
When someone co - signs a loan (which is what Isabel's mom is doing by including her name on the loan application), they are legally responsible for the debt if the primary borrower (Isabel in this case) defaults. A co - signer's role is to guarantee the loan. If the main borrower fails to pay, the co - signer has to step in.
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First dropdown: co - signer. Second dropdown: she is legally responsible for repaying the debt.