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Do I have Chase written on my forehead?

August 25th, 2008 at 03:20 pm

So this week has been hectic. I'm over my food budget and clothing budget.

I've been covering and doing two jobs since my coworker left. They just got someone new to cover so hopefully they don't need me to do a ton of training.

I also has a longtime friend ask me to co-sign a loan for him. I don't know if anyone has been in this position before, but it's a bit unnerving. I want to help my friend but I have to take a step back and wonder, why is he in the position?

Here's a little background: I've known him since high school and he's had a crush on me since then. We became friends in high school and even though we went to different colleges, we've always kept in touch. We never dated because I've always considered him a friend and was never attracted to him.
So when he asked for me to cosign, I thought about all his bad spending habits. He loves shoes and buys expensive sneakers and italian leather shoes. He also love brand name clothing and would never leave his home in anything less. I mean he's always dressed very well, but he can't afford it on his income.

Now he says he needs money for grad school and to buy a new car. Why didn't he think about that before you spent $400 to $600 on shoes!? I have a shopping addiction but I always had enough money to at least make the minimum payments on my credit cards. I never missed a payment becuase I knew that I wanted a home later in life and I needed good credit to get loans for grad school. My friends knew this, so they all know I have good credit. I guess that made me the Loan Center of the group(yeah right!).

This is the 7th person in the last year whose asked me to cosign a loan! I told him no as nicely as I could. I just have to wonder if I have Chase written across my face. They all seem to want to use my good credit. Furthermore why would a friend put another in a position like that? If I was in the same position, I would be embarassed to let my friends know that I was so irresponsible, I can't get a loan on my own.

10 Responses to “Do I have Chase written on my forehead?”

  1. Ima saver Says:

    Just keep saying no!!

  2. SingleGuyMoney Says:

    You definitely did the right thing saying no. If he is such a good friend, he wouldn't have put you in that position. I've had a close family member ask me to cosign a loan and as hard as it was, I had to say no.

  3. Aleta Says:

    My husband and i have both agreed that when we are approached that we tell the asker that we don't cosign for anyone on either side of the family because we don't want hard feelings.

  4. merch Says:

    From a bank's perspective, they are saying that the person is such a high risk that they are not welling to take a chance on him. If the bank which does this for a living and has a portfolio where they believe x% will be defaulted are not willing to take a risk, then as an amateur I should pass.

    I think you made a very wise choice of not lending to your friend. I would never cosign for my friends, but I would give them cash if they need it, but never a loan.

    The other thing is that currently, you are not in a position to help. You have over $14,400 in debt and you are having problems staying within your budget (food and clothing).

    I am not trying to mean or anything, just taking a look at your financial picture. If you were out of debt, and had some money set aside for emergencies and wanting to give him a few grand to help him out (with no strings attached). I would say go for it. But I don't think you are in that position yet.

    Take care of your self first and then you have more then enough to help other people. Good luck!! And again, I apologize if I sounded harsh, that wasn't my intention.


  5. my english castle Says:

    Money and friends is not a good combination. I've lent money to friends who seemed in desperate situations, and it's a mistake I will not make again. Plus this guy doesn't seem like the best risk in the world!

  6. seven of seven Says:

    You've had 7 people ask you to cosign in the last year? That's incredible! I have never been asked to cosign for anyone (thankfully!) and have never had to ask anyone to cosign for me. Are these people all early 20's? Why don't they go to their families for help? This is just so curious to me.

  7. mom-sense Says:


    I am glad you said no. You at least know this friend for some time. The worst was when I had a first-cousin-once-removed that I had met only twice ask me to cosign on a loan for education - she apparently figured I was one of the few in the family to "value" education. I declined, of course (stifled a laugh) - have I heard from her since then? No!

  8. Broken Arrow Says:

    Hmm? Huh? Wha? Oh no, this is nothing but trouble! Friends don't let friends co-sign loans with friends who think they can even ask for something like this because... they have a crush on you but have bad spending habits??? This guy does NOT even make any sense!

  9. TryingHard Says:

    Hey Merch, I don't think you sounded harsh I think it was honest. Yes I totally agree that I have to take care of myself first.

    Seven of seven- these people were all in their early 20s. It's an epidemic, you would be appalled to see all the credit card recruiters on college campuses. I was one of the luck few who had minimal credit card debt. Most of my debt comes from school loans. So all my "can you cosign for me?" friends have shools AND credit card debt to pay off. Also family members said no or were in worse financial situations than their kids.

  10. seven of seven Says:

    Ugh. I'm 43 years old and the credit card thing was just starting to show up at the university my last year there. Thank god I didn't get one! But, your tale is very, very scary. If those creepy banks are targeting young, inexperienced students, they can get themselves into a world of hurt by the time they are 20! Yikes.

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