Never co-sign a loan for which you do not agree to be held responsible.It is just as if you are the borrower because you are even though you do not get the benefit of the proceeds of the loan.The reason they want your signature is because if your friend defaults on that loan and stops paying, then they have you to come after for the full balance of that loan.Co-signing a loan is a lot more than a favor. Co-signing a loan should be viewed as you are making the loan yourself.And if it is a person who you suspect may default on a loan, then you should budget accordingly that you would pick up those payments.Because what you are saying is, “If this guy is my friend, he does not pay it, I will.” And you have got to be prepared for that.If he does not pay, then not only will a creditor perhaps come after you and want you to make the payments on that obligation, but also will report that you are delinquent to your credit report, so his delinquency may affect you.By co-signing, you are agreeing to full liability not necessarily are you getting any benefit out of it.Would you be able to go after your friend to re-coup those amounts, the answer is yes, but do you really want to have to do that?If you do not have the financial resources to pay or it would really strap you or it would make you angry to pay it, then you do not co-sign it!I have co-signed for example my childrens student loans.If it is your spouse or your child and you are trying to help them out, out of love, and you are willing to put yourself on the hook for 100%, go for it!But I understand that if they do not make the payments when they get out of school the creditor is going to come looking for me.All they want is your signature, when you sign your signature, the bank looks at that and they say, all we want is for you to be 100% liable on that debt.Sometimes, the best policy is to not get involved in the first instance.