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"These are people who can afford to take over the lease payment, but have issues qualifying for credit," says Sergio Stiberman, CEO and founder of Lease
On average, the parents who get help from their children at Lease are taking over a payment of less than 9 per month, he says.
Then it's on you." Guard your own credit Even if your parents make all their payments on time, the decision could still hurt you the next time you need credit for yourself -- if you're trying to get a home mortgage or a car loan, for example.") in a way that can break down the child-parent relationship."It puts the child in a very difficult place," Brenner says.Some are so desperate that they secretly steal a child's identity to qualify for credit, says Elizabeth Schomburg, senior vice president of Family Credit Management, a Chicago nonprofit credit counseling agency.So what should you do if your parents come to you with a request for help? Before you co-sign, make sure you consider the implications.
"I was especially hesitant because I work in the financial industry, and I know it's not a good idea to co-sign, but she raised me as a single parent and did whatever she could to help me," Ashley said.