2
QuizMultiple Choice

Study Guide and Quiz

Question 2 • S25 Introduction to Business A (Theisen)

If you co-sign for a friend's credit card, what is the danger to you if your friend fails to pay?

Answer
A
You might get secured credit.
B
You might have to pay extra money in taxes.
C
Your credit score might go down.
D
Your credit score might go up.

Explanation

When you co-sign, you agree to be responsible for the debt if your friend does not pay. Missed or late payments may be reported on your credit history and lower your credit score. So the danger is that your credit score might go down, not that it would go up.

AI-written and checked against the verified answer.

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