What is a Comaker?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 09 October 2019
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Comakers are persons who choose to sign with a borrower in order to provide additional protection when a lender extends a loan to an individual or business entity. A comaker may be necessary if the individual or company that is seeking to borrow funds does not have an adequate or acceptable credit rating that will secure the loan without assistance. Traditionally, a comaker is referred to as a cosigner.

When choosing to be a comaker, it is important to understand that the action carries a great deal of responsibility. In the event that the borrower is unable or unwilling to make payments on the loan or honor the terms of the promissory note, the lender has the legal right to demand payment from the comaker. Essentially, cosigners are assuming the same level of liability for the repayment of the loan that is assumed by the borrower. The difference is that the comaker will not be approached unless the borrower begins to miss payments for some reason.


Depending on the terms of the loan or note involved, the comaker may have the legal right to obtain information regarding the current status of the transaction. This means that comakers on promissory notes or loans can query the lender about whether payments are being made on time, or if any payments have occurred when processing a payment. When this is the case, the comaker is advised to exercise this right and periodically verify that payments are being in a timely manner.

There are many good reasons to be a comaker. Parents often choose to assist children to obtain a first home or an automobile by cosigning on a loan. In other instances, close friends may choose to become a comaker for loved ones who are recovering from a financial crisis. Last, a person or corporation may choose to be a comaker in order to allow an entrepreneur to obtain startup capital for a new business venture.


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