Question

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

are reported to credit bureaus under both the primary holder's and co-signer's credit files, which will negatively impact your credit score. Option A is incorrect because secured credit is a type of credit requiring a deposit, not a consequence of co-signing default. Option B is incorrect as unpaid credit card debt does not directly lead to extra tax payments. Option D is incorrect because missed payments harm, not improve, credit scores.

Answer:

are reported to credit bureaus under both the primary holder's and co-signer's credit files, which will negatively impact your credit score. Option A is incorrect because secured credit is a type of credit requiring a deposit, not a consequence of co-signing default. Option B is incorrect as unpaid credit card debt does not directly lead to extra tax payments. Option D is incorrect because missed payments harm, not improve, credit scores.