Young people are usually at a disadvantage with credit scores because one important factor is the length of credit history. Yet, a good credit score is often necessary to rent an apartment or buy a car. Those with little or no credit history might seek a cosigner, according to USA Today. Cosigning a loan or lease is risky business. Never make the decision based on emotion. Always assume a young person will default on a loan, their best intentions notwithstanding. Ask yourself if you can afford to pay the loan yourself because you'll have to if the young person defaults.
It's less risky to buy a young person an inexpensive used car outright or loan money for deposits on an apartment.
