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(To read more about credit, see The Importance of Your Credit Rating and Credit, Debit And Charge: Sizing Up The Cards In Your Wallet.
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Your debt could cost you an extra $1,500 a year with no warning and no possibility to avoid the interest rate increase.
Over the past several decades, the FTC and Federal banking regulators have promulgated a number of rules addressing acts or practices involving financial products or services that the agencies found to be unfair under the FTC Act (the 1994 amendments to which codified the FTC Policy Statement on Unfairness).
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This method does bring risk to the credit partner because they are cosigning with the business to obtain funding.
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