When you become a cosigner on someone else's loan, you are just vouching for them — the loan does not actually appear on your credit report. True or false?

Cosigning a loan makes you equally responsible for the debt in the eyes of lenders and credit bureaus. The account appears on your credit report with the full balance, and your score is directly affected by every payment made or missed — whether you made that payment or the primary borrower did. If the primary borrower defaults, the lender can pursue you for the full amount, and the damage to your credit score is identical to if you had defaulted on your own loan. Cosigning carries far more risk than most people realize.