A comaker is a person who provides his signature on a loan in conjunction with the primary borrower. The signature of a comaker is basically additional security on the part of the lender. In case the primary borrower is unable to pay the loan back, the comaker is legally obliged to take on that responsibility. A comaker is also called a cosigner.
Not all loans require a comaker to be approved. In some instances, a lender may require a comaker if the primary borrower does not have a good enough credit rating. The additional signatory on the loan is then required so that the lender will have more security in case the borrower with the insufficient credit rating does not have the means to pay the loan back somewhere down the road. However, it also does not automatically follow that if you have a comaker, your loan application will be approved.
One common example of a situation wherein a comaker is required is when a relatively young individual wants to take out a loan to purchase his first car or home. In this case, his credit record may not be built up yet. His parents can then cosign on his loan to boost his creditworthiness.
You may be approached by a friend or a family member to be a comaker on his loan. Before you say yes or no, it is important that you take a closer look at the loan and the terms involved. A lot of responsibility comes with being a comaker, and you want to be sure that you will not be saddled with the debt later on.