What Does The Bible Say About Cosigning? (25 Bible Verses)

Cosigning a loan or financial agreement can seem like a helpful thing to do, but what does the Bible say about it? Scripture offers wisdom on financial decisions and warns against putting yourself in risky situations. Let’s take a look at what the Bible says about cosigning and handling money responsibly.

Also Read: What Does The Bible Say About Transparency

What Does The Bible Say About Cosigning

Proverbs 22:26-27

“Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.”

This verse serves as a warning against cosigning loans or acting as a guarantor for someone else’s debts. It emphasizes the importance of being cautious and responsible with our financial decisions.

By cautioning against cosigning, the verse highlights the potential consequences that can arise from taking on the financial burdens of others. It reminds us to be wise stewards of our resources and to carefully consider the implications before entering into financial agreements that may put our own livelihood at risk.

Proverbs 11:15

“Whoever puts up security for a stranger will surely suffer, but whoever refuses to shake hands in pledge is safe.”

This verse reinforces the caution against cosigning for someone we do not know well. It warns of the potential negative consequences that can arise from entering into financial agreements with strangers.

By refusing to cosign, we can protect ourselves from the potential risks involved in vouching for someone we do not have a close relationship with. This verse encourages discernment when it comes to extending financial help, urging us to prioritize our own financial security.

Proverbs 6:1-3

“My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth. So do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Go—to the point of exhaustion—and give your neighbor no rest!”

This passage vividly describes the perils of cosigning and emphasizes the urgency of getting free from such commitments. It highlights the potential entrapment and the need for immediate action to rectify the situation.

The verse instructs us to go to great lengths to release ourselves from financial obligations that are causing us harm. It showcases the importance of taking responsibility for our actions and finding ways to extricate ourselves from commitments that may threaten our financial well-being.

Proverbs 17:18

“One who has no sense shakes hands in pledge and puts up security for a neighbor.”

This verse portrays cosigning as a foolish decision made by someone lacking wisdom. It implies that entering into such financial agreements without proper discernment can lead to negative consequences.

By cautioning against cosigning without sound judgment, the verse underscores the importance of making wise financial choices. It encourages us to exercise prudence and think critically before committing to cosign any agreement, emphasizing the need for responsible decision-making.

Proverbs 20:16

“Take the garment of one who puts up security for a stranger; hold it in pledge if it is done for an outsider.”

This verse speaks about the potential loss and repercussions that can arise from cosigning for someone we do not know well. It advises taking measures to protect oneself and recover any losses incurred.

The verse suggests that when cosigning results in financial hardship, it is appropriate to hold the cosigner accountable and seek compensation for the damages caused. It serves as a reminder to be cautious in our financial dealings and to take appropriate steps to mitigate potential risks.

Proverbs 27:13

“Take the garment of one who puts up security for a stranger; hold it in pledge if it is done for an outsider.”

This verse emphasizes the importance of caution when cosigning for someone, even if it is a close friend or family member. It urges us to be mindful of the potential consequences that can arise from assuming financial responsibility for others.

By highlighting the potential loss of personal belongings, the verse underscores the seriousness of cosigning and encourages us to carefully consider the impact on our own lives. It reminds us that even with well-intentioned cosigning, there is still a need for caution and discernment.

Proverbs 6:25

“Do not lust in your heart after her beauty or let her captivate you with her eyes.”

This verse may not explicitly address cosigning, but it serves as a reminder to carefully assess our motivations for entering into financial agreements. It cautions against being swayed by external factors that may cloud our judgment.

In the context of cosigning, the verse reminds us not to be driven solely by the desire to please others or to seek personal gain. It encourages us to make financial decisions based on wisdom, integrity, and sound judgment rather than being captivated by superficial allurements.

Luke 14:28

“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”

This verse may not directly talk about cosigning, but it emphasizes the importance of careful planning and evaluating the feasibility of financial commitments. It underscores the need to consider the financial implications before making any significant financial decisions.

In the context of cosigning, this verse reminds us to thoroughly examine our own resources and the potential risks before committing to guarantee someone else’s debts. It urges us to assess whether we have the means to fulfill the financial obligations that may arise.

Psalm 37:21

“The wicked borrow and do not repay, but the righteous give generously.”

This verse serves as a reminder of the importance of integrity and responsibility in our financial dealings. It contrasts the actions of the wicked who borrow and fail to repay with the righteous who exhibit generosity and fulfill their financial obligations.

In the context of cosigning, this verse underscores the significance of honoring our commitments and repaying debts in a timely manner. It encourages us to act with integrity in all our financial transactions, including cosigning, and to fulfill our obligations diligently.

Deuteronomy 15:6

“For the Lord your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.”

This verse speaks of God’s promise to bless His people and allow them to lend to others without the need to borrow. It emphasizes the importance of financial independence and the avoidance of excessive debt.

While this verse does not directly address cosigning, it highlights the general principle of exercising wise financial stewardship. It reminds us to be cautious and strive for financial independence, avoiding unnecessary financial entanglements and the potential risks associated with cosigning.

Psalm 15:4

“…who keeps an oath even when it hurts, and does not change their mind”

This verse emphasizes the importance of integrity and commitment to our promises. It speaks to the character of a person who upholds their obligations, even when fulfilling them may involve personal sacrifice or hardship.

In the context of cosigning, this verse encourages us to honor our commitments and fulfill the responsibilities we have taken on, even when it may be challenging. It reminds us to act with integrity and reliability in our financial interactions, which includes cosigning agreements.

Matthew 5:37

“All you need to say is simply ‘Yes’ or ‘No’; anything beyond this comes from the evil one.”

This verse emphasizes the importance of honesty and straightforwardness in our speech. It encourages us to be people of integrity by letting our yes be yes and our no be no, without resorting to manipulation or deceit.

In the context of cosigning, this verse highlights the significance of clearly communicating our intentions and expectations. It reminds us to be honest and upfront about our willingness (or unwillingness) to cosign, rather than engaging in ambiguous or deceptive communication.

Proverbs 21:17

“Whoever loves pleasure will become poor; whoever loves wine and olive oil will never be rich.”

This verse warns against the pursuit of pleasures and indulgences that can lead to financial instability or poverty. It highlights the importance of exercising self-control and making wise choices in order to achieve financial security.

In the context of cosigning, this verse reminds us of the need to prioritize financial prudence and avoid entering into risky financial commitments for the sake of immediate gratification. It encourages us to make decisions that align with long-term financial stability and avoid actions that may hinder our financial well-being.

Proverbs 22:7

“The rich rule over the poor, and the borrower is slave to the lender.”

This verse speaks to the potential consequences of indebtedness and the loss of financial freedom that can result from borrowing. It highlights the power dynamics inherent in financial relationships and urges caution when assuming financial obligations.

In the context of cosigning, this verse serves as a reminder of the potential loss of autonomy that can arise from becoming legally responsible for someone else’s debts. It prompts us to carefully consider the implications and ensure that cosigning aligns with our financial goals and values.

Proverbs 13:11

“Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”

This verse emphasizes the importance of honest and diligent financial management. It suggests that financial prosperity is more likely to be attained through responsible and gradual accumulation rather than through dishonest or reckless means.

In the context of cosigning, this verse underscores the significance of making wise and informed decisions. It encourages us to consider the potential risks and benefits of cosigning and choose the path of responsible and sustainable financial stewardship.

1 Timothy 6:10

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”

This verse cautions against the love of money and the potential dangers associated with a misplaced desire for wealth. It warns that pursuing wealth at all costs can lead to a loss of faith and bring about various troubles and sorrows.

In the context of cosigning, this verse reminds us of the importance of placing our trust in God rather than in material possessions. It urges us to prioritize our spiritual well-being and consider the implications of financial decisions, including cosigning, in light of our faith and values.

Proverbs 3:27-28

“Do not withhold good from those to whom it is due, when it is in your power to act. Do not say to your neighbor, ‘Come back tomorrow and I’ll give it to you’— when you already have it with you.”

This verse speaks to the importance of honoring our commitments and helping others when we have the means to do so. It warns against delaying or withholding assistance when we have the ability to fulfill our obligations.

In the context of cosigning, this verse reminds us of the significance of acting responsibly and promptly when committing to cosign for someone. It encourages us to consider our capacity to fulfill the financial obligations that may come with cosigning and to avoid making hollow promises or delaying assistance.

Proverbs 13:22

“A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.”

This verse highlights the importance of financial planning and the desire to leave a legacy for future generations. It suggests that responsible financial management can lead to long-term benefits and blessings.

While this verse does not directly address cosigning, it reminds us of the need to consider the impact of our financial decisions on ourselves and our family. It prompts us to evaluate whether cosigning aligns with our long-term financial goals and the potential implications for the inheritance we leave to our descendants.

Proverbs 28:20

“A faithful person will be richly blessed, but one eager to get rich will not go unpunished.”

This verse highlights the importance of faithfulness and integrity in our financial endeavors. It suggests that pursuing wealth with improper motives can lead to negative consequences.

In the context of cosigning, this verse prompts us to reflect on our motivations for entering into financial agreements. It reminds us to prioritize integrity and consider the potential risks and ramifications before cosigning, rather than approaching it with a desire for personal gain.

James 5:12

“Above all, my brothers and sisters, do not swear—not by heaven or by earth or by anything else. All you need to say is a simple ‘Yes’ or ‘No.’ Otherwise, you will be condemned.”

This verse underscores the importance of honesty and straightforwardness in our speech and actions. It cautions against making unnecessary oaths and suggests that our word should be reliable and trustworthy without the need for additional promises or guarantees.

In the context of cosigning, this verse prompts us to consider whether our verbal commitment to cosign is sufficient without resorting to additional oaths or guarantees. It emphasizes the importance of integrity and reliability in all our financial interactions, including cosigning.

Galatians 6:2

“Carry each other’s burdens, and in this way you will fulfill the law of Christ.”

This verse encourages mutual support and care within the Christian community. It emphasizes the importance of helping and supporting one another, particularly in times of need and difficulty.

In the context of cosigning, this verse may prompt us to consider extending financial assistance to others when appropriate. However, it also emphasizes the need for discernment and wisdom, as carrying someone else’s financial burden through cosigning can have significant implications on our own financial well-being.

Romans 13:8

“Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.”

This verse speaks to the importance of honoring our obligations and living out a life of love towards others. It suggests that the only debt we should retain is the ongoing responsibility to love and care for one another.

In the context of cosigning, this verse encourages us to prioritize our financial responsibilities and strive to avoid unnecessary debts. It prompts us to consider the potential ramifications of cosigning and to carefully evaluate whether it aligns with our commitment to love and care for others in a responsible and sustainable manner.

2 Corinthians 9:7

“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”

This verse speaks to the importance of generosity that arises from a genuine desire and a cheerful heart. It encourages giving based on personal conviction rather than out of obligation or compulsion.

In the context of cosigning, this verse reminds us to carefully consider our motives and intentions when entering into financial agreements. It urges us to give our resources and assistance willingly and wholeheartedly, rather than feeling compelled or coerced into cosigning against our better judgment.