Co-signing your kids’ accounts and loans

Now test your judgment.

Troy and his dad GregTroy is freshman in college. He hopes to get a job next summer. He’d like to buy a car but doesn’t have enough savings to buy one or enough credit in his own name to get a loan. So he’s asking his dad, Greg, to co-sign the loan, but promises that he’ll make all the payments. Greg has good credit, but he’s just launched his own business and cash is scarce.

Which choice do you think is best for Greg?