Finding an Auto Loan Application Cosigner: Why it Pays to Choose Well

Your auto loan application may require you to have a co-signer if you have no credit history. Lenders want to make sure you have a good track record before they lend money and a co-signer is a good way to both get the loan and build good credit.

You can ask a family member, a friend, or even a stranger to co-sign your auto loan application, but it pays to choose well and not just choose someone without thinking it through. You need someone who is responsible, has a good income, and is willing to take the risk of being a co-signer. Being a co-signer is not for everyone. 

You and Your Co-Signer Will be Joined for the Duration of the Loan

While you deciding who to ask as your co-signer, consider this – having a co-signer a bit like being married for the duration of the loan. He can bug you about making your payment on time, they can get upset if you are late and the bank calls upon them, and at times it can be stressful.

Remember if you default, no matter the reason, your co-signer will be on the hook for the balance of the loan, because it is they who signed on the auto loan application as co-signer. It been known to cause a rift between the closest of friends.

Choose a Co-Signer That’s Financially Stable

We all intended to make our loan payments on time so that our co-signer has no involvement with our loan other than signing on the dotted line. The trouble is life can throw us a curve ball and we can suddenly become unable to make our payment. When that happens the lender goes to the co-signer for the payment. It is wise to pick someone who can survive unscathed if you have to default on your loan. 

Choose a Co-Singer with an Excellent Credit Score

In order for the lender to approve your co-signer, she will need to have a good credit score, as well as be employed. The better the financial position of the person you want to co-sign the more likely it is that your loan application will be approved.

Choose a Co-Singer That Will Respect Your Privacy

It’s good to be sure that whomever you choose will respect your privacy and not tell everyone that they co-signed your auto loan application. After all it’s really no ones business but yours and your co-signers.

An auto loan application is the first step to getting your financing. With a good co-signer almost anyone can qualify.

 


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