What's a Co-Signer for a Car--And Do I Need One?
Not everyone who purchases a car--whether new or used--will need to have a co-signer. At Easton Motors, we cover this topic in our FAQ sheet, but recognize that each car dealership will have its own rules and regulations about who needs what for their credit application and car loan approval.
By and large, people who need co-signers are those who do not meet all the pre-requisites for purchasing a vehicle on their own.
Common Situations & Co-Signer Requirements
In many instances, people looking for a co-signer for a car need someone with better credit to be attached to the loan. Other than people with bad credit, first time car buyers without any established credit, and those with shorter residencies (i.e., people who have just moved into one state from another), often find themselves needing a co-signer to get off the ground. When looking for a co-signer, pick someone close to you who is reliable, trustworthy, and stable--preferably someone with a steady job, and long-time established residency in the state you are applying in.
Benefits of Having a Co-Signer for a Car Loan
If you have bad credit, getting a co-signer increases the likelihood that you'll be approved for a car loan. Also, having a co-signer is a pretty good indication that there are people in your life who can guide you on making healthy and wise financial mistakes. Our advice to those of you using a co-signer is to learn from them so that you can some day repay the favor of helping someone else establish or rebuild their credit.
So let's hear it, Wisconsin drivers--who of you have had co-signers? Were you worried about getting a co-signer, and if do you have any advice to give to others looking to get a co-signer for a car loan?