Cosigner for a Car: What Is a Cosigner?
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What Is Cosigning?
How Does Using a Cosigner Work?
Who Can Cosign a Car Loan?
When to Cosign an Auto Loan
When Is It Best to Get a Cosigner for a Car?
You have a limited credit history You have a low credit score Your debt-to-income ratio (the amount of debt you have in relation to your income) is too high Your employment history is too short or unstable You’re otherwise considered to be a high-risk borrower
Auto Loan Cosigner Requirements
Good credit score: Typically 670 or higher for better loan approval chances Stable income: Proof of steady earnings to cover payments if needed Low debt-to-income ratio: Ensures financial ability to take on additional debt Proof of identity: Valid government-issued ID (e.g., driver’s license, passport) U.S. Citizenship or residency: Some lenders require legal residency status Valid employment or income source: Recent pay stubs or tax returns as proof Strong credit history: No recent bankruptcies or major delinquencies Willingness to accept responsibility – Cosigner must agree to repay if the primary borrower defaults
Can You Use a Cosigner When Refinancing an Auto Loan?
What Types of Lenders Allow Cosigners?
Banks Credit unions Private lenders
What Rights Does a Cosigner Have?
Is a Cosigner on the Title of a Car?
Can a Cosigner Take Your Car?
Pros & Cons of Cosigning an Auto Loan
The Cosigning Process
Cosigner vs Co-borrower
Can a Cosigner Be Removed From an Auto Loan?
Paying off the loan: If this is possible, then you’ll not only remove the cosigner from the loan but you’ll get rid of a monthly payment. Make sure there are no fees for paying early — or, if there are, that the payoff still has enough value to move forward. Investigating a cosigner release: Check your car note or talk to your lender to see if there is a clause in your loan papers to release a cosigner if certain conditions have been met. If there isn’t, ask the lender what they would need to release the cosigner; they may agree if they feel confident that you can make the payments on your own. Refinancing the car loan into your name only: If you had financial or credit-related reasons for getting a cosigner and your situation has since improved, then you may be able to refinance the car into just your name. Refinancing for borrowers with a bad credit score can also sometimes be an option.
Alternatives to Getting a Cosigner
Build Your Credit Score
Buy a Less Expensive Vehicle
Save Up for a Larger Down Payment
The Takeaway
Frequently Asked Questions
Photo credit: iStock/fizkes
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About the Author
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
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