Can You Refinance an Auto Loan With a Cosigner?
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How Does Adding a Cosigner to an Auto Loan Help You?
Improved odds of approval. Even if your credit score shows that you’re considered to be a high-risk borrower, a cosigner can lower that risk by putting his or her own credit on the line to ensure the loan is repaid. A better interest rate and lower monthly payments. Since your credit score is a main factor in the interest rate you’re eligible to receive on a loan, having a cosigner with good credit can help you qualify for a lower rate and, in turn, lower the cost of your refinanced auto loan over time as well as monthly payments. The chance to build your credit. When you add a cosigner to an auto loan, you’re considered the primary borrower. That means that the loan will appear on your credit report, helping you increase your credit history, as long as you make timely payments.
Adding a Cosigner During Refinance
What Does a Cosigner Need to Do During the Refinance Process?
Refinancing Your Auto Loan With Bad Credit
1. Try to Improve Your Credit History
2. Find a Suitable Cosigner
3. Check With Your Current Lender
4. Shop Around for Other Lenders
Social Security numbers (for you both) Current address (for you both) Employment information, including company address and contact person Income-related information like W2s, pay stubs and the previous year’s tax returns (for you both) Your current auto loan lender and account number Your vehicle’s make, model, year, mileage and VIN
Frequently Asked Questions
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