Shopping for an automobile should be an exciting experience, filled with promise. Yet for people with no credit history or severely damaged credit, there are few things as frustrating for car buyers as being denied financing. The simple fact is that if you have not established a credit history or you have a very low FICO score, obtaining credit can be difficult to impossible. Lenders consider you too much of a financial risk.
But Car Deal Expert says: There’s still hope
If you need credit to get credit, what can you do if you’re shopping for a car and need an auto loan? It’s simple! Bring someone else you trust (and who trusts you) along for the ride. It may be a family member or a trusted friend. Ask them to be a cosigner on your loan. Car Deal Expert makes it easy to add a cosigner to your application. That way, potential lenders have a fallback in case you are unable to make payments on your auto loan. Just keep in mind that if you default on your loan, your cosigner’s credit rating is damaged right along with yours. An auto loan or lease appears as a debt on each of your credit reports.
Do I need a cosigner on my auto loan?
Not necessarily, but if you choose someone with a good credit history (they make payments on time, don’t carry a large balance and have a manageable number of revolving accounts), it certainly won’t hurt your chances. If there’s any doubt in your mind as to whether your lack of credit or low credit score will prevent you from being able to obtain an auto loan, Car Deal Expert recommends having a cosigner.
Will they own part of my new car?
No. That’s only if their name appears on the title when you register your vehicle later. Even if you default on your auto loan and the cosigner has to step in to pay, the vehicle does not belong to them. Once you pay off your vehicle – whether it was on a loan or a lease – the cosigner has no further role to play in regards to said vehicle.
What if my credit is bad? Can I still find a cosigner?
That will depend entirely upon you. Honesty is the best policy, so be open with the person you’re asking to cosign. Family is typically the best source when you run out of options, but you shouldn’t abuse the bonds of kinship simply because you need a car. Use discretion and good judgment.
Car Deal Expert can help you pre-qualify for an auto loan, with a cosigner or without
We promise to do our utmost to help you pre-qualify for an auto loan. If you have a cosigner, that’s fantastic. But Car Deal Expert doesn’t require one. If you are:
- At least 18 years old
- Earning at least $1,500 per month
- Currently employed for at least six months
- Free of bankruptcy
… then Car Deal Expert would like to give you the opportunity to pre-qualify for an auto loan on the vehicle you’ve been dreaming about. We work fast and our rates are typically lower than what dealers can offer. We also work with dealers in many states and cities.