Co Signer

If borrowers can't get approved for a car loan on their own because of limited or poor credit history, or poor credit scores, getting a co-signer with good to excellent credit can often help them get approved.

Co-signer - The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a poor or limited credit history to get approved for financing. It stands to reason, then, that someone cosigning a loan should be comfortable with the borrower's ability to repay the debt.

Unlike a co-borrower, who is usually a spouse or partner of the primary borrower, a co-signer can be nearly anyone legal age, as long as they fit the lenders credit criteria. It should also be pointed out that although a co-signer is equally responsible for loan payments, he or she has no ownership rights to the vehicle being financed. In addition, both the co-signer and primary borrower must meet the lender’s income, debt-to-income, and payment-to-income requirements, individually.