AUTO LOAN CO-SIGNERS BEWARE

If you know that your credit history isn’t very good or income isn’t enough to get approved on your own it would be a good idea to have a good co-signer who ready to step in and help you. A good co-signer must meet the same criteria that you would have had to meet in order to get approved for the loan. So whatever your situation is, make sure the person you ask to be your co-signer is in a better situation or you will still be declined.

Asking someone to co-sign for you is not something to be taken lightly. Most people will not do this for you because of all the risks the co-signer is signing up for. Any activity that happens with this loan will be reported to your credit report and the co-signers credit report just as if the loan is theirs.

So any on time payments you make will help them and any late payments you make will hurt them. Once they have put their name on the dotted line and you drive away in the car the loan cannot be taken off of their credit report simply because the car is actually for you. So they will suffer financially if you don’t take care of the loan and pay it properly.

You can check your credit score here with identity IQ for $1 if you want to see where you stand before you hit the dealerships.