Not all applicants with poor credit are able to establish car credit on their own. In some cases another individual with good credit is needed. They're typically referred to as a co-signer.
But before you decide to co-sign for any loan, especially a poor credit auto loan, you need to be aware of your responsibilities:
During the application process, the lender will review and take into consideration the credit reports of both the primary borrower and the co-signer.
Both the primary borrower and the co-signer are required to sign the loan contract.
The co-signer is considered a co-borrower and is equally responsible for the loan. If the primary borrower is unable to meet the loan obligations, than the co-signer is required to make the payments.
If the loan goes into default, the co-signer could be subject to collection action, including wage garnishment.
So before co-signing for a problem credit auto loan, be sure you know exactly what you're agreeing to - which could mean YOU making loan payments if the primary borrower does not.
At Auto Credit Express we help people with bad credit find a dealer that can give them their best chance at an approval for a new or used car loan. If you're serious about getting your auto credit back on track, you can begin now by filling out our online car loan application now.
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