Cosigning for a Poor Credit Auto Loan
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-signers 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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