Technically, no, a cosigner can't help you directly repair your credit. But they can assist you in getting an auto loan if your credit score isn’t so hot. If a lender is on the fence about approving you for a bad credit car loan, a cosigner could be just the ticket. And, that auto loan they're allowing you to get can improve your credit score.

A Cosigner's Role in Car Loans

Can a Cosigner Help Me With Credit Repair?If you're struggling with poor credit, a cosigner can help you get approved for a car loan. Attaching themselves to the loan makes a lender more likely to say yes because cosigners also promise to pick up any slack if the primary borrower stops making payments.

However, because they're also on the hook for the loan, anything that happens with the loan affects their credit and yours. This means that if you miss any payments, they drop both your credit scores. Not to mention, the lender can legally go after your cosigner for the money if they can't get it out of the primary borrower.

A cosigner can be anyone, but because of the big responsibility that comes with it, most borrowers typically ask close friends or family to cosign. However, it's not just a good credit score that's required. A cosigner must also be able to qualify for the loan on their own when it comes to their income.

Auto Loans and Credit Repair

Once you get a cosigner and are approved for an auto loan, credit improvement can begin in earnest. A car loan is a great way to work on credit repair.

Each on-time payment you make adds to your payment history, which is the largest factor that makes up your credit score at 35%. Auto loans are installment loans, so having one adds to both your credit mix and new credit, as well – these factors each account for 10% of your score.

Your car loan can only help with credit repair if the other areas of your credit aren't being ignored. This is one reason lenders take steps to ensure you can comfortably afford an auto loan.

Keeping up with your car loan is one thing that can improve your credit, but don't ignore your other bills. Like we mentioned, payment history is the most impactful thing on your credit reports, so making timely payments can really boost your score.

You can also try to keep your credit utilization to a minimum. When your credit card balances are high compared to your credit card limits, it can really lower your credit score. Work to bring down your balances if you're trying to repair your credit.

Bad Credit Car Loans With Cosigners

It's not uncommon for lenders that finance bad credit borrowers to require a cosigner in some cases. Whether or not you need one is up to your lender, but coming in with one anyway can increase your chances of getting approved – and possibly land better loan rates or terms.

Another way to ensure that you get the auto loan you're looking for is to work with the right kind of lender right from the start. If you need a car loan and your less than perfect credit score is standing in your way, applying with a subprime lender may be your key to successfully getting an auto loan.

Here at Auto Credit Express, we've built a nationwide network of special finance dealerships that are signed up with these lenders. Let us connect you to a local dealer and be on your way toward credit repair with an auto loan. Fill out our free and secure car loan request form to get started right now!