Cosigner

If you have bad credit, you may be asked to get a cosigner on a car loan. A cosigner can’t be just anyone – they have to meet specific requirements and understand what it means to be one.

When someone asks you to be a cosigner for a car loan, they're asking you to help make up for their bad credit by cosigning for a vehicle. But what exactly does that mean, and what qualifies you to be a cosigner?

How you go about removing a second person from a car loan depends on whether they’re a cosigner or co-borrower.

Cosigner qualifications and rights don’t change by state, but in Texas, additional laws can limit the amount of interest charged to cosigners and co-borrowers.

A cosigner can help a primary borrower get approved for a car loan, but this comes with responsibilities that need to be considered.

If you have questions about what a cosigner can and can’t do, we’re here to help clear up some of the confusion by answering some frequently asked questions.

The only way you can typically remove or change a cosigner is by refinancing. Unless your credit has improved since taking out the loan to the point where you can qualify to refinance, you're stuck with your current cosigner.

Although it’s never easy to face the death of a family member or friend, it’s important that you know what might happen if your cosigner on a car loan passes away.

If you’re dealing with less than perfect credit, or you’re new to the world of credit, you may find that a cosigner can help you get a car loan.

Make sure you know the ins and outs of being a cosigner on a car loan before signing the paperwork.