Getting an auto loan in Los Angeles can be tough when you’re struggling with bad credit, but having a cosigner or a co-borrower could help you get approved to finance the car you need. There are only a few simple steps to having someone sign a loan with you, but there are a few things you need to consider first because cosigners and co-borrowers aren’t the same.

A Cosigner’s Role on an Auto Loan

Getting an Auto Loan in Los Angeles? A Cosigner or Co-Borrower Could HelpDid you know that there’s much more to having a cosigner than having someone sign their name next to yours on an auto loan contract? There is. In fact, a cosigner could be the difference between getting approved for a car loan or getting denied.

A cosigner is someone, typically a close friend or family member, who agrees to sign your auto loan contract with you. This can help you get approved if your credit doesn't qualify you on your own. A cosigner has to be willing to put their credit score on the line for you. In order to be considered for a cosigner, the person you choose must have good credit, and be able to qualify for the loan on their own.

Primary Borrower and Cosigner Responsibilities

As the primary borrower, you need to be aware that how you pay your car loan also affects your cosigner. If you can’t make a payment, they’re expected to; if you miss a payment and your credit score drops, so does theirs. Not to mention, if your vehicle is repossessed, the repo shows up on their credit reports and the lender can still come after the cosigner for the money owed. That’s a lot of responsibility for someone who doesn’t even own the car.

Knowing these responsibilities, you have to be very careful choosing a cosigner to help you get a vehicle in the City of Angels. Make sure that you discuss all the pros and cons with them before asking someone to sign with you on the dotted line.

A Co-Borrower’s Role on a Car Loan

A co-borrower works much the same as a cosigner in helping you get an auto loan in Los Angeles, but with a few key differences. A co-borrower can lend you more than their credit score – if they are your spouse, you can also combine incomes to qualify for the loan together. Not only could this help you get approved, it could mean qualifying for a better interest rate or loan terms.

The other key difference between cosigners and co-borrowers is that cosigners aren’t on the title to the car, but co-borrowers are. With a co-borrower, the lender considers your incomes and credit scores together as one, so you and your co-borrower don’t need to meet the lender qualifications individually.

Co-Borrower Responsibilities

The responsibilities of co-borrowers are the same as cosigners: they’re responsible for payments if you can’t make them, and their credit is affected along with yours. Also like cosigners, it’s important to make sure you both know what you’re getting into before signing a contract.

Finding Your Next Vehicle in Los Angeles

When you have bad credit or low income in Los Angeles, you may need a little help to get the auto loan you’re looking for. Keep in mind that both a cosigner and a co-borrower can help, but in different ways.

If you’ve already discussed your needs with another person who’s willing to sign the loan with you, you’re going to need to find the right lender for your situation, and that’s where we come in.

Here at Auto Credit Express, we’ve been helping people in and around LA get connected to dealerships that work with the right kind of lenders for over 20 years, and we want to help you, too. To get the process of getting matched to a dealer in your area started now, simply fill out our free, no-obligation car loan request form.