If you are having trouble securing an auto loan, you may want to consider a co-signer. Our Kia finance experts at Sansone Kia are weighing in to help you decide.
What is a Co-Signer?
When you apply for an auto loan, a lender will review your financial information to determine if you’re an ideal candidate for a loan. When you add a co-signer, their information is also considered. However, a co-signer must agree to take over your loan if you are no longer able to make regular payments.
What are the Perks of a Co-Signer?
As we mentioned, a lender will consider your co-signer’s credit score, as well as their income and expenses. This can be the difference in securing a loan or not, since their attractive credit score or income can paint you as a good candidate.
Do I Need a Co-Signer?
In general, we recommend a co-signer to applicants who:
- Have a low credit score
- Don’t have existing credit
- Have a limited income
- Don’t have a steady stream of income
- Have a high debt-to-income ratio
Are There Disadvantages to Having a Co-Signer?
When it comes to having a co-signer, the biggest risks and disadvantages come to the co-signer. They are taking on additional debt. Plus, if you don’t make regular, on-time payments, their credit could suffer. This could impact your relationship with your friend or family member who agreed to help you out.
Talk to Our Kia Finance Team at Sansone Kia Today
Are you still uncertain if a co-signer is right for you? We encourage you to stop by Sansone Kia to chat with our team. We’d be happy to discuss your options with you today!
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