May 6, 2022
Your credit history is a huge factor when it comes to getting approved for a car loan. A history of late payments, bankruptcy, high debt, or repossession can make it tough, but it doesn’t have to stand in the way of you getting a new set of wheels.
If your credit history is less than stellar, you might want to consider using a cosigner. Making regular, manageable payments is the key to rebuilding credit and a cosigner can help you secure lower interest rates that could save you hundreds (if not thousands) of dollars over the lifetime of your loan.
A cosigner is a friend or loved one who is willing to add their name to your loan application and agree to be legally responsible for the loan amount if you miss a payment or are unable to pay. A cosigner typically has an excellent credit history or a higher income than the primary lender (a.k.a, you), which provides an added layer of security for the lender so they can offer you lower interest rates or higher loan amounts.
In a sense, the cosigner is lending you their credit history and agreeing to take on responsibility should anything go wrong.
Relationships with lenders are built on trust and—while it can be difficult to rebuild that trust after it has been broken—using a cosigner for an auto loan is a great way to put yourself behind the wheel of a reliable vehicle while still making the most of your hard-earned dollars.
Cosigners are commonly used in situations when a borrower is struggling to get approved for a loan due to bad credit or no credit.
If you are finding it difficult to secure an auto loan because of a blemished financial history but know someone who is willing to help you turn it around, a cosigner could go a long way toward helping you rebuild your credit health. Before you both sign on the dotted line, however, there are a few pros and cons to consider.
If you can’t find a cosigner or prefer not to use one, you still have options when it comes to financing that perfect vehicle. Dick Says Yes is a used car dealership in the Dick Hannah family that specializes in auto loan financing for buyers with bad credit, no credit, or poor credit. Our business is built upon connecting people with cars and—as the largest family-owned auto group in the area with thousands of cars to choose from—we are well-equipped to help you finance your car in a manageable way.
If you are concerned about financing or afraid you won’t qualify, just contact us for guidance. Whatever life has thrown your way (including divorce, bankruptcy, repossession, or foreclosure), we can show you how to get the best deal available on a vehicle you’ll be excited to drive. Plus, included with every used vehicle we sell, we offer our Peace of Mind Pre-owned Promise and a 5-day Exchange Policy.Contact Us