Publish Date - December 31, 2018
Author: Greg Thibodeau
Co-Signed Auto Loans
What is a co-signed auto loan?
You are always allowed by our auto loan lenders to have a co-signed auto loan. With a co-signed auto loan, a joint applicant signs the finance contract with you in order to make up for any deficiencies in your credit history.
A co-signer assumes equal responsibility for the contract, and the account history will be reflected on the co-signer's credit history as well. For this reason, you should exercise caution if asked to co-sign for someone else. Since many co-signers are eventually asked to repay the obligation, be sure you can afford to do so before agreeing to be someone's co-signer. Getting started in a new position, or being a recent college graduate is often a reason to obtain a co-signer. There is nothing wrong with this option as many of us have gotten a start this way.