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Who Is a Good Cosigner for an Auto Loan?



Finding a good cosigner for a car loan means someone with a good enough credit score, but it’s not the only qualification they need to meet.

What to Look for in a Cosigner for a Car Loan

Who Is a Good Cosigner for a Car Loan?The most important thing your potential cosigner needs to have is a good credit score. There isn’t a hard-and-fast rule on what that credit score needs to be, since lenders vary in their specific requirements. If you ask someone to cosign your car loan, and their credit is the same as or worse than yours, it’s probably not going to increase your chances of getting approved.

A cosigner helps you get an auto loan by “lending” you their good credit score, and promising to pay for the loan if you’re unable to. Essentially, with two people on the loan, it lowers your risk of default.

Another requirement a cosigner needs to meet is the lender’s income requirements. Since the cosigner agrees to pay for the vehicle if you can’t, they need to prove they have enough available income to actually cover those car payments.

Cosigners don’t help you make the payments each month – that’s your responsibility. However, they still need to prove to the lender that they could in case something happens with your income or situation that makes you unable to keep up on the payments.

As far as who can be your cosigner, it could be really anyone that isn’t a spouse or life partner. Most borrowers tend to ask a parent or family member to cosign for them, and it’s common for brand-new borrowers to need a cosigner to get into their first auto loan. However, it can be a close friend or even a coworker, and they don’t even have to live in your home state.

Difference Between Cosigner and Co-Borrower

The sole reason your cosigner can’t be a spouse is that when spouses sign onto a loan together, they become co-borrowers instead. Co-borrowers can combine incomes to meet the lender’s requirements together. While credit scores are considered, the lower credit score is often used to meet credit score requirements when co-borrowers apply together.

If you’re short in the income department when you apply for a car loan, this is where co-borrowers can help. If your credit score is what’s stopping you from an auto loan approval, then a cosigner is the one for the job.

What Your Cosigner Should Know

Finding the right person to be your cosigner for your next car loan isn’t just challenging because of the requirements, but also because it’s a big thing to ask of someone.

A cosigner takes on the responsibility of an auto loan without getting any rights to the vehicle. This means if you stop paying on the car loan, the lender can go after them for payments. If the auto loan falls into default, you both risk damage on your credit reports – the same goes for a vehicle repossession.

Your cosigner is putting their good credit score in your hands when they sign onto a car loan with you, and it can make some people hesitant to sign that dotted line. However, if you can find a cosigner willing to increase your odds of getting approved for an auto loan, then reassure them that you can handle the loan.

This means choosing a vehicle that’s within your budget, and making all your payments on time. If you’re struggling to keep up with the car payments, let your cosigner know so you both can work together and manage the auto loan to protect everyone’s financial and credit health.

Can’t Think of Any Good Cosigner Candidates?

Odds are, if you’ve been asked to have a cosigner, your poor credit is the culprit. However, not everyone has the ability or connections to have a cosigner. If you can’t find a good cosigner, then a subprime car loan could be your next route.

Subprime auto loans are for borrowers with less than perfect credit. These lenders are signed up with special finance dealers, but finding one of these locations can be just as big of a hassle as finding the right cosigner. We know where the special finance dealerships are, and we want to help you find one.

Here at Auto Credit Express, we’ve worked to create a nationwide network of dealers that are signed up with subprime lenders. To get matched to a dealership in your area with the bad credit lending options you need, fill out our free car loan request form.

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Evicted California renters at greater risk of getting COVID-19



After 70 years in Monterey County, 87-year-old Mary Martinez moved in the middle of a pandemic, evicted from her modest one-bedroom, second-floor apartment at 1118 Parkside St. in north Salinas.

According to her former landlord, Martinez was evicted because she allowed a “violent man” to live with her, violating the conditions of her lease. Martinez said the man is her epileptic nephew.

Advocates say that while evictions like Martinez’s are rarer during the pandemic, landlords are feeling the financial squeeze. Some have sold rental properties to make up for lack of income. That can leave renters out in the cold when their new landlord raises the rent by hundreds of dollars or requires all renters move out before they take over the building.

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New program to help Black-owned online businesses | Technology



ATLANTA _ Many Black entrepreneurs struggle to get bank loans and professional help to launch new businesses. A new program aims to remove those stumbling blocks.

An Atlanta nonprofit and another business have committed $150 million to the 1 Million Black Businesses effort, which will make loans and provide financial and business advice to Black-owned startups and established small businesses. Atlanta-based nonprofit Operation Hope, which helps consumers improve credit scores, is kicking in $20 million, and Shopify, the online e-commerce is adding another $130 million for the loans and website-hosting services.

Other services firms providing expertise or help include Aprio, an Atlanta-based accounting firm, and First Horizon Bank.

It’s a package of products that many Black entrepreneurs couldn’t get through a bank or credit union, said John Hope Bryant, CEO of Operation Hope.

“A bank won’t lend you money unless you can prove that you don’t need it,” Bryant said. “That’s especially true with minority-owned small businesses.”

Small businesses with Black owners were half as likely to obtain business loans as whites, according to a Federal Reserve survey published earlier this year.

The initiative is the latest effort to help Black consumers and businesses enter the financial mainstream. Earlier this month, a group that includes rapper Killer Mike opened a digital bank aimed at Black and Latino consumers.

Banks and credit unions have tried for years to help Black consumers open checking and savings accounts. The efforts helped, as the number of U.S. households without bank accounts fell to 5.4% in 2019 from 6.5% in 2017, the Federal Deposit Insurance Corp. said Monday.

Consumers who own checking and savings accounts typically have access loans with better rates and a wider variety of financial services.

The federal government’s $660 billion loan initiative for businesses hit by COVID-19, the Paycheck Protection Program, also helped few Black-owned businesses, Bryant said. PPP loans were based on a company’s number of employees and its rent obligations. many Black-owned small businesses typically didn’t have enough workers to qualify and are based out of the owner’s residence.

Bryant said a bad credit history may not prevent applicants from receiving a loan.

He hopes more companies will contribute services such as insurance advice or software typically available only to well-established businesses.

Bryant noted that 1MBB is not a charitable organization, as participating companies like Shopify will likely get a pipeline of new business customers through the program.

“This is not pure philanthropy,” he said. “Shopify believes that Black-owned businesses are good businesses if they’re properly supported.”

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This Week’s Top Car Deals & Analysis – October 30, 2020



The final days of October offer a chance to take advantage of outstanding model year-end deals. Most offers end November 2, which means there isn’t much time left to enjoy this month’s best lease deals and deepest new car discounts. We even found incentives that can help those with bad credit buy a new or used car.

2021 car deals. Interestingly, 2021 new car incentives are showing some surprises. For example, Audi is already offering up to $12,000 in savings when leasing the 2021 e-tron all-electric crossover. We even learned that the new Genesis GV80 SUV will debut with a $589/month lease deal plus special financing rates.

Believe it or not, the 2021 Hyundai Veloster N could prove to be a great value despite a nearly $4,700 price increase compared to the previous year. That’s because our analysis finds that better incentives can make it just $10/month more expensive to lease than the 2020 model. Talk about getting more for your money.

Why are small cars bad to lease? Even though smaller cars typically come with lower price tags, that isn’t always the case when leasing. A mix of lower discounts, worse residual values, and smaller discounts can actually make a Nissan Altima cheaper than a Versa despite having an almost $10,000 difference in MSRP.

Shorter-mileage leases. More brands are offering shorter mileage allowances on car leases. Although this is typically used to offer consumers more flexibility, we’ve found cases in which you can end up getting less for your money. If you don’t read all the fine print, this could make comparison-shopping difficult.

Bad credit car deals. If you have subprime credit, you may find it harder to get financed. However, some manufacturers are offering special incentives to help make cars & trucks more affordable. For example, Chevy is offering $2,000 in down payment assistance plus 9.9% APR for 72 months on the 2020 Trax.

$0 down leases. If you’re adamant about now putting down any money on a lease, you’ll love Sign & Drive leases. In addition to requiring no money down, $0 down lease deals can cover your first month’s payment. Even hot sellers like the Honda CR-V Hybrid offer $0 down and as little as $330/month on a lease.

The high cost of safety? Even though most major automakers are offering more safety features than ever before, our analysis finds that the highest IIHS safety ratings still require costly options in 2020. That’s starting to change, but the cost of buying a car with the most bragging rights is still very high.

Disaster relief. Those affected by some of this year’s natural disasters should be aware that automakers are offering assistance. California wildfire assistance programs like Ford Employee Pricing can save thousands when replacing a car. Similarly, a 2020 hurricane relief program from GM offers $1,000 in savings.

Spooky loan situations. There are some scary scenarios you can avoid when getting a car loan. However, boosting your credit score is possible with some determination because negative items on your credit report fall off after 7 years. Our network of dealers is specially equipped to help those with bad credit.

Upcoming vehicles. Genesis finally revealed the new GV70, a small luxury crossover based on the highly-rated G70 sedan. Whether it’s a redesigned car, truck, or SUV, odds are you’ll find it on our Previews page. That said, as we reported last week, discounts ahead of a redesign can result in substantial savings.

This Month’s Cheapest Lease Deals »

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