If you’re looking to buy a vehicle with less-than-ideal credit, having a reliable cosigner can make all the difference. Here are a few tips for finding a qualified cosigner to help you get approved for your next vehicle.
For lenders to feel comfortable approving you, not just any old cosigner will do. Lenders or banks will often require you to find a cosigner who’s been around the block a few times and have a thick file to prove it. This person should be in the system for a long period of time, at least 5 to 7 years.
A part of being a cosigner with a thick file means they’ve successfully held and paid off loans in the past. They should have a credit score above 750, have past and current car loans, mortgages, credit cards, etc., that they’ve paid consistently, and keep a low credit card balance.
While not always a requirement, some lenders prefer that your cosigner lives in the same household. If not, the cosigner may have to appear first on the loan. However, this won’t impact your loan any differently and will still allow you the benefit of better terms and rates than if you got approved without one.
Buying a used car doesn’t have to suck. If you’re in the Georgetown, Louisville, and Floyd County areas and looking to buy your first vehicle, buying a pre-owned one can be a great option. At Mike’s Car Store, we offer quality used cars, trucks, vans, and SUVs for all budgets. Browse our inventory today and contact us anytime for more questions as a first-time buyer!