How to Get an Auto Loan with a Co-Signer in Colorado Springs
You’re not alone if you’re in the market for a new car but find it hard to get approved for an auto loan.
All things considered…
The average car buyer gets approved for only a third of the cars they want.
So, when you find yourself in this situation, you may be wondering how you can get approved for a car loan.
If you have not yet established a credit history, you may want to have someone co-sign for you.
You’ll also be glad to know that…
A co-signer can make a difference of you getting approved for a car loan or not.
On the positive side…
The Center for Responsible Lending states that only 8% of consumers with bad credit get denied a loan.
So, don’t give up!
Do You Have a Bad Credit Score?
If you have bad credit, you may think getting approved for a car loan is impossible.
We’re about to change all that…
The good news is that there are ways to get a car loan with a co-signer if you don’t have the best credit score.
This means…
A co-signer could help you establish your credit history and get approved for a loan.
Even if you have recently filed for bankruptcy or have a low credit score.
Don’t worry if a lender turned you down for an auto loan, you might get approved with a co-signer.
If you have bad credit, it may be time to start thinking about how you can get approved for a car loan.
The truth is…
Bad credit can be a real challenge.
But, there are more options today for getting a car loan that you might not know are available to you.
Do You Have a High Debt to Income Ratio?
Several reasons, like high debt-to-income ratios, may cause the bank to reject your loan.
Here are some of the most common reasons for getting turned down for a loan:
-
- No job..
- Your income is low.
- You have no assets.
- High debt to income ratio.
- You had a bankruptcy.
- Too many late payments on your credit report.
There are more options today that can help you get a car loan, even with less-than-perfect credit.
What is a Co-signer?
A co-signer is a second party that takes on the same responsibility for the auto loan as the buyer. This may be a parent, another family member, or a friend who agrees to help you.
The co-signee, has full ownership and responsibility for the loan, like the auto owner.
As a matter of fact…
If you fail to make the monthly payments, the co-signer will have to make them.
A co-signee should have an excellent credit rating and a low debt-to-income ratio.
A debt-to-income ratio is a number lenders use to determine if the co-signer can make payments.
Equally important… the auto loan will appear on the co-signer’s credit report and the borrower’s.
Finally, the buyer and co-signer want to communicate to ensure all payments get made on time.
How to Find a Co-signer for Your Auto Loan
The first thing you need to do is find someone who has a good credit score to co-sign for you.
If the co-signer has a poor credit history, you won’t be able to get approved for the loan.
Don’t forget to also ensure that the co-signer has a steady source of income.
You can find someone by asking friends or family members. The next thing you need to do is ensure you have a job.
If you don’t have a job, you may be able to get approved for an auto loan with a co-signer if you have a stable source of income.
Once you have found someone who can co-sign for you, make sure they understand what it means to co-sign.
The co-signer will have to pay back the borrowed amount plus interest if you default.
The Benefits of Getting a Co-Signer for Your Auto Loan
Everyone has to start somewhere. If you don’t have any credit, using a co-signer to get an auto loan can help you establish your credit.
When applying for an auto loan, you must provide several pieces of information.
This includes:
-
- Your name
- Address
- Social Security number
- Phone number
- Proof of residence
- Drivers license
- Employment status
If you have a recent bankruptcy or bad credit, you may need a co-signer.
The co-signer can be a friend or family member with good credit.
In addition, a co-signer can help you get an auto loan, especially if you’re a new driver or have bad credit.
Another key point is that you can get a better interest rate and terms with a co-signer.
Using a co-signer to get an auto loan can help you rebuild your credit and financial future.
Be Honest With Your Co-signer…
This point of honesty is often overlooked and causes problems in the future.
We are bringing it up so you can remain friends throughout the loan term.
All things considered…
It is a good idea for both the co-signer and the buyer to go over a few things before agreeing to co-sign on the loan.
First, review your financial situation and everything for the co-signer to see. Get your bank statements and your bills for your current financial obligations.
Show the co-signer your information so they can see your financial situation. Also, the co-signer can help you decide how much you can afford for an auto loan.
This way, all the cards are on the table, and you begin this transaction honestly and up-front.
By the same token…
Another good idea is to include the co-signer in all correspondence about the auto loan.
For example, give the co-signer access to your loan if a website is available for your loan.
What to do if You Can’t Get a Co-Signer
If you don’t have a co-signer, you’ll have to do extra work to get approved for an auto loan.
For example, you may have to prove that you can make payments on time and afford to pay back the loan.
If you can’t make all these things happen, you may not be able to get approved for a car loan.
So, if you’re in this situation, you may consider having a co-signer.
FAQ: Our Customers Want to Know…
Can you get a car loan with a 500 credit score?
The answer is yes. If your score is in the 500-600 range, financing a car is doable. However, you will pay a higher interest rate. In addition, your credit score will affect the type of loan you qualify for and how much you can borrow.
However, even a small percentage of people with FICO scores of 500 or below can obtain financing.
Our team here at JFR knows the best lenders in the area. We have an extensive network of lenders for those who need a car with bad credit.
So contact us today, and let us help you get the vehicle you need.
How to get approved for a car loan with bad credit?
Getting a car loan with a bad credit score may seem impossible.
Don’t give up…
Here’s what you want to do before applying for a loan.
The first thing is…
Check Your Credit Score
Make sure you don’t have any errors in your report. Fix any errors that are on your account. And if you have any late payments, try to catch up on those payments.
Most lenders will grade your FICO score in the following ways:
- 800-850 Exceptional
- 740-799 Very Good
- 670-739 Good
- 580-669 Fair
- 300-579 Very Poor
Get a Down Payment
It might be challenging to put together some extra cash; however, whatever you can put together can help you get your car, even if it’s just three to five hundred dollars.
Review Your Debt and Income
Know how much you can afford to pay for a new car. The lender wants to make sure you can afford the payments. Your debt-to-income ratio indicates the lender’s ability to know how much to approve your loan for and how much interest and fees to charge.
Prove You Have a Job and You’re Stable
Lenders want to know if you’re working and how long you’ve been on the job. They also want to know how long you’ve lived at your current address.
If you have any questions, contact us at 719-593-8090 for more information.
What's the minimal credit score to get approved for an auto loan?
Getting approved for a conventional car loan takes a 600 FICO score.
This may surprise you…
When it comes to buying a car, there are no set minimum scores needed.
However, the lower your score, the more challenging it is to get approved for a car loan.
Let’s Get Your Car Today…
So what does all this mean?
Let’s recap…
A co-signer can help you in many ways to get your car loan and help you build your credit.
For the most part…
You also want to be responsible with your finances and pay your bills on time.
Paying on time will help raise your FICO score.
Once you have a good credit history, you can apply for credit cards and loans.
In addition, you can also apply for them with lower interest rates and better terms.
If you need a car and are having a problem getting financing, contact us today, and let’s see how we can help you.
Also, if you have any other questions about a co-signer, call us at 719-593-8090 or email us.
P.S. You’ll also be glad to know that we specialize in helping people with bad credit to get the vehicle they need and want.
What’s more…
Once we get your car, we’ll show you how to rebuild your credit by making timely payments.
We know how difficult it can be to get a car when you’re struggling.
Don’t worry.
There’s a solution…
Call us today at 719-593-8090.
