Do I Need a Cosigner?

So you want to IMG_1109purchase or lease a car, but you have little to no credit, or your credit is not in the best shape. After you’ve shopped around for loans and asked professionals for their opinion on the matter, you may come to the realization that you should have a cosigner.

There’s a reason that you haven’t been offered the best interest rates, but how do you build credit if you can’t obtain a loan?

With a cosigner, lenders are more likely to give you better rates because they are assured that they will receive payments on time. In turn, you are more likely to pay on time because you don’t want the responsibility of making a payment to fall back on your trusted cosigner. Although, things happen and a cosigner gives you time to come up with payments without falling behind if you are unable in a given month

When choosing a cosigner, make sure it’s someone who has exceptional credit history, to fill the areas in which you lack. This person should be prepared to make payments, should you have to miss one every once in a while.

Picture it as riding a bike with training wheels. A cosigner is a great opportunity for you to build credit, without the pressure of making payments on time. They are there for you to lean on, if necessary while you learn to ride (or make payments) on your own.

Yes 4 Credit Oregon wants you to get the best deal on your next auto loan. Call 1-855-YES-4CDT today to learn what we have to offer. Explore our website and read more of our blogs for additional information about financing, auto loans and budgeting.

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