Being a cosigner in a high risk loan situation is not an easy position to be in. Cosigners can be at risk of ruining their own credit if the buyer defaults on their payments or is late with the payments. The best way to make a choice about whether or not to be a cosigner is to do the research. Complete Auto Loans is here to offer advice on the subject and educate consumers on the pitfalls of no credit check car loans.
Co-buyers & Cosigners
1. Are responsible for the auto loan if the primary buyer defaults. If the primary borrower can not pay, the obligation falls to the cosigner and co-buyer.
2. Must be present to sign the loan contract.
3. Both the credit of the co-buyer/signer and that of the primary borrower is at risk if payments are not made.
4. Both parties are subject to a credit check prior to negotiating a loan term. Therefore, both must bring proper forms of ID and know their social security number.
Co-buyers vs. Cosigners
1. Lenders designate if the second party will be a cosigner or co-buyer depending on their credit history and ability to pay the loan. So, not everyone has a choice in the matter. If the second party finds the situation is not to their liking, they are advised to back out of the deal.
2. Co-buyers have the option of claiming their income as a part of the primary buyers. This may result in a better loan rate as long as the down payment is a good one.
3. For cosigners, each party must qualify for a loan separately. This is compared to the co-buyer situation above.
Complete Auto Loans is a provider of national car and auto financing. We specialize in auto and car loans for no credit, bad credit, good credit, and student auto loans. ?No matter what the condition of the borrower’s credit at the time of the application, Complete Auto Loans qualifies almost 100% of loan applicants.