Are you wondering if you should get a co-signer for your auto loan? There are a few things you should know. At Helfman Ford, we are committed to making sure you are informed about every aspect of the Ford finance process.
What is a Co-Signer?
A co-signer is someone with healthy credit who is willing to sign a loan with you to qualify for a better interest rate. If you fail to make your monthly payments, the responsibility will fall on your co-signer. A co-signer guarantees the loan will be paid, therefore increasing the chance of approval or improved terms.
Oftentimes, your co-signer will be a family member or a friend who has an excellent credit score. Keep in mind that if you pay late or default on your loan, this can negatively impact your co-signer’s credit score.
Reasons You May Need a Co-Signer
When obtaining a car loan, having a solid credit rating is generally important. A healthy credit rating ensures that you will be offered a good interest rate and terms. But, if your credit rating is less than stellar, a co-signer can help improve your financing rates.
Another reason you may choose to have a co-signer is if you are young, just starting out, and haven’t had the opportunity to establish credit. We also recommend getting a co-signer if you don’t have a constant source of income.
Apply for Ford Financing in Stafford, TX
The decision to obtain a co-signer depends on your situation. At Helfman Ford we can assist you with your Ford finance application and help you find terms that work for your budget. Visit us today to test-drive your new Ford vehicle!
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