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What Credit Score Should a Car Loan Co-Signer Have?

The minimum credit score required for a co-signer is different from lender to lender. You may find that a traditional bank will require a higher score than a credit union, which may, in turn, require a higher score than some online auto finance specialists.

Prime versus Sub-prime Co-signers

Having said that, there are a few numbers that you can use to guide your search for a co-signer. Any credit score under 625 is considered to be sub-prime. Sub-prime borrowers will not be accepted as a co-signers with a traditional bank or a credit union. While many auto finance companies will loan to sub-prime borrowers, they hesitate to allow a sub-prime borrower be a co-signer.

If the person who is willing to co-sign for you has a score of 640 or above, as well as a steady job paying at least $400 a week, you should be able to find a lender willing to take the risk. The higher your co-signers credit score is, the lower your interest rate is going to be. Just keep in mind that the person co-signing your loan is accepting a lot of responsibility. If you cannot pay the loan, they will liable for the borrowed amount.

Ready to get approved? Go here to apply online. If you have secured a co-signer, please be sure to indicate this on your application.

No Co-Signer? Alternative Options

In the event that you cannot find an eligible co-signer, you may want to consider obtaining a secured credit card to boost your own credit score. After making at least six, preferably twelve, on-time payments, your score may rise enough to forgo the use of a co-signer. If you are a first-time buyer and you don’t have a parent willing or able to co-sign, this may be your best bet. It will establish your credit, and make it much easier to secure an approval.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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