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.