In certain situations, when your credit is less than ideal based on the guidelines established by your lending institution, you might consider using a co-signer, or someone who can help you finance the automotive loan contract to make up for any shortcomings in your credit history. In essence, a co-signer assumes equal responsibility for your car loan should you fail to make payments or pay off the loan at the end of its term. As a result, this credit account will appear on your co-signer's credit report as well.

Exercise caution when asking a third-party to co-sign a loan for you since many times co-signers are required to pay off loan obligations on someone else's behalf — in this case, on your behalf in the event you default on the loan.

 

©Copyright 2008 NADAguides.com. All Rights Reserved

Related Articles & Car Reviews

Find Cars for sale near you:

Research by Vehicle Type

  • Convertible
  • Coupe
  • Hatchback
  • Hybrid
  • Luxury
  • Sedan
  • SUV
  • Truck
  • Van/Minivan
  • Wagon

Shopping Tools

Loading Ajax Content Loading Ajax Content