If you plan on co-owning a vehicle, or you want to maximize your chances of approval in addition to a larger loan amount, applying for a car loan with a co-borrower could be the right selection for you.
A co-borrower is an equal partner from the car-buying process who has access to the features about car ownership as well sharing to use responsibilities. With a joint car loan package, the details of both parties are included within the application form and the car title, are responsible for repaying the loan, and each has the same rights to the use and ownership in the vehicle.
So how does a co-applicant for a car loan actually help the application? Increasing the available income in order to the potential loan, and to strengthen the debt to income ratio, could be a major factor. Lenders will require a range of criteria into account, and co-borrowing with anyone who has a good credit score may also strengthen your.
Co-borrower vs. cosigner
An auto loan cosigner differs from a co-borrower. The cosigner commits to make payments, and even repaying the whole loan amount, if the primary borrower isn\’t going to do so, but has no ownership rights around the vehicle. They\’re liable for the risk, but don\’t have a stake within the benefits. A cosigner is generally a parent, close family member of friend.
Depending with your situation, this approach could also help. A person with bad credit* who does not want to share ownership of a vehicle, such as, may boost their chances of approval with the help of a creditworthy cosigner to the application.
Where can one apply with a co-borrower?
Many lenders accept applications for car loans with co-borrowers. Shop around, make sure the prospective lender is usually a company you want to do business with, and apply.
RoadLoans, the direct-lending platform of Santander Consumer USA, comes with a secure, one-page application in which you will add a co-applicant, and it takes a few minutes to complete.
You\’ll receive an instant decision and, if approved, multiple offers customized to the needs. Download your loan documents and visit the preferred dealership listed inside, or use our dealer locator to discover another option within our network of 14,000 trusted car dealerships nationwide.
If you\’ve been declined with an auto loan, were not approved with the loan amount you were seeking, or you want to better the odds of approval when using the best possible terms first time around, a co-borrower might help. In other situations, similar to a couple, it may simply make the most sense to get a joint loan.
Learn much more about financing with RoadLoans.
* \”Bad\” or \”Poor\” credit is considered a FICO score around 600 and below by sources along with the Consumer Federation of America and National Credit rating agencies Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com while others. The Congressional Budget Office identifies a FICO score of 620 as being the \”cutoff\” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.