Sun, Apr 10th - 9:57PM
Cosigning Can Make Your No Credit Car Loan Approval Easy
All first-timers want to know whether it is easy to get a no credit car loan. The answer is both yes and no. Yes, because a person with a no credit history has a higher chance than a person with bad credit to make timely payments. A person with bad credit already has made late or missed payments. But a young college graduate who wants to buy his or her own first car has a better chance of not defaulting on payments. And no because, a person with no credit history needs to convince the lender that he is a responsible and will make regular payments. One way of easing the approval process is by finding a cosigner.
What is a cosigner? A cosigner is a person who will guarantee to the auto lender that you will make timely payments and in case you default, he will be responsible for them. Here are some tips on who can be the perfect cosigner.
>> Requesting a family member, a relative or a close friend to cosign with you is a very god idea. In case you do default on payments you can openly ask him or her to make the payment on your behalf.
>> Find a cosigner with an excellent credit history. The lender will be more comfortable in giving you the automobile loans when he is sure that your cosigner makes credit payments on time. So in case you default on your payments, they have the cosigner to go to.
>> Make sure that your cosigner has the financial condition to bear the responsibility of making your payments in case you default. Because if either you or your cosigner do not make payments, the lender can take you to court.
Asking a person to cosign with you for your no credit car loan is a huge responsibility. You need to protect that person from liability as much as possible. Just getting the car loans with the help of a cosigner is not enough. Make sure that you follow a few things to protect yourself and your cosigner.
>> Your cosigner must be aware of his responsibilities and liabilities before he signs.
>> If due to unexpected circumstances you won't be able to submit your monthly payment, you should first call him up and request for an extension. If your car lender refuses, you should talk to your cosigner as soon as possible and explain the situation. Request him to make the payment for you that particular month and promise to pay it back.
>> Since your cosigner has helped you, make sure that your payments are consistent so that his credit account is not tarnished. As much as possible, try to reduce his liabilities.
>> Once you start making regular payments for a few months, you will have your own credit history. For your next loan, you will not need to take the help of a cosigner.
Taking no credit auto loans with the help of a cosigner is a responsibility you need to shoulder.