Almost anyone can be a co-signer on a car loan – it doesn’t have to be your spouse, family member, or even someone who lives in your state. However, they must meet certain requirements in order to help you get a car loan.

Who can be a co-signer of my car loan?

A friend can be your co-signer on an auto loan. You don’t have to be related to someone to be your co-signer. In fact, it could be anyone with a good enough credit rating, if it’s someone who is willing to back you up on a car loan. This means that a friend who lives within three states of you might co-sign on your loan if they meet the conditions.

Co-signers help you get approved for a car loan by promising to pay off the vehicle if you can’t and lending you their good credit score to make up for your less than perfect. If you need a co-signer, you need to find someone with a good credit rating.

There is no hard and fast rule about what their credit rating should be, but, at the very least, it should be better than yours. Typically, a good credit score is over 660. If your potential co-signer has a credit score below that, then they are considered a bad borrower. If so, they probably won’t increase your chances of getting approved for a car loan.

Another requirement of a co-signer is that they have sufficient income. The incomes of the co-signers are not combined on the loan application. Each of your income is considered separately, so your income alone must meet the income requirements of the lender. Your co-signer must also prove that they have sufficient disposable income to pay your monthly payments in case you cannot.

What your co-signer is responsible for

If you have a friend who is willing to co-sign for you, they have some responsibility for the auto loan. If you are unable to make payments, the lender may ask your co-signer to cover the payments. If you start to fall behind on payments or miss them altogether, both your credit scores are affected.

In a more extreme example, if you were to default and repossess the vehicle, these negative ratings will show up on both of your credit reports. Your actions impact both your credit and that of your co-signer, so it’s a big deal to get someone to co-sign for you.

On the other hand, if you were to make all of your payments on time, you could both come away with better credit scores! If you think you have a friend who can co-sign for you, assure them that you will stay on top of the car loan.

Get a car loan without a co-signer

With a lower credit score, it can be difficult to get auto loan approval from traditional lenders. Fortunately, there are resources for borrowers who need a car loan but have poor credit and cannot find the right co-signer. If you’re in the same boat, consider venture financing.

Risk financing is designed for borrowers who have difficult credit conditions. These lenders don’t just look at your credit score, so they’re ideal for borrowers who have had credit bumps in the past or those who are just starting out on their credit history.

To be matched with a dealer associated with subprime lenders, complete our completely free, secure and no-obligation form auto loan application form. We will look for a reseller in your area. Here has Auto Express Credit, we’ve assembled a nationwide dealer network over the past 20 years, so don’t drive aimlessly hoping to find a special financial dealer – let us do the work for you.