Getting a credit assist from a cosigner may be necessary to qualify for the credit you are looking for. You may need a cosigner when applying for credit if:
- You don’t meet the minimum income requirements for a loan.
- You have no established credit.
- You have bad credit.
- You are self-employed.
- You changed jobs recently or your income is variable.
Applying for credit with a cosigner may help you secure private student loans, credit cards and even mortgages that you wouldn’t be able to qualify for on your own.
Try reaching out to a trusted friend or family member with a good credit history and a solid income history as a potential cosigner.
Get Your Free Credit Score & MonitoringPlus Weekly Updates From Our 50+ Experts
Being Responsible With Your Loan
It’s very important to manage a cosigned account wisely. Pay your account as agreed each and every month. Remember, a cosigner is doing you a favor, and if you should fall behind on payments and the account becomes delinquent, the delinquency will show up on your cosigner’s credit report as well as your own.
Not to mention that your friend or family member who cosigned for the loan will be held legally responsible for the debt that you are unable to pay.
So take a close look at your finances before asking for a cosigner for help with a loan. Do you have the income to easily meet the loan payments each month and for the length of the loan? Assess your work situation. Do you expect to be working at the same job a year or two from now? How difficult will it be for you to get another job if you need one?
Remember your cosigner’s credit record is on the line as well as your own.
So only apply for a loan with payments that you feel you can manage responsibly. Make paying a cosigned loan a priority in your budget.
How Cosigned Loans Can Help
Paying a cosigned loan as agreed will help you to build a good payment history, which will give your credit score a lift.
If you manage your cosigned loan payments responsibly, you can reap the benefits and watch your credit score climb over time.
[Offer: Is bad credit holding you back? The credit professionals at our partner Lexington Law may be able to help. They have a team of attorneys that are there to help you improve your credit by getting inaccurate, negative items removed. Their team can also help you understand your credit score and leverage your rights to help ensure that you have a fair, accurate and substantiated credit report. Get started today or call them at (844) 346-3295 for a free consultation.]Sign up for your free Credit.com account. Learn More
The Kobalt Tools 500 is a NASCAR Sprint Cup stock car race held at Phoenix International Raceway in Avondale, Arizona. The race is sponsored by Lowe's through its Kobalt Tools brand.
Cow Hollow farmer, came from Oklahoma, has received FSA (Farm Security Administration) loan to help them establish their new place. Wife is co-signer with her husband on chattel mortgage. She signs wi
Home (Historic Photos)