If you’re planning to buy a car and you’ll be financing the purchase, borrowing money may be difficult. Due to a low credit score or lack of income, a lender may be hesitant to give you a loan.
Fortunately, you may be able get the funds you need by utilizing a cosigner. Here our Nissan finance department goes over this option and what it could mean for you.
How a Cosigner Works
When looking for a cosigner, you need to find someone who is in solid financial shape. They should have a credit score at least in the Good category and steady long-term employment. This person will then apply with you for the loan.
The reason their income will get scrutiny along with yours is to gauge their risk. Even if you make every payment, the lender will want to know that your cosigner would be able to pick up any slack.
Why Use a Cosigner?
To Secure a Loan
If you are unable to get a loan because of your credit score, a cosigner could be your best way to change this.
To Get a Lower Interest Rate
Even if you can get a loan, it could come with a high interest rate. A cosigner may be able to help lower it. And when you build your credit, eventually you might be able to refinance for an even lower rate.
To Buy a Better Car
A cosigner may encourage the lender to give you a larger loan, which could help you get a better car.
Start the Financing Process Now
Bedford Nissan makes the financing process easy, and you can start it right now for both you and a cosigner. Just fill out our online application and someone will get back to you shortly.
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