Dear Driving for Dollars, Can having a co-signer with an excellent credit score help a buyer get a better interest rate for a buyer with less-than-good credit? -- CynthiaDear Cynthia, Yes, depending on the lender, a co-signer can help a buyer with lousy or even so-so credit get a better interest rate or even go from being denied to being granted a loan. Keep in mind though, people who are considering co-signing for an auto loan should read the loan paperwork carefully and make sure they fully understand what they are agreeing to do. The role of a co-signer is to assume responsibility for the payments if the other signatory defaults. Make sure that the loan states that the co-signer will be notified by the lender if a payment is late or is missed, as that could affect the co-signer's credit score.If you have a car question, e-mail it to us at Driving for Dollars.This week:GM emerges with new ideas, old favoritesCan a co-signer with a good credit score help a buyer get a better loan rate? Create a news alert for "auto" advertisementRelated Links:What's new in hybrids and electric carsThe new GM reaches out to consumersHas Chrysler bankruptcy hurt used cars?Related Articles:Certified cars offer peace of mind6 car-shopping mistakes5 great used cars for bargain hunters
Dear Driving for Dollars, Can having a co-signer with an excellent credit score help a buyer get a better interest rate for a buyer with less-than-good credit? -- Cynthia
Dear Cynthia, Yes, depending on the lender, a co-signer can help a buyer with lousy or even so-so credit get a better interest rate or even go from being denied to being granted a loan. Keep in mind though, people who are considering co-signing for an auto loan should read the loan paperwork carefully and make sure they fully understand what they are agreeing to do. The role of a co-signer is to assume responsibility for the payments if the other signatory defaults. Make sure that the loan states that the co-signer will be notified by the lender if a payment is late or is missed, as that could affect the co-signer's credit score.
If you have a car question, e-mail it to us at Driving for Dollars.
Create a news alert for "auto"
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
A little research could save you BIG on interest.