Buyer needs a little credit score help

Tara Baukus Melloq_v2.gifDear 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

a_v2.gifDear 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.

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