Co-signing for a Car Loan | Car Loan Pal

This is an important read for any potential car buyers who are looking to have somebody co-sign their contract or for somebody who is being sought after to co-sign a contract. The creditor for your car loan may allow you to have a co-signer on the finance contract with you in order to make up for any shortfalls in your credit history. A co-signer has equal responsibility for the contract, and this contract will show up on the co-signers credit history. If being asked to be a co-signer, make sure that this is somebody that you have a large amount of trust and confidence in because it could have dire effects on you if this person cannot hold up their end of the loan. Often times, co-signers are eventually asked to repay the obligation, so be certain that you can afford to do that before signing anything.

The dealership will get a copy of your credit report, which will tell them about your current and past credit obligations and your payment records. On each account, your credit report shows the terms of the account, credit limit, and a comments section describing the current status of your account, including a summary of past due information.