A man gets approved for an auto loan thanks to a cosigner

Common Cosigner Requirement FAQs

Milad Hassibi December 12, 2018

If you have a less than perfect credit score and are looking to obtain a line of credit, you may be asked to provide a cosigner by your lender.

A cosigner is someone that assists a borrower to get approved for a loan. A cosigner “lends” their credit to the main borrower in hopes of getting them approved for a certain loan or line of credit.

Questions About Cosigning

Does a cosigner need to have good credit?

Yes. If you have bad credit, there is a certain credit score your cosigner will need to have. Most credit experts agree that a credit score of 700 is the minimum requirement for a cosigner.

A man stands with his credit score in a gauge next to a new car

Can a cosigner live in another state?

Yes. A cosigner does not have to be in the same city or state as you. A lender only cares about a cosigner’s credit score. Chances are, the lender will fax the cosigner any documents they need to sign.

Are a co-borrower and cosigner the same?

No. a co-borrower has ownership rights to the asset where a cosigner does not. A cosigner will still be responsible for paying for any missed loan or credit payments.

Does a cosigner need to be a citizen of the US?

Yes, a cosigner must be a US citizen. A lender will not accept a person with a green card or permanent residency documents.

Can a cosigner be retired or on a fixed income?

Yes. A cosigner can be on social security and still assist you with getting a line of credit. Lenders only want to see cosigners with healthy credit.

Final Note

It is essential that you and your cosigner have a healthy relationship. Cosigning is a massive responsibility as the cosigner will be on the hook for any of the main borrowers missed payments.

If you are looking to buy a new car but have less than perfect credit, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!

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