A image of a signature with a green check mark and a credit score rating

Cosigner Requirements for a Car Loan

Milad Hassibi April 19, 2018


Having bad credit can put you in a tough spot when you need a loan or line of credit for something important such as a car.

Constantly getting denied for an auto loan can be hard to take and you may even have thought about bringing on a cosigner to help your odds of approval.

A cosigner is a great way to give your application a boost and increase your chances of getting approved for that auto loan you need. But what are some of the requirements for an auto loan cosigner?

If you have decided to bring on a cosigner for a car loan, there are a few important factors that you will need to know and also consider.

Any lender, including subprime lenders, will have a specific set of auto loan cosigner requirements. We compiled some of the common cosigner requirements for a car loan.

Strong credit score

If you are in need of an auto loan cosigner due to your bad credit, you need to be certain that your cosigner strong credit score stable employment and incomehas good credit. A rule of thumb for many lenders is that a cosigner will need at least a 700 credit score or above to be able to cosign on an auto loan for you.

An auto loan cosigner‘s higher credit score will be used as a balance against your less than ideal score. Bringing on a cosigner can greatly improve your chances of getting approved for that car loan that you need.

Stable employment

Banks and lenders love stability, after all, their goal is to make money in the least risky ways possible! Although employment stability is not necessarily a strict requirement for many lenders, it can greatly improve your odds of approval.

Some income requirements for a cosigner can include a monthly income of at least $1,600 pre-tax.

As a rule of thumb, many lenders look for cosigners that have lived at a certain address for 5 years or more and are established and connected to their community.

Income and ability to pay

The reason why a lender would want a cosigner is so that they could go after them if you were to default on your loan payments. Typically, each lender will have their own income requirements for a cosigner dependent on the loan amount, the down payment, and other factors.

The lender will also look at their current monthly expenses such as their rent, bills, and more.

Get a Car Loan with Any Credit Along with a Happy Couple and a New Black SUV next to them

If you decide that you want to use a cosigner on your next auto loan, it is important that you have a healthy and strong relationship with the cosigner.

Signing an auto loan with a cosigner should not be viewed as a small task, as delinquencies and defaults will have a massive impact on not just your credit score, but also the cosigner.

Final Note

Understand that your cosigner is taking a huge risk for you by putting their good credit score on the line for you. This is why it’s important to have a healthy relationship with your cosigner, as you will need a healthy open channel to communicate with them about the loan and if any issues come up.

If you are reluctant about using a cosigner or have a cosigner but still didn’t get the loan you were looking for, CrediReady can definitely help! CrediReady offers one of the largest databases that connects dealerships, lenders, and buyers in all credit situations. Take a few moments to fill out our free and confidential loan search form online and we will match you with a dealership in your local area that can meet your auto financing needs.



Free Credit Score

Get your free credit score now! Get a copy of your most recent credit score.
get your free score

Auto Insurance

Get your free insurance quote now! Save big on auto insurance today!
get your free quote

Vehicle Warranty

Protect your vehicle and you could save thousands on auto repairs.
get your free quote