Let's be real - it's extremely difficult to qualify for a loan without have a strong credit score and a steady income. If you can't get approved on your own, it might be time to consider a cosigner as you might have more success with the extra help!
Cosigner
A cosigner is a person who applies for a loan with a consumer who wants to buy a car but they don't have the best financial/credit history. The cosigner signs the loan with the buyer and agrees to pay off this debt if the buyer cannot make payments. A cosigner gives lenders more confidence about approving loans to individuals who are solely dependent on themselves yet have a bad credit score.
Why You Would Need a Cosigner
Cosigners make loan application more lucrative to potential auto lenders. This, in turn, makes them more willing to approve the loan with a strong auto loan cosigner. Lender are likelier to offer more favorable terms on the loan, like lower interest rates, lower fees, or flexible repayment plans.
While applying for a loan, auto lenders will attempt to figure out if they'll get their money back. Typically, they'll take a look at your credit, then your income, and make a decision thereafter.
What Should You Do if You Can't Find a Cosigner?
If you can't find a cosigner for your bad credit car loan, it's time to evaluate your finances altogether. Ideally, you should start out by making a plan to rebuild your credit. First, identify what your credit score is and what debt are weighing your credit down the most. Even small, 'chip-away' payments can go a long way in rebuilding your credit. It's better to start late then never, as they say! Read more about loans from https://en.wikipedia.org/wiki/Loan.
