If you have a bad credit history, and then chances are that most banks and financial institutions would reject your loan application without giving it a second glance. Does that mean, you do not get to buy your dream car? That’s certainly not a case.
Many people want to find out:
This is a great option for people with bad credit ratings. The only reason why lenders refuse to lend to people with bad credit rating is because they are scared of the loan turning into bad debt. They realize that the applicant has a bad credit history and is highly capable of defaulting again. This is when getting a loan with great co-signer changes the chances of getting loan.
Have a great cosigner means that someone with a good credit rating and spotless credit history is signing the loan application with you. Banks are willing to grant loan to people with bad credit but a great cosigner as in this case they know that you are coming with a guarantor. In such cases, the co-signor with an excellent credit history is taking your guarantee and telling the bank that you will not default. Hence, when a person with bad credit but great cosigner applies for loan, the risk of the loan being defaulted reduces considerably.
In such cases, of used car loans with bad credit but a great co-signer the borrower alone is liable to pay the bills. The co –signer is just the guarantor. The liability of the guarantor depends on the kind of loan taken.
Hence for people who have a used car loan with bad credit but a great co-signer taking loans become easy.