Do I need a parent to cosign for a car?

Financing a vehicle can be a tough process if you have a limited credit history, derogatory reports, or are just getting started in your career. In some cases, getting approved for an auto loan might require asking someone — like a parent — to cosign on the loan for you.

Is it OK to cosign for a car?

A cosigner on an auto loan agrees to take full legal responsibility for repaying the loan if you can’t pay it back. Having a cosigner for a car gives a lender extra assurances that the loan will be repaid. While a cosigner can help you get an auto loan, they’re taking on risk.

Can a parent be a cosigner on a car loan?

Credit unions, banks, auto financing companies and dealers allow you to have a cosigner on an auto loan. Parents are often the first choice for a young person seeking a cosigner, although any adult can cosign a loan with you. Your parents know you, your work history, your responsibility level and where you live so they often agree to cosign.

How old do you have to be to be a cosigner on a loan?

This is also the minimum age you have to be to sign a contract. So 18 is the minimum age for a co-signer. However, most 18-year-olds do not have enough financial resources, credit history or job longevity to be co-signers. On the other side of the age spectrum, lenders are not allowed to discriminate based on…

Can a person under 18 get a car loan?

If you are under 18, you are unlikely to have much credit history. Your credit score, even if you have never missed a payment on other debts you may have, will be low. If your age didn’t legally necessitate a cosigner, your deficient credit history would be reason enough for a lender to require one on your auto loan.

What happens if you don’t co sign on a car loan?

Requests to co-sign can come with heaps of family drama, pressure, and hard feelings if declined. Friendships can suffer if someone decides not to co-sign on a loan, or the primary borrower stops paying. For borrowers with horrible credit scores or no credit history at all, a co-signer can be a lifeline that allows them to get a car.