Atlanta GM Dealer, Should You Use A Co-Signer To Secure A Car Loan

We all know who co-signers are and what they do, so we won’t go over the definition. Okay, that statement is only half true. We all know who co-signers are, but do you know how important they can be? Do you know what their obligation as co-signer is? This is important to know for any potential car buyers who are looking to have somebody co-sign their contract or for somebody who is being sought after to co-sign a contract. Here’s the bottom line, the creditor for your car loan may allow you to have a co-signer on the finance contract with you in order to make up for any shortfalls in your credit history. This is a good thing because it opens up criteria for issuing the loan. Don’t abuse the trust and good will of your co-signer by purchasing a vehicle you know you won’t be able to afford.

A co-signer has equal responsibility for the contract, not some, not most, but equal responsibility. If you skip on your payments, your co-signer is legally obligated to cover your debt. Further, this contract and any missed payments will show up on the co-signers credit history. Therefore, if being asked to be a co-signer, make sure that this is somebody that you have a large amount of trust and confidence in, because it could have dire effects on you if this person cannot hold up their end of the loan. Often times, co-signers are eventually asked to repay the obligation, so be certain that you can afford to do that before signing anything.

Have a question about an easy way to get a car loan? Ask your Atlanta GM dealer!

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