Gino Rodriguez, Writer
A cosigner could hurt your chances of getting a loan if they have a lower credit score and less disposable income than you do, but that is unlikely. A cosigner is someone who agrees to take responsibility for the loan if you can’t pay it back, and they typically have a good or excellent score as well as plenty of income.
Having a well-qualified cosigner on your loan takes away some of the risk associated with lending you money, and it may even help you qualify for better loan terms. Just keep in mind that missing payments on a cosigned loan will hurt both of your credit scores and can potentially damage the relationship you have with the cosigner.
How Being a Cosigner Could Hurt Your Chances of Approval
Being the cosigner for a loan could potentially hurt your chances of getting a loan yourself. For one thing, cosigning could limit your borrowing power due to an increased debt-to-income ratio. Your chances of getting a loan could also be hurt if the primary borrower on the cosigned loan fails to make payments because that could result in damage to your credit score.
You can check out WalletHub’s picks for the best personal loans with a cosigner to learn more. You can also estimate your potential rates with multiple lenders at once using our free pre-qualification tool.
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