Sunday, July 8, 2012

Getting No Cosigner Car Loan

In today's cost-cutting measure, consumers need all the help they are able to get for it. So when you decide to take benefits of opportunities that are available over internet by searching some reliable website and you will be much surprised how easy it availing car loan without cosigner.

If you happen to already know that your credit is poor or if you have been turned down for auto loans with bad credit in the past, adding a cosigner to your loan application very well could be a good option to help you get approved. It used to be that a cosigner was only a viable solution if you didn't have any credit history at all when looking to get a loan. These days however, many subprime lenders are allowing you to add a cosigner to your application to help you get approved. There are also no cosigner auto loans available to you if you are looking to get car loan without cosigner.

Sub-prime loans are a huge profit motive for these financial lending institutions because they can have higher interest rates than they would on their conventional prime loans. They are always looking for more ways to approve auto loans with bad credit and by enabling you to add a cosigner it can often times turn a decline into an approval. Here are some of the things they will be looking for in a cosigner if you are not going for an auto loan with no cosigner.

1) Stability:

Sub-prime lenders love stability so when looking at a potential cosigner you should attempt to find someone who brings more stability to the auto loan application than you do. Having a long history at a job is also a plus. If your cosigner has a really good job that they have been working at for years it is relatively safe for the lender to have the assumption that they will continue to be working there in the future.

2) Income:

When a financial lending institution considers a cosigner, instead of a no cosigner auto loan, they want to be assured that the person cosigning has the ability to make the payments on their own in case you are unable to fulfill things on your own. Attempt to find somebody who makes at least the same or better still more money than you do or who has very little debt of their own.

3) Better Credit:

Although this is typically not a requirement if you have someone to cosign that has good credit then you will likely increase your chances for approval on an auto loan pretty quickly. If your potential cosigner has good credit the lender then not only knows that their financial situation is a stable one, but also at the same time that they will more than likely want to protect their good credit.

4) Live at the same address:

Again not always a requirement but having a cosigner that lives at the same address is an excellent means to increasing your chances for a loan approval. If you live at the same address more often than not the potential lender will combine both of your incomes when calculating their debt ratios which will lead to a swifter approval process. Use these examples as a guide when trying to find a cosigner. Picking the right one can really make the difference and turn a decline into an approval.

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