Nissan Finance Tips: Should I Get a Co-signer for My Car Loan?

Once you pick out a model and trim at Sansone Nissan, the next step is to proceed to our Nissan finance center. One question we get often from car buyers is whether they need a co-signer. The answer? It depends. Here are the situations when a co-signer may be strongly recommended or required for loan approval.

The Role of the Co-Signer

First, let’s explain the role of a co-signer to avoid any confusion. When someone signs the contract with the buyer, that person is legally agreeing to take on the same financial obligations. The co-signer is who the lending institution will turn to in the event the primary borrower is unable to make timely payments. By having a co-signer, this reduces the likelihood of the loan going into default.

Who Can Be a Co-signer?

Contrary to belief, co-signers aren’t limited to immediate family members. Relatives and friends alike can assume this role. The main requirement is the person needs to be in good financial standing, usually with a FICO credit score above 670, though this may vary.

When Is a Co-Signer Required?

Some loan eligibilities may require a co-signer. This is typically the case under these scenarios:

• You have a subprime score of 579 or below
• You have zero or limited credit history
• You have a high debt-to-income ratio, usually above 36%
• You have a brief employment history or a history with wide gaps in between

The above points make you a high-risk borrower, and a co-signer minimizes your risk.

Talk to Our Nissan Finance Team to Learn More

The finance department at Sansone Nissan can perform a credit check and examine existing documentation to determine your loan eligibility and whether a co-signer is required or recommended. Schedule a visit today.

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