Can I be a cosigner for another car loan if I already have a car loan?
If I already have a car loan, can I be a cosigner for another car? I have a car loan for a 2019 Honda Accord; however, my niece wants me to cosign for her loan, as her parents (my sibling and sibling-in-law) have poor credit.
“Just because you have a car loan already doesn’t disqualify you from being a cosigner.
You’re probably a strong cosigner candidate if you have:
- phenomenal credit
- decent income
- a low debt-to-income ratio
The only problem you might have is relying on your niece to pay the loan. Make sure she understands that this isn’t a loan where it’s acceptable not to pay.
If you trust her and you lay down the law from the beginning, the limit of your interaction should just be showing up to sign papers at closing.
Also be sure to remind your niece that she will need car insurance when she gets a new car, so she’ll need to budget that along with the monthly car loan payment.
Using a smart comparison tool like the free Jerry app can provide you with competitive quotes frmo the top 45 companies in under a minute.”
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