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.

Answer
“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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Eric Schad
Answered on Jul 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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