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Can I cosign for my mom's car loan?

My mom needs a car, but her credit score is a bit rough. My credit is pretty good and I earn a steady income. Can I cosign for her?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes—you can cosign for your mother’s
car loan
, but you’ll have to meet a few criteria. Here’s what you’ll need to have:
  • Have a good credit score
  • Have steady income that can support the payments of the car loan
  • A debt-to-income ratio below 43%
If you meet these criteria, you should have no cosigning on your mom’s loan. 
Keep in mind that co-signing for a car loan also has a few disadvantages:
  • Credit risk: The car loan will appear on both you and your cosigner’s credit reports. If your mother misses a car payment or if the
    car is repossessed
    , it could do serious damage to your credit score.
  • Financial risk: If payments are missed, the lender could go after you for the money, along with try to collect late fees. Depending on how overdue the payment is, the lender could even file a lawsuit against you to garnish wages.
Also remember that if your mom is taking a car loan, her lender will likely require her to purchase a
full-coverage car insurance policy
. Using a car insurance comparison app is a great way to ensure she’s not overpaying for insurance! 
MORE: How to get a car with no credit or cosigner
View full answer 
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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