Can you cosign for multiple car loans?

I have two adult children that were negligent with their credit at a young age. They're only a year apart, and out of nowhere, they both want me to cosign for their loans. Can I cosign for two car loans at the same time?

Answer
You can cosign for as many car loans as you want, provided you have the income to pay for them and a solid credit score.
If you’re only signing for your children, you can probably cosign for two loans without much problem. But keep in mind that your debt-to-income ratio will also be a factor. Essentially, your debt (including the car loans) cannot exceed 43% of your income.
The one thing that you might remain wary of is whether you want to be responsible for two car loans for several years. If either of your kids doesn’t pay, you are on the hook for the outstanding loan payment(s). Failure to pay will negatively impact both you and your child(ren)’s credit scores. So, have a frank discussion with your kids about the associated responsibility before you sign.
To save money on other car expenses, your entire family could benefit from downloading Jerry. Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Eric Schad
Answered on Dec 06, 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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free