Do you need a cosigner to refinance a vehicle?

My original loan has an interest rate of 10%, so I want to refinance it as soon as possible. I had a cosigner on my original loan. Do I still need a cosigner?

Answer
That’s a smart move to refinance from 10% interest, as you’re paying way too much interest currently.
To answer the question, whether you need a cosigner when you refinance a car loan is entirely dependent on your credit and income.
Typically, a 10% interest rate is indicative of poor or mediocre credit. So if you’ve improved your credit since then, congratulations! You may not need the cosigner.
The good news is that the lender should tell you if you need a cosigner. The representative will analyze your credit, income, and debt-to-income ratio to see if you’re good to go on your own. If you aren’t, they’ll recommend that you find a cosigner.
Since you’re refinancing your vehicle, you may also want to see if you can find a better rate on car insurance. Download the Jerry app to compare rates from dozens of car insurance companies. With any luck, you’ll save money on both your insurance and your new car loan.
Eric Schad
Answered on Oct 20, 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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