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How can a cosigner help you get a car loan?

I was shopping around for a car loan and several lenders told me that I probably needed a cosigner. I'm not really sure how this would help—but I definitely want to get the loan! Why would I need a cosigner?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Don’t think of a cosigner as a hindrance! A cosigner can be crucial to helping you get a
car loan
, since they’re effectively ensuring that the loan payments will be made no matter what.
When a lender advises you that you need a cosigner, this simply means one or more of these things:
  • You don’t make enough income
  • You have no credit
  • You have poor or mediocre credit
  • Your debt-to-income ratio is slightly too high
On the bright side, you weren’t rejected outright. You’re just a sliver away from getting approval on your own. With a cosigner, you’re all but assured that you can get a loan, provided that your cosigner has great credit.
If your loan gets approved with a cosigner, don’t forget to budget for car insurance! On a financed vehicle, you’ll need to get full coverage auto insurance, so it’s a good idea to look for the best rate on the coverage you need.
One of the easiest ways to do this is through the
Jerry
app! We’ll get you personalized quotes from top insurers, so all you need to do is choose the policy that works best for your needs.
Best of luck with the loan, and with finding a cosigner! You’ve got this!
MORE: How to get a cosigner for a bad credit car loan
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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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