Is a lender requiring a cosigner normal for an applicant with a credit score of 680?

I have a credit score of 680 and I make about $45,000 per year. When I went in to my credit union to get the loan, they said they'd only approve it with a cosigner. Is this normal?

Answer provided by
Eric Schad
Answered on Jun 03, 2021
“Your credit score and income aren’t the only things that lenders factor into your loan. So if they ask for a cosigner, it could be for several reasons.
Essentially, they perceive your risk to be too high to allow you to get a loan on your own. There could be a big derogatory mark on your credit report, the amount of your loan may be too high, or you may already have too much debt (meaning your debt-to-income ratio is too high).
So yes, it’s perfectly normal for this to happen. You could try applying with another lender if you don’t want to find a cosigner, but they may give you the same response.”

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