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
“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.”
avatar
Eric Schad
Answered on Jul 23, 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.