Will becoming a cosigner on a car loan impact my chances for other loans?
Will being a cosigner on a loan affect my chances to get other loans? I'm cosigning on a loan for my daughter. While this isn't an issue itself, I was thinking of buying an RV in the next few months.
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Answered on Jul 13, 2021
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“It might; however, it’s highly dependent on your current income and debt-to-income ratio.
As a general rule, lenders want your debt-to-income ratio to be no higher than 43%. This is the industry-standard cutoff point.
Once you reach this level, your chances of getting a loan are diminished.
Being a cosigner would count as more debt against you when you apply for other loans. You might be approved depending on this ratio, but you should probably do the math to see if you can still get your RV loan.
If you can’t, you may want to have your spouse cosign for your daughter’s new car.”
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