How does having a co-signer on an auto loan help me?

my credit score is poor will having a co-signer allow me to get a bigger loan?

How does having a co-signer on an auto loan help me?
In effect, when you take on a Co-signer, the co-signer is assuming your loan. That person's credit background will become the basis for the origination of the loan, and ultimately it is the co-signer that is responsible for paying the loan.





The person who does this better trust you, that you will pay off this loan, and be sure that you will make each payment on time. Anytime you screw up, it not only affects your credit rating, but it also affects the credit rating of the co-signer.





And if something happens that you are not able to pay off the loan, the credit company will not come after you, but rather,they will go after the co-signer.





I hate sounding like your father here, but from your question it sounds like you are not too old, and also, have been rather immature or irresponsible toward paying bills on time. If you are able to find someone to co-sign on this loan, you are going to have to become much more responsible paying on this loan.





With a co-signer you are not only affecting your own credit rating, but whatever you do affects someone elses credit rating, too. If you screw up, you may affect someone elses ability to purchase a home, get a loan for someone's college education, or worse...





I also read the rest of your answers, and there was one incorrect item stated. When you have a loan with a co-signer, both parties (the signee and the co-signee) are treated equally. If you screw up, it shows up on both your ratings and history, but on the other hand, if you make all the payments on time for the life of the loan, that will also be reflected on yours and your co-signers rating and history.





What you do will affect your credit rating regardless of whether or not you have a co-signer.
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Reply:yes it will help you out .. both of you guys will build up credit go for it !
Reply:Yes it will help you get a bigger loan but it will do nothing for your credit.
Reply:A lender will ask for a cosigner is they think that there is too much risk in giving you a loan in your name alone.





A cosigner is legally bound to make good on the loan and payments should you default.





Both you and the cosigner are responsible for the loan payments, and you both do receive credit for the payments.





If all payments are on time, then it helps both of your credit, but if payments are late, or the car becomes repossesed, then it reflects on both of your credit.
Reply:if you cant pay the other person has to.if the other person has good credit you can get a bigger loan
Reply:If you do not have an established credit history having a cosigner with one will help you get the loan. A cosigner also provides some insurance to the finance company that if you default on the loan they will have someone to go after if you do not pay.