A car ride is always better with company, right?
Well, how about some company on your car-buying journey?
If you need a little help getting financing for a purchase or would like a better offer, a co-applicant could be your answer.
What is a co-applicant?
A co-applicant is someone who joins you as you try to get financing, either at the pre-qualification step – which gives you an idea of whether you’ll get approved for a loan – or when you complete your financing application. Often, they will be a parent or spouse who has a steady income and good credit score.
Co-applicants who are approved for financing at the dealership and purchase a vehicle together usually become co-borrowers who then share responsibility for paying back the loan and have the same rights to the vehicle.
Benefits of pre-qualifying with a co-applicant
So, how could a co-applicant help you out?
They may enable you to get pre-qualified for a start. Or, if you can already get pre-qualified, adding a co-applicant may help you qualify for more vehicles or get a better interest rate.
What’s not to like there?
One of the main reasons for this is that a lender is able to consider another set of income and credit history which can lower the risk involved in lending to you.
If you have a poor credit history or limited income, that could make all the difference in getting the go ahead for a loan and the type of offer you receive.
There may be advantages for the future, too. By partnering with a co-borrower, many people with short credit histories are able to get a foot on the credit ladder, while those with poor credit can rebuild their scores.
See if you pre-qualify
At Drive®, we’d love to help you get the perfect vehicle.
Take two minutes to see if you pre-qualify for financing – on your own or with a co-applicant – with no impact on your credit score.
If you pre-qualify, you’ll be able to learn about your financing options using our Budget Customizer, choose your ideal terms and seamlessly start shopping for vehicles that match your chosen offer.
Then, you’re all set to visit the dealer and move forward with confidence.
