Helpful Tips When Cosigning
Friday 1st September, 2017
Any questions regarding how a cosigned title loan works, please read our article, “Your Title Loan Options with a Cosigned Vehicle.”
\As the borrower interested in using an auto title loan on your vehicle, it’s important to let your cosigner know their rights and their full responsibility in the deal. As cosigner, they will have equal responsibility to paying off any loans as you do. Having a great relationship with your friend or family member you cosigned with is very important when taking this step. This may work out very well for you and your cosigner, but it may not. Make sure you’re able to pay off the loan so your cosigner doesn’t have to end up paying. This can greatly impact one’s relationship with the other in a negative way.
Keep in mind that if you’re unable to pay, it will affect not only your credit score, but your cosigners’ too. Your cosigner is taking a big risk and is trusting you with something that could greatly affect their own loan qualifications. If you feel that you are in need of a loan and are unable to pay it off, you shouldn’t get a loan. In the case of a cosigned agreement, there is more to lose including the relationship you have with your cosigner. When applying for a loan, it’s important to have some sort of income coming in. Your cosigner will feel safer in the agreement as well so that the loan doesn’t have to fall into their lap in a worst-case scenario
It’s important to know where your cosigner is financially able when cosigning on a loan. If that worst-case scenario were to happen and your cosigner is unable to pay, it will put both of you in jeopardy. It’s important to discuss both your financial abilities before applying. When you’re thinking about adding or removing someone from the ownership of your vehicle for a loan, it should fortify you your request for a loan. True Financial makes it easy to apply online for a title loan. Never cosign just to cosign, your cosigner might be dealing with their own financial trouble. You don’t want to double any negatives. Only cosign for a loan if it will improve your qualifications.
If you feel “loan-ready” and that this option is for you, the first step is to discuss your payment options with your cosigner. As mentioned before, it is very important that you let them know their responsibility in agreement to use an auto title loan on your combined ownership vehicle. You should ask them if they would be able to pay the loan if you’re unable to make the payments. You will need to secure a payment if you are unable to make payments, that responsibility lies with your cosigner. Failure to do so under a title loan agreement puts you at risk of losing your vehicles ownership. As your lender, we do not want this to happen. We will check all corners to make sure you’re able to pay before giving you access to a loan.
Before making any financial decisions regarding your vehicle, you and your cosigner should talk about your finances. This also goes hand in hand if you and someone you know are thinking about cosigning. Always factor in that your cosigner may be held responsible for a current loan and future debts taken out on your vehicle. They will greatly be impacted in any case that you fall behind on paying debts. As a team, you and your cosigner can work together to come up with the best solution for your financial struggle. Listen to your cosigners concerns if they have any. You may ask and probably answer some of your own questions with each other and doing the proper research. They will be as much a part of this as you even if you feel otherwise.
Your cosigner should always be well-informed on everything regarding the loan and the vehicle. There shouldn’t be any hidden information or information kept from the cosigner. After all, they have the same equal rights to the vehicle as you do. When cosigning your vehicle even if you don’t use a loan, you should look at it as a partnership. Remembering this will be key to having a solid relationship with your cosigner. If you do get a loan, this is a key factor in keeping it all together.