What You Need to Know About Co-Signers and Car Title Loans
When you are facing financial strife, a car title loan may seem like a great way to relieve all the building pressure and regain financial stability. However, if you do not have the credit score required to take out a loan, you might consider bringing on someone with good credit as a co-signer for your loan. At Max Cash Title Loans, we encourage you to receive financial support through a cosigner if you are able to, but we want you to be fully informed as to what exactly co-signing on a car title loan will entail for you and the cosigner.
What is a Co-Signer?
If you are cosigning a loan, you are willingly agreeing to financially support the borrower in case of hardship. Cosigning may allow the borrower to become eligible for a car title loan and receive reasonable terms.
A cosigner is someone who signs up as an additional source of support for the borrower, and if the loan cannot be repaid by the primary borrower, the cosigner agrees to take over the loan payments.
Who Could Be a Co-Signer
There are any number of people who could act as a co-signer for a car title loan. To be eligible as a cosigner, the following requirements must be met: be at least 18 years old, be well informed about the obligations as a co-signer, and have a good credit score.5
Typically, cosigners with the following requirements may be approved as a cosigner. A cosigner could be someone close to you, such as:
- Either of your parents.
- A spouse.
- One of your close friends.
- A close relative like a grandparent, an aunt, an uncle, a sibling, or a cousin.
- Anyone who shows support of you and all your financial related goals.
What You Need to Know About Co-Signing on a Car Title Loan
As you might have already gathered, co-signing on a car title loan is no small thing to shrug off. It is a substantial responsibility and potential risk that requires a great deal of thought and consideration. Once you co-sign onto someone’s car title loan, you are responsible for making sure the loan gets repaid.
If the primary borrower defaults on the loan, it is up to you to take over the monthly payments or to repay the entire loan altogether in one fell swoop.
By co-signing a loan with someone, you are putting your good credit on the line. If things with the primary borrower do not go well, financial trouble could have a negative impact on your credit. Being in connection to a defaulted loan could take you some serious time and effort to recover from.
You could end up in financial disrepair if you are not careful with your decision to co-sign a car title loan. Make absolute certain that you are fully aware of what you are doing and that you trust the person acting as the primary borrower.
Tips for a Co-Signed Loan
When asking, or considering, asking someone to cosign a car title loan, you should do the following to ensure a successful loan deal:
- Give a great deal of time and thought as to who you wish to ask to be a cosigner. Make sure whoever you are asking for financial support does not currently have their own financial hardship. Ensure the cosigner is in a position where they can be of help.
- If you are the primary borrower, make your car title loan payments one of your top priorities to avoid late payments and causing a rift with the cosigner.
- The primary borrower should ease any of the potential cosigner’s concerns by showing them that they are able to take care of the monthly loan payments.
- Carefully go over the details of the loan together. Ensure the both of you understand when payments are due and how much is due.
- Make sure the reason for acquiring the car title loan is made clear to everyone involved. Sharing your financial intentions with your potential co-signer is important.
- Make sure that all financial concerns are out in the open and discussed in full. If you have any questions, Max Cash Title Loans has customer service representatives standing by to answer any questions or concerns.
Get in Contact with Max Cash Title Loans
If you have any questions about co-signers, car title loans, or you simply need to contact us, get in touch with Max Cash Title Loans by:
- Calling or texting us directly at 1-855-561-5626
- Emailing us at Info@MaxCashTitleLoans.com
- Writing to us at 1270 E. Broadway Rd. Suite 208, Tempe, Arizona 85282