Car Loans in Omaha: When is a Cosigner a Good Idea?
When you’re applying for car loans in Omaha, you may find that you’re either getting rejected or receiving higher interest rates if you have bad credit or no credit. If this is the case, there is still an option: finding a cosigner for your Alfa Romeo lean. A cosigner is a person, typically a close friend or a family member, who pledges to repay the car loan if you do not. Here at Alfa Romeo of Omaha, our team of finance professionals is happy to provide advice on when cosigners are recommended.
What is a Cosigner?
A cosigner can be considered a person who signs your loan agreement with you and pledges to pay back the loan if you cannot. The cosigner is typically a parent, a close family member, or a friend. By doing this, they are backing your loan, utilizing their higher credit score and stronger history to guarantee yours. In order to become a cosigner, it is recommended that a person has the following:
- A credit score of at least 700
- A steady income
- A good debt-to-income ratio
Asking somebody to be a cosigner is not something to be taken lightly. Thus, you shouldn’t use a cosigner to purchase an Alfa Romeo car that you cannot comfortably afford on your own.
When is a Cosigner Recommended?
You may consider finding a cosigner if you find yourself in the following situations:
- No credit history
- A low credit score
- Low amount of money available for a down payment
Shop for Car Loans in Omaha at Our Finance Department
Whether you want to sign off on a car loan for an Alfa Romeo Stelvio or Alfa Romeo Giulia, you can do so at the finance department at Alfa Romeo of Omaha. We’re here to help, so stop by today.