What You Need To Know If You Are Thinking Of Co Signing A Car Loan
Ensure you keep up a steady line of communication with your child with regards to
the loan and let them know that they need to tell you if they are having trouble keeping up with the repayments it is better that you help them out at this stage than end up having to pay any missed installments plus the late fees, along with the damage it will do to your credit.
Other tips when co signing a car loan includes obtaining copies of all loan documentation and repayment schedules, so you know as much about the loan as the borrower after all, as a co signer, it is essentially your loan too.
Co signing a car loan is a great way to help a loved one out. If they keep up with their repayments you will not only have enabled them to buy the car they need but they will now have a good credit history that they can use to apply for loans and credit cards on their own in the future. As long as you know the risks and do everything in your power to manage them, co signing a car loan could be a good way to help your child or close friend buy a much-needed car.
What You Need To Know If You Are Thinking Of Co Signing A Car Loan