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Is it better to have a cosigner or by myself on a auto loan affecting my credit?
I financed a used car about 11 months ago with a extremely bad apr% (20.9) Im currently paying about 525$ a month. Not struggling at all. But I am interested in a refinance for the car. Now my credit score has came up from when I got the loan. Strongly trying to help my credit. Would it be better to refinance with a cosigner or do it alone? And would one way affect my credit more?

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Some Pros and Cons

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  • Qualification: Sometimes a borrower is not going to qualify at all. By including a co-signer, the borrower is able to access a loan.
  • Lower interest rate: Consumer loans, such as auto loans, personal loans, and credit cards, tend to consider the highest credit score available when setting the interest rate. If a primary borrower has someone with a higher credit score as a co-signer, it can significantly reduce payments and/or total interest charges.
  • Building credit: Any time a loan is applied for and paid on time it builds credit history, which can in turn improve a credit score. The next time a primary borrower applies for a loan, it may be easier to do so without a co-signer.
  • Amount - Adding a co-signer can raise the amount you are allowed to borrow because they add your income with theirs.  (notice this can be a con as well since their debt is also calculated into the total to determine your debt to income ratio and overall ability to repay the loan as the terms describe)


  • Co-signer is responsible: The reason why a primary borrower may be able to qualify for a loan with a co-signer when unable to do so alone is because the co-signer is taking on responsibility as the borrower if the primary borrower fails to pay. Because the co-signer has a higher score, this person frequently has more to lose than the person receiving the loan. It is not only the score that can be impacted, but potentially a co-signer’s assets. This is not a decision to be taken lightly.
  • Can strain relationships: Chances are good that someone you ask to be a co-signer is a family member or a close friend. Consider co-signing to be a form of lending money. If you would not ask to borrow money from this person (or, as the co-signer, if you would not lend money to the person asking), then it is probably better to consider your alternatives. As a co-signer, the piece of wisdom that has preserved so many friendships applies: Don’t lend money to a friend unless you are comfortable never seeing it again.
  • Can cost the co-signer money: If the primary borrower fails to make payments, it will fall to the co-signer. If the co-signer cannot afford payments, then it will amount to a default for both the primary borrower and the co-signer, impacting credit and future loan opportunities. If you are a co-signer, ensure you have money set aside to make loan payments if needed. If you cannot afford to make the loan payments, understand the consequences of failure to pay.


It really depends on you and your co-signer's ability to repay the debt compared to yours and their total income.  But also remember that most people only go through this process if they actually need help in getting a loan they otherwise wouldn’t get on their own.

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Do it on your own!

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