Many people looking to buy a car can run into problems related to their finances. If, for example, you are interested in Hyundai financing and your credit score is low or you don’t yet have a credit history, using a cosigner could be an excellent option. However, not just anybody will qualify, and Keyes Hyundai goes over what a cosigner needs when applying for a loan.
Good Credit Score
Lenders look at many factors before loaning money, but credit is a prime consideration. In order for a cosigner to help facilitate a loan – and potentially get a lower interest rate – they need to have a good score, which is above 660.
Long Employment History and Sufficient Income
Cosigners must show that they have a long and stable employment history that can be verified through pay stubs, W-2s, or tax returns. They also need to prove that they receive a consistent income and can cover the car payments if the primary borrower defaults on the loan.
Healthy Debt-to-Income Ratio
Lenders will look at a cosigner’s debt compared to their income. This is another way that they verify that someone can pay off the loan if necessary.
Proof of Identity and Residence
Cosigners must show valid identification, such as a passport or driver’s license. In addition, they will need to provide proof of a current address. Their utility bills, tax paperwork, or their auto financing agreement are all among the acceptable proofs.
Start the Hyundai Financing Process in Van Nuys, CA
The right cosigner can help you buy your dream car. Once you are ready to start the Hyundai financing process, Keyes Hyundai in Van Nuys, CA, makes it simple. Just fill out our online application to get pre-approved for your loan.
