What Is A "Co-Signer" On A Car Loan?

This is not the legal definition of a co-signer, so please get advice on your own if have additional questions...but these are the basics of the responsibilities of a co-signer at CarLotta Credit.

* A co-signer is responsible for paying the loan back IF the person they co-signed for defaults (does not make their payments). This could mean that you are responsible for the entire balance of the loan, even if you are not in actual possesion of the vehicle.

* You will be asked to supply some credit information in order for a loan decison to be made.

* If you did not make those payments, it could affect your credit rating as well.

Some guidelines for co-signers....

* Make sure that you can afford the car if the buyer does default.
* Be sure you have a long term relationship with the buyer, to make it worth your while to take on this responsibility.
* Ask the loan company to contact you and keep you posted as to the progress and timeliness  of the buyers payments to prevent surprises.

There are good reasons to co-sign  a loan for someone, just make sure you understand the responsibility.
CarLotta, http://www.carlottacredit.com/