Car title loans can be a convenient way to get urgent cash on short notice. If you aren’t confident with your credit score, you may be wondering if you need a cosigner for a car title loan.5
Having a cosigner with sound credit can increase your chances of receiving approval for emergency funding. Before seeking a cosigner, however, it’s important to understand their role in getting a car title loan. Being a cosigner is a significant financial responsibility that should not be considered lightly.
Why Would I Need a Cosigner For a Car Title Loan?
If you need a cosigner for a car title loan, it’s important to have an idea of what a car title loan is. Having bad credit can make it difficult to get a traditional bank loan. But as long as an individual has a lien-free title to a paid-off car and meets the lender’s requirements, they can use their vehicle title as collateral for fast cash.5
Just because a lender uses your car title as collateral for the loan, it doesn’t mean they take your keys automatically. Instead, during the repayment process you keep your car and still drive it as you normally would. But there’s a possibility of your vehicle being repossessed if you default on the loan. The lender has the legal right to do so since car title loans are secured loans.
Having a cosigner can increase your chances of approval. But you may not even need someone to co-sign on your loan. However, if you are credit invisible and lack sufficient credit history, having a cosigner with you during your application can improve your odds of getting approved.5
With Max CashⓇ, you can get connected to a hassle-free way to receive money fast by using your car’s title as collateral. Even if you need a cosigner to apply, we’re here to help the process go smoothly and answer your questions every step of the way. Keep reading to learn more about who can be a cosigner and how we can help you find a reliable financial solution.2 5
See Also: Title Loans 101: What You Need to Know Before Pledging Your Vehicle Title As Collateral for a Loan
Who Can Be Your Cosigner for a Car Title Loan?
A cosigner can be anyone, most often a friend or family member, who agrees to put their name next to yours on a car title loan application. Having a cosigner for a car loan ensures the loan will be paid back if you fail to pay the loan yourself.
That sounds like a big risk for the cosigner to take, right? It is! For one thing, the cosigner receives none of the loan money themselves, but they ultimately accept responsibility for the debt. Late or missed payments can also have a negative impact on the cosigner’s credit, as well as yours.
If you need money now but don’t qualify for the loan yourself, who can you ask to be a cosigner? Really, anyone who is willing to accept the responsibility of your title loan can act as the cosigner. They can be:
- A relative (mother, father, sibling, etc.)
- Spouse
- Friend
- Coworker
- Neighbor
Basically, anyone you know who is willing to support your financial goals and has a strong credit history could help you qualify for a car title loan as a cosigner.5
How a Cosigner Can Positively Impact an Auto Title Loan Inquiry
At this point, you may have someone in mind who could serve as a cosigner on your loan inquiry. Here are some of the benefits of adding a cosigner:5
- Approval Odds: A cosigner with a good credit standing can increase your potential of receiving full loan approval if your own credit isn’t the best.5
- More Favorable Terms: Adding a cosigner to your application with better credit than your own could allow you to be offered much more favorable terms and even lower interest rates. Check out the loan calculator to learn more about the interest rates and repayment process!4 5
- Potential for a Higher Loan Amount: With the added income from the cosigner plus your own, you may have a better shot of obtaining more money, but keep in mind it will not be more than 25% – 50% of your car’s resale value.1 5
If you’re unable to qualify on your own for a car title loan, these are just a few of the benefits of adding a cosigner. Remember, there’s no reason for you or your potential cosigner to stay in the dark. Max Cash is here to point you in the right direction with your car title loan inquiry.2 5
Considerations Before Adding a Cosigner to Your Car Title Loan
When adding a cosigner to your loan application, there are several implications that go along with it. The most important thing to consider is that the cosigner will be held legally responsible if the primary borrower cannot make loan payments. For this reason, there should be an established level of trust between borrowers.
There should be open communication between you and your cosigner, because a relationship and money are at stake. The individual who’s agreed to sign their name to your car loan application is agreeing to the financial risk of the loan if you are unable to pay it back. You don’t want to let them down.
Call 855-207-9052 to learn more about the role of a cosigner and how car title loans work with bad credit borrowers.5
What Does the Cosigner Submit to Apply for a Car Loan?
Once the cosigner has agreed and fully understands their responsibilities, they will need to submit some documentation during the application process. Just like the primary borrower, the cosigner will need to show how they have the means to repay the loan. The cosigner will generally need to provide:5
- Valid, Government-Issued ID (driver’s license or state identification)
- Proof of Income (pay stubs, bank statements, SSI award letters)
- Proof of Residence (utility bill or signed lease agreement)
After the necessary documentation is submitted, you’ll be that much closer to getting the funds you need if you are eligible for funding. In some cases, funding is possible as little as one business day!1 2 5
Don’t Wait–Get Started with Max Cash Today!
You and your chosen cosigner will find a transparent and streamlined inquiry process through Max Cash. Start right now by submitting an inquiry for a title loan online, or call 833-207-9052 to speak with an expert firsthand. You don’t have to face a financial emergency alone!1 2 5
