Good co-signer erase co applicant's bad credit?

[crystal0920]

If a person has horrible credit, current late ect, scores low 500's would a cosigner with great credit get a auto loan for them? In other words do they even look at and consider the persons bad credit or just go by the higher score good credit person to make a decision?

[Remember0]

IMO, it's better for APR if the person with good credit is primary. Often, banks will then ignore the bad credit cosignor. Not true with all banks though aka at some banks, a bad secondary applicant will increase rates.

Almost every bank I know of will NOT ignore bad credit for the primary borrower. A good credit cosignor will help get it approved and might lower APR a bit, but the APR will almost always reflect the fact that the primary has bad credit.

[crystal0920]

Sorry I worded that wrong. I meant to say the primary person on the loan would be the good credit person, and the second person on the loan would be the person with bad credit.

[Remember0]

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@crystal0920 wrote:

Sorry I worded that wrong. I meant to say the primary person on the loan would be the good credit person, and the second person on the loan would be the person with bad credit.

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Yes, in that case some banks will ignore the bad credit score on the secondary. Not true with all banks however. It's a case by case basis.

[mariasoccermom11]

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@crystal0920 wrote:

Sorry I worded that wrong. I meant to say the primary person on the loan would be the good credit person, and the second person on the loan would be the person with bad credit.

it depends sometimes its just better for the cosigner just to put in there name. I leased a car with my then husband It was 2004 S430 and his credit was good and mine wasnt and if i was on the lease the payment would jump like 200 more a month 

[YHWHUDAH]

From my experience a coapplicant is used for dti or income purposes. The primary applicant is used for apr and intrest rate calculations.  For an example my wife and I applied for an auto loan and my score was 658 I receieved a rate of 4.99; I wanted to increase my approval amount so I added my wife who score was 530 and my rate stayed the same.

[RushXTC]

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@crystal0920 wrote:

If a person has horrible credit, current late ect, scores low 500's would a cosigner with great credit get a auto loan for them? In other words do they even look at and consider the persons bad credit or just go by the higher score good credit person to make a decision?

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It will help the odds of approval, The good of the co-signer balances out the baddies of the primary.