Hi All,
Helping a friend out who has bad credit and they have a co-signer with tier 1 credit.
The 84 month is 5.75% with Kia, but they were quoted at 13.5% for a finance. I know most banks take the average of the two credit scores, but is there a better way to go about getting the rate down since their co-signer has tier 1 credit?
Any help is greatly appreciated.
Talk to some credit unions, etc., to get other financing options
I’ve begun the process of this. Kia’s interest rates right now for new finance seem hard to beat, but it looks like they will have to go another route.
For most non-mortgage transactions, credit applications generally result in one credit inquiry, and the application is decisioned/priced on a single credit score.
Separately (and much more importantly):
that’s a really good way to ruin a friendship or alienate a trusted family member. I beg people not to do this (especially the co-signer… unless they’re willing to consider the full loan balance a gift).
Even if the primary borrower doesn’t end up with a repo, they’ll often still make late payments without telling the co-signer, which destroys the co-signer’s credit.
The co-signed loan generally also counts against the co-signer’s DTI, which can make it more difficult and/or expensive to obtain their own future credit.
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