If your credit score or credit history aren’t enough for Lexus financing, applying with a co-signer can be an excellent way to get behind the wheel. These three elements are essential for making the co-signing process painless.
Good Credit History
When you apply for financing with a co-signer, you are effectively combining your credit history. That means it isn’t very useful unless your co-signer’s credit history is significantly better than yours. Your co-signer should also understand that any consequences from payment problems will also affect them—their credit score can drop as well as yours. Checking their credit history will also cause a small hit to their score.
Proof of Payment
Co-signers are required to show evidence that they can be relied on to pay for the financing if necessary. This may involve pay stubs from employers or income tax returns for self-employed buyers. Banks consider evidence of stability, whether it’s living in the community or working for the same company for an extended time. Make sure your co-signer brings any evidence of stability they can find, as banks give it serious consideration when judging your application.
This isn’t something you’ll show at the dealership, but it’s something you need just as much. Clear communication between you and your cosigner can prevent acrimony down the line. If you are having trouble paying your loan, make sure to keep your cosigner informed so they aren’t surprised by their credit report. If necessary, be familiar with how refinancing can change your loan a more traditional version, if necessary.
Shop New Lexus Vehicles in Valencia
If you haven’t decided on your new Lexus car yet, come down to Lexus of Valencia and explore our selection of new and pre-owned Lexus vehicles! Talk to our finance department about how you can apply for a co-signed lease today.
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