A co-signed loan is the same as any other loan in terms of applying. You’ll fill out an application that will vary depending on the type of loan and the lender. Then the co-signer will also need to fill out paperwork. Most loans can include a co-signer, but the process is different if you’re taking out a mortgage, personal loan, or other types of loans.
Depending on the loan, lenders perform soft or hard credit checks of both the borrowers and co-signers. If you haven’t been able to secure a loan before, having a co-signer with a good credit score can increase your chances of approval.
Having a co-signer with a good credit history can help you secure a loan, and receive a better offer from the lender. After the approval of your co-signed loan, you need to pay it back based on the repayment terms agreed upon. Most co-signed loans are in the form of an installment loan, where you have to make monthly payments.
Missing payments can impact the credit score of both the borrower and co-signer. Regular payments, on the other hand, may build the credit scores of both parties.