Need Alternatives To Cosigning A Loan? Here's Ideas To Try

If you have a low credit score, the bank can deny your loan application or ask you to find someone to cosign the loan. That means that you have to find someone who meets their credit requirements and is willing to take over the loan if you default.

However, finding a cosigner is harder than it sounds. Your family and friends may either be unwilling or unable to do it because their credit history doesn’t meet the bank’s criteria. So, what are your alternatives?

Alternatives To Cosigning A Loan For A House Or Car

House and car loans involve a lot of money, so banks are very cautious about approving loans. However, there are ways to get approval even if you don’t have a high income or credit score.

Get A Co-Borrower For The Loan

If you’re getting a car loan or a mortgage, you may have a better chance of getting approved if your spouse or partner becomes a co-borrower. Then, the bank will look at your combined income and credit histories, which may turn the tide in your favor.

Unlike cosigners who only take over the loan if you fail to pay, co-borrowers share the responsibility of making the monthly payments. This is one of the most feasible alternatives to cosigning a loan if you are purchasing a property, or if your partner has a better income or longer credit history.

Pay A Higher Down Payment

The larger your down payment, the less you have to borrow from the bank. Since that lowers their risk, they may be willing to accept a lower credit score or income level before they approve a loan.

Alternatives To Cosigning A Loan For Personal Emergencies

Personal loans can be used for practically any kind of important expense: medical treatments, house or car repairs, debt consolidation, or paying a backlog of bills.

The amount is usually significantly smaller than a house or car loan, however, banks can still be cautious about approval if you have a bad credit history.  But there are ways to work around this requirement.

Take A Loan With A Bank Where You Have An Account

Banks are more likely to grant loans to long-standing customers who already have a savings or checking account with them or have one of their credit cards.

Apply For A Smaller Amount

If you were denied a big loan amount, shift tactics. Ask the lender if you can qualify for a lower amount.

After paying that amount off successfully, you can then try to borrow the amount you need. Your chances of approval may be higher because you have established a good payment history.

Apply For A Secured Loan

There are two kinds of loans: unsecured loans, which are approved based on credit history, income, and proven ability to pay off the loan, and secured loans, which are approved based on the provision of collateral.

Collateral serves as security for the loan. It can be any property of value, such as a house, car, or stock. The maximum amount you borrow (also called the loan limit) depends on the estimated value of the property.

Secured loans are one of the fastest and most convenient alternatives to cosigning a loan. As long as you can present proof of ownership—such as the property deed or vehicle title which is registered under your name—you can use it as collateral.

During the length of the loan, a lien or legal claim is placed on the title. This is removed as soon as the loan is paid off.

Online Vehicle Title Loan: The Fastest Alternatives To Cosigning A Loan

While some banks offer secured loans, the loan process can be quite exhausting. You will have to gather documents, which will be reviewed over several days, and approval can take awhile.

But what if you need the money right away? What if you have work hours that do not allow the time you need to visit the bank repeatedly?

Skip the lines and the wait times, and get an online vehicle loan. You can borrow up to $15,000, as long as you are the registered owner of a vehicle with a lien-free title.

Start Your Loan Request With One Click

With At Home Title Loans, applying for an online vehicle title loan is as simple as filling out a form.

Once you complete and submit your information on that form, At Home Title Loans will connect you with a lender that fits your needs and is in your area. When that lender receives your title loan request, one of their representatives will call you with all the details you need to get started.

Personalized, Convenient Service

The loan specialists will explain how a title loan works and answer any questions you have. They will also give an estimate of the loan amount you qualify for, and what you can expect in terms of monthly payments.

If you’re amenable to the terms, then just name the most convenient time and place to meet up with a loan agent. He or she will verify your vehicle title and ID, and then complete a vehicle inspection to determine your vehicle’s value. At that time, you will get a loan packet and will be asked to sign a couple of forms. This step takes less than 30 minutes.

Fast Cash Transfers

The loan documents will be emailed to you for your e-signature, and the cash is sent straight to the bank the same day or the next business day.

Get Emergency Money Now With An Online Vehicle Title Loan

Need money right away? Use your vehicle title as collateral to access the fast title loan cash you need to handle any financial emergency you are dealing with.

You can get started now, by filling out the online request form located on the At Home Title Loans homepage and in no time at all be connected to a lender near you today.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.