Kansas City car title loans don’t have the same strict requirements as traditional loans, which means even borrowers with poor credit can qualify for a short-term loan. Still, many borrowers worry they won’t qualify due to credit problems. One solution is asking a family member or friend to act as a co-signer on the car title loan.
A co-signer is someone who agrees to sign the financing agreement as well as guarantee the debt. With a co-signer, there are two people responsible for making sure the title loan payments are made, although the primary borrower is the one receiving the funds. If the primary borrower fails to make payments, the co-signer will then be responsible. A co-signer can help you qualify for a loan that you would not otherwise get on your own.
Co-Signers for Kansas City Car Title Loans
Before you decide to ask someone to co-sign for you, make sure you know what you are asking them to agree to and what their responsibility is for car title loans. Kansas City, like most cities, regulates car title loans and other forms of lending. While the co-signer will not receive any money from the loan, they will still be legally responsible for paying back the money if you default.
You will need to take your car title loan seriously if you ask someone to co-sign for you. The co-signer will be placing their trust in you to make your payments on time, because your actions will affect their own financial situation and their credit rating.
If you plan to ask someone to co-sign on your title loan, explain their responsibilities to them and do not abuse their trust. After all, if anything goes wrong with your loan, it will likely affect your relationship with your co-signer.
Co-Signing on Someone’s Loan
If you have been asked to co-sign on someone’s car title loan, take the time to evaluate your own financial situation as well as that of your friend or family member. Because you are legally responsible for the payments if the primary borrower defaults, their actions can easily damage your own financial situation and credit.
Do not feel obligated to co-sign for someone and their Kansas City car title loan, even if it is a close friend or family member. Co-signing on a title loan is a big responsibility and a lot to ask of someone. Make sure you’re comfortable with the consequences and trust your family member or friend to take their own responsibility seriously.
When you’re ready for a Kansas City car title loan, call Waldo Financial at (816) 333-6800. Waldo Financial provides the best car title loans in Kansas City.