What Is A Credit Score?
Basic information about credit score
If you are in search of information about credit score, this might help you a lot. As the name suggests, credit score is the score of yours that shows your commitment towards paying the loan back to the lender. Whenever, you will apply for a loan to a bank or a leader, first of all, they will check your file in which your credit score is calculated. The file is named as credit file. This file will show them the risk of giving you the loans. If you will have a good credit score then, you will definitely have a good image of lending.
How important is co-signer in credit score?
If you have a credit score that is bad, you don’t have a credit score history or your income is too low to qualify independently then you need a co-signer. Co-signer is another party who helps you in paying the loans or to the lender if you fails to payback. But, the co-signer should be a person with a very good credit score and he should have a good amount of income with a proof of it. The co-signer agrees on the same terms and conditions on which you have signed.
When and who need a Co-signer?
Especially young and adults people who are without a credit history and they don’t have an income to show needs a co-signer. You can ask your elders or a family member who has a strong bank statement. The co-signer should have a credit score that is more than 700 at least. Only then, your co-signer will be qualified to have a loan. You might have to ask your co-signer to show the proof of the bank statement, tax returns, and paychecks to the lender. Before, applying for the loan, you can ask your co-signer to ask the government to give your free credit report. In case, your co-signer is not comfortable in showing his financial statements, you can ask him to show it to the loan officer separately.