Whose credit score is used when buying a car with a cosigner?

A cosigner is usually required when the person who wants to buy a car does not have a good credit history or has a very short one. In such a case, lenders ask for a cosigner rather than rejecting the auto loan. Most people advise getting a cosigner (usually a parent, relative, or a trusted friend) if you have the savings but not the credit score to pay off the auto loan.

Cosigning should not be confused with co-borrowing where both borrowers share the responsibility for paying back the debt. With cosigning, the main borrower is responsible for the monthly payments while the cosigner only steps in if the primary borrower fails. With this type of loan procurement, both the borrower’s and cosigner’s credit scores are considered, but the cosigner’s credit score will be given more importance than the borrower’s. After the loan is paid off, the sole ownership of the car goes to the primary borrower.