You deserve to have your financial future in your hands - not someone else's. (After all - it's your future, and you should be empowered!) With that being said, often times lenders require borrowers with no credit or impaired credit scores to add a cosigner to their application. Why? Because lenders do not know whether or not you'll pay your debt if you have no history of on-time payments. Here are three tell-tale signs that might mean you need to add a cosigner to your loan application.
3 Signs You Might Need a Co-Signer for a Student Loan
August 4, 2017
1. LOW CREDIT SCORE
It happens to all of us - you forget to set up autopay, or forget to turn off utilities after moving, only to realize you still have bills being sent to your old address. Unfortunately, even the smallest lapse in payments can cause your credit score to dip.
TIP: Check CreditKarma.com to get a "soft" credit check. You'll see where your score falls, and determine from there whether or not you should get a cosigner.
2. NO CREDIT SCORE
If you've just turned 18 - hello, adulthood! - you have no existing credit score. Now it's time to build it! Check out our awesome guide here: The Ultimate Guide to Building Your Credit
Since you've just turned a new leaf and have nothing on the books, your borrower doesn't know anything about your credit repayment history, so there's no report of you making on-time or full payments. Because of this blank slate, you may be asked to add a cosigner to your application.
3. YOUR LENGTH OF CREDIT HISTORY IS TOO SHORT.
So every single payment you've made has been in full and on-time. That's awesome! The longer you make on-time payments, the better your credit will be. If you're relatively new to making payments, it might take awhile for those payments to reflect in your credit score, so you might be asked to add a cosigner with a longer credit history.
WHAT ABOUT SKILLS FUND LOANS?
We encourage each and every student to apply for Skills Fund financing by themselves first. After all, everything we do is designed to empower students and shift the focus to their playing field.
If you're interested in hearing more about our underwriting process, check out our page here: Skills Fund - Your Terms.
IT'S ABOUT A RETURN ON EDUCATION.
Everything that we do here at Skills Fund is centered around one concept: Positive Return on Education (RoE). Your education is important. Choosing where to learn and grow is not an easy decision, especially when that decision involves you spending your precious time and money. A positive RoE looks at the personal and financial outcomes of your education, to make sure that it's worth your investment.