Securing a loan with a cosigner, especially in cases like student loans, can be great in order to secure the lowest rate possible. However, we know it's not always possible to get a loan with a cosigner. If that's the case, we want to help you find the best option for you. With all these options out there, it can be difficult to decide which is the right one for you.
Focus on your Credit
The best way to never have to worry about getting a cosigner is to focus on your credit score. If you improve your credit score, then you can unlock access to a whole lot of financing options without having to worry about getting someone to cosign. Make sure you understand the factors that make up your credit score so you can improve it.
The easiest way to improve your credit score is to make on-time payments and keep your credit card balances as low as possible. While this isn't always possible, it's a good idea to start paying down those balances whenever you can.
Look for alternative loans without a cosigner
There are plenty of loans out there that will accept students even if they do not have a cosigner. Sometimes you just have to do a little digging to find these companies, especially if your credit score may be lower. If you need a student loan, you could look for scholarships, grants, or other options to secure a loan.
There are even some loans that don't require a cosigner, but beware because these can come with significant interest rate hikes.
Are there any other alternatives?
If you have student loans and you’re trying to avoid debt altogether, you can look at Defynance who is working on a student loan refinancing product that is based on income share agreements. This debt-free solution to financing has payments based on a small percent of your income. This means that if you lose your job or have a low salary, then you do not have to make payments. It removes debt from the financing equation.
