If you don’t have a better credit score, you can ask your parents or a relative to apply for the loan on your behalf. The person that takes this responsibility of applying the loan is known as a Cosigner. This person is legally liable for the debt incurred.
Difference between cosigner and co-applicant
You might have read the term co-applicant while collecting some information about the cosigner. It often appears that both terms are used for the same thing. But the details show that the meaning of the co-applicant is slightly different. A cosigner is a person that takes responsibility for the loan, but they do not receive the loan personally. On the contrary, the co-applicant is the person that takes the loan personally and has full control of where to use the loan.
For instance, my wife was my co-applicant when we applied for a mortgage together because we were supposed to use this amount for buying a home for both of us. On the contrary, my parents applied for an auto loan on my behalf when I was 18 because I didn’t have the established credit. So, my parents were the cosigners because they were accepting the legal responsibility while the loan was for my car. To find out more about loan cosigner and co-applicant, you can request for more information from legal lenders in www.smartloan.sg/licensed-money-lenders.