Post-college life

Why should I apply with a cosigner?

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Post-college life

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Adding a cosigner is always an option here at CommonBond. Whether you were asked for a cosigner or wish to bring one on, they can help you save thousands over the life of your loan.

1. Young borrowers can especially benefit from a cosigner. 

If you're a recent graduate and haven't had the opportunity to build up your credit, a cosigner with a long credit history can close that gap. Demonstrating an established combined credit profile could lead to a lower interest rate when refinancing your student loans, potentially translating to thousands in savings.

Just how much can you save? If your cosigner lowers your fixed interest rate on a 15-year loan by just 1%—for example, from 7% to 6% on a $100,000 loan—you could pay roughly $10,000 less in interest over the life of that loan.

2. A cosigner can potentially lower your interest rate.

Cosigners aren't just beneficial to new borrowers without credit; cosigners can also help correct for any issues in your credit profile. The same benefits of lower interest rates could apply when you choose a cosigner with a stronger credit profile than your own—someone who, for example, can lower a high debt to income ratio. If you're wondering what makes for a strong credit profile, start by looking at your FICO score, one of the key components of your credit profile.

3. A cosigner doesn't need to be forever.

If you make consecutive, on-time payments for three years, you can request that your cosigner be released. Our team will review your file and will release your cosigner if you meet our underwriting criteria on your own for your particular loan option.

If you (or your cosigner) have any questions, please feel free to contact our Care Team by email at care@commonbond.co or by calling (800) 975-7812.

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