How a co-applicant may help you get auto financing

Couple driving car

Financing a vehicle is not a road you must travel alone.

If you need help getting approved, or would like to improve the terms offered, applying with a co-applicant may be your answer.

Learn more about what it means to team up with another party and its potential benefits, below.

What is a co-applicant?

A co-applicant is someone who is typically part of an application for joint auto financing. Often, they will be a family member such as a spouse or parent. If approved, the applicants become co-borrowers with shared responsibility for repaying the debt as well as shared rights to use and ownership of the vehicle. Both are listed on the vehicle title.

Co-applicants vs. cosigners

It’s important to know that a co-applicant is different from a cosigner, who guarantees the financing but has no access to the credit or rights to the vehicle. At Chrysler Capital, qualified co-applicants will be approved as co-borrowers in the majority of cases. There are a few exceptions when a co-applicant could be approved as a cosigner, such as when the co-applicant lives in another state and cannot be registered on the title as co-borrower.

How much does a co-applicant help with financing?

A co-applicant can strengthen a credit application in a number of ways. They may enable you to get approved, qualify for a larger financing amount or a better interest rate. One of the reasons for this is that a lender is able to consider another set of income and credit history.

In the case of income, the lender may combine the incomes of each applicant, which in turn may reduce the debt-to-income ratio and risk associated with lending to you. That could make all the difference in gaining an approval, or, if you can already get approved, securing a greater financing amount for a higher value car.

Credit history is significant because an applicant with good credit can often help someone with a lower score or little credit history. For example, an individual might meet a lender’s income requirements but is denied financing because of past credit mistakes. With a creditworthy co-applicant on board, they may get the go ahead. Or perhaps a first-time buyer with no credit experience needs a co-applicant to get the best rate possible.

There are potential advantages for the future, too. By partnering with a co-borrower, many people with short credit histories are able to get a foot on the credit ladder, while those with poor credit* can rebuild their scores. So, next time you need financing, you may be able to qualify on your own.

Open the door to your next vehicle

If you would like to boost your chances of approval, a better rate, or wish to maximize the amount financed, think about applying with a co-applicant. Chrysler Capital’s online form can be completed quickly and easily, and we provide instant decisions. All we require is some preliminary personal, residential, employment and income information from each party. Qualified applicants can shop the Alfa Romeo, Chrysler, Dodge, FIAT®, Jeep® and Ram lineup at their nearby dealership, and take to the road in style.

Learn more about financing with Chrysler Capital, and apply online.


* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press),,, Investopedia, and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by Chrysler Capital.