What is a primary benefit of having a cosigner with good credit?

A primary benefit of having a cosigner with good credit is that it helps you qualify for a lower interest rate. When an individual with strong credit agrees to cosign a loan, lenders view this as a reduced risk because there is an additional party who is legally responsible for repaying the loan if the primary borrower defaults. This added assurance can lead to more favorable loan terms, including lower interest rates, which ultimately results in less money paid over the life of the loan.

Moreover, having a cosigner can enhance your chances of getting approved for loans in the first place, especially if your credit history is limited or not very strong. However, it does not guarantee approval in all situations nor does it necessarily increase the loan amount directly. While some loans may allow for a lower down payment with a cosigner, it primarily affects the interest rates due to the perceived decrease in risk for the lender.