How does a co-signer impact your ability to secure a loan?

Having a co-signer significantly enhances your chances of loan approval. A co-signer is typically someone with a stronger credit history or higher income who agrees to take responsibility for the loan if the primary borrower defaults. This added security lowers the risk for the lender, making them more likely to approve the loan application. Lenders see the co-signer as a financial backup, which can be especially important for individuals who may have limited credit history, credit challenges, or insufficient income on their own.

In this context, while a co-signer may also indirectly influence factors like interest rates or the amount of loan issued, the primary impact is on the likelihood of approval. Other options do not accurately represent the co-signer's role as they focus on aspects like interest rates or specific account requirements, which are not directly tied to the concept of co-signing.