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Some red flags, like evictions or a low credit score, are obvious. Others are more subtle, requiring careful review by the landlord or property manager. Rental application red flags range from inconsistencies on the rental application to having an unrealistic move-in timeline.
Key Disadvantages of Having a Co-Applicant 2. Dispute may arise in case of a fight between co-applicants. 3. In case of default, the co-applicant has to repay the remaining dues.
Co-applicants are often used in rental or mortgage applications when two or more individuals, such as roommates or spouses, intend to share responsibility for the lease or mortgage.
The cosigner is a party with an established financial history who agrees to back up one or more tenants on the lease. They function as a safety net for the landlord. If the other people named in the lease cant make rent or cause damages they cant afford to repair, the cosigner has agreed to pay instead.
Co-signers are similarly used to obtain better loan terms, but they generally arent involved in how the loan is used and do not get access to the funds. Co-signers only serve as back-up legal payers if the primary borrower defaults, whereas co-applicants take an equal part in the transaction.
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A renter and their co-signer will need to fill out separate applications to provide the landlord or property management company with a full picture of both parties income and rental history.
The Bottom Line. A co-applicant can increase your chances of credit approval with more favorable loan terms, such as a lower interest rate and higher loan amount. If you need to improve your loan approval odds, a co-signer with a good credit history may suffice. Chase.com.

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