If you are applying for a loan and your credit isn't the best, a co-signer can help you get approved for a loan. A co-signer is someone who also agrees to pay on your loan if you don't make your payments. This can help you get a lower interest rate and a lower monthly payment. Usually, you will have to pay a higher interest rate with a co-signer. A co-signer will also go on your loan's credit report. This will do a couple of things, it will lower your monthly payments and it will improve your credit. With lower payments and better credit, you will save money over the long run. Most used car dealerships will require you to have a co-signer if your credit is below a certain level. Make sure you find an honest individual who will make their payments. This will help you build your credit and save you money in the long run.