topic joint auto loan - possible effect in Auto Loans

joint auto loan - possible effect

yomellamoFICO2013 — Tue, 29 Jan 2013 04:09:02 GMT

I am working my way to recovery from past mistakes.
What are the possible effects/benefits of applying for a joint auto loan with my mother (she has a 745 FICO),I am at 630 right now, no delinquency/collection, but an unresolved judgement.
Do I have any chances of getting approved by myself. I know I may just.get a 10%ish interest rate on a regular 48 month loan. I am looking to borrow 20k.
Your.feedback and opinions are valuable.

Re: joint auto loan - possible effect

Revelate — Tue, 29 Jan 2013 04:51:39 GMT

If you can't get approved otherwise, it may help. It might also lower your APR, anecdotally they may base it off your mother's FICO score rather than yours, and that will likely be a non-trivial difference.

That said, as long as you have a sufficient downpayment, virtually anyone in America can get financed for an automobile if they're willing to suck up the APR associated with the loan.

Also I would also make the caveat whenever borrowing from family, make sure she gets paid back before anyone else... not worth the strain in the relationship to do otherwise if trouble strikes. End of the day, as long as the tradeline gets on your report, and you're making the payments, I think it may be a smart course of action though likely you would be able to do the two-step refinance anyway without much trouble assuming you don't have much in the way of auto history in the past.

Re: joint auto loan - possible effect

yomellamoFICO2013 — Tue, 29 Jan 2013 13:25:05 GMT

Thank you Revelate, I appreaciate your feedback. i have been reading the forums but didnt find much.

Re: joint auto loan - possible effect

TrishN — Wed, 30 Jan 2013 05:23:56 GMT

auto loan is manual review . unresolved judgement not look good to lender, iam not sure if lender can finance you,but if is me, no i will not. If you can get somewhere to finance you,i guess over 15% APR,joint is much better

Re: joint auto loan - possible effect

E150GT — Wed, 30 Jan 2013 04:58:54 GMT

my dad went in with me when i bought my car. My credit was trash and I was looking at an 18% rate. It saved me a lot of money on intrest. After a year my credit got decent and then at about 2 years I refinanced it into my own name to get my dads liability off of the note.

Re: joint auto loan - possible effect

yomellamoFICO2013 — Wed, 30 Jan 2013 13:34:36 GMT

@e150gt - Were you able to do a joint application even though your credit wasnt in the best shape?

Re: joint auto loan - possible effect

4thmouse — Wed, 30 Jan 2013 16:44:48 GMT

630 isn't horrible, especially with unresolved judgement on you cr. If you get that judgement taken off your CR you could probably get a 3 or 4% apr. With that said, I bet any lender is going to question the judgement, joint loan or not. A few months ago, My sister took out a 60 month loan for $26K and got 4.29% apr this was with a right at 630 score.

Re: joint auto loan - possible effect

yomellamoFICO2013 — Wed, 30 Jan 2013 17:06:35 GMT

4thmouse wrote:
630 isn't horrible, especially with unresolved judgement on you cr. If you get that judgement taken off your CR you could probably get a 3 or 4% apr. With that said, I bet any lender is going to question the judgement, joint loan or not. A few months ago, My sister took out a 60 month loan for $26K and got 4.29% apr this was with a right at 630 score.

I find that as awesome news. Would you be able to find out where did she applied ? I am definitely in need of resolving that judgement soon, as It makes very difficult to get anything new.

Re: joint auto loan - possible effect

E150GT — Thu, 31 Jan 2013 00:16:18 GMT

yes I was on the note as well as my dad. The only thing was that he was the primary.

Re: joint auto loan - possible effect

TrishN — Thu, 31 Jan 2013 02:11:54 GMT

you have to put cosigner to be primary,and you will be cosigner. after 1 year try to get refinance to take the cosigner out, in the eye of lender,they make decision base on primary first,if primary not qualify for loan,they will have to look a cosigner, then if cosigner did not qualify then bye bye :D. on credit report. 3 CRA will report both of you guy. So the main thing is just get the Loan approval, thats it

Re: joint auto loan - possible effect

Revelate — Thu, 31 Jan 2013 02:45:25 GMT

TrishN wrote:
you have to put cosigner to be primary,and you will be cosigner. after 1 year try to get refinance to take the cosigner out, in the eye of lender,they make decision base on primary first,if primary not qualify for loan,they will have to look a cosigner, then if cosigner did not qualify then bye bye :D. on credit report. 3 CRA will report both of you guy. So the main thing is just get the Loan approval, thats it

I am confused, why put the planned cosigner as the primary in this case. By your own analysis what would be the point of it?

If the OP can't qualify then the co-signer is used; if that individual doesn't qualify, then they would not have qualified as primary either. What does the additional hassle and step gain in this instance other than a lot more aggravation and paperwork?

Re: joint auto loan - possible effect

TrishN — Thu, 31 Jan 2013 15:12:17 GMT

1 :This month couple days ago. i cosign for my friend ( he the primary, i the cosigner) they denial then we went to another dealer, i put my name first by accicent. Same Capital one they come back and Approved ! ( what the hell ? ) So maybe the automatic system answer first or they base on primary.

i am a human. so you are. Let me ask you this.

If you are single and look for someone( just like dealer look for a loan)

you see 2 peoples ( 1 pretty and 1 ugly ) If.........the ugly stand right in front the door so do you want to come in? And if the pretty stand right in front of the door. do you want to come in? This just a simple Lender is single people and looking for someone.

Re: joint auto loan - possible effect

yomellamoFICO2013 — Thu, 31 Jan 2013 16:02:03 GMT

I am confused. My goal is get my name somewhere in the loan, so the payment history reports with the 3 CRA Bureaus, therefore increasing my chances of having my score improved through the life of the loan.

Can you clarify if that's possible on my scenario ?

loRe: joint auto loan - possible effect

TrishN — Thu, 31 Jan 2013 16:29:30 GMT

yes. when you guy approved firt loan. they will report to 3 CRA . you see your scores go up by you have a good mixed credit.and after 6 months with good payment, your credit will look much better. I start with 11 co and ca. now 2 co , 1 ca. score before installment report to my CR are 62x. after installment reported to my CR it went up to 67x. I still have 2CO with 0 balance. plus 1 medical CO on my CR. first auto loan, they asked for paystub, after couple good payments, I financed for second, third and cosign for my friend. no one ask for anything.iam not super, but in a good shape now.