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Registered: ‎03-17-2017
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Auto Loan Advice

I have a question about getting a joint auto loan. My husband has a credit score of 650-660 and he earns roughly $3000 a month. My husband has been on his job many years and has stable income/employment. My situation is a bit different because I recieve SSI benefits in the amount of $735 a month. My credit score is somewhere between 770-780, but I do recieve SSI benefits. I also have student loans, but all of my bills are paid on time. Would we be able to obtain an auto loan together or should my husband apply alone? Would receiving SSI benefits cause me to be ineligible to be listed on the auto loan? We're not trying to purchase an expensive car, but maybe something priced 15K-23K. Any advice would help!!!!

 

Thanks

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Registered: ‎12-16-2014
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Re: Auto Loan Advice


Ijiwaru wrote:

I have a question about getting a joint auto loan. My husband has a credit score of 650-660 and he earns roughly $3000 a month. My husband has been on his job many years and has stable income/employment. My situation is a bit different because I recieve SSI benefits in the amount of $735 a month. My credit score is somewhere between 770-780, but I do recieve SSI benefits. I also have student loans, but all of my bills are paid on time. Would we be able to obtain an auto loan together or should my husband apply alone? Would receiving SSI benefits cause me to be ineligible to be listed on the auto loan? We're not trying to purchase an expensive car, but maybe something priced 15K-23K. Any advice would help!!!!

 

Thanks


SSI won't disqualify you at all, its income that is reliable so that is a good thing.  To know your odds we would need to know your debt to income ratio, if  you have a down payment and if you have credit cards what your utilization is. I would think you will need your husbands income to get qualified so off the top of my head I would say you would need to apply together.  My suggestion is always, always apply through a credit union and get prequalified before you go shopping.  Dealers often mark up interest which can cost you hundreds or perhaps thousands more over the life of the loan for basically doing what you can do in a few minutes online.  DCU, Penfed and NFCU are among the favorites here. 

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
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Registered: ‎03-18-2017
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Re: Auto Loan Advice

I had to create another account because I was locked out of my previous account. Thank you for responding. I went to school for a long time, so my student loans are wayyy up there. I probably owe 70k or so. As far as my credit cards are concerned, my utilization is around 9%. My credit card limits are high. I have 7 credit cards, but most carry a zero balance or I pay in full. I have 2 I carry a balance on. Most have over a 10,000 credit limit. My main concern was if I would be ineligible to be listed on the loan based on receiving SSI. I think by having me on the loan would help us get a better APR.

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Re: Auto Loan Advice

I forgot to add we will be using our paid off car for trade in. We should be able to get around 2500 for it. I will try a credit union first. Do you have a list of lenders that use the highest score when 2 applicants apply for an auto loan? I keep hearing Honda, but I'm not sure.

Valued Contributor
Posts: 1,616
Registered: ‎12-16-2014

Re: Auto Loan Advice

Lending standards go beyond scores so there isn't really a list, we see folks with scores in the 500's get 3-4% interest loans and folks with 620-630 that get 8%.   DCU is a good credit union to work with for most, Penfed is also good and my favorite is NFCU if you can get into.  Most communities have a local credit union so that might be a good option.  On your student loans you might want to consider income based repayments, also if your SSI is based on disability you might be able to get those loans forgiven partially or totally.  

 

For auto manufactuers they use captive lenders that vary a quite a bit on lending standards so they can be a good option.  All manufactuers have good lenders, you just have to keep an eye on the dealers because they mark up interest, that is one of the reasons that I suggest having a pre qualified loan before you walk in the door, let them beat a credit union rate. If your a member of costco they have a good service that negotiates prices that most cannot beat on their own.  If your current car is paid off and has a trade in of $2,500 I would sell it privately, make more money and simplify your deal.  Dealers steal trade ins, its just part of their business.  If your car value is that low its one they will send to an auction so they will cover their bases by lowballing you.  Bringing some cash for a down, pre approved financing and a prenegotiated price based on volume is the best way to make sure you get a good overall deal.  Also pass on all of the protection plans a warranties.  If you buy good modern car (non-german) chances are extremely low you will ever use that stuff and they are a major profit center for the dealers.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Regular Contributor
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Registered: ‎02-23-2015
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Re: Auto Loan Advice

You need his income, and he needs your credit score.  Apply jointly no doubt.

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Registered: ‎03-20-2017
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Re: Auto Loan Advice

Thanks for the great advice. I really do appreciate it. Smiley Happy

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Registered: ‎03-20-2017
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Re: Auto Loan Advice

I agree..Thank you Smiley Happy

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