Hello everyone,
I would like to hear different opinions on the following situation. My wife and I were looking into buying a car last week so after finding one I decided to check her score to see what percentage of interest she could get. To our surprise it was 650; she's usually in the 750 range. So after pulling her report someone took out a credic card under her name and let it go unpaid. We already disputed everything wrong but now she is either getting really high rates or being denied. USSA gave her almost 13% and Capital One 7.6%. The other option I was considering was co-signing as I have a general score of 820 833 827, so she could probably get the best interest rates. The only thing I'm a bit hesitant about co-signing is dropping my score by a lot, simply because I already have my auto loan $30,000 (current balance $21,000). I used the simulator and taking a auto loan of $25,000 says it drops only 10 point. Every time I hit the 800 mark something happens that makes me go back to the high 700 but now that I actually kept it at the 800+ mark I hate to see it take a hit and go back to the 700 range.
1. Can I trust the simulator or can it drop more than predicted? Have the simulator been accurate for anyone out there?
2. What if I co-sign and later she refinance (once the dispute is resolved); is this a good idea? or just wait for the credit agencies to remove the account and reapply for a loan?
3. She is concern on reapplying again and taking another hard inquiry hit so that her score drops even more. You guys think it will drop significantly a second time after we are past the 14-30 day grace period of the origial inquiry?
4. Is it a good idea or bad idea to refinance 1-2 months after taking the loan? or should we wait longer? Will this hurt her/my score?
5. What would you do in my situation?
Feel free to add any scenario that I may have not considered. Thanks!
