Co-signer when credit file is THIN

[spike69]

I am trying to avoid a lot of HPs as that is one of the positives on my CR. My scores are LOW due to thin file and two baddies that age off 3/2015. I have a VERY STRONG co-signer. I need to get positive trade lines going and I really need a new (it will be used but new to me) vehicle. I make a decent salary (between 75 and 80k) and have VERY low DTI.

Will I still be looking at double digit rate offers based on the information I have given?

Thanks!

[spike69]

Bumping for possible help?

[StartingOver10]

Not enough info to say.

What are your FICO scores?

How much are you spending?

How much down payment?

What is your DTI now?

[Remember0]

Is said co-signer willing to be primary on the loan? Functionally it's the same thing. They'll still get the same effect on their credit score and if you don't pay they face the same consequences.

Also what is the nature of those two baddies? In other words, what are they exactly?

[spike69]

Sorry-busy night.

my scores are 518 Ex 515 EQ and 611 TU via myFICO. Two baddies are COs- Cap One and FPB both fall off 3/15. Both not paid. One $800 other 601. 

Otherwise I have two cards with limits totaling $1800 utilization 20% or less and DTI is around 19% 

i guess I don't know why the co signer would have to be primary??

[Remember0]

Some finance companies will base the rate off of the primary's score only. A dealer would probably write it up as the cosigner primary without even bothering to mention it. Like I mentioned, same consequences/etc if there's a late pmt or default or repo.

It depends on lender honestly. Some will base rate off of both of you guys and in that case yeah, you might be looking at double digits. Others will base it off of only the primary and if he's primary, you'd be looking at definitely single digits.

Honestly, the best idea might be to try to apply to a place like CapOne where you can do a joint application online (maybe BofA too, but not sure if they do joint online?) and see what it says. Then go to the dealer...with cases like this, often the dealer is a good resource as long as you remain firm and don't accept their first offer.

[spike69]

I guess I'm looking for any other thoughts? Is having the co- signer primary really my only option?

[StartingOver10]

In your first post, you said your actual goal was to get positive tradelines. If your goal is to really get positive tradelines going, then you are better off getting a credit card. An installment loan doesn't effect FICO scoring nearly as much as a credit card tradeline. Read the Understanding FICO threads.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Frequently-Requested-Threads/td-p/19320

Without knowing your actual scores, no one can give you an idea if you can be financed or not. In your case, it would be much better to get your scores up to the mid-600's then you would be able to fianance something on your own.

[spike69]

Starting over- I do have two cards and did post my scores? It is my understanding that if I want to be able to get a car loan on my own as I get my scores up that prior car loan experinece is heavily weighted by auto financing companies.

[StartingOver10]

I see them now. Sorry I missed it in your earlier post.

Yes some lenders use the auto weighted FICO score to determine your eligibility for financing. Not all lenders do.

Do you happen to know why your scores are in the low 500's? The top reasons would be listed on your report. Looks like your charge off's are old since they are falling off in a year so they don't have as much of an impact as they did the first two years.

If you have a balance, even if small, on both cards it is pulling your score down. If you pay down your existing cc balances to zero on one account and less than 9% on the other it is possible you will see a jump in your scores so that you may not need a co-signer if you can get into the mid-600's. It depends what's on the rest of the report.

One of the other factors that would help you is a down payment. If you finance through a CU with a substantial down payment - it reduces the risk to the lender if you have some skin in the game.