Auto Loans

[pakman92]

Hi, we are looking at replacing one of our cars and would require a car loan.  In the past, I've always applied for the loan.  I've now realized that in order to build up wife's credit, it would be good to have her get the loan.  But, I feel like it's a catch 22.

Her score is good in the 750 range (see my sig).  However, since she's never had auto loans or mortgages or any other loans for that matter, I'm afraid her auto-enhanced score will not be as high as mine.   Build up her credit potentially at a higher rate loan OR just get the loan myself.

I suppose an option is for me to co-sign a loan.  If I do that, will they use my score?  If we end up getting a house and a new mortage will the DTI double count the loan since it's on both of your reports?

Opinions and thoughts are welcome and appreciated.

[FrugalRican]

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pakman92 wrote:

Hi, we are looking at replacing one of our cars and would require a car loan.  In the past, I've always applied for the loan.  I've now realized that in order to build up wife's credit, it would be good to have her get the loan.  But, I feel like it's a catch 22.

Her score is good in the 750 range (see my sig).  However, since she's never had auto loans or mortgages or any other loans for that matter, I'm afraid her auto-enhanced score will not be as high as mine.   Build up her credit potentially at a higher rate loan OR just get the loan myself.

I suppose an option is for me to co-sign a loan.  If I do that, will they use my score?  If we end up getting a house and a new mortage will the DTI double count the loan since it's on both of your reports?

Opinions and thoughts are welcome and appreciated.

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She's a 750. Just give a solid DP and she should be fine.

Remember, you are doing this to build up her credit score as well.

[sweetest_pea]

She'll be fine on her own. My credit score is lower that your wife score and I was approved alone with Chase auto finance with the special apr the dealer was advertising on new cars. I do not have any morgage or auto loans just credit cards and even a settled debt. But i did put $10,000 down without the dealer asking
..i just want to pay it off asap. Good luck.

[Walt_K]

I thought I read for Auto loans they took the higher score, which never made sense to me, but I haven't had an auto loan so what do I know.

ETA: http://ficoforums.myfico.com/t5/Auto-Loans/Auto-loan-primary-good-credit-joint-bad-advice/td-p/10893...

http://ficoforums.myfico.com/t5/Auto-Loans/Joint-application-for-an-auto-loan-with-differing-FICO-sc...