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Europeenne
Posts: 1
Registered: ‎10-11-2012
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Good credit, low income, co-signer auto loan question

hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Good credit, low income, co-signer auto loan question


Europeenne wrote:

hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?


You don't want your friend co-signing....   You really don't want your dad co signing either.   It would be better if your dad co signed, rather than your friend.

 

co signing is a really bad thing to do.


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beautybrainsbooty
Posts: 212
Registered: ‎08-02-2012
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Re: Good credit, low income, co-signer auto loan question

why don't you try getting a loan approved FIRST from a credit union, then buying your car. Dealerships can be so very tricky and will make you jump through hoops when you don't have too. IF you can avoid a cosigner then by all means work around it.

started mid 500's. Disputed incorrect items and within a month or two my scores have skyrocketed and continue to do so
EQ: 755 as of 8/2013
TU: 700
Experian(or as I call them, the devil) I have no clue, they haven't released my report
Goal=801 across the board!!! Not too far from this, hoping to garden until Christmas 2013
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Revelate
Posts: 8,892
Registered: ‎12-30-2011
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Re: Good credit, low income, co-signer auto loan question


Europeenne wrote:

hello all!

so, i have a good credit score, but low income roughly 1k a month (hard to work anymore while attending full time classes)

the dealership came back to me saying my income was a little short, and they would like to see 2k a month for financing

would it be better to go with my dad as a co-signer, who has bad credit (500's), but high income

or

a friend who has good credit, but about the same income as me 1k/month

i know my dad cosigning would shoot my APR up

but, would the dealer take into account my friend cosigners income along with my own? 1k+1k = 2k (the requirement)?


Welcome to the forums!

 

I'm not 100% positive on this but your dad's credit score may not hurt you at all.  With mortgage any joint-application (and presumably co-signed too) takes the lower of the scores; however, on auto loans specifically as has been reported on this forum it's actually reversed: the higher of the scores is used.

 

Again take that with a grain of salt; in some cases, most notably a student, co-signing isn't a terrible idea.  I agree though with Web family would be best; however, as a caution - absolutely make that car payment, it is never worth throwing away or damaging a relationship over co-signed finances.  Skip the friend route absolutely.

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
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