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Established Member
Posts: 19
Registered: ‎09-15-2012
0

How do lenders weigh joint applicants credit?

I have a low credit score of 618 and my wife's is at 680.  Just got these today from myfico.  If applying jointly, how do lenders weigh the scores if they are that much different?  I think we would need to apply jointly since I have stable employment for almost 17 years.  We both have self employment income also, but not sure how to document that so lenders can consider it.  Gross income between regular and self employment is about $150K.

 

I'm sure our auto enhanced scores will be higher since we have a long auto loan history that only has one 30 day from four years ago.  That loan has since been paid off.  We only have one auto loan that is open at this time.

 

Any thoughts on how the scores are viewed?  Thanks for any help.

Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
0

Re: How do lenders weigh joint applicants credit?

I think it depends on the lender.  There are several posts here for lenders that will use the score of the best applicant as opposed to mortgage lenders which will use the worst score. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Member
Posts: 39
Registered: ‎07-17-2012
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Re: How do lenders weigh joint applicants credit?

Same situation here. So if they go by the wife's score would they also put me on the loan with her? To help me build up
Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
0

Re: How do lenders weigh joint applicants credit?

Yes.  But I am not basing this on any direct experience.  Just what I've read here.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Established Member
Posts: 19
Registered: ‎09-15-2012
0

Re: How do lenders weigh joint applicants credit?

Thanks for the info.  I suspect she will be the primary on the loan since the late reporting is only on mine, hence the low credit score.  Other factors on both of ours is a BK that was discharged in 2004, and one 30 day late on an auto loan back in 2008.  That loan is no longer open.  We just paid off one auto loan with our CU and one is still open with them.  Strangely enough the BK does not show up on my experian report, only on the Equifax.

 

 

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: How do lenders weigh joint applicants credit?

Does anyone know how nfcu does this? Thinking of putting my DH on next car loan in 2013. His credit is challenged but perfect auto history and good income/ no debt.

My scores are good. Will they ding us on rate since his scores are not as good?

We will consider all options including financing in my name only; his name only; and joint.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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MyFICO Fitness Goal: 800s Club!



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Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: How do lenders weigh joint applicants credit?

I know that Honda will go with the higher score of the applicants.

 

I leased a new Minivan last year, my scores were high and my Wife were in the low 500s. We got the best rate they offer.

Frequent Contributor
Posts: 490
Registered: ‎02-07-2010
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Re: How do lenders weigh joint applicants credit?

I just bought my wife a new Nissan Rogue. My score was 645 and her's was 575. We got a 4.99% interest rate through NMAC. I am listed as primary on the loan and she is  the co-owner


Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
Current Score (Lender Pulled):TransUnion: 635 (15 APR 2015), Equifax: 685 (15 APR 2015), Experian: 662 (15 APR 2015)
Goal Score:All scores All scores at least 680+ by Jan 2016!!

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Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: How do lenders weigh joint applicants credit?


MrChairman wrote:

I just bought my wife a new Nissan Rogue. My score was 645 and her's was 575. We got a 4.99% interest rate through NMAC. I am listed as primary on the loan and she is  the co-owner


I just got off the phone with Navy Federal. 

 

They consider the primary applicants credit score when they determine the rate.  They only use the co-applicant for income purposes.

So in my case, I'll be primary, my husband will be co-applicant Smiley Happy

 


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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