Individual Application vs. Joint Application for Auto Loan

[Failingupwards]

My husband and I are going to be in the market for a new car soon. His score is in the low 700s and mine is in the low 600s. Would applying together pull down the "good" from his record, or should he apply solo?

[Anonymous]

IIRC, they will use the higher score (his) but it will be reported to both of your reports if you do a joint application.
You'd get the best deal with his score and if you personally don't have an installment loan on your reports, this would give you a slight boost when it starts reporting

[Failingupwards]

Thanks! I have a loan on my report that is current, never late but will be paid off in two months. I'm guessing I'll get a score drop then.

[Anonymous]

Yes, having it paid off if it's your only installment loan will give you a small drop. There are some alternatives to auto loans for installments. If you new one approved though before his is completely paid off, it should be ok. Might help to have you both listed regardless of who's score is higher as both of you would show an installment loan

[Anonymous]

if you are married I would suggest just applying for a joint application. Depending on the bank they will base the rate off of his score so that way you can build your credit without having to pay a high rate. This isn't always necessarily true though, banks like Ally, Well's Fargo, etc, have internal scoring systems that judge the risk based off of both applicant's to determine interest rates which could possibly result in a higher rate than what he could get on his own. A credit union would be a great place to start for financing.

[Anonymous]

I would suggest a joint application as it will help your scores in the long run.  Having one person with 700 and one with 600 won't hurt your chances of a good APR.  I always suggest Penfed, great rates, super easy and shopping with that preapproval is so much easier than the finance run around at the dealer and their marking up interest rates.