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05-15-2017 07:45 PM
05-16-2017 12:09 AM
It's certainly possible for someone to have two car loans.
My guess is that if you want the lender to count both of your incomes, then the lender would want to see both credit scores, in which case the lender would typically take the lower of the two.
If you want to take out the 2nd loan in your name only with only your income, then it would need ti be plausible for your income to support both car payments (along with expected rent/mortgage and other cost of living)
We don't know what you current payments are (credit cards, car loan, rent/mortgage, etc.) nor what the cost of the new car would be, nor what your income is, so it is hard for people here to say.
Any particular reason you couldn't sit down with a couple lenders and ask them? You could give them your scores, income, and bills and ask them if they can give you a general idea.
05-16-2017 06:18 AM - edited 05-16-2017 06:19 AM
Welcome to myFICO. Lots of great tips and free advice here. But always remember to do what works for you.
You may have as many car loans as your credit profile can support.
You have a good track record with one auto payment (assuming no lates etc).
Your credit score at 750 is great. Each lender will use differing scores, but it sounds like you will have good scores all around.
Calculate out your Debt to Income ratio DTI. For auto loans they will usually have no problem provided you are below 40%. The easiest way to do this is to sign up for the free credit sesame account. On the free version they will show you what your DTI currently is (this will require you to put in your annual gross (pre-tax) salary and it will pull the payments that currently show up on your credit reports. (If you are renting, you will need to do a manual calculation as CS will only pull in current mortgage data)
Example. Current income $45,000. x .4(40%) $18,000 / 12 months = $1,500 a month available for paying bills and keeping DTI below 40%.
Rent $600, Auto Payment $400, Credit card Payments $200 = $1,200. In this hypothetical example you would have $300 available for another car loan. And, each lended will have differing criteria and some will readily go above the 40% DTI
You could use your wifes income but that will bring her credit into play with the lender. Honestly not sure how that will alter you rate.
Also, try Capitalone Auto navigator. This allows you to see if you would qualify with Cap1 and it is only a SP (soft pull) of your credit (no negative effect).
Also, you may want to look into PenFed credit union. For one Equifax pull you can get membership and any other products that your credit profile will qualify you for, For example you could approval for an auto loan, possibly refinance your current auto loan and even a credit card. Just a thought.
Good luck and please check back in with us. Sharing your experiences will help others I am sure.
05-16-2017 10:18 AM
Certainly if you have the income and credit you can get two loans at once. I have seen a couple of times here where a couple gets two BMW's or Lexus' , in those cases they went through the captive lenders. I suspect that Penfed would do two loans under the same circumstances also.
05-16-2017 04:51 PM
05-16-2017 06:01 PM
Forgot to mention I used the autonav from capital one for pre approved for 27k?
I always strongly reccomend the credit unions, they consitantly offer the best rates. Back during my rebuild Capone gave e 8.5% and NFCU a week later gave me 4.29%, we see examples like this here all the time.
05-16-2017 06:20 PM
05-17-2017 08:43 AM
You wouldn't be able to consider her income without her going on the loan most likely, However many bank's will generate an interest rate based off of the higher credit score. Credit union's like Scott Credit Union (located in illinois and they service, many of the surrounding states) will use the higher score of the two to generate an interest rate, however she will have to qualify as well. What I mean by this is, if you are a strong 750 and she is a very weak 500 score they may not approve the loan, however if she isn't necessarily as bad as you think you should be in good shape.
as other's have said, you can have as many auto loan's as your income/credit profile will support, I have personally seen individuals with 6 open auto loan's but they had the credit profile and income to support it.
My advice would be to see if you and your wife can get pre-approved through a credit union with a joint application and go from there. I don't think your income alone support's a second car loan considering your DTI and the type of loan (40k) you are looking for.
By finding a lender willing to approve you both on a joint loan it would help her credit rebuild as well with an open installment loan with positive payment history.
some of your national captive lenders (well's fargo, ally, us bank, commerce, etc) will determine an interest rate based on your interal score with that particular lender so if your wife's credit isn't good at all you could potentially be placed in a lower tier level generating a higher rate, this is where credit union's and other lender's come in handy.
05-17-2017 08:46 AM
Your Capital One pre approval if it is just in your name could be useless. Once you get to the dealership there is a very good possibility that they generate a stipulation for the dealer requesting you to trade your current open auto loan if you don't qualify for a second unit.
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