Should wife co-sign on auto loan for credit diversification?

[steve997]

My wife has a much younger credit history than I do and currently has no installment loans (only credit cards).

I'm looking to refinance my car loan right away, would it help her to add her as a co-signer on the loan?  Anything it could hurt?  I'd be the primary since I have much better credit.

Especially interested if anyone has done this and how it turned out.

[JediNeo]

Not positive how it works but I thought if it is two applicants they would take the average of the two credit scores. If that's the case you might not get a lower rate. 

[Remember0]

^That's not true for any finance company as far as I know. Some look at the highest between the two borrower's, others consider both but not the statistical average.

Let's start with the scores OP. What is your FICO score (what bureau(s))? And what is your wife's FICO and bureaus?

Generally, if you have better FICOs and it's in the prime range, adding a second applicant doesn't help except in a few cases (multiple auto loans in your name or an income issue for DTI).

[JediNeo]

Thanks clarifying that, appears I was given false info. @op good luck with refi.

[Creditaddict]

It could help her depending what her credit is like now.

What it could hurt is her DTI... depending how long you are taking this new loan out for and if she will need to do anything with her credit in that timeframe.