Will adding my name to wife's auto loan by refinancing improve my CS?

[Anonymous]

Hi,

My wife's car will be paid off in May of 2012.  She bought it in her name before we were married but we've both been paying for it the last 3yrs and I'd like to get the good payment history on my report if possible. 

If we refinance and add me to the loan will I get the entire history on my CR at this stage of the loan? Do you think this will improve my score given I don't have any open installment loans (I have 1 closed from my car) or will it be a wash with the inquiry from the refi?  Is it worth it?  FYI no prepayment penalty on the current loan..

Thanks!

[kjm79]

IME, when you refinance, the original loan is marked "closed paid as agreed" or something along those lines.  The refinance or "new loan" shows up as a new tradeline on the credit reports.  There wouldn't be any history for you to inherit.  Depending on current scores, AAoA's the inquiry and new account could hurt you both.  Without knowing more about your credit profiles, no one can really chime in on how it will help/hurt you by adding the new account. 

[Anonymous]

Thanks for the info...that makes sense that the old loan would close out if we refinanced.  I wonder if there's a way to get my name on the loan without refinancing...? 

EX 712, EQ 782, TU 774. 

5 open CCs without any balences (I use all of them each month). 1 closed auto loan. No real estate loans. 1 inquiry 11/10. I have a 60 day late from GENB/Men's Wearhouse accound (now closed) from 3.6 yrs ago that was only reported to EX...hence the difference in scores. My EX score has been 712 for 7 months in a row....the 11/10 inquiry dropped me to 712 from 720.

Aside from a successful GW to GENB I'm not sure how else to bump up my EX score...hence my desire to get a piece of my wife's car loan.  

I could get a new car as mine is approaching 170k miles but I'm reluctant to take on new debt since we'll be ready to start looking for a home in the fall

Thanks

[kjm79]

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@Anonymous wrote:

Thanks for the info...that makes sense that the old loan would close out if we refinanced.  I wonder if there's a way to get my name on the loan without refinancing...? 

EX 712, EQ 782, TU 774. 

5 open CCs without any balences (I use all of them each month). 1 closed auto loan. No real estate loans. 1 inquiry 11/10. I have a 60 day late from GENB/Men's Wearhouse accound (now closed) from 3.6 yrs ago that was only reported to EX...hence the difference in scores. My EX score has been 712 for 7 months in a row....the 11/10 inquiry dropped me to 712 from 720.

Aside from a successful GW to GENB I'm not sure how else to bump up my EX score...hence my desire to get a piece of my wife's car loan.  

I could get a new car as mine is approaching 170k miles but I'm reluctant to take on new debt since we'll be ready to start looking for a home in the fall

Thanks 

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If the scores above are your true FICO scores and not FAKO scores you're in fine shape.  What are the sources for your scores?  Getting a home loan won't be a problem at all if those are true FICOS.  Lenders take the lower of yours and your wife's middle score.  Your middle score is 774 which puts in great shape to get optimal loan terms. 

But if you want to improve your scores, are your credit cards actually reporting zero balances on your credit reports?  If they are all reporting zero balances, let JUST ONE card report a small balance, only 1%-9% of the limit.  That could give you a little bump.  Play around with the percentage you let report, but stay between the 1 and 9% on one card only.  Not having an open installment loan can ding you a bit.  But if you are going to be looking for a home this fall, you don't won't to really be seeking any new credit.  The 11/10 inquiry won't effect your score after 11/11 this year.  And while that late looks ugly, once they hit the two year mark, they don't have that much effect on your scores.  But if you can get them to GW the late, it'll help. 

[Anonymous]

kjm,

Thanks for the crash course...I just found out from reading these boards that my scores are FAKO's.  I got them from USAA credit monitoring so they are PLUS scores. 

I just checked my EQ and TU through MyFico and they are 789 and 810 respectively.  I guess my EX FICO score will remain a mystery but I will try the GW and drop the creative auto loan ideas.  Thanks for the suggestions about the percentage reporting...I'll give that a shot and see what happens.