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joint auto loan - possible effect

Regular Contributor

joint auto loan - possible effect

I am working my way to recovery from past mistakes.
What are the possible effects/benefits of applying for a joint auto loan with my mother (she has a 745 FICO),I am at 630 right now, no delinquency/collection, but an unresolved judgement.
Do I have any chances of getting approved by myself. I know I may just.get a 10%ish interest rate on a regular 48 month loan. I am looking to borrow 20k.
Your.feedback and opinions are valuable.


CURRENT TLS:

AMAZON $2K/ WALMART $2K /DCU $3K DELTA AMEX $1K
DISCOVER $1.2K/ PAYPALEXT $2K /COSTCOTU $1.2K

UPDATED 8/1
EQ
8/1/13 EQ 694 - (myfico) -
7/26/13 EQ 694 - (DCU)
9/10 EQ 701 - (myfico)

EX
9/8 - EX 707 (usaa/EX)

TU
6/18 TU 690 (myfico)
7/2 TU 694 (Walmart)
8/8 TU 676 (Walmart)
9/6 TU 676 (Walmart)
Message 1 of 14
13 REPLIES
Moderator

Re: joint auto loan - possible effect

If you can't get approved otherwise, it may help.  It might also lower your APR, anecdotally they may base it off your mother's FICO score rather than yours, and that will likely be a non-trivial difference.

 

That said, as long as you have a sufficient downpayment, virtually anyone in America can get financed for an automobile if they're willing to suck up the APR associated with the loan.

 

Also I would also make the caveat whenever borrowing from family, make sure she gets paid back before anyone else... not worth the strain in the relationship to do otherwise if trouble strikes.  End of the day, as long as the tradeline gets on your report, and you're making the payments, I think it may be a smart course of action though likely you would be able to do the two-step refinance anyway without much trouble assuming you don't have much in the way of auto history in the past.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 2 of 14
Regular Contributor

Re: joint auto loan - possible effect

Thank you Revelate, I appreaciate your feedback. i have been reading the forums but didnt find much.


CURRENT TLS:

AMAZON $2K/ WALMART $2K /DCU $3K DELTA AMEX $1K
DISCOVER $1.2K/ PAYPALEXT $2K /COSTCOTU $1.2K

UPDATED 8/1
EQ
8/1/13 EQ 694 - (myfico) -
7/26/13 EQ 694 - (DCU)
9/10 EQ 701 - (myfico)

EX
9/8 - EX 707 (usaa/EX)

TU
6/18 TU 690 (myfico)
7/2 TU 694 (Walmart)
8/8 TU 676 (Walmart)
9/6 TU 676 (Walmart)
Message 3 of 14
Established Contributor

Re: joint auto loan - possible effect

auto loan is manual review . unresolved judgement  not look good to lender, iam not sure if lender can finance you,but if is me, no i will not. If you can get somewhere to finance you,i guess over 15% APR,joint is much better

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Message 4 of 14
Frequent Contributor

Re: joint auto loan - possible effect

my dad went in with me when i bought my car. My credit was trash and I was looking at an 18% rate. It saved me a lot of money on intrest. After a year my credit got decent and then at about 2 years I refinanced it into my own name to get my dads liability off of the note. 


CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $12k United Explorer-$5k
Message 5 of 14
Regular Contributor

Re: joint auto loan - possible effect

@e150gt - Were you able to do a joint application even though your credit wasnt in the best shape?


CURRENT TLS:

AMAZON $2K/ WALMART $2K /DCU $3K DELTA AMEX $1K
DISCOVER $1.2K/ PAYPALEXT $2K /COSTCOTU $1.2K

UPDATED 8/1
EQ
8/1/13 EQ 694 - (myfico) -
7/26/13 EQ 694 - (DCU)
9/10 EQ 701 - (myfico)

EX
9/8 - EX 707 (usaa/EX)

TU
6/18 TU 690 (myfico)
7/2 TU 694 (Walmart)
8/8 TU 676 (Walmart)
9/6 TU 676 (Walmart)
Message 6 of 14
Highlighted
Member

Re: joint auto loan - possible effect

630 isn't horrible, especially with unresolved judgement on you cr. If you get that judgement taken off your CR you could probably get a 3 or 4% apr. With that said, I bet any lender is going to question the judgement, joint loan or not.  A few months ago, My sister took out a 60 month loan for $26K and got 4.29% apr this was with a right at 630 score.

Message 7 of 14
Regular Contributor

Re: joint auto loan - possible effect


4thmouse wrote:

630 isn't horrible, especially with unresolved judgement on you cr. If you get that judgement taken off your CR you could probably get a 3 or 4% apr. With that said, I bet any lender is going to question the judgement, joint loan or not.  A few months ago, My sister took out a 60 month loan for $26K and got 4.29% apr this was with a right at 630 score.


I find that as awesome news. Would you be able to find out where did she applied ? I am definitely in need of resolving that judgement soon, as It makes very difficult to get anything new.



CURRENT TLS:

AMAZON $2K/ WALMART $2K /DCU $3K DELTA AMEX $1K
DISCOVER $1.2K/ PAYPALEXT $2K /COSTCOTU $1.2K

UPDATED 8/1
EQ
8/1/13 EQ 694 - (myfico) -
7/26/13 EQ 694 - (DCU)
9/10 EQ 701 - (myfico)

EX
9/8 - EX 707 (usaa/EX)

TU
6/18 TU 690 (myfico)
7/2 TU 694 (Walmart)
8/8 TU 676 (Walmart)
9/6 TU 676 (Walmart)
Message 8 of 14
Frequent Contributor

Re: joint auto loan - possible effect

yes I was on the note as well as my dad. The only thing was that he was the primary.


CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $12k United Explorer-$5k
Message 9 of 14
Established Contributor

Re: joint auto loan - possible effect

you have to put cosigner to be primary,and you will be cosigner. after 1 year try to get refinance to take the cosigner out, in the eye of lender,they make decision base on primary first,if primary not qualify for loan,they will have to look a cosigner, then if cosigner did not qualify then bye bye Smiley Very Happy. on credit report. 3 CRA will report both of you guy. So the main thing is just get the Loan approval, thats it

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Message 10 of 14