topic Re: Should the higher credit score be the primary applicant or the co-signer? in Auto Loans

Should the higher credit score be the primary applicant or the co-signer?

Anonymous — Mon, 26 Oct 2015 20:02:40 GMT

Basically, should the co-signer be the lower score or the higher score? My wife and I are buying another vehicle and I was curious what gets the best rate. Our scores aren't horribly far off and other than the best rate we have no reason to put one before the other.

Re: Should the higher credit score be the primary applicant or the co-signer?

mitchblue — Mon, 26 Oct 2015 20:14:58 GMT

@Anonymous wrote:
Basically, should the co-signer be the lower score or the higher score? My wife and I are buying another vehicle and I was curious what gets the best rate. Our scores aren't horribly far off and other than the best rate we have no reason to put one before the other.

In my opinion, best guess . is that it wouldn't matter.

Re: Should the higher credit score be the primary applicant or the co-signer?

Anonymous — Tue, 27 Oct 2015 00:19:48 GMT

The only time that it would matter who goes first on the loan would be if your scores were in different tiers...If one of you was at 750 and the other at a lower score like 690. If you are both 740 plus the rate wouldn't change much if at all. As a finance manager my rule of thumb is to always put the higher credit score first so that the bank scores it off of this score for the best rate. The only reason I would do it the other way around is if I am asked by the customer to have one go first regardless of score. If this happens I make them aware it could play a role in a higher interest rate and let them make their decision from there.

Re: Should the higher credit score be the primary applicant or the co-signer?

fury1995 — Wed, 28 Oct 2015 13:25:42 GMT

@Anonymous wrote:
Basically, should the co-signer be the lower score or the higher score? My wife and I are buying another vehicle and I was curious what gets the best rate. Our scores aren't horribly far off and other than the best rate we have no reason to put one before the other.

It depends on the lender.

Some banks don't care what order the applicants are in ** if ** they are spouses.

The application will request the relationship the coapplicant has to the applicant.

In short, the lender would prefer to know who the primary owner would be and they should be first but not in the case of married applicants.

Re: Should the higher credit score be the primary applicant or the co-signer?

Anonymous — Tue, 03 Nov 2015 08:07:43 GMT

If it's co signer the the with better credit is on back.. Co signer is good credit signing for the not so good credit.. Now if it's joint account it doesn't matter

Re: Should the higher credit score be the primary applicant or the co-signer?

fury1995 — Tue, 03 Nov 2015 12:39:38 GMT

@Anonymous wrote:
If it's co signer the the with better credit is on back.. Co signer is good credit signing for the not so good credit.. Now if it's joint account it doesn't matter

Applicant and Co-Applicant are always joint and equally responsible for the debt.

Credit bureau reporting of the account doesn not discern which is the Applicant or Co-Applicant.

The Applicant should be whoever the collateral is actually for. The Co-Applicant should be whoever is adding to the security of the lien.

If the cases of Married Applicants, the order would not matter in which they apply. The better score is the determining factor regardless of "who is on bacK"