topic Re: Need help with my current auto loan , in Auto Loans

Need help with my current auto loan ,

Anonymous — Sat, 30 Jan 2021 20:36:44 GMT

So , it's about to be 2 years now , I took out a truck for my dad under my name my credit , he makes the payments though of course , but now I'm going to apply for a house within a year or 2 , if I transfer the loan to him , would it hurt my credit since the financing is not done ?

Re: Need help with my current auto loan ,

Bankrupt2019 — Sun, 31 Jan 2021 03:35:30 GMT

All depends on what the rest of your file looks like. Do you have any other open installment loans?

Re: Need help with my current auto loan ,

Shooting-For-800 — Sun, 31 Jan 2021 16:58:15 GMT

You score may go down because you don't have an installment loan...

BUT

You will also have a better income to debt ratio and less debt overall...

It is probably better overall for you to qualify for a mortgage.

NOW

He will have to qualify for a new loan on his own; you can't just transfer the responsibility.

GL!

Re: Need help with my current auto loan ,

Anonymous — Sun, 31 Jan 2021 21:13:40 GMT

Yes , I have 2 more others well one now , I paid off one auto loan this month , and I owe 10k on another , which I'll b paying off this year , that leaves me with only one auto loan , which is not my car just under my name . Reason is , I want to apply for a home so I need my DTI ratio to be as low as possible , I'm credit card debt free as well .

Re: Need help with my current auto loan ,

Anonymous — Sun, 31 Jan 2021 21:15:11 GMT

@Shooting-For-800 wrote:
You score may go down because you don't have an installment loan...
BUT
You will also have a better income to debt ratio and less debt overall...
SO
It is probably better overall for you to qualify for a mortgage.
NOW
He will have to qualify for a new loan on his own; you can't just transfer the responsibility.
GL!

His credit score is actually much better than mine lol , but he had me apply for his truck back in 2018 because he took out a home so helped his DTI ratio I guess , but now I want a better DTI so I want to let go of the loan and give it to him so he can finance, just scared my scores will take a dip .