Approval

[jbee]

So my 2004 SUV has totally died on me and I need a car very soon. My credit score is around 670, but my dti is 45%. This is because the mortgage is only in my name but my husband pays the $800 monthly. Although putting both names on the application will help the dti issue, I don't think it's a good idea because his score is mid 500s. Is it possible to use his income w/o him being on the app? Has anyone been approved with high dti? Please help.

Credit score- 670
Income- $3500/mo
DTI- 45%

[Anonymous]

I think you'll be fine with your score.  DTI while important is not that important for car loans as opposed to a mortgage.  If your prior car loans are good you'll be fine.

[jbee]

Thanks, do you think I should apply with him?  If so, should I have him as the applicant and I come in as the co-signor, so the interest will be based primarily on my credit?  I don't know how this works, so I may be totally wrong as to how they do this.

Also, this is my second car loan.  I paid off my first loan about 3 years ago with very good payment history.

[Anonymous]

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@jbee wrote:

Thanks, do you think I should apply with him?  If so, should I have him as the applicant and I come in as the co-signor, so the interest will be based primarily on my credit?  I don't know how this works, so I may be totally wrong as to how they do this.

Also, this is my second car loan.  I paid off my first loan about 3 years ago with very good payment history.

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Eh.  Hard to say.  You can always try with him to assist with income but  his score is very low so even if they approve it with you as cosignor the rate will really be high.  Co signers don't help out main applicant as much as people think.  If you try that way you can always backtrack and go it alone.  I don't know what your current scores are but you are more than likely to get premier rates by yourself.

[jbee]

My score as of today is 670 but I've paid down a couple credit cards under 50% last week, so hopefully once those report it should put me around 700.  Do you know if Capital One blank check or CarMax is a little lenient when it comes to DTI??  Thanks for your help.

[Anonymous]

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@jbee wrote:

My score as of today is 670 but I've paid down a couple credit cards under 50% last week, so hopefully once those report it should put me around 700.  Do you know if Capital One blank check or CarMax is a little lenient when it comes to DTI??  Thanks for your help.

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I've never dealt with either.  I can't imagIne CapOne is and CarMax doesn't finance cars per se. They're going to submit your application to a bank just like any car dealer.  If your DTI was at 80% I'd worry  but where it is now I think you're worrying too much :-). Honestly it doesn't come up that much.  They are more concerned about past auto loans, credit score and down payment.

[Anonymous]

Also its really hard to give you accurate advice without knowing year, make, model of car you are trying to purchase along with your estimate down payment and income. (Approx). 

[jbee]

I haven't picked out a car yet but plan on staying between $15,000 to 17,000.  I can pay a down payment of $1500-2000, but really don't want to if it's not going to make a huge difference.  My monthly income is around $3500.

[Anonymous]

You should be fine With that down payment .  Once you narrow down the particular vehicle you want just make sure do adequate research as to what you should pay for that model

[jbee]

Thanks Irish!