@mxstiheat wrote:Hi everybody. I just recently got married with my girlfriend . She has a really thin credit file it is 8 months old and she is 18, I am 20 years old. and her Tu credit score is 735 she only has 2 credit card , chime
credit builder card... 😂😂 and a $3000 discover unsecured credit card her utilization is really bad since she spends all her limit but pays it off all the time never miss a payment. I was planning to give her my 2017 audi a5 to her and get a auto loan through her and get myself a 2017 mercedes E300 . I am not a usa citizen nor green card yet. So i cannot finance anything... She got approved for carvana financing. it was only saying $1200 down for a 32k car but the interest rate is %24... which is exteremly high. I was wondering if i should add her to my business as a owner and use the 250k year income we make from business and show it as her proof of income and go through dealerships and try my luck with low interest rates... but i dont know what to do... somebody help me to take a good direction. she has really thin credit file im kinda on the middle if i should go with carvana or.... idk. I was researching about lightstream but im not sure they will approve her
note ( i dont want to put no more than 2k down on a car)
I don't think salary will make much difference. The biggest part of the 24% APR is her very thin young file and her age. Plus Carvana is known for high rates. To get a better rate you'll either need to get a C0-Signer that has good credit and thicker file or pay way more down. Also any lender is going to highly scrutinize any "business" "owned" by an 18 y/o and a 20 y/o claimimg to make 1/4 Million a year. Also paying way more down will help get a better rate sometimes. You said you don't want to pay more than $2K down but if your business is truly making $250K a year thats over $20K a month and you should easily be able to put way more down to get a better rate. Also try a Credit Union directly as they normally always have better auto rates.
The high APR doesnt make sense to me, also whats wrong with the luxury cars you have now ? It doesnt make sense to get into a brand new car right now, especially when you already have nice cars. I know you're young and probably want to flaunt your success, but i suggest you keep the cars, save and invest for emergencies and retirement.
Starting Score: 512
@mxstiheat wrote:yes but i am thinking if i get approved for a loan through credit union they would ask atleast %15 down on the car im looking for
Actually CU usually don't require downs. They ask if you want to put anything down, but they don't force you. Especially not as part of it determining whether or not you get approved. It may help you get approved if you're willing to put a little more down, though. Maybe not $10k, but maybe like $3-$5k.
Are the cars paid off or close to being paid off ? What sounds better driving around in a paid off car with no monthly payment or monthly payments that could be going towards other expenses or savings ? Especially if it was a higher monthly payment. Makes more sense to keep what you have or buy a car in full outright. Im 30 years old, ive owned 3 cars and financed 3 other cars.
I personally wouldn't ask a 18yo girlfriend to sign for a car as this is considered a straw purchase as the car is for you. Also as others have already stated 2k down is probably not even close to the amount needed down for a car in that price range. Try to look at it from a FI point of view. Here you have a young lady with no more than 1 year of credit history and the history she does have she isn't responsible with already (you said her utilization is not good) and she wants to purchase a car in the 25k range. As an ex F and I mgr I will tell you that she probably wouldn't qualify for more then a 10k max loan and this being at a 80% ltv. She needs to crawl before she walks.
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