Better APR without cosigning?

[Anonymous]

My girlfriend and I are looking to replace my car.  My FICO score is in the mid 600s, hers is around 800.  In order to get the best APR, we will be using her credit score.  My question is, can I have my name on the loan with her, or will my lower credit score impact the % we are offered?  Do they need to check my credit to put my name on the loan? 

[Anonymous]

I recommend you don't cosign and your gf doesn't sign for it unless she would want the car as her own. Though I am sure you have a solid relationship, the number of posts on this board regarding people who cosigned with gfs, fiances, and family who then had a soured relationship is depressing. Having a bad breakup is bad enough, but then being obligated by law to pay for an ex's vehicle is even worse.

Mid-600's is enough to get decent rates, expecially from a credit union. I recommend you purchase it by yourself and refinance if your score improves to the point where you could drop a couple percent off your apr.

Please don't take my advice as a knock on your relationship, I have no clue how strong it is. We have just heard a lot of horror stories on here and I would hate to set you and your gf up for yet another one. 

Goodluck.

[Anonymous]

Yes, I've seen plenty of posts like that on these forums.  I appreciate the advice, but that isn't a consideration for us.  Do you happen to know the answer to my original question of whether the loan % is based solely on the best score available rather than mine as well? 

[Anonymous]

This a question you should be asking the bank.

Every bank handles things differently and its possible your co-sign will actually be seen as a risk and the rate gets higher.

You may also want to speak with your own bank for counseling on implications and options.

[Anonymous]

I agree with uaflyer, but I think in general you would get a rate in between what she would get alone and what you would get alone. A cosigner ties someone with better history to the loan but it also points out that one of the signers sees a need for someone to secure the loan because they think their own credit history is not sufficient.

[Anonymous]

Thank you both for the answers  Question - if a married couple wanted both their names on the loan, same situation?  Both credit scores affect the rate?  (This is just something I've been wondering and has no significance to my situation)