Cosigner?

[Anonymous]

I am in the process of rebuilding credit and doing fairly well. Unfortunately, my scores were still under 600 last time I checked (3mos ago?). My fiance just purchased a house we are living in now. Of course, the engine of my car blew up about three days ago. I looked at a Buy Here Pay Here, but it's pretty much a rip off, and I don't believe they report to the bureaus payment history. Anyhow, my fiance said he would co-sign for me. The only thing is, he has the house in his name, and has a car loan in his name, as well as his credit card. He has great scores, but his DTI ratio is high now that we own the house. Will he not be able to cosign based on his DTI, or will they figure I am the applicant and base it on my income? I have a very low DTI, so making a payment wouldn't be difficult for me. Any advice?

[llecs]

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lelea3 wrote:
I am in the process of rebuilding credit and doing fairly well. Unfortunately, my scores were still under 600 last time I checked (3mos ago?). My fiance just purchased a house we are living in now. Of course, the engine of my car blew up about three days ago. I looked at a Buy Here Pay Here, but it's pretty much a rip off, and I don't believe they report to the bureaus payment history. Anyhow, my fiance said he would co-sign for me. The only thing is, he has the house in his name, and has a car loan in his name, as well as his credit card. He has great scores, but his DTI ratio is high now that we own the house. Will he not be able to cosign based on his DTI, or will they figure I am the applicant and base it on my income? I have a very low DTI, so making a payment wouldn't be difficult for me. Any advice?

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If I was in that situation, I would fork out the money I would have used as a down payment and use that to buy a car w/ cash. Either way, you'd have to put down a sizable down payment.

Then I'd improve my history and fix my credit. With a few months of effort, you can hit a FICO score approaching 700. Once I did all that I could and with higher scores, then I'd consider applying for a new car loan under my credit and get approved with a lower down payment and with a lower APR. And because of the DTI, you'd have more flexibility (aside from your budget) to purchase a better car than what you could have if you cosigned.