I Have Good Credit/little-no income, Co-signer has Income but average credit...

[jayfico1]

Last year i bought a car... The interest rate was 27% and im making 620 payments a month... I make my money all cash so its not reported (Im not a drug dealer i work with family...) It was my first car and i had a 550 score. My co-signer had a 550 as well hence the bad rates but we were approved... I now have a 700+ (perfect payment history...) and my same co-signer has a 640+ and makes 70k. Im going to trade in my vehicle now towards another one w/ my cosigner. Should i be the primary off my score? Will i still get good interest rates?

[MitchDeerfield]

What credit  cards are in your name only?

[jayfico1]

Thanks for the reply! I have

Credit one - $650

Merrick - $700

Indigo - $300 

All at about 4% UTI

[jayfico1]

any advice?

[Anonymous]

Not judging but it can't be easy to go through life with no reported income and this is one example why.

It's also not fair (no matter how willing they are) to burdeon someone by having them co-sign.

It doesn't sound so bad and that's what family is for and all but God forbid something happend and you couldn't work, the car was totalled without GAP,... they are stuck with it.  The co-signer has no idea if the bill is being paid or not until the collection calls come around.  It's just not a good way to go through life requring a co-signer.

It what's holding you back from getting credit is verifyable income on the books then maybe that's what needs to change.  You work in a family business maybe they can at least give you 1/2 on the books instead of all off.

As far as the loan in your current situation I do not know I just don't.  They are not going to loan money if they don't think you can pay it back and no reportable income is a problem.  the person with the 640 score/70K income depending on lates, depending on which score they are looking at may get a decent loan between 8-15% my guess so sure you can do it but why not "fix" the real problem.

What happens when you want to buy a house are you going to have no income and a co-signer again?

[jayfico1]

Everything that you’re saying sounds good, but I already have my own house paid. I make a pretty decent living to be able to afford what i pay for. The money I make is all cash and through other avenues like I said. I don’t really need a lecture just an answer. Thanks.

[Jnbmom]

A lecture? The member was giving you advice take it leave it, but was  just explaining to you how not having reportable income can hinder your borrowing needs and credit profile. 

[Anonymous]

Thank you jnbmom.

I walked away from this a little upset by his remarks.

I held back from saying anything negative. 

It is not for me to judge if someone pays taxes or not.

I was only trying to solve his problems long term and offer a piece of advice.

In the past I would have loved someone to co-sign so I could get a better car or cheaper loan but now I understand the impact and burdeon of that on the co-signer and unless it was a true emergency to get basic transportation I would always advise against it.

[Jnbmom]

No problem, you were giving very sound advice and not being negative. Heck I didn't even think about the tax consequences. 

But alot of these "new" posters just ask a question, don't care for the sound advice and carry on.

[Anonymous]

Writing about cheating on your taxes on the internet is probably not the best move.