Loan in my name or Husband’s

[JustKeepSwmng]

Hi all,

Not sure if I am overthinking this. Purchasing a car for me, primarily. I have a thin file, AAoA 5 years, only installment loans are student loans that are all in deferral. (My husband has a huge file, multiple paid off auto loans, paid off mortgage and AAoA +20 years). We did a couple applications with me only, him only, and joint and I am debating where to accept from.

-I got approved for an auto loan from BOA (I bank with them, 10 years now, 2.44% (60 months)
- He got approved from PenFed for 2.19% (60 months) and DCU at 1.99% (65 months). We have no other accounts with either of these banks.

Should we just take the lowest rate in his name only? Or is it worth the extra $ for me to have a loan on my own? 

I/we will likely apply for a mortgage in about 2-3 years and not sure if this matters for building a relationship with any of these banks. 

[mgs2010]

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@JustKeepSwmng wrote:

Hi all,

Not sure if I am overthinking this. Purchasing a car for me, primarily. I have a thin file, AAoA 5 years, only installment loans are student loans that are all in deferral. (My husband has a huge file, multiple paid off auto loans, paid off mortgage and AAoA +20 years). We did a couple applications with me only, him only, and joint and I am debating where to accept from.

-I got approved for an auto loan from BOA (I bank with them, 10 years now, 2.44% (60 months)
- He got approved from PenFed for 2.19% (60 months) and DCU at 1.99% (65 months). We have no other accounts with either of these banks.

Should we just take the lowest rate in his name only? Or is it worth the extra $ for me to have a loan on my own? 

I/we will likely apply for a mortgage in about 2-3 years and not sure if this matters for building a relationship with any of these banks. 

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Your credit seems to be better than you think if BOA approved you at 2.44%; that's quite good in my opinion for a 60 month term right now. Since all you have is student loan history, if it were me I would place the auto loan in my own name rather than my spouse's name. The difference in rate is minimal between your best offer & your husband's best offer - and it allows you to build positive auto loan history helps out no matter how your slice it. On a $20,000 loan the difference in payment would be under $30 so I guess you just need to decide if paying an additional $30 a month is worth it for you to build up your credit. 

a relationship with a bank is not necessary for getting a mortgage - it can give you comfort knowing that it's a lender you've already established a relationship and trust with but outside of that, there's not much. Generally speaking, all mortgage lenders are in the same ball park for rates/costs obviously with a few outliers here or there but it's always best to shop around with a few to get quotes when the time comes. 

Good luck with whichever option you go with..

[JustKeepSwmng]

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@mgs2010 wrote:

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@JustKeepSwmng wrote:

Hi all,

Not sure if I am overthinking this. Purchasing a car for me, primarily. I have a thin file, AAoA 5 years, only installment loans are student loans that are all in deferral. (My husband has a huge file, multiple paid off auto loans, paid off mortgage and AAoA +20 years). We did a couple applications with me only, him only, and joint and I am debating where to accept from.

-I got approved for an auto loan from BOA (I bank with them, 10 years now, 2.44% (60 months)
- He got approved from PenFed for 2.19% (60 months) and DCU at 1.99% (65 months). We have no other accounts with either of these banks.

Should we just take the lowest rate in his name only? Or is it worth the extra $ for me to have a loan on my own? 

I/we will likely apply for a mortgage in about 2-3 years and not sure if this matters for building a relationship with any of these banks. 

---

Your credit seems to be better than you think if BOA approved you at 2.44%; that's quite good in my opinion for a 60 month term right now. Since all you have is student loan history, if it were me I would place the auto loan in my own name rather than my spouse's name. The difference in rate is minimal between your best offer & your husband's best offer - and it allows you to build positive auto loan history helps out no matter how your slice it. On a $20,000 loan the difference in payment would be under $30 so I guess you just need to decide if paying an additional $30 a month is worth it for you to build up your credit. 

a relationship with a bank is not necessary for getting a mortgage - it can give you comfort knowing that it's a lender you've already established a relationship and trust with but outside of that, there's not much. Generally speaking, all mortgage lenders are in the same ball park for rates/costs obviously with a few outliers here or there but it's always best to shop around with a few to get quotes when the time comes. 

Good luck with whichever option you go with..

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Thank you for the response. Yes it's about $56 dollars difference for monthly compared to the DCU loan ($300 life of loan). The difference is of no consequence to us. I've just been stuck on whether it matters at all for me to build history on my own. 

[SouthernCredit]

I'd take a less than half point difference for the shorter loan in my name only to build that history on a thin file. That's a great rate from BofA. 

[JustKeepSwmng]

Thank you. I think that's what I'm going to do. 

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@SouthernCredit wrote:

I'd take a less than half point difference for the shorter loan in my name only to build that history on a thin file. That's a great rate from BofA. 

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[increasingmyfico]

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@JustKeepSwmng wrote:

Hi all,

Not sure if I am overthinking this. Purchasing a car for me, primarily. I have a thin file, AAoA 5 years, only installment loans are student loans that are all in deferral. (My husband has a huge file, multiple paid off auto loans, paid off mortgage and AAoA +20 years). We did a couple applications with me only, him only, and joint and I am debating where to accept from.

-I got approved for an auto loan from BOA (I bank with them, 10 years now, 2.44% (60 months)
- He got approved from PenFed for 2.19% (60 months) and DCU at 1.99% (65 months). We have no other accounts with either of these banks.

Should we just take the lowest rate in his name only? Or is it worth the extra $ for me to have a loan on my own? 

I/we will likely apply for a mortgage in about 2-3 years and not sure if this matters for building a relationship with any of these banks. 

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     Do it in just yours or in both so you benefit from it. 

[Brian_Earl_Spilner]

Your auto scores take into account current and previous auto loans, so it would beneficial to be on the loan for the future.