I made some poor financial decisions in my early twenties and had some down luck and I am finally starting to recover from the mess I created and that being said its almost time to get a new car. The current car I bought was a used 14 cruze with 12k miles that I had for 3 years and financed through Chrysler Capital. At the time it was the only place that would approve me and it was the only car I could get that had lower mileage. When I first bought it I used to commute 100 miles a day for work and also had a long drive to get my daughter on the weekends. Mix in some travel for work and you have a car with over 120k that may or may not make it. I have been making large payments since day one and next month itll be paid off 2 years early but I need a new car.
Currently I have an iffy score but my credit is on the incline with 0 missed payments on the current car and my income/savings are pretty healthy so I figured this next car will be one that I reward myself with. I figured if I can make double payments on a high interest loan to pay it off early I can afford the car I want and still save. On top of that my fiance would be a coborrower who also has a very good income and would be considered tier 1+ credit. She hovers between a 780-799 usually. With that being said how would the interest be calculated if she is a coborrower? Would I struggle to get a decent interest rate if I use her on the loan even though my credit will be around a 600-630 score that is steadily increasing? I have no collections on my report and a few late payments that are well over a year old.
I imagine it varies by lender, but the credit union I used to work at would base the rate on the credit score of whichever borrower had the greater income.
I can see that! I mean her income may be a tad bit higher but we both are in the same ballpark.
You should be able to ask your lender how they determine rate w/ a co-borrower.