Questions: Co-signing Loan, and Building Credit.

staticvoidmain · ‎01-03-2021

My spouse just migrated and has "no credit history". My credit is playing in low 800, high 700 (791-810). We need a car. I am almost certain I will cosign an auto loan.

My GOAL is to build my spouse's credit.

Does it make a difference who is the cosigner and who is the primary holder? My key points:

1. Will we get better rates if I am the primary?

2. Will it positively affect my spouse's FICO credit the same way whether she is the cosigner or the primary?

Thanks!

Slabenstein · ‎01-03-2021

I don't know how it works with auto lending generally, but when I did auto loans at a small CU both applicants would be joint, rather than one primary and one cosigner, and the rate was based on the EQ8 of the borrower with the higher income. The loan would have reported as joint to both borrowers' CRs.

staticvoidmain · ‎01-03-2021

@Slabenstein wrote:
I don't know how it works with auto lending generally, but when I did auto loans at a small CU both applicants would be joint, rather than one primary and one cosigner, and the rate was based on the EQ8 of the borrower with the higher income. The loan would have reported as joint to both borrowers' CRs.

My understanding of "cosigning" an auto loan is that is a joint account as well. I am just a bit unsure because I read "primary" and "cosigner" terminologies when researching the topic. If this is the case, seems like a non-issue at all. Thanks.

To everyone one else, I am still looking for feedbacks. Thanks!

Anonymous · ‎01-03-2021

@staticvoidmain wrote:
@Slabenstein wrote:
I don't know how it works with auto lending generally, but when I did auto loans at a small CU both applicants would be joint, rather than one primary and one cosigner, and the rate was based on the EQ8 of the borrower with the higher income. The loan would have reported as joint to both borrowers' CRs.
My understanding of "cosigning" an auto loan is that is a joint account as well. I am just a bit unsure because I read "primary" and "cosigner" terminologies when researching the topic. If this is the case, seems like a non-issue at all. Thanks.

To everyone one else, I am still looking for feedbacks. Thanks!

It'd be a joint