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Scoring different for borrower than co-borrower?

Scoring different for borrower than co-borrower?

At a car dealer, my daughter presented herself as the purchaser of the vehicle she ended up buying, and put down 40% on the vehicle.  The dealer ran her credit.  She had a score of over 760.  The  terms were agreed upon.  But it is our family's habit to have more than one "owner" on all property we own, therefore I suggested that my husband go on the title and sign paperwork as "Owner of collateral other than Borrower".  The dealer pulled his credit-which wasn't necessary-and because his FiCO score was over 850, he is now the borrower and my daughter, the coborrower!  My question is, will her FICO score be calculated, as a co-borrower, the same as if she was listed as and individual?

Message 1 of 3
Moderator Emeritus

Re: Scoring different for borrower than co-borrower?

Typically lenders use one credit score and stick to that. They likely used the same type of score for both your DH and DD and the lender will base the approval and rate on the higher score, which is a good thing. If future lenders were to use a FICO score, they will see the loan on your DD's CR and score it the same individually as they would a joint account. Likewise, future lenders will score your DH's FICO the same as a borrower as an individual acct. In other words, FICO doesn't care. Lenders don't care either. The same balance will report to both credit reports. If there is ever a late payment, but of them will get dinged for the late payment, and so on.


Not germaine to the question, you mentioned that your DH's score was above 850. FICO stops at or just below 850. If the score is correct, the lender you went to probably used their own score or a different non-FICO score.

Message 2 of 3
Moderator Emeritus

Re: Scoring different for borrower than co-borrower?

Yes; some places will rate the loan off of the borrower with the best credit. It can be a great way to build credit for a co borrower without paying those pesky penalty rates such as 18%+

DH and I just went for a car loan; new car 48.6k we financed 45k for 60 months at 1.79% ... his score was 656 and mine is 694.

My installment and mortgage history is perfect.

The great news is that this auto loan will help him out credit wise so that he will be able to hopefully get the best rates on his own in the future.

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Message 3 of 3