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With co-signer or without?

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With co-signer or without?

My credit score has improved and by the time I purchase my new car, a 2008 Honda Accord, I will probably have a score around 600-630, with low overall debt (1 cc with a balance of 200, another @ 300), several positive accounts, a repo (from 2005, redeemed, taken over by my mother and now being reported as on-time), one charge-off that I am hoping to pay off by the end of August, two collections which are listed as "Pays as Agreed" with balances of zero. I will be financing, ideally, through a federal credit union (Dept. of Justice). I make about 44000 per year and am looking to get a loan for 22-24k. Question: should I apply on my own/how likely is it that I will be approved?
 
I am hesitant to mark up an inquiry only to be denied. Particularly in light of the fact that I have a co-signer available with excellent credit (840/no negatives).  I'd rather apply on my own and get approved that way but I know that even in the event of an approval, the rate is likely to be pretty high.
 
Any advice?
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Established Contributor

Re: With co-signer or without?

Co-Signor. Your APR will drop dramatically and will save you potentially thousands of dollars. It will also inspire more confidence in the dealer. My GF did this and got a new Honda Fit because of it.
Message 2 of 3
Established Contributor

Re: With co-signer or without?

It all also depends on your trade-in-value or down payment, which increases your approval chances and possible APRs---smaller financing amounts typically = better rates and approval possibilities. Are you planning on doing either?
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