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Who should apply and who should cosign??

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Who should apply and who should cosign??

So little backstory.  I work for the railroad, make around 90K a year, back in 2009 I was laid off.  I was in a real bad place, took about a 60% pay cut and couldnt afford my bills.  So my credit took quite a bath, think low 500's.  I got called back to work about 3 years ago and Ive recently gotten everything paid off, obtained a couple secured credit cards to start rebuilding my credit.  I was even able to get my now wife a car loan for around 12K about a year ago.    


Heres my question.  I would like to buy a car, as im still driving the car ive owned now for around 12 years, bought it right out of college.  Im not looking for much, around 14.5K.  Ive seen US bank has some really great rates with no down payment, but im sure I wont qualify for them with my current score, around a 615.  Now my wife is a stay at home mom who has excellent credit but only works a couple days every two weeks.  Could I have her co sign or have her as the main applicant and me cosign?  whats my best plan of attack here.  Im really lost.  Thanks!


I do also have the option of having my Mother cosign, but she lives out of state and its going to be quite a hassle getting that taken care of so I would rather use my wife as a cosigner.  Thanks for any help!

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Valued Contributor

Re: Who should apply and who should cosign??

Assuming your wife has a better credit score then you should be the main applicant (for the income) and she can be a co-signer. Unlike mortgages where they take the low score most auto finance will base the rate on the better score. The loan would appear on both of your reports so it will help in your quest to improve your credit.


If the car loan for your wife's car is already appearing in your name then the account won't have as much positive impact score wise as the first installment loan and may even drop your score a bit when it reports as new. But don't worry, continued on time payments and a positive trade line will work to your advantage in the long run.


By the way, welcome to the forums. Stick around and do some reading and you will learn a lot.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL

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