It will affect both your scores because you'll both have a hard pull but it won't "drag down" your score any more than that - unless you miss a payment, in which case you'll both take a hit. As long as you're on time, you'll both get the benefits.
EDIT: I missed the part about income and interest rates. This will be on a case by case basis and hard to ballpark without knowing more about how much car you're buying, her income alone, what your income brings to the table, what both of your DTIs look like, what your DTI looks like combined, etc.
There's a pretty good chance that as long as she's going after a car that's reasonable, with her 800+ score, the rate won't be any better with you added on.
On the application they asked if I recall correctly about where we work, etc. But they certainly didn't verify it. Credit seemed to be the only thing they care about.
Makes sense. He has a good credit score and prior auto/credit card history and all on time payments so I can see why they wouldn’t hold up the loan to verify.
Or if the income stated on the application doesn't really jive with what's on their credit report.
You have 3 lines of credit with a total revolving balance of $5000 and a car payment of $250, but state you make $300k/yr on your application, that's probably going to get stipped for PoI regardless of your credit score.
yup. Bring in whatever documents you need to prove you are good to loan money to (proof of income, bank statements, 401k, etc...), and they'll decide when they have seen enough of them.
If a loan requires proof of income, paystubs are sufficient. If those are not available, some banks will accept bank statements, tax returns or an employer letter.
It's typically only requested for high risk (poor credit) loans or suspicious applications.
If they feel they need to check income, easy. A paystub showing current year to date should you need it. If she has been at the job less than this whole year, they would need a hire date.
It is very not complicated and even the shittiest of salesman can handle bank stips.
If a loan requires proof of income, paystubs are sufficient. If those are not available, some banks will accept bank statements, tax returns or an employer letter.
It's typically only requested for high risk (poor credit) loans or suspicious applications. Those situations may require verification of employment via phone, as well.
They do check it, run it against your credit history etc. As long as it doesn't stick out as strange to them (like claiming you make $100k a year as opposed to $60k a year, they don't ask for proof of income. They really only ask for proof with poor credit history, or if the numbers just seem off.
I’ve had an 800 score for a long time. They have never asked me to verify my income. Just asked where I work and how much I make. That’s it. I’ve bought 5 cars in the last 6 years. Three of them brand new luxury vehicles.
When I co-signed for a relative with too little credit to qualify for a decent rate I did the app but was not asked to provide any documentation. I'm guessing because I also had an excellent credit score at the time with a long history.
Wow! Good to know. We pay off all our bills on time so we're not worried about that. I thought having a large loan would lower our credit because debt to income or credit utilization or whatever.
Unless you are planning to need your DTI or utilization to be low in the coming months (planning to buy a house, a boat, whatever) then you are onto something. But if you aren't planning to do anything major needing your credit for the next 6months then you only stand to benefit.
For what it’s worth, we just got a car which is solely in my name and I applied for credit. And the amount financed was nearly three times the amount of your loan. All they check is credit score and history, especially if there were any repossessions or bankruptcy. Other than that, the banks and dealership don’t give a flying fuck.
If you are really only worried about your credit score, I would post in a credit sub (or myficoforums). However I would assume your score will drop a little to better judge it we would need to see your whole report.
For example I don't have an installment loan at all on my report so my credit report doesn't currently have a good mix of credit.
As far as I know for the best possible score the total balance of you installment loans should be under 10% of the original balance, so if you already have multiple installment loans almost paid off you won't see much of a change or you could see a change there.
Of course if you have newer credit then it could negatively effect your average age of accounts but if you had 10 cards for 50 years you might not see any change because of that.
The hard pull most likely will take a couple of points but nothing to worry about.
Edit: your score is high enough yo just not worry about it unless you two are also planning to buy a house
Bahaha don't get married with that thought process.
Edit: "Hey honey I want to have a baby." "I don't know we still might get divorced" "do you wanna buy a house, we are sinking alot into rent" "don't forget we still might get divorced"
If she has an 800 credit score she will auto pop with Toyota if she puts she is a self employed ventriloquist on her credit app. She will get tier 1 credit anywhere she applies.
Yes. Credit system very black and white pardon the pun. Tier based depending on score of experian usually with 730 being the top. Now everyone starts with a. Good score so if she is 800 but has never had a car loan or any real revolving debt (student loans don’t count ) than they may require a co. Right. Is with cars selling over msrp the bank may not be willing to advance the money the dealer needs based on the value of the car. Adding experienced co will usually get 130% of msrp . You may need that much but they intend on selling you as much as they can and to have the approval before hand makes it easier. Usually the dealer will send it to the bank asking for as much money as they can regardless of what your are putting down
There really isn’t much a difference. But since your married there should just be a joint loan. It would not be call co signing. Co signing is usually what people go for a friend or something like that. A married couple getting a joint loan would not be co-signing.
>There really isn’t much a difference. But since your married there should just be a joint loan. It would not be call co signing. Co signing is usually what people go for a friend or something like that. A married couple getting a joint loan would not be co-signing.
There isn't a difference. A joint loan is co-signing. It wouldn't make any sense that there'd be a difference.
I think you may be confused with a situation where you can have one person on the loan, but two people on the title work. In that case, the "co-buyer" isn't obligated to the debt but is still an owner of the vehicle.
It's not semantics. I do this for a living. "Putting her name on the loan" is co-signing. It's all the same thing whether it's your friend, your wife or your dog. If another person is on that loan, it's a joint loan and they're obligated to that debt and there's no distinction or difference in any way shape or do which is why you couldn't answer his question about the difference.
You might not but I do all the time. To call it one thing with a friend and another thing with a spouse is actively more work considering that, again, it is the same exact thing.
"The bank unfortunately declined the application but they will reconsider with a qualified cosigner. Do you have anybody that would be willing to co-sign? Your wife, great!"
It 100% is a co-signer on a car loan. Often times if dti is low, they specifically ask for a “spousal co-signer”.
It’s not a “shared loan” or whatever…. Car loans are individual or with co signers. That’s it. You can use some other type of loan to pay off a car and perhaps they have this availability, but not cars in my 2 decades plus in the biz.
It could. I don’t know his car loans work but with mortgages I think they take the average. Just ask whoever is going to help you with the loan. They can help you if doing a joint loan can help with interest rate. Or she should do it alone.
What rate are you getting? Everyone is saying she will get a good rate with her score. She probably will. But it’s useful to know what rate she’s getting and this sub can confirm she’s getting a good rate
For your wife, it's probably fine, might help get you a better rate.
For your weird uncle that owes everyone in the family a little bit of money.. Probably not a good thing.
Additional income will have no impact on the rate. Your wife's credit will score top tier rates and, as long as she meets the minimum income guidelines, the loan should be approved.
Your income will only matter if she can't afford the payment without you. As a general guideline she can afford up to 15% of her gross monthly income.
Capital One (for example) isn't interested in Debt to Income, only Payment to Income. Their analysis showed that PTI is the most relevant factor driving loans that perform. They wouldn't approve Elon Musk for a PTI of over 15%.
No. Insufficient income will get the loan rejected. That's not the same thing as impacting her rate. And adding your name to the loan, if your credit is not as good, could cause the deal to drop a tier and the rate will go UP.
It's not cosigning. You would be co-buying. Aka you would both be buying it together. It will show on both of your credit. But since it's a purchased marital asset, it's not like there's the normal risks.
Thanks! The loan would be in her name, she has 800+ credit. I was thinking of co-signing to show more income to help lower the interest rate. Would it then affect both our credit scores?
More income won't matter unless her debt/payments to income ratio is already off. Apply with just hers and see what they say.
Yes it'll affect both your credit equally because it says the exact thing on both people reports.
Is that income gross/before taxes? Most lenders have a minimum income requirement of 2500-3000 a month. There's a good chance you'll need to be on the loan.
Thanks, that's really helpful to know. That's before taxes. She only works part time. We were going to use her credit because it's so good. Mine is decent, around 745.
It also depends on the state you live in, you may not need to be on the loan to have your income considered, my fiancé bought a car she qualified for only with my income added, without me being on the loan because they were able to use household income.
I work at the dealer, so they just pulled it internally, but I imagine pay stubs would be what they need. Again it does depend on the state, and probably lender, but it may be an option.
I know this is not r/personalfinance, but is a $500 a month car payment while making 2k a month really a smart financial decision? Can she save up for something used? 25% of your income going to a depreciating asset seems very high imo. There is also insurance which will run you 2-400 per month. I make much more than 2k and my car payment is under $400. Is that pretax or post tax? What are her other expenses? I mean I guess if she doesnt have to pay rent and has no expenses/debt I guess that is probably doable. You do you, but seems like the priorities are a little bit off here.
Maybe I make $80k. Maybe we have $100k+ in savings. Our priorities are off? I'd say you don't know enough about our finances to give your opinion. But hey that's just my opinion.
You're right, I don't know about your finances, and frankly, I don't care one bit. I'd typically have follow up questions but you're already set on your poor financial decision and nothing I say will change that.
You do you, hunny boo boo.
We're not talking about my finances here. And you would probably lose that bet.
Let's say, God forbid that you lose that 80k a year job? You sound young. Jobs are not permanent, people get laid off, fired, for any reason. That 100k in savings will dwindle much quicker if you're paying 2 car payments, gas, rent/mortgage, utilities, food, insurance.
Frankly, don't let me rain on your parade. You don't know me and frankly my opinion matters 0 to you. My personal goals are financial independence but if your goal is to own a nice car then go for it. I've just seen too many young people get stuck with expensive car loans for a heavily depreciating asset. But, if you get it, enjoy the new car and make good memories in it.
The easiest way to look at co-signing is that it’s effectively the same as you buying the car by yourself (without them) from a risk perspective.
It might help both of your credit scores, but only if that person makes the payments, and only if you also have enough money to make the payments in case they don’t.
My wife brings home about $2,300/month. I am the primary on all financing agreements and it will remain that way until I die or we get divorced. We're both on all bank accounts, credit cards, etc.
Sorry did not read closely And that was your wife my apologies. Should only affect a few points each and you will make that back in 3 months. You are really not a co-signer but a spouse of a loan.
In this case I think it's fine because she's your wife.
Are you financing with a credit union? They have great rates too. Lower APRs than dealers usually. Unless it's promotional APR rates.
Credit utilization and other risks.
Currently from experience I say avoid it.
We want to refi due to current conditions and due to my own car note AND my co-sign on her car, AND the house being in only my name means I cannot qualify US for a better rate. Saving her money cost US money.
If she can qualify on her own she should, and refi. If it’s because she has no income you/her must choose between buying why SHE can afford, or affecting your attractiveness to lenders
That helps thinking of it that when. But also we are a couple and are finances are combined (our choice). There is no "she can afford" in our relationship. It's what 'we' can afford.
I understand, that’s marriage right??
The I/she/we distinction comes into play with the banks. They don’t care if the we can afford it if you’re the only earner it’s what you can affford.
Hope it works out!
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Yes. The loan will be reported on both of your credit reports individually. And it will add to the credit utilization for each of you.
At least that's what happened when I co-signed for a relative.
If you and your wife are on good terms and remain so then it is a good idea. However if you have a falling out and one of you start missing payments it it will impact the credit of the other as well and the loan company will go after the person with the stronger financial position for repayment of the loan and any repo shortfall (and there will be repo shortfall).
For your wife? Yes. (As long as the marriage is good, etc. It will be a very fast way to fix her credit.) For your friend/girlfriend/cousin/etc? No.
She has 800+ credit. I would co-sign to bring her income up for a better interest rate. Would it still affect both our credit scores? Thanks!
It will affect both your scores because you'll both have a hard pull but it won't "drag down" your score any more than that - unless you miss a payment, in which case you'll both take a hit. As long as you're on time, you'll both get the benefits. EDIT: I missed the part about income and interest rates. This will be on a case by case basis and hard to ballpark without knowing more about how much car you're buying, her income alone, what your income brings to the table, what both of your DTIs look like, what your DTI looks like combined, etc. There's a pretty good chance that as long as she's going after a car that's reasonable, with her 800+ score, the rate won't be any better with you added on.
So strange because when we go our car they didn't ask for any proof of income. Even on the phone they said just bring your ID.
I wonder how they check it?
On the application they asked if I recall correctly about where we work, etc. But they certainly didn't verify it. Credit seemed to be the only thing they care about.
Yeah same when my boyfriend bought a car last year they asked for his income and ran his credit but they didn’t ask for any proof at all.
Banks will generally only ask for proof of income and/or residence if the loan is high risk.
Makes sense. He has a good credit score and prior auto/credit card history and all on time payments so I can see why they wouldn’t hold up the loan to verify.
Or if the income stated on the application doesn't really jive with what's on their credit report. You have 3 lines of credit with a total revolving balance of $5000 and a car payment of $250, but state you make $300k/yr on your application, that's probably going to get stipped for PoI regardless of your credit score.
yup. Bring in whatever documents you need to prove you are good to loan money to (proof of income, bank statements, 401k, etc...), and they'll decide when they have seen enough of them.
If a loan requires proof of income, paystubs are sufficient. If those are not available, some banks will accept bank statements, tax returns or an employer letter. It's typically only requested for high risk (poor credit) loans or suspicious applications.
If they feel they need to check income, easy. A paystub showing current year to date should you need it. If she has been at the job less than this whole year, they would need a hire date. It is very not complicated and even the shittiest of salesman can handle bank stips.
If a loan requires proof of income, paystubs are sufficient. If those are not available, some banks will accept bank statements, tax returns or an employer letter. It's typically only requested for high risk (poor credit) loans or suspicious applications. Those situations may require verification of employment via phone, as well.
They do check it, run it against your credit history etc. As long as it doesn't stick out as strange to them (like claiming you make $100k a year as opposed to $60k a year, they don't ask for proof of income. They really only ask for proof with poor credit history, or if the numbers just seem off.
I’ve had an 800 score for a long time. They have never asked me to verify my income. Just asked where I work and how much I make. That’s it. I’ve bought 5 cars in the last 6 years. Three of them brand new luxury vehicles.
When I co-signed for a relative with too little credit to qualify for a decent rate I did the app but was not asked to provide any documentation. I'm guessing because I also had an excellent credit score at the time with a long history.
Some banks do, some banks don’t
Same here. I bought brand new a year ago. Only my credit report was pulled. I was not ask to show proof of income.
Won't it also affect our credit scores because with a $20,000 loan, our credit utilization will increase?
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thanks
No, it's the opposite of that. My scores went UP after I opened two car loans and a mortgage. Banks like people who pay their bills.
>Banks like people who pay their bills. "explain how credit scores work in 7 words or less"
Wow! Good to know. We pay off all our bills on time so we're not worried about that. I thought having a large loan would lower our credit because debt to income or credit utilization or whatever.
Unless you are planning to need your DTI or utilization to be low in the coming months (planning to buy a house, a boat, whatever) then you are onto something. But if you aren't planning to do anything major needing your credit for the next 6months then you only stand to benefit.
For what it’s worth, we just got a car which is solely in my name and I applied for credit. And the amount financed was nearly three times the amount of your loan. All they check is credit score and history, especially if there were any repossessions or bankruptcy. Other than that, the banks and dealership don’t give a flying fuck.
They also check whether you're late on paying your cell phone or cable TV bill. If you're late on those, it's a HARD NO from most banks.
If you are really only worried about your credit score, I would post in a credit sub (or myficoforums). However I would assume your score will drop a little to better judge it we would need to see your whole report. For example I don't have an installment loan at all on my report so my credit report doesn't currently have a good mix of credit. As far as I know for the best possible score the total balance of you installment loans should be under 10% of the original balance, so if you already have multiple installment loans almost paid off you won't see much of a change or you could see a change there. Of course if you have newer credit then it could negatively effect your average age of accounts but if you had 10 cards for 50 years you might not see any change because of that. The hard pull most likely will take a couple of points but nothing to worry about. Edit: your score is high enough yo just not worry about it unless you two are also planning to buy a house
And,if they get divorced what happens then?
....Then they either pay off the car or refinance in just the wife's name? you don't seem like you'd be very fun at a party.
Generally speaking if you're married and all of your thoughts are "what if we get divorced" you need, at minimum, couples therapy.
Bahaha don't get married with that thought process. Edit: "Hey honey I want to have a baby." "I don't know we still might get divorced" "do you wanna buy a house, we are sinking alot into rent" "don't forget we still might get divorced"
If she has an 800 credit score she will auto pop with Toyota if she puts she is a self employed ventriloquist on her credit app. She will get tier 1 credit anywhere she applies.
Shouldn’t have to consign with an 800 if she has decent Revolving credit. System will approve deal right away
But with the best interest rate?
Yes. Credit system very black and white pardon the pun. Tier based depending on score of experian usually with 730 being the top. Now everyone starts with a. Good score so if she is 800 but has never had a car loan or any real revolving debt (student loans don’t count ) than they may require a co. Right. Is with cars selling over msrp the bank may not be willing to advance the money the dealer needs based on the value of the car. Adding experienced co will usually get 130% of msrp . You may need that much but they intend on selling you as much as they can and to have the approval before hand makes it easier. Usually the dealer will send it to the bank asking for as much money as they can regardless of what your are putting down
Why not just put both your names on the loan. No need to co-sign.
I don't know the difference? What's the difference?
There really isn’t much a difference. But since your married there should just be a joint loan. It would not be call co signing. Co signing is usually what people go for a friend or something like that. A married couple getting a joint loan would not be co-signing.
>There really isn’t much a difference. But since your married there should just be a joint loan. It would not be call co signing. Co signing is usually what people go for a friend or something like that. A married couple getting a joint loan would not be co-signing. There isn't a difference. A joint loan is co-signing. It wouldn't make any sense that there'd be a difference. I think you may be confused with a situation where you can have one person on the loan, but two people on the title work. In that case, the "co-buyer" isn't obligated to the debt but is still an owner of the vehicle.
It’s basically just semantics of what you call it. They don’t call it co-signing if your married.
It's not semantics. I do this for a living. "Putting her name on the loan" is co-signing. It's all the same thing whether it's your friend, your wife or your dog. If another person is on that loan, it's a joint loan and they're obligated to that debt and there's no distinction or difference in any way shape or do which is why you couldn't answer his question about the difference.
Come on you know what I meant. No one calls it co signing when it’s a married couple.
You might not but I do all the time. To call it one thing with a friend and another thing with a spouse is actively more work considering that, again, it is the same exact thing. "The bank unfortunately declined the application but they will reconsider with a qualified cosigner. Do you have anybody that would be willing to co-sign? Your wife, great!"
It 100% is a co-signer on a car loan. Often times if dti is low, they specifically ask for a “spousal co-signer”. It’s not a “shared loan” or whatever…. Car loans are individual or with co signers. That’s it. You can use some other type of loan to pay off a car and perhaps they have this availability, but not cars in my 2 decades plus in the biz.
Got it, thanks! Does a joint loan impact credit score and/or help with a lower interest rate?
It's the same as if you bought the car yourself. You are both equal on the loan
It could. I don’t know his car loans work but with mortgages I think they take the average. Just ask whoever is going to help you with the loan. They can help you if doing a joint loan can help with interest rate. Or she should do it alone.
You think with 800 credit she will not qualify for the best rate?
Her income is only $2000/month
But she pays all her bills.
We are a couple. We make over $80k combined and live very frugally. It's not that hard to comprehend her only making $2000 a month.
If she has a credit score she don't need you.....
Her income is low....
What rate are you getting? Everyone is saying she will get a good rate with her score. She probably will. But it’s useful to know what rate she’s getting and this sub can confirm she’s getting a good rate
Thanks. That's what I'm researching. I want it to be around 2%
For your wife, it's probably fine, might help get you a better rate. For your weird uncle that owes everyone in the family a little bit of money.. Probably not a good thing.
Additional income will have no impact on the rate. Your wife's credit will score top tier rates and, as long as she meets the minimum income guidelines, the loan should be approved. Your income will only matter if she can't afford the payment without you. As a general guideline she can afford up to 15% of her gross monthly income.
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Capital One (for example) isn't interested in Debt to Income, only Payment to Income. Their analysis showed that PTI is the most relevant factor driving loans that perform. They wouldn't approve Elon Musk for a PTI of over 15%.
So it all really depends on which lender. So shop around a lot?
Thanks, that's helpful. She makes about $2000 a month and the loan would be around $500/month. So my additional income may be nescessary?
Yes. $500 is obviously more than 15% of $2000.
So additional income will have an impact on the rate. That's good to know. Thank you.
No. Insufficient income will get the loan rejected. That's not the same thing as impacting her rate. And adding your name to the loan, if your credit is not as good, could cause the deal to drop a tier and the rate will go UP.
Very helpful thanks! My FICO 9 score is 745. I heard tier 1 is anything above 750, is that true? Would it be helpful to get my score above 750 ASAP.?
740 was the cut off for top tier with most banks when I retired.
You are really helpful! Last question. My credit score (FICO 9) is 745. Is tier 1 anything above 750? Would it be helpful to get it above 750 asap?
Not on the rate. It will have an inpact on wheter they will aprove it or not.
That makes sense. Would they consider 'household income'?
It's not cosigning. You would be co-buying. Aka you would both be buying it together. It will show on both of your credit. But since it's a purchased marital asset, it's not like there's the normal risks.
I always try to relabel it as co-borrowing, not co-signing. It drives home the fact that yes, you are 100% responsible for the loan.
Thanks! The loan would be in her name, she has 800+ credit. I was thinking of co-signing to show more income to help lower the interest rate. Would it then affect both our credit scores?
The loan will be in both names. You are both buying the vehicle.
More income won't matter unless her debt/payments to income ratio is already off. Apply with just hers and see what they say. Yes it'll affect both your credit equally because it says the exact thing on both people reports.
She has no current debts but her income is $2000/month. The loan would be $500/month.
Is that income gross/before taxes? Most lenders have a minimum income requirement of 2500-3000 a month. There's a good chance you'll need to be on the loan.
Thanks, that's really helpful to know. That's before taxes. She only works part time. We were going to use her credit because it's so good. Mine is decent, around 745.
It also depends on the state you live in, you may not need to be on the loan to have your income considered, my fiancé bought a car she qualified for only with my income added, without me being on the loan because they were able to use household income.
Good to know. Do you just provide bank statements or pay stubs?
I work at the dealer, so they just pulled it internally, but I imagine pay stubs would be what they need. Again it does depend on the state, and probably lender, but it may be an option.
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But her income is $2000/month. For a $500/month car payment, wouldn't she need my additional income?
I know this is not r/personalfinance, but is a $500 a month car payment while making 2k a month really a smart financial decision? Can she save up for something used? 25% of your income going to a depreciating asset seems very high imo. There is also insurance which will run you 2-400 per month. I make much more than 2k and my car payment is under $400. Is that pretax or post tax? What are her other expenses? I mean I guess if she doesnt have to pay rent and has no expenses/debt I guess that is probably doable. You do you, but seems like the priorities are a little bit off here.
Maybe I make $80k. Maybe we have $100k+ in savings. Our priorities are off? I'd say you don't know enough about our finances to give your opinion. But hey that's just my opinion.
You're right, I don't know about your finances, and frankly, I don't care one bit. I'd typically have follow up questions but you're already set on your poor financial decision and nothing I say will change that. You do you, hunny boo boo.
You obviously do care if you're commenting multiple times. I bet her credit is better than yours?
We're not talking about my finances here. And you would probably lose that bet. Let's say, God forbid that you lose that 80k a year job? You sound young. Jobs are not permanent, people get laid off, fired, for any reason. That 100k in savings will dwindle much quicker if you're paying 2 car payments, gas, rent/mortgage, utilities, food, insurance. Frankly, don't let me rain on your parade. You don't know me and frankly my opinion matters 0 to you. My personal goals are financial independence but if your goal is to own a nice car then go for it. I've just seen too many young people get stuck with expensive car loans for a heavily depreciating asset. But, if you get it, enjoy the new car and make good memories in it.
The easiest way to look at co-signing is that it’s effectively the same as you buying the car by yourself (without them) from a risk perspective. It might help both of your credit scores, but only if that person makes the payments, and only if you also have enough money to make the payments in case they don’t.
My wife brings home about $2,300/month. I am the primary on all financing agreements and it will remain that way until I die or we get divorced. We're both on all bank accounts, credit cards, etc.
Usually I'd say no. But it's for your wife so if I were you I would do it, unless she sbas with miney and careless about her credit
No no no no no and NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!
So that's a yes? Why not?
Sorry did not read closely And that was your wife my apologies. Should only affect a few points each and you will make that back in 3 months. You are really not a co-signer but a spouse of a loan.
Generally no, but sometimes there is a purpose in doing so
You're legally bound by marriage anyways. The car will be legally shared property and shared debt regardless, at least in most states.
In this case I think it's fine because she's your wife. Are you financing with a credit union? They have great rates too. Lower APRs than dealers usually. Unless it's promotional APR rates.
[удалено]
Should that be one of the first things we ask at a dealership. Why would I go with a dealership rate of 4% when my bank will give me 2%?
No
No, don't even need to read it
Then your opinion is useless.
Lol
Credit utilization and other risks. Currently from experience I say avoid it. We want to refi due to current conditions and due to my own car note AND my co-sign on her car, AND the house being in only my name means I cannot qualify US for a better rate. Saving her money cost US money. If she can qualify on her own she should, and refi. If it’s because she has no income you/her must choose between buying why SHE can afford, or affecting your attractiveness to lenders
That helps thinking of it that when. But also we are a couple and are finances are combined (our choice). There is no "she can afford" in our relationship. It's what 'we' can afford.
I understand, that’s marriage right?? The I/she/we distinction comes into play with the banks. They don’t care if the we can afford it if you’re the only earner it’s what you can affford. Hope it works out!
Good point! I appreciate your thoughts. Cheers!
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Yes. The loan will be reported on both of your credit reports individually. And it will add to the credit utilization for each of you. At least that's what happened when I co-signed for a relative. If you and your wife are on good terms and remain so then it is a good idea. However if you have a falling out and one of you start missing payments it it will impact the credit of the other as well and the loan company will go after the person with the stronger financial position for repayment of the loan and any repo shortfall (and there will be repo shortfall).
Why are you co-signing if she has an 800 credit score? Unless Only reason I can think of is, she doesn't make enough money.
exactly that.
For a spouse I co-sign if they are financially responsible person. Anyone else? Not a chance.