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My wife has really bad credit, I have a credit score of 700, I currently make enough where I could make her car payment in addition to bills if I had to. (I dont, she works) We have been married for about a year, dated for a year prior, and have a child together, we have a pretty stable/non-turbulent relationship and I can say with a degree of confidence were not going to get a divorce anytime soon. Is cosigning on her car (2014 Jetta) so she can get a better interest rate a good idea? My only debt is my current car payment, which I have payed up to a year from now, and owe $2,000 on, which im making payments on still to pay it off sooner. The only thing Im worried about is some type of financial disaster where we end up unable to make payments on the car ($400/mo) and it hurts my credit score.
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May 9, 2015 10:36
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| # ? May 4, 2024 08:11 |
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What's the current interest rate and what's the new rate? How long is the loan term and are you extending the term out or shortening it? Do you have a plan in place to pay this loan off early? Do you have an emergency fund or plans to make an emergency fund so you can pay the bills when dumb poo poo happens in life?
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May 9, 2015 13:09
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Hi greg, welcome to BFC  Is this purchase occurring in America or the other country you are (were?) located in?
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May 9, 2015 15:05
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Cosigning your wife's loan whom you have a child with and feel good about the marriage is fine. (buying the car is another question entirely)
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May 9, 2015 16:57
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A GIANT PARSNIP posted:What's the current interest rate and what's the new rate? How long is the loan term and are you extending the term out or shortening it? Do you have a plan in place to pay this loan off early? Do you have an emergency fund or plans to make an emergency fund so you can pay the bills when dumb poo poo happens in life? Current interest rate is 3.8%, she has a co-signer on the loan currently, but shes going to have to have them removed because of the way the title/loan is set up and the fact that were moving. Loan is 48 months, currently has 10 months of payments on it, plan on keepping the length the same or extending it to a new 48 month loan. Dont have a plan to pay it off early. Have a 5k emergency fund that im gradually increasing. Her credit score is 586, mine is 700/715. Psl: Loan is from an american credit union and she stays in America.
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May 11, 2015 16:50
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suicide bi cop posted:Current interest rate is 3.8%, she has a co-signer on the loan currently, but shes going to have to have them removed because of the way the title/loan is set up and the fact that were moving. Loan is 48 months, currently has 10 months of payments on it, plan on keepping the length the same or extending it to a new 48 month loan. Dont have a plan to pay it off early. Have a 5k emergency fund that im gradually increasing. Her credit score is 586, mine is 700/715.
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May 12, 2015 04:46
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swenblack posted:Most new car loans are subsidized to some degree by the company that manufactured the car. 3.8% isn't the best out there, but it's well below the rates commonly available for used cars for people with decent (but not great) credit, which is what your refi loan will be. I'm guessing the reason she's refinancing is more E/N than BFC, and that's fine, but don't expect to come out ahead. She has to refinance because the current co signer is a friend of ours with really good credit, but were moving across the country and that combined with the way her title/loan is set up requires her to have the title signed over from said friend and refinanced in her name in order to make payments and not default on the loan. Didnt put it in the op because it sounds complicated and made up but the state were in is dumb about this kind of stuff, we (the friend and my wife) have both tried to talk to the bank about it, but theyve been less than helpful.
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May 12, 2015 06:06
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Won't repaying the loan in her name be better for her credit score? Instead of cosigning, just help her out with the few $$$ extra that it will cost short-term, and enjoy the long-term benefits of good credit when you will need a house, other car loans, credit cards, background checks etc.
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May 12, 2015 09:47
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| # ? May 4, 2024 08:11 |
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suicide bi cop posted:She has to refinance because the current co signer is a friend of ours with really good credit, but were moving across the country and that combined with the way her title/loan is set up requires her to have the title signed over from said friend and refinanced in her name in order to make payments and not default on the loan. Didnt put it in the op because it sounds complicated and made up but the state were in is dumb about this kind of stuff, we (the friend and my wife) have both tried to talk to the bank about it, but theyve been less than helpful.
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May 13, 2015 01:08
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