The only time an applicant's spouse would have their credit checked for a car financing loan is if they are named on the application. Lenders need permission to run a detailed check of someone's credit, and that permission comes in the form of a signed loan application.
A financed car has to be registered in the primary borrower's name. The only way that you could be on the loan and not on the registration is if you were to cosign for your spouse.
To put it simply, you are using someone else's credit score to purchase your vehicle. The bill comes to you, but if you don't pay, the co-signer is responsible for the loan— and their credit will suffer if they don't make the payments.
Single Loan Applications
You can apply for a loan in your own name after you've married without involving your spouse at all. There is no legal requirement for married couples to apply for financial products together.
A primary borrower and a co-borrower are listed on the loan and the title to the vehicle, unlike cosigners, who don't have ownership rights to the car. In order to jointly apply for an auto loan, lenders typically require a co-borrower to be a spouse.
To answer the question, yes, you can get a car loan to "buy" a car from your spouse. You can even get a car loan on a car that you already own outright!
Although a 650 credit score is desirable for any loan, first time car loans may require a score of 680 or higher to waive any co-signer requirements.
The recommended credit score needed to buy a car is 660 and above. This will typically guarantee interest rates under 6%.
700 is a good credit score to buy a car because it proves you are a responsible borrower with a credit history in the prime range. Even if your score is under 700 there are still ways to obtain affordable financing, especially at Green Light Auto Credit!
The order of the names on the title do not matter.
Sadly, No, You Can't Simply List Your Spouse's Income. Here's the bad news: You cannot typically list your spouse's income—our household income—on your application as if it were your own. It is, after all, a personal loan.
Although the lender holds the title until the loan is paid, the title itself generally names the driver of that vehicle as its owner. In some cases, though, the person initiating the loan may want someone else to be named on the title, at which point things get a little complicated.
Yes, you can finance a car under joint names. The process may differ slightly as the lender will need both parties' details. Not all lenders approve joint applications though, and some impose restrictions such as applicants having to live at the same address.
You can buy a car for somebody else or contribute towards their car fund, even if they are looking to purchase using car finance. However, it is illegal to apply for either Hire Purchase or PCP finance on behalf of someone else.
Deciding whether to put both spouses on a car loan is highly dependent on your overall financial situation. Whoever has the best income and credit score should ideally sign on to the loan. If you both have great credit and steady income, putting both of your names on the loan won't be an issue.
In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.
There is no set credit score you need to get an auto loan. If you have a credit score above 660, you will likely qualify for an auto loan at a rate below 10% APR. If you have bad credit or no credit, you could still qualify for a car loan, but you should expect to pay more.
A good credit score to buy a car is often above 660, as you're then considered a "prime" borrower. There's no industry-wide, official minimum credit score in order to qualify for an auto loan. Generally, the higher your credit score, the better terms you're likely to get on the loan.
We've got the answers. Your score dropped after buying a car due to hard inquiries. Each credit report the auto loan lender pull adds 1 new hard inquiry, and each hard inquiry lowers your score up to 10 FICO points. A single car loan application could lower your score up to 30 points.
You will likely need a credit score of at least 660 for a $20,000 personal loan. Most lenders that offer personal loans of $20,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.
Your debt-to-income ratio, or DTI, is a percentage that compares your monthly debt payments to your gross monthly income. Many auto refinance lenders have a maximum DTI of around 50%. However, if you're applying for a mortgage, lenders prefer a DTI under 36%.
There's nothing specifically that says your spouse can't be your cosigner, but in most auto loan situations, lenders are more likely to recommend a joint auto loan between spouses. Though they sound very similar, a joint auto loan with a co-borrower and an auto loan with a cosigner is very different.
No, unfortunately you can't apply for finance on someone else's behalf. There are lenders on our panel that ask that the person signing the agreement must be the registered owner/keeper and main driver of the car too.