Wife needs a car loan with bad credit
by Megan J
My wife needs a car loan, but she has bad credit. I am willing to cosign for her loan but I already have a car loan in my name. Is that possible and would it help her get a car?Answer:
It's definitely possible to cosign for your wife (actually, you'd be a co-buyer), but keep in mind that even if you are "aces" you shouldn't expect a prime rate.
Good credit doesn't necessarily help bad credit to get great rates, but will strengthen the deal in a lenders mind and may make an approval easier to obtain and with less money down.
You being a co-buyer will help by bringing more income to the table and by making an additional person with a good credit history (I'm assuming) accountable for the payments.
She could more than likely get a car loan
on her own, but it may require her to put more money down in order to get the car she wants.
I arrange loans on a daily basis for people with far less than stellar credit and can assure you that just about any credit situation will qualify for an approval. You just have to work with the right dealer that is connected with the right lenders.
If she hasn't already tried on her own, I'd suggest that she do, just to get a feel for where she stands. After you know where she stands, you can decide whether or not to be a co-buyer with her. You can find local dealers that specialize in bad credit auto loans by applying here bad credit car loans.
If one of your goals is for her to rebuild her credit, be wary of any dealers that may try to tell you that you'll need to buy the car for her and she can refinance in her name in 6-12 months (it's not gonna' happen). That's a very common deceptive practice and if possible should be avoided.
Hope this helps and please don't hesitate to get back in touch with any further questions.