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Posted in Auto Loans
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Question By
mrpmrp

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Joint or Individual Auto Loan?
I am thinking about buying a new car, I have a good credit score but my spouse has a better one (by ~20-30 points). However, I have a higher income.
Would it make more sense to apply for the loan in my name, so that only one of our credit scores takes a hard hit? Or would it make more sense to apply for a joint loan as my spouse has a better credit score (possibly getting a better rate), and have both of us take a credit hit? Or does it matter?
Thanks in advance.

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Top Contributor
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I really can't answer the question, but I can offer this info:  inquiries count for 10% of your total credit score.  Personally, I think that people worry about inquiries a little too much for that 10%, but then I only apply for credit once every 2-3 years, so whom am I to say?  I think it would make sense for you and your spouse to sit down with the auto folks and get their opinion before you run any credit reports.  See if the potential $$ saved through better interest rate is worth the hit to your credit scores.  Since you have Credit Karma, you have an idea of your score(s), so that should help.  And remember, if you shop around for an auto loan, do it within the same 30 day period and all inquiries (credit checks) will only count against your credit score once.  FICO realizes that we have to shop around for big ticket items and they don't penalize us for it (thank goodness!).  Hope this was useful.

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