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Posted in Auto Loans
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Question By
JuleeM13

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0 People Helped
Should I apply for auto financing on my own or with my husband (bankruptcy)?
Hi. My husband and I are going to finance a new car this year and I'm trying to decide on how to apply for financing. We have been married 2 years so this is our first time making this sort of purchase together as a married couple and I'm not sure how to best do this, especially since he has a bankruptcy on his report.

Me
I have a high cc utilization ratio right now (56%) and a TU/EF Credit Karma scores of 659/669. I will be able to get my utilization down to 30% by the time we apply for the loan. Credit Karma's simulator says that will make my score go up to about 710 (not sure how accurate that is). My debt to income will be about 31% at that point. Almost all of our cc debt, my student loans, and our mortgage is in my name. I have a prior auto loan with perfect payments that closed in 2003.

Husband
He had a bankruptcy in 2012. He has two credit cards at 38% utilization and TU/EF Credit Karma scores of 691 and 690. If we combine our incomes and debt the debt to income is about 21%.

We are trying to qualify for 4% or lower. Would we be better to try to get the loan together so we show the higher income or should I just try on my own since he has a bankruptcy?

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Top Contributor
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Understand that the scores that you get here will NOT be used. Most auto lenders use a version of FICO scores. You should purchase them from a site like myfico or Experian to see what they are. Looking for a loan under 4% is probably wishful thinking, especially if your husband would be on the loan. I would think that you will be better off applying on your own. I am surprised that the loan closed in 03 is even still on your reports, it may fall off at some point. I would work hard to get your credit cards paid down and also save up a down payment.

Reply by
JuleeM13

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Wow quite a difference! I purchased my Equifax report from myfico.com and it says I have 720 FICO 8 and 742 AUTO SCORE 8.

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