I am in the process of purchasing a used truck and the interst rate is a little high with my credit score, my parents have pefect credit and was wondering if they put thier name on the loan can they then transfer it to me if the loan is still in progress? Thought this would be a better way to get the loan cheaper and keep payments lower.
2007-03-11 18:50:54 · 6 answers · asked by Bill P 2 in Business & Finance ➔ Credit
The only way for them to transfer it to you would be for that loan to be paid off and you apply for a loan in your name. They will not just transfer a loan outright.
However, if they are willing to get a loan for you, perhaps they would be willing to Co-Sign for you. This will get you on the loan also and build some credit history. If they just have the loan in their name it is not helping your history at all. After about a year of good payments you should be able to get them off the loan by refinancing in your name only.
2007-03-11 20:24:15 · answer #1 · answered by OC1999 7 · 0⤊ 0⤋
What you can do is have your parents as the primary buyers and you as the co-signer this will get you the better rate. Then you make all payments for the first 12-months from your checking account being sure to put the loan number on the checks. After you have made 12 payments you can petition the lender to remove your parents from the loan.
I have seen this work in the past. It will be up to the lender, some will some won't.
2007-03-12 02:31:47 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Yes and no. The Yes is a loan can be transferred over to someone else with the lender's permission, people take over car loans and mortgage payments all the time. The No is that it won't work for what you want to do because the loan's interest rate will not be adjusted to what it would be if your parents' credit had been the one to open the line of credit.
2007-03-11 19:05:17 · answer #3 · answered by Χαλαρά 7 · 0⤊ 1⤋
No. Unlike home mortgages, car loans routimely prohibit assignment.
Home mortagages, when the are assumable, require the new owner to be qualified by the lender.
2007-03-11 20:18:24 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 1⤋
no, the loan has to stay in your parent's name until it is paid in full.
2007-03-11 19:08:23 · answer #5 · answered by luciousgreeneyedlady 5 · 1⤊ 1⤋
no.
2007-03-11 18:55:44 · answer #6 · answered by heybulldog 5 · 1⤊ 0⤋