Hey everyone. I have Good credit, and I am planning on getting an auto loan soon. I want to have my mother whose credit is so-so co-sign. The reason for this is to have her name on the title of the car so I can get insurance in her name. Will this affect the interest rate etc. etc.
2007-03-12 07:05:39 · 6 answers · asked by LocarbHotrod 1 in Business & Finance ➔ Credit
Some people are saying that if the Title is in my name, the insurance also has to be in my name. Then some are saying that they got insurance in someone elses name even though its there name on the Title and bank loan...
2007-03-12 07:41:57 · update #1
Sorry for all the extra details :) I should say that I live in the state of Michigan. Also she has a Pontiac G6 lease in her name, but she got denied for an $18,000 auto loan recently. I assumed she has bad credit, I'm now questioning that assumption.
2007-03-12 07:45:35 · update #2
Depending on the state guidelines, you might not have to have her on the car note. Do you reside with her, because if you dont, you might be in a different circle. Talk to your agent first and get their take on things, then go to the dealership. If you do not need her on the car note then dont put her on just for insurance. Is she going to be a driver of the car. If not then due to her credit, based on your information you could also be looking at a higher rate for insurance no too, because as you know a lot of insurance companies pull your scores and rate you froma a 1-6 due to your credit history. Which as we know is not right but it is done anyway.
2007-03-12 07:28:51 · answer #1 · answered by Valarie R 1 · 1⤊ 0⤋
Auto finance companies require that the people on the note be named on the insurance policy. If the contract is in both names, both names have to be on the insurance. If you have good credit and your Mom's is so-so, there is no reason for her to be on your contract. If her credit is truly so-so it will effect your interest rate as well. Depending on what you are going to purchase, you might need her for income so you will budget for the payment. Most banks will only allow 20% of your gross monthly income for a car payment.
2007-03-12 08:13:29 · answer #2 · answered by ? 7 · 0⤊ 0⤋
no longer a wager....as a co-signer she grew to become into think to pay to stay away from previous due rates (that's the entire element of being a co-signer: to be sure the automobile is paid, in complete and ON TIME). All she would be able to do is wait approximately 7 or 10 years to have her credit back. do no longer assume any birthday grants from her any time quickly.
2016-10-18 04:59:09 · answer #3 · answered by ? 4 · 0⤊ 0⤋
IF YOU HAVE GOOD CREDIT THEN A CO-SIGNER IS NOT NECESSARY. WHY NOT JUST PUT HER NAME ON THE PAPERWORK AS A BUYER ALSO? IT WOULD BE AS IF BOTH OF YOU WOULD BE PURCHASING THE CAR. YOUR INTEREST RATE MAY BE SLIGHTLY HIGHER IF BOTH OF YOU ENTER IN ON A CONTRACT.
2007-03-12 07:15:44 · answer #4 · answered by Alfredo T 2 · 0⤊ 0⤋
when i got mine i got insurance in my moms name but her name isnt on my car...but i dont see why you cant do that...
2007-03-12 07:16:26 · answer #5 · answered by babygirl_of_texas 4 · 0⤊ 0⤋
Yep it will
2007-03-12 07:26:11 · answer #6 · answered by MJ 3 · 0⤊ 0⤋