I have bad credit, My hubby has great credit. He is looking to refinance a home he purchased before he got married to me and wants us to apply for a refinance loan together, I'm scared that this will affect his chances of getting a good rate. Also, he purchased a car and since we married I have been responsible for paying the payment. It's been a whole year and the payment has always been on time, but again the loan is only under his name. Is it possible to add my name to the loan with out affecting or changeing the interest rate in order to build my credit? I have paid for everything on my credit report except for 4 accounts. This includes 1 hospital bill, 1 phone , 1 power and 1 rent month. total equals about 1,600 dollars. is there hope? any ideas or links?
2007-07-18 06:42:18 · 11 answers · asked by ROSIEA 1 in Business & Finance ➔ Credit
Just do it in his name - You can be on the title, but do the mortgage in only his name
2007-07-18 06:45:15 · answer #1 · answered by KrzyMom2 3 · 1⤊ 0⤋
The credit score that "counts" is the primary wage earner's. If your husband is the primary wage earner, than his middle credit score is the one that will be used to determine the rate. However, some banks do have underwriting rules that stipulate if a co-borrower has a credit score lower than "X" than it automatically drops the loan into a higher interest rate bracket, or you may not be able to go on the loan at all.
You can always apply together, and if you find that the rate is better without you on the loan, ask to remain off the loan and be placed on the title with him instead. They shouldn't have an issue with redoing the mortgage application.
As far as the car loan goes--the two of you would need to go to the bank and see if its possible for your name to be put on the loan. They may or they may not depending on their bank's policy.
2007-07-18 15:46:20 · answer #2 · answered by Ari 3 · 0⤊ 0⤋
Unfortunately, you're hubby is hosed. If he wants to finance together your bad credit will drag him down. And he cannot add you tot he car loan without factoring in your credit and it dragging his rate down too.
Your best bet, since I'm assuming you poole all your financial obligations together as a household, is for you to start by getting some smaller financing in your name alone that you know as a household you will meet every time. A credit card that you use regularly, and pay nearly completely off monthly (a common mistake in building credit is to pay it all off monthly, but unfortunately you have to carry a balance for you to build credit) is a good place to start. This way you can improve your credit without having a larger bill be affected by your high interest rates.
With active positive credit transactions it doesn't take as long as you might think to turn a horrible rating into an "okay" one (assuming bankruptcy isn't involved, just late payments, & it does take a long long time to turn it into a great one, but...). Once your rating is okay to average and not horrible, any joint credit you get will be significantly less effected by your "okay" rating, than a really poor one. Then you can go for larger loans together and build solid credit as a couple without really dragging down his high rating.
2007-07-18 13:54:13 · answer #3 · answered by Some dude 4 · 1⤊ 0⤋
One of the fastest ways to get cash with bad credit, and little hassle, would be with a payday loan. Yes they have terrible interest rates but they are taking a risk. This site offers more details about the payday loans as well as various sites offering the loans, many without even a credit check. Do your homework. Best starting point is here:
http://tinyurl.com/23zhb7
Good luck.
2007-07-18 19:45:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you are married and apply for a loan together then both credit scores are looked at, the best bet would be for your husband to us a loan officer he has used before that knows how well he pays his bills and your husband explain to him that you are on the account to help improve your score. Also if you husband list you as a second card holder on some of his credit cards with a great history your score will improve almost immedieatly.
2007-07-18 13:47:29 · answer #5 · answered by gymrat0187 4 · 1⤊ 0⤋
Your bad credit WILL affect your refinancing or any financing if you put your name on it. Just been there, just done that. I co-signed a loan for my son (he didn't pay) and now my credit is in the proverbial toilet, so to speak. So, I cannot finance anything on my own or with my name attached until sonny boy gets off his butt and pays the loan. Luckily, we live in a small community where the banker knows us and our situation and looked at the credit report THEN looked at the history before and gave us a loan for our new home.
You need to take care of outstanding debt and then it can take up to three years for creditors to even look at you.
Good luck!
2007-07-18 13:48:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If your name is on the application, then your credit will be looked at in addition to his.
If it's just $1600 showing negative on your credit, you'd be wise to pay the items off. They'll still show for awhile, but your credit rating should improve.
2007-07-18 13:57:24 · answer #7 · answered by Judy 7 · 1⤊ 0⤋
If your name goes on the loan and you have negative credit, it "pulls down" the credit score. No way around it on a joint loan.
2007-07-18 13:45:26 · answer #8 · answered by wizjp 7 · 1⤊ 0⤋
If you are on the loan it will affect the rating. Those guys will do anything to get more money out of you.
2007-07-18 13:45:57 · answer #9 · answered by MensaMan 5 · 0⤊ 1⤋
Um from what i know it shouldn't do too much if his name is first and your just the second person kwim? I think whoever is at the head of the loan is the most important your just like the co-signer i think?
2007-07-18 13:45:41 · answer #10 · answered by kimberly b 2 · 0⤊ 2⤋