I need your help with this one Marv

[DINOSAUR JOCKEY]

Marv,

 

I applied yesterday at a GM dealership. I came back as C tier, and my interest rate is 2 points higher than what it would be if I had A. This is causing my monthly payment to be about $40 higher a month. I really don't like that. My girlfriend will co-sign, she has over a 720. However, now the dealer is talking about making her primary, etc. etc. etc. I asked the dealer what he meant by that in terms of how it reports, but he does not know. I want this on my credit reports, not hers. I understand their inquiry will show up on hers, and I realize if I default it will hit her reports too...but the regular monthly reporting showing the outstanding loan should be on my report.

 

Is there anything I should know about making her primary, or myself?

[MarvBear]

If two people sign a loan document then that loan will normally report on both persons CRA files.

 

The credit reporting software that we use to report to the big 3 actually has up to 5-6 places for co-makers.

 

So theoretically a loan could have MULTIPLE guarantors and all guarantors should have this on their files.

 

Simply for the sake of a lower apr, the person with the highest score which usually equalls the better credit should IMO ALWAYS be the first applicant on the loan. The scoring system will score/rate the approval on the first applicants score for those systems that rate that way.

 

Normally when this happens, the loan is reported in the future with a 'J" status. That simply means another person signed the note. Without seeing the actual contract, it would be impossible to tell who signed first or second.

[DINOSAUR JOCKEY]

So whether my girlfriend is first or second doesn't really matter, it will report on her credit file regardless?

[MarvBear]

So whether my girlfriend is first or second doesn't really matter, It will matter for the sake of your APR