Sunday, December 20th, 2009

when applying do they use debt ratio or credit score?

debt to credit ratio
JodiMarie asked:


My credit is not so great, but my debt ratio is 6%. I’m paying on one vehicle and have applied for another. What do they look at mostly? Its the same credit bureau where i have my other financing but this time i have no co signer, except my husband. his credit is not bad, he just has none. so far my only debt is $5400. does it make a difference?

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2 Responses to “when applying do they use debt ratio or credit score?”

spifiman1 Says:
December 22nd, 2009 at 10:53 am

Actually lenders look at both. If your score is sub-prime (under 640) You most likely will not qualify for a second open auto without a co-signer. If your husband credit is not bad just limited, you should be able to use him as a co-signer and be approved.

Joseph H Says:
December 25th, 2009 at 8:48 pm

Both but mostly credit score, which is why so many people get in a bind after they finance something. Car dealers are notorious for getting financing so if everything checks out even with a so-so credit score, you will get the financing. Car dealers have relationships with a portfolio of lenders. They want to sell cars and they know most people need credit regardless of history so there you go — drive off with that vehicle. Just be honest with yourself that you can afford not just the payments but insurance, etc.

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