Can You Use Spousal Income for an Auto Loan?
Purchasing a car can be a big decision for anyone. There are many choices regarding the make, model, colour, features, and more. One of the most significant factors for many people is the price. Finding something affordable and within your budget may seem complicated, especially when you are short on funds or have a low credit score. However, at Taz Loans, we want everyone’s car purchasing experience to be stress-free and rewarding. That is why we offer various options for our loan repayments, including the use of spousal income. Keep reading to learn more. Then, if you have any lingering questions, don’t hesitate to contact us; one of our knowledgeable financing experts would be happy to help!
Spousal Income for Auto Loan
If you choose, you can use your spouse’s income when obtaining a car loan. This is an excellent option for those looking to get approved for a larger loan at a more favourable interest rate. However, it must be noted that when you select this option, you and your spouse will be jointly listed on the loan. Additionally, your spouse cannot finance a vehicle in their name if you own it.
Things to Keep in Mind When Using Spousal Income for an Auto Loan
Co-signing with your spouse on an auto loan is excellent for building credit for your partner or yourself if one of you has a low credit score or just started borrowing. The primary borrower will be the one with the better credit score, and as long as payments are made on time, both credit scores will improve. However, an auto loan is a major financial obligation. Co-signing should be significantly considered, especially if you are newly married or know your partner has a sketchy credit history. If you or your partner misses any payments, both will receive dings on your credit score. That being said, if you are more comfortable with autonomy and independence, we provide single-signer loans at competitive rates.