Applying for an auto loan with a co-borrower might help you get approved for a larger loan or better interest rate. But consider whether you want to co-own the vehicle with someone else and how the joint loan might affect your relationship.
A joint loan application might help you qualify for an auto loan, especially if youre struggling to get approved on your own and your co-applicant has good credit. If your joint application is approved, youll both legally own the vehicle and be responsible for repaying the loan.
Buying a car is an exciting experience, but it also involves a lot of financial considerations. For many married couples, using both incomes and credit scores can make getting approved for an auto loan easier. So can you use your wife’s credit to buy a car? Let’s take a closer look.
The Benefits of Using Your Spouse’s Credit
There are a few key benefits to using your spouse’s credit when applying for a joint auto loan:
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Higher combined income – Lenders look at your combined household income when reviewing a joint application. This gives you more buying power and the ability to qualify for a larger loan amount.
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Better interest rates – If your wife has excellent credit, her score can offset any dings on your credit report This will likely qualify you for lower interest rates as a couple
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Improved approval odds – Borrowers with higher incomes and credit scores are more likely to get approved, Adding your wife to the application can boost your chances if your own profile is marginal
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Ability to buy more car – The increased income and better rates mean you may be able to afford a more expensive vehicle when applying together.
How to Apply for a Joint Auto Loan
If you want to use your wife’s credit when purchasing a car, follow these steps:
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Talk about co-borrowing. Make sure your wife is okay with co-signing the car loan and knows what she needs to do.
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Check credit reports – Review both your and your wife’s credit to see where you stand. This will give you an idea of what terms you may qualify for.
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Shop together – Look for a car you both like and agree on. Remember, you’ll both be making the payments.
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Fill out a joint credit application with a lender to get a loan. Be sure to include both incomes and employment information.
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Compare loan offers – Review the loan terms side-by-side. Go with the most favorable interest rate and monthly payment.
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Finalize paperwork – Your wife will need to sign the purchase and financing contracts right alongside you.
Pitfalls of Co-Borrowing on a Car Loan
While there are advantages to applying together, it’s smart to consider potential downsides too:
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If the relationship ends, refinancing the loan to remove your spouse can be difficult.
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Missed payments will damage both your credit, not just the primary borrower’s.
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You lose some individual financial freedom and flexibility.
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Any disputes over the vehicle or payments can strain your marriage.
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You may end up overextended on payments if you buy more car than you can truly afford.
Alternatives to Using Your Spouse’s Credit
If co-borrowing with your wife doesn’t make sense, you still have options:
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Improve your own credit—Before you apply for an auto loan by yourself, work on raising your credit score.
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Look for loans for people with bad credit. Some lenders offer loans to people with bad or no credit.
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Ask another co-signer – A parent or family member with good credit may be willing to co-sign the loan.
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Save up a larger down payment – The more you put down, the better rates and loan terms you can qualify for.
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Buy an inexpensive used car – Opt for an older used vehicle you can afford based on your own income and credit profile.
The Bottom Line
Using your wife’s stronger financial profile to qualify for a joint auto loan can be a smart move. Just be sure you look at the big picture, weigh the pros and cons, and have open communication. An informed, joint decision will lead to the best auto financing result for your family.
Pros of a Joint Auto Loan Application
A joint auto loan application might be a good idea if youre going to share the vehicle with someone because:
- It may be easier to qualify. Having two applicants can lower your debt-to-income ratio (DTI) and might make it easier to qualify if you have a low income or dont have good credit.
- You might receive better offers. Even if you would have qualified on your own, applying with someone else might help you get a larger loan, snag a lower interest rate or qualify for a 0% APR car loan.
- You share responsibility and ownership. A joint application might better reflect your situation if youre sharing the vehicle.
Should I Apply for a Car Loan With Someone?
A joint application might be a good idea if youre applying with a very close friend, family member or partner. For example, a married couple might jointly apply for an auto loan to purchase a new family vehicle. Or, a parent might help their child purchase a car.
If youre not going to share the vehicle and youre struggling to qualify on your own, asking someone to cosign might make more sense than asking them to become a co-borrower. But you still want to carefully think through the decision. You could wind up hurting the other persons credit, and ruining your relationship, if you fall behind on payments.
There are also times when someone may be required to be a cosigner rather than a co-borrower, such as when they live in a different state and cant register as one of the vehicles owners.
Learn more: The Best Way to Finance a Car
How to buy a car with Bad Credit. Car buying Tips
FAQ
Can I use my husband’s income to get a car loan?
Getting approved for a car loan can be difficult, especially if you have little income, bad credit, or high debt. But if you’re married, you may be able to use your husband’s income to qualify for a better loan or interest rate. Here’s what you need to know about using your spouse’s income when applying for auto financing.
Can I include my spouse’s income on a car loan application?
Yes, it’s doable. My brother and sister in law have done this twice in the past few years on auto loans. Basically one person submits the application, the other includes their salary in the “additional income” field when filling out the loan. 09-17-2010 05:57 AM Re: One can include a spouse’s income without having him/her on the loan application?.
Can a spouse buy a car with spousal income?
If your spouse has the money for your next car and agrees to pay for it, there are three general ways of using spousal income to buy a car: Get a joint auto loan. Use your spouse as a co-signer. Have your spouse buy the car with an agreement about driving it. Can I get a loan using my husband’s income?.
Can you get a car loan with poor credit?
Even with poor credit. You can combine (comingle) incomes for a car loan with your husband or wife. When you comingle funds with a co-borrower, it not only makes it easier to get approved, you both could qualify for a better interest rate and lower monthly payment, or a better choice of vehicles.
Is your spouse an equal payer in the car loan?
If your spouse doesn’t contribute equally to the car loan, you should apply for the loan on your own; it’s a big financial responsibility that needs careful thought. In case of a divorce, both parties are still responsible for the joint debt if the loan is held together.
Should you have your spouse co-sign an auto loan?
Co-signing an auto loan with your spouse makes you equal and joint owners of the financial responsibility of loan repayment. This can be beneficial if one of you doesn’t have much of a borrowing history or has a skewed debt-to-income ratio because of other bills or loans. The passage also mentions that co-signing can help establish and build credit.
Can I use my husband’s credit score to buy a car?
If you apply for a joint auto loan, the lender will likely request credit scores for you and your co-applicant, but how those scores are used to decide loan eligibility and set interest rates can vary from lender to lender. Some lenders use the higher of the two scores; others, the lower; still others combine both. Apr 5, 2025.
Can I use someone else’s credit score to buy a car?
Is It Okay to Co-Sign? Now there are legal ways that your good credit score could help someone get a loan, but it doesn’t involve giving your numbers to someone else. Some lenders allow people to get a credit assist from a cosigner if their scores or income wouldn’t otherwise justify approval.
Can I use my spouse’s income for a car loan?
Yes, you can use your spouse’s income to help qualify for a car loan, but it typically requires a joint application or a co-signer arrangement.
Can I use someone else’s credit card to buy a car?
You can use someone else’s credit card if they let you. But if they don’t give you permission, it’s fraud – and that is a crime.