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Me and my wife are going to buy two cars, our options can be:

  • Each of us can get a separated loan for each car.

  • We can get two joint loans, this way we have two (shared) loans on our credit history and I assuming it will be the better impact over the time.

  • Since I have better credit, I can apply for two loans (probably not the best option)

Considering the impact of each option for long term in our credit history, which option is your choice? Why?

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  • Another obvious option would be to get a single loan, joint or on either of you, for an amount sufficient to purchase two cars.
    – user
    Nov 3 '16 at 19:33
  • 1
    Another (and better) option: Pay cash for two cars.
    – Pete B.
    Nov 3 '16 at 19:41
  • I have to get an auto loan. I don't have enough cash for two cars
    – Masih
    Nov 3 '16 at 19:45
  • Never, ever spend more than about $1250 on a car. It's utterly pointless spending more than that.
    – Fattie
    Nov 3 '16 at 20:03
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I would suggest signing one loan each, and particularly have her sign for the less-expensive of the two cars because there will likely be a higher interest rate if she doesn't have you on the loan. The size of the loan has less impact on her credit than a history of timely payments.

If you are planning to be married for more than seven years, that should be enough time to repair her credit with nothing more drastic than using credit wisely.

If you think the marriage may end before seven years, then cosigning on car loans can add complexity and lawyer fees to untangle when you go your separate ways.

In either case, staying together or separating, cosigning will add little value other than saving some interest. You may improve your finances more by spending less on the car, which the higher interest rate--from having the loan in her name--adds incentive to do.

The best way for you to help with her credit is to embrace good budgeting and spending habits together. Pay off unnecessary debt, and hang on to these cars instead of trading them in when the loans are paid.

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