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jlcct
12-09-2009, 07:59 PM
So right now I'm paying on a loan for a 5 Series that I'd like to get out of. I know a guy who has a loan out on an 01 Grand Prix that is in default and he thinks it's going to be reposessed. He only has a year left on his loan and is willing to transfer the payments to myslef so as to save his credit. He seems stupid to do it but maybe that's also why he got himself into a loan he can't afford. My parents want my car so now I just need to make the switch. I don't recall if it was Hobbes or Word but I remember one of you two guys was fairly knowlegable about the car buisness. I'm trying to find out if there is a way to do this without refinancing because I would keep the loan on the Bimmer in my name and I don't want to appear to be in more debt than I am in regards to my credit report. I was thinking of just drawing up a contract with this guy and sending in the payments myself but I'm not sure if I can then register the car in my name. Any thoughts?
wordslayerŠ
12-09-2009, 08:55 PM
Don't have time to go into detail now, but the short, quick answer is no. You will have to refinance.

There are ways that are fraudulent that u might get around it, but you don't want to get involved in that.
jlcct
12-09-2009, 09:21 PM
Fair enough. Thanks for the help and yeah I don't want to go to jail lol.
wordslayerŠ
12-09-2009, 09:47 PM
Just finance the 01 grand prix in your name. Any of the big three credit scoring agencies don't really give a rats a$$ about installment debt. Remember, they have NO clue how much you make. Very little of your score is based on the amount of debt you have, but mostly on how old the debt is. Their main concern is: "Do you have credit available to you, but are disciplined enough not to use it."

Bump up your credit scores by having revolving credit cards, preferably from a credit union. Keep the balances on the credit cards less than 10% as to what your credit limits are. This is what gives you a kick a$$ credit score. If you already have some debt on a credit card, but the utility of the cards are greater than 10% and you are unable to pay the balances down, then call and see if you can get your limits raised or open up another line of revolving credit. If you do this, it will bring down your utilization rates and give your score a boost.

Installment loans mean very little in credit scoring.
jlcct
12-10-2009, 09:02 PM
The primary reason I didn't want to put the loan in my name is because I was under the assumption that when I go for a house they will be considering my debt to income ratio. You've given me a new perspective on the credit scoring system though and thank you for that. I will always be a student.
wordslayerŠ
12-10-2009, 09:20 PM
The primary reason I didn't want to put the loan in my name is because I was under the assumption that when I go for a house they will be considering my debt to income ratio. You've given me a new perspective on the credit scoring system though and thank you for that. I will always be a student.

Don't get me wrong, because when you do apply for a loan, your lender will look at your DTI. A lender will use the FICO score for one aspect. If you have a low FICO, then you won't even get to the DTI stage, or if you do make it there, they will probably bang you with high interest rates. If you have a good FICO, then they look at DTI and make their approval.

Just know that FICO and DTI are two seperate things and are exclusive to each other. A lender is the one that combines everything to make a decision. You seem like you are well on your way to making smart decisions. Good luck on whatever you choose to do.