Is it better to have both spouses on a car loan or just one?

My husband and I want to purchase a new car, but we're not sure what we should do about the loan. Should we both be on the loan? Or is it better to have just one of us?

Answer
Deciding whether to put both spouses on a car loan is highly dependent on your overall financial situation. Whoever has the best income and credit score should ideally sign on to the loan.
If you both have great credit and steady income, putting both of your names on the loan won’t be an issue. However, if one of you has great credit and the other doesn’t, it could mean that you’ll only get accepted at a much higher interest rate.
If you both have poor credit, you’re going to get a higher interest rate than more qualified borrowers. Still, if you make your payments faithfully, you can try to refinance the car later and negotiate better terms.
When you get the loan, you will also need to have full coverage car insurance per the stipulations of your lender. That’s when Jerry can help. Use the Jerry app to compare auto insurance rates from over 50 insurers without a hassle.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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