Should we get a joint or single loan?

picklednut

We're wanting to borrow 21k to buy a pickup for my husbands business (self employed). He has been approved for contract hire but we've decided to purchase one instead.

We earn combined around 45k a year. I checked our credit reports and my husband who is self employed has 5/5 credit score and myself is 3/5 (not sure why I'm less because I have no bad debts or missed payments).

I thought we would be better applying jointly as we have more combined income but I'm not sure whether my credit rating will effect the outcome.

Should my husband apply by himself as he was originally approved for contract hire credit by himself?

[Deleted User]

picklednut wrote: »

I checked our credit reports and my husband who is self employed has 5/5 credit score and myself is 3/5 (not sure why I'm less because I have no bad debts or missed payments).

That's because the scores don't mean anything.

With a combined income of just 45k, I can't see it being likely that either of you would be approved for a 21k loan by yourselves. Even jointly, it's a lot.

foxy-stoat

Has your husband spoken to his accountant about which is the most beneficial way for his business to buy/lease a work vehicle?

You may find that it works out better for him and his income tax to lease it. If he still wants to buy and own it outright then maybe a cheaper pick-up would be better until his business can warrant a £21,000 work horse.

burlington6

Buy one for £10k

DCFC79

Ill trade you a score increase for a pack of Fox's Ginger and butter biscuits.

foxy-stoat

DCFC79 wrote: »

Ill trade you a score increase for a pack of Fox's Ginger and butter biscuits.

Be sure to put them on next year's tax return as additional income!

LOL

Moneycoach

That pickup is nearly half your income, that's a lot invested in something going down in value, especially being a workhorse.
You could get one cheaper around £10k which would be just as reliable but will lose less value over time.


Also, do you want to burden his business with debt?


To answer your question, filling jointly with 2 incomes is obviously better than 1.
I wouldn't worry too much about your "I love debt score", I mean credit score because you have not missed any payments.


It could be due to your lack of payments on finance and not borrowing "enough" to raise your score.
If you pay cash, there is nothing to worry about.