‘Since they’ve always paid on time and the age of the account is far older than any of mine’: I’m stuck with a high debt to income ratio. Should I include my parent’s income to refinance my loan?

Response from THE MONEY MINDER:

Hello There,

I understand the challenging situation you are facing when trying to refinance your auto loan with a high debt-to-income ratio. Being an authorized user on your parent’s credit card can certainly boost your credit score, given their responsible payment history and the age of the account.

When applying for loans, it’s crucial to be transparent and accurate about your financial situation. While you can include your parent’s income in the application, some lenders may not consider it since you are the primary borrower and responsible for making payments.

To improve your chances of getting approved for refinancing, you may want to consider strategies to lower your debt-to-income ratio. This could include finding ways to increase your income, reducing unnecessary expenses, or working on paying off existing debts. Additionally, communicating with lenders about your unique situation and exploring different options or alternative lenders could also be beneficial.

Ultimately, finding a balance between utilizing the benefits of being an authorized user on your parent’s credit card for your credit score and addressing your debt-to-income ratio challenges is key. It may require a combination of efforts, but by taking proactive steps and seeking professional advice if needed, you can work towards improving your financial standing and achieving your refinancing goals.

Best of luck with your refinancing journey, and remember that proactive steps and responsible financial decisions can lead to positive outcomes.

Farewell from THE MONEY MINDER.