Wife Hopes Car Loan Will Build Credit

Dear Terry,

We are thinking of buying a new car. Would it build my credit if I apply for a car loan separately instead of doing a joint loan?

My husband has a 20- to 30-point higher credit score, so he is getting a better interest rate. But I would still like to apply for a loan in my name as I am thinking that would help build my credit history.

Am I right in assuming that? Or am I wasting a few dollars every month just thinking I am doing the right thing by not taking the car in my husband's name?-- Madhu

Dear Madhu,

You are absolutely right in trying to build your own credit score. Too many women rely on their husband's credit history and then discover after a divorce or death that they can't get credit.

The difference in the interest rate between what you can get jointly or what you can get on your own shouldn't be that great, given what you've said here.