<prompt> Human: At the beginning of this year, I applied to get a mortgage loan. Unfortunately I was denied by a mortgage company and my local bank. I had a credit score of 760. My girlfriend whom I have 1 child with and another on the way is unable to co-sign with me on a loan because she has bills in collections. We have 2 car loans out mine is 6k left been paying for 3 years and hers 4k left to pay and been paying 1.5 yearsI co-signed on her loan. That being said, when I first applied for the mortgage loan, I had an income of approx 24k a year. They do not count overtime as income which is understandable, so I picked up my old job on the weekends putting me at approximately 32k with documented income. IN ADDITION, I would be approved for a down payment program of 7.5k with an additional 1k of my money to help me buy a house. Next year with our tax return, I could pay off my car and free up some cash. I could also just sit on our return putting 6k in the bank I have basically nothing saved up except for a tiny 401k. My question is, Should I grab the bull by the horns now, and try getting a loan again while the market is good? Pay off a car loan and free up some cash every month which would be 308 extra every month? Save the money and wait until a later date to apply for a loan? Try to get her credit back on track so she can co-sign with me and significantly boost our incomedebt ratiokeep in mind she has bills in collections.Remember, if I try again, I would ping my credit score again. If I payed off the car I wouldnt have anything in savings. If I saved the cash I would be paying on my car with interest of course.I NEED to move out by July of next year! If you have any more questions, please feel free to ask. Thank you for reading!  <response>: I wouldnt be in a hurry to incur more debt in that situation. Instead Id spend a year repairing GFs credit, paying off car debt, building an emergency fund, etc. You can always rent for a year. 