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Established Member
Posts: 42
Registered: ‎05-09-2013
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Advice for getting approval for my first car

Hello Everyone,

 

I want to first start off by thanking everyone for looking into this and the advice given. I am looking into getting a car in the next couple of months because the 2002 VW Jetta I currently drive is just falling apart. The windows won't go down and air works sometimes and in South Florida, my car turns into a sweat box the majority of the time. I just recently graduated college and am now making about 26,000 a year. Now for my credit history my oldest account is my Wells Fargo Student credit card ( 0 balance and 1800 CL) that I have had since 11/2011, a Best Buy credit card (150 Balance, 1000CL) that I have had since 11/2012, and an American Express Blue Sky Card ( 200 Balance, 10,000 CL) that I have had since 02/2013. Currently my EQ Fico score is 694 and TransUnion is 727, I also have made my payments on time every time and have no negatives on my CR. With such a limited credit history is it smart to apply for a car Mid Summer or just wait to till fall so that my score can go up even more? And also is there anything else I can do to help my score? Any advice would be greatly appreciated. Once again thank you.

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Re: Advice for getting approval for my first car

It's going to be a while before your Average Age of Accounts rises enough to truly raise your score. Even waiting for your Best Buy card to go past a year is not going to have a large effect IMHO. Since you mentioned that you are a recent college graduate then you may want to look into the dealerships / manufacturers college grad programs for new cars if that is the direction you are leaning in.

 

If you are looking to finance a used car of some type then go to your own lending institution and sit down with them and see if there are loan options available. Usually the place that gets your paycheck deposited to it is going to be easier to deal with. If you want to deal with a dealer just be prepared to offer a 20 - 25% down payment on used and you should have no problem assuming you stay with something that makes sense for your income and debt level.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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Established Member
Posts: 42
Registered: ‎05-09-2013
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Re: Advice for getting approval for my first car

I want to first thank you for the advice. I am looking into both, Ford has incentives for recent college graduates and the ford fiesta isn't that expensive. As for my lending institution, I went to them a  couple of weeks ago just to ask questions on how the loan process went. The gentlemen who attended me told me that since I've been with my employer for 4 and a half years, good standing with my Wells Fargo credit card (3 unasked for CLI), and the fact that I have been with Wells Fargo for 4 years it was looking into my favor. I just didn't go ahead with it because I wanted to pay my student loan first, which I did. Now I am just saving for a bigger down payment.

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Registered: ‎10-02-2012
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Re: Advice for getting approval for my first car

Once you get a good down payment together. Go for it, you should be in good shape for a fair rate.

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Established Member
Posts: 42
Registered: ‎05-09-2013
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Re: Advice for getting approval for my first car

Thank you for the advice, I will definitely do that. I also have another question if anyone mines answering, will a paid off student loan be considered a good installment loan when I apply for auto financing?

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Registered: ‎12-30-2011
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Re: Advice for getting approval for my first car


MMTT31 wrote:

Thank you for the advice, I will definitely do that. I also have another question if anyone mines answering, will a paid off student loan be considered a good installment loan when I apply for auto financing?


We've been told by a dealership F&I guy that in his experience, student loans aren't weighted more heavily in the auto enhanced score vis a vis other forms of installment loans.

 

That may or may not be accurate, but it's about as good of a datapoint as we're likely to get.

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