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Regular Contributor
Posts: 157
Registered: ‎10-04-2016
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First Time Car Buyer

I am a college student and have typically secured a great job on campus over the summer. That didn't happen. Instead, I've recieved a job offer that's off campus, but I don't have a car. My parents have a very old Accord 2002 or 2003? with 67k miles that they'd sell me for $3,000 if I wanted it. They even "prequalified" me for 0% financing for a year. Now, I could just pay them the $3,000 outright, but I am wondering if it would be better to get an installment loan reported on my credit profile?

Established Member
Posts: 40
Registered: ‎04-09-2017
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Re: First Time Car Buyer

[ Edited ]

Are you in California? I'll buy that Accord Smiley Very Happy

 

It's always preferred to always have at least 1 installment loan. They don't always have to be cars though. As my father's installment loan is financing of some new appliances.

Valued Contributor
Posts: 1,480
Registered: ‎12-16-2014
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Re: First Time Car Buyer


Schwartzinator wrote:

I am a college student and have typically secured a great job on campus over the summer. That didn't happen. Instead, I've recieved a job offer that's off campus, but I don't have a car. My parents have a very old Accord 2002 or 2003? with 67k miles that they'd sell me for $3,000 if I wanted it. They even "prequalified" me for 0% financing for a year. Now, I could just pay them the $3,000 outright, but I am wondering if it would be better to get an installment loan reported on my credit profile?


I doubt that you can acutually get a 0% loan on a 15 year old car but if you can then sure its a good thing to have.  Having an installment loan history is a good thing for credit, personally I would pay cash for the car and join Alliant and do a secured savings loan ($500), pay it down 95% and build your installment history that way.  The advantage is also no interest because of the way you would pay it down and then you would have a multi year installment loan without having to have a lien on the car and the insurance requirements that come with liens etc.

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Valued Contributor
Posts: 1,781
Registered: ‎03-03-2015
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Re: First Time Car Buyer

[ Edited ]

Schwartzinator wrote:

I am a college student and have typically secured a great job on campus over the summer. That didn't happen. Instead, I've recieved a job offer that's off campus, but I don't have a car. My parents have a very old Accord 2002 or 2003? with 67k miles that they'd sell me for $3,000 if I wanted it. They even "prequalified" me for 0% financing for a year. Now, I could just pay them the $3,000 outright, but I am wondering if it would be better to get an installment loan reported on my credit profile?


Sorry, but no one reputable is going to finance a 15 year old Accord. Great cars though. My mom held on to her (new at the time) 1987 Accord until 2007. 

 

I would stick with the Bank of Mom and Pop for this one. If you jwant to have an installment loan reporting on your credit, I suggest you search the forums for "Shared Secured Loan" and see how to get one reporting for several years, at the cost of only a few dollars. 

Admins need to fix the d@mn signatures.

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