I want to purchase a used car 2010 listing around 15k KBB 13k
I can pay cash I want to establish auto loan history for the future.
How do Used Car Loans work? typically higher interest rates lower terms but
will bank give me cash or a check i can give to the guy selling it (Private Party only)
19 year old
employed for 3 years at major telecommunications company fortune 500
50k income
renting
701 TU Fico ( bank only pulls TU)
1.5 years of credit history ( 7 revolving CCs 2 student loans)
No repo no bk no write offs nice what were your scores like approval for a rate like that
New acct has hit 657 tu FIco offered 12k loan with 7.5% interest should I do it
Bump
If KBB is 13 why do you want to pay 15?
Sorry I meant to post that they're 2 different vehicles for sale listing one 13k one 15k
Generally, if you don't need a loan. It is very easy to get a loan.
You shouldn't have too much trouble getting a loan. Just be willing to put a lot down. Don't take a high rate. It is not worth paying the interest just to build the history. You could do a cash secured loan at 2% and have a similiar effect.
You will also still get positive history if you pay the auto loan of early. Say the best they can do is 5% interest. Take the loan and pay off 90% of the loan soon after. Then make small payments. It will still show good history and you will pay less interest.
Can you explain secured loan how do. Do that
Many financial institutions will loan you money against a savings or CD account you have with them. If you put $2000 in savings and borrow $2000 then they will 'freeze" your savings as collateral and release it as the loan is paid back. Often they will do this at a very low premium to the deposit interest paid. If they are paying 1% on the savings account the loan may only be at 3% interest. This is just an example and you would need to check with your financial institution to see. A lot of credit unions offer this type of loan. It is good for building installment loan history on your credit report.
Starting Score: 500's