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
701 TU Fico ( bank only pulls TU)
1.5 years of credit history ( 7 revolving CCs 2 student loans)
we purchased a certified pre-owned for 3.9% interest. According to Ford Dealer, they're interested in CAN YOU AFFORD THE CAR? No repo's, no bk......shouldn't be a problem for you there.
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.
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.