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Established Contributor
Posts: 517
Registered: ‎04-01-2013
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First time auto loan

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)

Senior Contributor
Posts: 3,462
Registered: ‎11-30-2007
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Re: First time auto loan

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.

Established Contributor
Posts: 517
Registered: ‎04-01-2013
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Re: First time auto loan

No repo no bk no write offs nice what were your scores like approval for a rate like that
Established Contributor
Posts: 517
Registered: ‎04-01-2013
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Re: First time auto loan

New acct has hit 657 tu FIco offered 12k loan with 7.5% interest should I do it
Established Contributor
Posts: 517
Registered: ‎04-01-2013
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Re: First time auto loan

Bump
Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
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Re: First time auto loan

If KBB is 13 why do you want to pay 15?

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Established Contributor
Posts: 517
Registered: ‎04-01-2013
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Re: First time auto loan

Sorry I meant to post that they're 2 different vehicles for sale listing one 13k one 15k

Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
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Re: First time auto loan

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.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Established Contributor
Posts: 517
Registered: ‎04-01-2013
0

Re: First time auto loan

Can you explain secured loan how do. Do that
Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009
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Re: First time auto loan

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.

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

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
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