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Regular Contributor
Posts: 117
Registered: ‎05-17-2013
0

First time buyer

Ok so I started looking for my first car( purchased by me), and I saw on my CU website that I could get pre-approved for a shopper loan which the rate would be good for 90 and when I find the car I want to buy they will disperse the loan. Now I am getting a used car and one under 10k as this will be my first big purchase and I don't want to overwhelm myself. So I applied for the loan(10k as I don't want to go higher) and was approved with a rate of 4.99%. Now a little back story, I started repairing my credit back in May, transunion is the CRA that my CU uses and luckily one of my highest at  high 600's to low 700. Is this a good rate? I know lenders can use an Auto Enhanced score which I have no access too. Just wanted some input. Thanks!

Starting Score: myFICO TU: 542, myFICO EQ: 556 EX: 549 (03/2013)
Current Score: 693 TU, EQ: 673, EX 687

Amex BCE - 10.5k, M1CU - 7.5k, Kay - 5.1k, Walmart - 6k, Amazon - 6k, Chase Disney - 3k, Chase Freedom 3k, Cap1 Venture - 3k, AEO - 2k, Cap1 QS 1.3k, Cap1 Plat 1.3k, Paypal SC - 600, BOA - 500
Community Leader
Super Contributor
Posts: 6,129
Registered: ‎03-06-2010
0

Re: First time buyer

I think that is a great rate on a used vehicle considering you are financing an auto for the very first time. Congrats!

 

Part of what determines the rate is not only your credit history but the collateral too (age of vehicle, milage, value).

Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009
0

Re: First time buyer

I agree. Under 5% on a used car for a first time buyer is great. Once you find the vehicle you can always see if the dealer has a connection to beat that rate, but I would shop with confidence knowing that was in my pocket for financing.

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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Regular Contributor
Posts: 117
Registered: ‎05-17-2013
0

Re: First time buyer

Thanks guy! I wasnt really sure what to expect being a first time buyer and having just went through cleaing up my credit( still have a charge off 1 unpaid collection from that charge off, one paid collection, and a bunch of lates from a personal loan starting in Nov 2007). Time to get out there and do some test drives!

Starting Score: myFICO TU: 542, myFICO EQ: 556 EX: 549 (03/2013)
Current Score: 693 TU, EQ: 673, EX 687

Amex BCE - 10.5k, M1CU - 7.5k, Kay - 5.1k, Walmart - 6k, Amazon - 6k, Chase Disney - 3k, Chase Freedom 3k, Cap1 Venture - 3k, AEO - 2k, Cap1 QS 1.3k, Cap1 Plat 1.3k, Paypal SC - 600, BOA - 500
Valued Contributor
Posts: 2,110
Registered: ‎12-29-2011
0

Re: First time buyer

You're doing fine. Your rate is going to be a little bit higher on a used car but I really do believe this is the best rate you are going to find for what you're getting!!

The truth is out there...
FICO scores: 764 (EQ) 732 (EX) 757 (TU) 9/14 | Goal score: 750+ (all 3)
Tradelines: Capital One QS NPSL (5.0k) | Discover IT (6.0k) | Walmart Mastercard (5.0k) | Chase Freedom NPSL (7.3k) | Citi Simplicity (9.3k)






Regular Contributor
Posts: 117
Registered: ‎05-17-2013
0

Re: First time buyer

So I found the Vehicle and got the loan approved, signed the papers yesterday. The woman asked if I would like to be enrolled in auto draft out of my checking account I had with them and I said of course, it then lowered my rate to 3.89% so pretty happy about that! Go to pick up the car tomorrow!

Starting Score: myFICO TU: 542, myFICO EQ: 556 EX: 549 (03/2013)
Current Score: 693 TU, EQ: 673, EX 687

Amex BCE - 10.5k, M1CU - 7.5k, Kay - 5.1k, Walmart - 6k, Amazon - 6k, Chase Disney - 3k, Chase Freedom 3k, Cap1 Venture - 3k, AEO - 2k, Cap1 QS 1.3k, Cap1 Plat 1.3k, Paypal SC - 600, BOA - 500
Frequent Contributor
Posts: 431
Registered: ‎05-23-2013
0

Re: First time buyer

I've been seeing this autodraft trick work several times on this forum. It must be a growing thing. I'm about to buy a big expensive Mercedes soon and hey....it can't hurt to try it at the paper signing....lol. :smileyvery-happy:

 

Congrats on such a great rate with your situation!

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
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