Reply
New Member
angelbaby12
Posts: 3
Registered: ‎03-07-2013
0

Limited Credit History! Need Vehicle!

[ Edited ]

I am 18 years old and I am driving around a care that is 23 years old and is falling apart every day. I make about 1600 gross pay a month currently, I have a down payment of 1000. I also have 2 credit cards but the longest one open is for about 5 1/2 months. I do want a 2012 Chevy Cruze to help save on gas to get to work and back. I found some that are 15000 yet I am unsure if that is too much to ask for. I can afford the payment up to about 400 because I don't pay for anything else besides gas. can someone help me figure out who to go to for a loan or what to do in my situation? Oh and I forgot I have a fico score of 699.

Established Contributor
TrishN
Posts: 505
Registered: ‎11-05-2012
0

Re: Limited Credit History! Need Vehicle!

I guess you have to save 20% down and look for Credit union near you,they'll work with you.Google for credit union and first time car buyer,i trust you can find out some information you need

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Community Leader
Valued Contributor
HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009
0

Re: Limited Credit History! Need Vehicle!

Your income is going to be a problem for almost any new car. I know you are not paying bills now but banks think in the longer term. If you finance for 60 months in their minds it is probable that you will be paying rent and utilities within that time. As mentioned above you are going to need to come up with some serious down payment funds for a bank to even consider this loan in my opinion.

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)
Goal Score: 760 ALL


Take the FICO Fitness Challenge

Valued Member
blackie1
Posts: 36
Registered: ‎06-26-2012
0

Re: Limited Credit History! Need Vehicle!

Well if they are assuming all that would not they also assume her income would also go up in the next five years??


HoldingOntoHope wrote:

Your income is going to be a problem for almost any new car. I know you are not paying bills now but banks think in the longer term. If you finance for 60 months in their minds it is probable that you will be paying rent and utilities within that time. As mentioned above you are going to need to come up with some serious down payment funds for a bank to even consider this loan in my opinion.


 

2fst4u
Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
0

Re: Limited Credit History! Need Vehicle!


angelbaby12 wrote:

I am 18 years old and I am driving around a care that is 23 years old and is falling apart every day. I make about 1600 gross pay a month currently, I have a down payment of 1000. I also have 2 credit cards but the longest one open is for about 5 1/2 months. I do want a 2012 Chevy Cruze to help save on gas to get to work and back. I found some that are 15000 yet I am unsure if that is too much to ask for. I can afford the payment up to about 400 because I don't pay for anything else besides gas. can someone help me figure out who to go to for a loan or what to do in my situation? Oh and I forgot I have a fico score of 699.


Talk to the dealer. There is a chance they can get you approved at a high APR. Don't count on a refi down the road, because unless you make large payments you will have some major upsidedown equity.

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%
Frequent Contributor
Mike360
Posts: 433
Registered: ‎03-19-2010
0

Re: Limited Credit History! Need Vehicle!

[ Edited ]

HoldingOntoHope wrote:

Your income is going to be a problem for almost any new car. I know you are not paying bills now but banks think in the longer term. If you finance for 60 months in their minds it is probable that you will be paying rent and utilities within that time. As mentioned above you are going to need to come up with some serious down payment funds for a bank to even consider this loan in my opinion.


I have purchased 2 cars on making $23K/year and I have to disagree. My last car was almost $22K OTD and i didn't even have to put a cent down or show proof of income. My score was top tier and I had prior auto history so i'm sure that played a part in it.

 

If you can find a co-signer that would help you ALOT. I know it's hard to find someone these day willing to do it but when i was your age (actually was 19) I had to have a co-signer. I had less than 1 year of credit history at the time and my income was about the same as yours. All i really can suggest is go in and apply and see where you stand. Dealers are pretty aggressive these days. I do like your car choice. I would suggest you stay around that price range because your rates aren't gonna be pretty if you get approved.

~~In my wallet: Best Buy $7500, Dell Preferred $5500, Discover IT $4000, Chase Freedom $3500, Barclays NFL Extra Points $3300, Sears $2800, Bill Me Later $2100, CapOne Platinum $2000, Kohls $1500, Target $200
Frequent Contributor
SLR72689
Posts: 377
Registered: ‎02-15-2013
0

Re: Limited Credit History! Need Vehicle!

[ Edited ]

When I was 18 years old, I bought a car and my monthly income was less than that. I bought a 2008 Chevrolet Cobalt (brand new since it was 2008) with $1000 down. My interest rate was high but I NEEDED a car and my parents credit was too bad to even try to get it in their name. It can be done!

 

Edit: I had two credit cards opened that year.

New Member
angelbaby12
Posts: 3
Registered: ‎03-07-2013
0

Re: Limited Credit History! Need Vehicle!



Thank you everyone! I just got approved at a credit union! 15000 for a Malibu LTZ 2011 with a 5.7 % interest rate! :smileyhappy: Im so excited! My experian is 663, my transunion is 683!

Regular Contributor
SE7EN57
Posts: 178
Registered: ‎12-08-2012
0

Re: Limited Credit History! Need Vehicle!


angelbaby12 wrote:



Thank you everyone! I just got approved at a credit union! 15000 for a Malibu LTZ 2011 with a 5.7 % interest rate! :smileyhappy: Im so excited! My experian is 663, my transunion is 683!


Grats. What is your monthly payments and how many months did they finance you for?

Amex BCP 12,500 - Amazon Chase Signature 10,000 - Discover It 8,000 - Walmart MC 7,500 - Citi Diamond 6,100 - Lowe's 6,000 - Fulton 6,000 - Amazon Store Card 2,000
Valued Contributor
sccredit
Posts: 1,116
Registered: ‎09-14-2012
0

Re: Limited Credit History! Need Vehicle!

Congrats!! The LTZ is a nice ride!

Never take credit personally

Amex BCP $24,900; Chase Sapphire Preferred $24,200; Discover It $12,500; Chase Ink Cash $15,000; Chase Slate $13,500; Citi TYP $12,900; Amex SPG Biz $3,000; DCU Visa $10,000; Logix FCU $15,000; Citi Home Depot $8,800; Lowes $8,000; Care Credit $6,000; Penfed Platinum Sig $16,000; Barclay Arrival Plus WEMC $15,000; US Bank PLOC Overdraft $1,500; US Bank Perks+ Visa Signature $8,600; US Bank Edge Rewards Business $10,000; PenFed PLOC $5,000


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}