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08-17-2013 09:00 PM
08-18-2013 06:50 AM
I got my auto loan through BoA @ 1.74%. There are plenty of CUs out there that have nice rates. Are you in with NFCU or USAA?
08-18-2013 07:51 AM
I dont forsee any issues with a credit union -- Provided you find one that is willing to work with your credit & self employed profile. As far as other lenders go, see #3 below.
The one drawback to joining credit unions ( that isnt talked about much ) is that after you have satisfied the requirements to even join, that the price of admission is 1 hard pull usually from each of your credit files at the 3 Bureaus. Whereas a bank will do a soft pull in order to see if you are eligible for Debit Cards, Checking, etc. Many of us on here have made the mistake of thinking a CU was a "magic bullet" only to join the one we thought was best for us -- only to find out AFTER joining we simply wasted an inquiriy and now hold a useless membership to something we`ll probably never use.
Keep the credit pull issue in mind when you are looking for a CU.
As to your loan, everything looks good from 30,000 feet, but the questions needed to give you a better answer....
1. Are you wanting to buy new or used?
2. What vehicles? -- Any specific brand?
3. Can you verify income in any other way? i.e.- Bank statements, last years income tax return, etc? You`ve just elimated most major lenders without income verification & 10K down because that will trigger security concerns.
08-18-2013 07:56 PM
08-19-2013 07:46 PM
08-22-2013 05:55 AM
1. Used car, don't like the depreciation of new car.
2. Audi, bmw or lexus. Those sport sedan. Depend on what available in the market. Year around 2009 and up.
3. I can show bank statement, I went back to school to pursue different career path last year, no w2 or 1099 to show. Before that, I was computer programmer that made about 140k. I still keep those documents it helps.
The main purpose of this auto loan is to enhance my credit profile for my 2015/2016 mortgage.
Any credit union or financial company that will more likely approve my loan with reasonable interest rate? Any suggestions?
I don't know where you get the idea that having a car payment enhances your credit profile for a mortgage. If anything, it does the opposite.
A car payment can show consistancy in payments, but it doesn't enhance your score. An installment payment is only 10% of your score. If you have an installment payment, open or closed, on your credit report, then you don't need an active car payment.
The mistake most make is getting such a large vehicle payment that it impacts how much home they can buy. Over the past few years the mortgage lenders have actively reduced the allowable back end ratio.
Now, if you are looking for a vehicle because you want one, than that is a different issue.
08-22-2013 10:17 PM
08-23-2013 03:29 AM
An account showing positive payment history with no lates is always good. I wouldn't spend your money on a car if you don't need it just for the sake of a mortgage.
11-01-2013 12:20 PM
If you want installment history on your profile there are CU accounts that you can open as "loans" and basically you're making payments to a savings account and when you're done you keep the funds in the account but, it gets reported to all CRA's usually as an installment loan. It's a trick that helps build that payment history you're looking for and might be a good vehicle to build your down payment for the mortgage in 2 years as well.
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