looking for some auto advice...

[Anonymous]

hello everyone,

this is my first post here just joined 2 days ago.

i enjoy the website as i have learned alot from it but just have some questions to ask.

heres my current credit status.

19 years old

a year of credit history

Scores:

Transunion 681

Exquifax 679

3 credit cards Limits: 2500, 750, 700  0 balances as of yesterday (just paid off all the last credit card)

im looking to buy a car (new or used)

only debt i have is the 2700 of school loans which dont need to be paid back until 2012.

i really dont know how to approach buying a vehicle im really just looking for advice. should i even bother making payments to my student loans now?

i make about 2400-2500 a month. dont pay rent or anything.

i have $3000 to put down right now.

what are my chances of getting approved? i really dont want to apply for an auto loan(s) and just get shot down.

the most i want to borrow is 18k. only thing that i think is going to bother me is lenght of credit history.

what is some good advice?

i know its a lot to read so i apologize. its just that it would be my first car and would really want one for work. ive been playing to build credit since i turned 18 and wait a year before i purchase a car, i stuck to it and here i am with no missed payment and decent credit scores. i plan to only go up from here on it. any advice will be greatly appreciated. thanks in advance

[Tazman81]

You also have to consider work history as well because that is something that they look at.  I honestly think that you have a good chance.  Do you have a bank that you have been at and where your paychecks are direct deposited?  My recommendation would be to go to them and see if they are able to preapprove you for an auto loan and for how much they are able to preapprove you.  That way when you go into the dealership, you can just have check in hand and go from there.

If you have a CarMax in your area, I've had a lot of great experiences with them.  They also work with lenders like Drive Financial and Capital One Auto that help to specialize in those with limited credit histories and/or less than perfect credit.  Of course that would mean a higher interest rate, but with making payments on your auto loan on time for about 8-12 months you should be able to refinance with another company for a lower rate.  I would suggest checking around in a relatively short period of time to see who can give you the best offer.  That is a reason that I like CarMax because they run your credit through a few different places like Bank of America, Wells Fargo, Citi Auto, Capital One, and Drive Financial.

Let us know how it goes, or repost if you have any other questions.

[Anonymous]

thanks tazman for the info.

im banking with citibank (checking, savings, credit card) at the moment. i dont have direct deposit tho. i usually go to the bank and just deposit my paychecks. i'll definitely check out carmax. im thinking about just waiting a month just so my credit history shows over a year of it and save up more for the down payment. i'll keep you guys updated. i plan to post in "auto loan approvals" someday (haha).

[Anonymous]

if you are making the money you say with the lack of bills claimed, you may be better served to have closer to 50% the cars value asa down payment.

length of continious employment history/credit history is going to be a real killer for you getting a loan