@elim wrote:my way...
go to local credit union and get a share secured loan for 1 year (no credit pull).
pick up 2 CC's when you can along the way (as early as possible)
in that year, cram every penny you can into that share account.
try to have 15k in that account when the loan completes (for your down payment).
your credit union will give you a great rate and a CC to boot.
finance the needed 10k and get your car.
you now have property with a positive value if you need to bail and sell at any time.
you will suffer for 1 year but that's what we "toy buyers" do
your priorities/needs may change by then and you may dodge a credit nightmare if an emergency arises.
remember, cars are cheaper in winter
my toys are race boats so it's easier for me. i can split costs engines/hulls/trailers
my latest...
best of luck
This is actually a pretty decent idea.
@Anonymous wrote:
@elim wrote:my way...
go to local credit union and get a share secured loan for 1 year (no credit pull).
pick up 2 CC's when you can along the way (as early as possible)
in that year, cram every penny you can into that share account.
try to have 15k in that account when the loan completes (for your down payment).
your credit union will give you a great rate and a CC to boot.
finance the needed 10k and get your car.
you now have property with a positive value if you need to bail and sell at any time.
you will suffer for 1 year but that's what we "toy buyers" do
your priorities/needs may change by then and you may dodge a credit nightmare if an emergency arises.
remember, cars are cheaper in winter
my toys are race boats so it's easier for me. i can split costs engines/hulls/trailers
my latest...
best of luck
This is actually a pretty decent idea.
In addition to some of the good ideas on here, I think you should push back your purchase date on the car. No one wants to deny you your first big toy, but there's an opportunity here to test your discipline. Imagine if you started saving the ~ $500 a month you're going to need to pay for and maintain this car right now. If you bought it October 2015, you would have $6000 saved, effectively financing $15,000. A very different proposition on your current salary. Can you pick up some extra part-time work without interfering with your school work? If so, put all of that as well toward your car goal. I remember my first car I bought on my own at 19 ... great car but I missed a couple payments and ruined my credit early because I wasn't disciplined enough at that age. I over shot.
@navigatethis12 wrote:I'm against taking a loan out just because you think it will help your credit. I was approved for an automobile loan without any loan history and it was for the credit union's lowest rate. I had three years of history and probably twenty or so credit cards last November. My little brother also got approved through PNC for their lowest rate with about 18 months of history. He was on my cards for a while, but the only one he's still on that isn't closed is Macy's, so his own history was enough.
I just suggest getting at least two or three more cards and use them responsibly. In six months that history may help and in twelve it really will. Unless the dealership is offering 0% through Ford credit itself, I'd seek out your own financing. Dealerships send it out and twenty different lenders could look at it. Doing it yourself limits the amount of inquiries that you get.
Right, remember that dealerships get kickbacks (points) based on the interest rate they give you. The higher the interest rate, the higher their kickback. That's why they pull out all stops to get you a loan, just not likely to be one favorable to your wallet. ALWAYS, ALWAYS, go into a dealership with a pre-approved loan (usually from your locall CU) at the rate you want. This gives you a negotiation advantage on the price of the car. Do not negotiate based on monthly payments.
You can get a secured loan through a CU at very little interest.
But honestly likely won't help as much as you may think.
I would get a Barclaycard and maybe Cap1 card giving you 3 active tradelines.
When you apply for the car note use a CU they will offer the best rates and usually use classic scores vs auto enhanced.
Good luck!
But honestly likely won't help as much as you may think.
I would get a Barclaycard and maybe Cap1 card giving you 3 active tradelines.
When you apply for the car note use a CU they will offer the best rates and usually use classic scores vs auto enhanced.
Good luck!
