auto loan with 6 months credit history

[Anonymous]

So I'm new to the forums, but here I go!
I'm 18 and currently active duty army & deployed at the moment. I'm looking to buy new car next month when I get back to the states! I opened a secured credit card $300 to start my credit off with USAA. I have both USAA and navy federal and by reading some post on the forums I expect my credit score to be upper 600 low 700, I have not missed a payment and my current utilization is 0% I paid the balance off before the 6 month mark! I have a balance of 1$ currently and expect my score early next month.

What are my chances of getting approved for 25k at ussa or navy federal with a low Apr? & should I use a co-signer? My mom has fair credit but she way more history than me. What was your credit score at 6 months?

[Anonymous]

Good questions. It's funny my little sister just hit 6 months on establishing her history. She just got a car last Wednesday, she didn't use a co-signer at first and got approved the lender since just her income wasn't being counted asked to put her boyfriend on there too and her rate actually went up a bit, he been had credit and it wasn't for the best. Not beating her new credit My credit so old I don't remember what mines was at 6 months but it wasn't good due to some grown up getting an apartment and other stuff in my name back then either. I'm not real familiar with USAA and Navy Fed but I say being a member you have good chances, credit unions flex a bit. My DH got a 2.49% with only refinancing his truck as his only reporting tradeline years ago.

[Anonymous]

That's good to hear that your sister got a car with 6 months of credit, definitely a relief for me! Did she get a low Apr? And what was her score.

[Anonymous]

You actually don't want to be reporting a 0% utilization.  That is too small.  Your score will be penalized for that.

Here is a real simple rule (with two parts) for you to follow, given that you are a novice to this stuff:

(a)  FICO likes to see at least one credit card with a small positive balance. 

(b)  When a balance is TOO small, it may be treated as $0.  So keep that small positive balance at least $5.

Given that you have exactly one card right now with a $300 limit, this means keeping it reporting between $5 and $26.99 before an important credit pull.  Personally I think it makes sense in your case to just keep it between $5 and $10.

Down the road, you will start adding a 2nd and a 3rd credit card.  When you do, FICO will also give you extra points for making sure that these extra cards are reporting at $0.  But you only need to worry about creating the $0 balances in your extra cards in the 40 days before an important credit pull.

[Appleman]

Travis813, welcome to myFICO and thank you for your service. Please be careful with some of the dealerships that are offering credit around the military bases. Many stories of young serviceman getting taken advantage of when purchasing a car.

You are on the right path with NFCU and USAA, both will treat you right if you treat them right.

If you call either of them for an auto loan it will be a hard pull on your credit. You may want to look into PenFed as well. The reason I say this is that they will do one Equifax Credit pull for membership but will also use that if you apply for a credit card or auto loan. 

In fact I would recommend taking the time to call PenFed and apply over the phone asking what they will require to get you financed. 

If you walk into a dealership with financing in hand you will be much further ahead than if the dealer is 'looking' for your financing (meaning they could pull your credit 5-8 times).

Also do your research on the car you want to buy and know the market. A site like Truecar.com will at least give you the basics.

So, sorry we cannot give you an answer on APR but that can vary widely. Have you considered CPO (certified pre owned), could be an option for a first car as well.

Good luck and let the myFICO community know if you have any questions and we always appreciate hearing how the story ends.

[Anonymous]

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@Anonymous wrote:
That's good to hear that your sister got a car with 6 months of credit, definitely a relief for me! Did she get a low Apr? And what was her score.

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She won't let me see the APR cause she knows I will hit the roof cause she ignored every piece of advice I gave out the gate lol except getting her first card to get a credit history going...didn't even listen to my PIF and let a small balance report advice. I only seen her FAKO to Credit karma they were like a 678 and 685 at my last check in June....SHe's pretty good about trying to do everything on her own and knows I'm hands on and sound like the mom off charlie brown talking to her. She'll be back cause I know that car note was close to $350 I overheard that from another family member lol.

At either rate...Good Luck and Appleman gave some good advice about checking with Penfed too. I would go with financing in hand if I could do everything over again and make sure to tell the dealer do not shop you through their rates.

[sarge12]

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@Anonymous wrote:
So I'm new to the forums, but here I go!
I'm 18 and currently active duty army & deployed at the moment. I'm looking to buy new car next month when I get back to the states! I opened a secured credit card $300 to start my credit off with USAA. I have both USAA and navy federal and by reading some post on the forums I expect my credit score to be upper 600 low 700, I have not missed a payment and my current utilization is 0% I paid the balance off before the 6 month mark! I have a balance of 1$ currently and expect my score early next month.

What are my chances of getting approved for 25k at ussa or navy federal with a low Apr? & should I use a co-signer? My mom has fair credit but she way more history than me. What was your credit score at 6 months?

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Nothing to add here just want to thank OP for your service. Army Strong!!!!

[Anonymous]

Appreciate it brother!!

[Anonymous]

Appreciate the advice appleman! I will definitely look into Penfed. I will be applying for the loan in the next week or 2 so I will update you guys on what I got!