topic Re: First time buyer in Auto Loans

First time buyer

Anonymous — Sat, 13 Jun 2015 06:45:57 GMT

Hello all, well today I went to the dealer to see if I would be able to take out a car under my name.

car is worth 33k plus tax and fees

I have 6k for down payment

my credit score is 700+ ( don't know the exact numbers just know it's 700+)

i just have 1 credit card under my name and I've had it for about 1yr 2mo and always keep it low balance

I make about $3,500/mo gross and I have no other debt .

i got denied and was told I needed a co-signer because I have no credit history and I'm a first time buyer.

does this sound right? Or should I keep looking elsewhere?

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 07:00:52 GMT

I would suggest that you try getting prequalified with a credit union.They are more likely to both qualify you and provide you with a decent rate. Many here use DCU and have good luck so that is one to consider, I use NFCU which is another great credit union. Since you don't have much credit history your 700 won't help you as much as if you were to have a thicker file. Probably best to consider getting another card or two at some point. I am sure someone will qualify you. I don't reccomend anyone walk into a dealer without some type of prequalification because it gives you much more leverage to make a decent deal. Needing their help to get you qualified is not the best position to be in nor is it fun. If you can't get qualified by a credit union or bank you can try a subprime lender like roadloans (Santander) knowing you will get a crappy APR but then refinance a 6-12 months later to do that you need to play close attention to loan to value to assure you can get refinanced.

Best of luck, be patient and you will be fine.

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 07:07:30 GMT

Thanks for your reply! And you're right maybe I should just got to my local credit union and see if they will loan me. But do you think I will the same answer since I only have 1 year of credit with only 1 card?
Thanks again for your reply I really appreciate it.

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 07:15:34 GMT

Hard to say because each credit union is different, heck each loan officer is different but I would say you have a good shot. You can apply for some online, if you have a local credit union it can't hurt to go in and speak with a loan officer. What is you employment history and rent expense?

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 07:20:45 GMT

I think I'll go local I tried capital one auto
And got denied with the same reason
And don't want to have a lot of inquiries.
I've been employed by this company for
Exactly 4years and 3months I live at home and only pay 200 for a shared room with my brother I'm 22 and started my credit a year ago in April 2014 (very late) with a BofA credit card rewards card. I though with this info I would at least get an offer from the dealer but nope I got the same "no credit history" lol

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 16:50:59 GMT

I'm checking out a credit union today and see if they will loan me .

Re: First time buyer

Anonymous — Sat, 13 Jun 2015 22:59:29 GMT

Well if the credit union route fails, you may want to go through a dealer. The dealer will most likely work hard to get you financing as they want to sell a car. Just look for dealers that advertise all credit situations approved, there are a ton of them out there. The rate may be higher than you want, but it it is your only option, do it and refi later.

Re: First time buyer

Anonymous — Sun, 14 Jun 2015 02:05:12 GMT

Dont get anything over than 4% since you are a first time buyer.

Re: First time buyer

StartingOver10 — Sun, 14 Jun 2015 02:14:29 GMT

@Anonymous wrote:
Hello all, well today I went to the dealer to see if I would be able to take out a car under my name.
car is worth 33k plus tax and fees
I have 6k for down payment
my credit score is 700+ ( don't know the exact numbers just know it's 700+)
i just have 1 credit card under my name and I've had it for about 1yr 2mo and always keep it low balance
I make about $3,500/mo gross and I have no other debt .
i got denied and was told I needed a co-signer because I have no credit history and I'm a first time buyer.
does this sound right? Or should I keep looking elsewhere?

See the items bolded above? Those are your issues.

Read this thread by SamsungHDTV, it is illuminating: http://ficoforums.myfico.com/t5/Auto-Loans/How-to-buy-a-car-for-the-first-time-buyer/td-p/1923289

How could you not have any other debt? Do you pay rent? That will affect your DTI. 33k is too much for most first time buyers for lender guidelines (not my opinion, but read the thread to see where it comes from). Can you come up with more of a down payment so your loan is less? Or, get a less expensive vehicle to start and then once you have proven your ability to pay a long term installment loan, sell that vehicle and get the one you want.

Read the thread above first before you apply anywhere else.