First Time Buyer/ New Credit

[Anonymous]

Thanks everyone for the comments.

The reason why i am looking at a car like this is just the price/value.

A new car would cost me over 22k with the same trim.

With the warranty on CPO cars, the price is a lot better.

Any history from my country is non transferable, only criminal background check was done before I came here. My country does not have a credit score system, or a system like carfax, and insurance history at all.

Right now I had a few appointments with insurance companies and some CUs, to see what we can do.

I have a few pending, and the good news is that none of these were a denial, like the big banks like BofA, Cap1, or VW credit...

I had to send copies of my documents for verification. So now I have to wait.

Insurance was also a tough thing to figure out, every online quote was over $210 a month. I was still willing to pay that for like 6 months, and find a better quote later with history. 

Right now I have an offer from State Farm for $150. That sounds good for me.

If i can get financing with a 10% APR for a start, i would take it.

Pay it for like 6 months, or a year, and refinance with a much better rate.

Since june, i am paying over $400 a month for uber and lyft, to get rides to and from work.

I want to put this money into a car, and I think i should be able to get a car with insurance for $400/month.

This is my goal right now.

If i had my own car, it would make my life so much easier.

I know I dont have a FICO score yet, but if Banks do hard pulls on my credit, do they still see my history?

Or the only thing they see is no score, and thats it.

[mitchblue]

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@Anonymous wrote:

DavZone, 

I moved to the US a little over a year ago too and let me tell you your score can grow pretty fast, you will save a LOT of money by waiting a little longer. Once your oldest account is a year old your score can be high enought to qualify you for the best rates. It'll move FAST. Right no there's no information on you but in a few months there will be and it'll be GOOD information.

So be patient, wait until you not only have a FICO, but you have a good FICO. It won't be THAT long a wait!

My other advice - go join a couple of credit unions. Find out what's popular in your area and join, they may be more willing to work with you.

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Agree with this. I'd suspect once things report and you get a score it'd be over 700 to start. And the CU, yes. They usually have better rates..

[Anonymous]

You got your first card in May so you should get a FICO in November which is not far off. My guess is your score will be between 710 and 720 out of the gate. I believe my first score was 711.

I would wait one month if I were you, it is likely to make a difference.

[Anonymous]

Little update.

I went ahead with State Farm and got a good quote for the insurance.

I did an application with their bank, for a car loan.

They requested a copy of DL,SSN and last 2 pay stubs.(1 year in US, 8 months of employment history only and 6 month credit history)

I got approved for $20k, $0 down at 9%@60mo.

They pulled TU score, 4 days after the dealer(at that point it showed no score). Now TU report says 667.

Also got approved for a credit builder VISA with them with an APR18%, $1000 limit, and that is better than both of my other credit cards both at $500 limit with APR22%+.

Now I have 30 days to shop around, or try other places and dealer to see if they can match or lower my APR?

Any suggestion?

[Anonymous]

Good News!!

I went ahead, and found a car, a different Jetta.

2014 SE, 1.8T , it has everything except factory navigation.

16k miles, 12 months old. CPO car, with 4 years or 44k miles BtB warranty.

https://goo.gl/photos/3YM4aYrAzLz9tDBH8

I financed 13k on it, and my 9% APR was lowered to 7% because of the cars age and low miles. No new credit pull was needed.

I think that is a good start.

[Anonymous]

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@Anonymous wrote:

Good News!!

I went ahead, and found a car, a different Jetta.

2014 SE, 1.8T , it has everything except factory navigation.

16k miles, 12 months old. CPO car, with 4 years or 44k miles BtB warranty.

https://goo.gl/photos/3YM4aYrAzLz9tDBH8

I financed 13k on it, and my 9% APR was lowered to 7% because of the cars age and low miles. No new credit pull was needed.

I think that is a good start.

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Absolutely yes, that is an Ok finance ratefor your situation and you got a very good car with low miles, and a warranty.

You did very well!

Congrats!

Now that you have CCs and an auto loan, your scores should grow very soon.

[Remember0]

Congrats on the purchase. Great little car there, it's what I drive myself.

In six (or even three) months, check what your EQ FICO is. If it's 680+ (which it should be, just keep util low), I'd look into even refi'ing the loan with DCU who should offer you 1.99% with DD and 2.49% without DD.