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First auto loan

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New Member

First auto loan

Hello everyone
Thank you in advance for reading my post
I need some advice as I am new to credit and auto loan.

I am going to have 6-month credit history soon and still waiting for my Fico score. I currently only have Transunion 704 and Equifax 719, and credit limit $1000. By the time I reach 6 months credit history I will only have 5 months of employment history. I have no late payment or any bad marks on my account. Only two hard pulls pulled by the bank when they process my credit card application.
My question is if I ask for a auto loan of about 32k and I have a trade in that worth $30k.(car I want to get is about $62k) Plan to pay a $3200 down. I can also add my spouse as a co-signer as well.
How likely I can get an auto loan (monthly payment $500-$700 with competitive interest rate (perhaps 5-8 %)
Message 1 of 10
9 REPLIES 9
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Frequent Contributor

Re: First auto loan

Sounds like you are looking at Credit Karma scores.  Get your real FICO scores and look at the auto scores.

Credit Kama at times has been 100 points higher or lower than my actual FICO 8 scores.

 

If I am reading this correctly you are looking to finance a $62,000 car that after trade in and down payment your loan would be about $32,000.

 

So finacing only about 50% of the 62,000 should help.

 

I would try a credit union like DCU.  1 hard pull of Equifax Mortgage Score to join and any loans you apply for within IDK 30 days maybe longer.

Message 2 of 10
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New Member

Re: First auto loan

Thank you replying me.

I don’t quite understand the last part of your reply. Could you please explain more?
Message 3 of 10
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Established Contributor

Re: First auto loan

Have you tried prequalifying on Capital One Auto first? That will give you a good idea on what interest rate you might get. If you don’t qualify, I would wait until the 6 month mark to get your credit score and then pull a full 3 bureau credit report & scores. You can get some free trial ones or you can pay. After that, try DCU. They give auto loans for limited history like yours. There are many other factors that are important to consider though, like your income, DTI, how many other credit cards you have, etc. You should also try to put down a bigger down payment (like 20%).



February 2020:

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Message 4 of 10
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New Member

Re: First auto loan

Does it consider as a hard pull to do a prequalifying on Capital One Auto?

I only have one credit card. Is it the more you have the better change you will get approved for a better loan?
Message 5 of 10
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Established Contributor

Re: First auto loan

Capital One Auto is a soft pull. The first time I did it, I only had one credit card and was denied. I got a second card and waited a month, tried it again and got preapproved. I can’t say the same thing will definitely work for you but I think it will help. They want to see that you can handle multiple tradelines. Discover & Capital One credit cards have prequalifying application websites using soft pulls so you can see if you’ll be approved first.


February 2020:

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Message 6 of 10
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New Member

Re: First auto loan

Did you use two cards regularly to get approved?
Message 7 of 10
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Established Contributor

Re: First auto loan

I put a couple of small charges on each, let a small amount report, and then I pay in full. I do this every month.


February 2020:

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Message 8 of 10
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New Member

Re: First auto loan

Do you know how long it takes for the charges to be reported?
Thank you!
Message 9 of 10
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Established Contributor

Re: First auto loan

Did you try Capital One Auto yet? Try that first to see if you qualify. Getting a new credit card takes 1-2 weeks to get, then you have to use it, and it takes a few weeks for it to show on your credit reports. That’s why I said at least a month. Ideally you should have at least three credit cards total at some point. If you apply for an auto loan through a credit union like DCU, ask them to use the same credit check to apply for a new credit card. That’s how I got my third card.


February 2020:

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