I am a newcomer (1 year and 7 months in US) and would be more than happy if you could help me (give me info) to get a good Auto Loan.
Here is my situation :
1- I don't have credit history ! (i have tried to find my credit score everywhere but no results) I think because it's less than 2 years im here in US. ( i do have SSN from the beginning of my residency in US)
2- I started working in a small company (worked there for 1 year and 3 months) , but now I work for a larg governmental organization (almost 2 months) with 45K salary
3- i have a checking account (1 year and 6 months) and just applied (last week) for Capital One Secured credit card to start builing credit.
Here is my questions:
1- two weeks ago i went to Longo Toyota , just to find out if i can get a loan, thay checked all my documents and offered me a loan with 20.95% APR. What do you think ? do i get it?
2- considering i will be using my Capital One Secured credit card with $500 limit from now , how long do you think will it take me to have a credit score? and what will be my starting score? i just want an estimate, because i want to know if it is woth it to wait for a score or should i get the loan with 20.95% APR and refinance it after 1 year?
3- please let me know about any other financing options for me with lower APR
Thanks a lot !
Since you are building credit, I would open one or two more secured credit cards. 20% is a really bad rate for an auto loan. You might have better luck with an auto loan from a credit union. I'd look into opening a savings account with the credit union. If you do have to take the current loan offer, the credit union will be a great refinancing option in six months.
thank you very much for your reply,
-could you please recommend a good secured credit card other than Capital One?
-a good credit union to open a saving account?
If you don't "need" a vehicle (ie. you can rely on public transportation), I would just hold off until you're able to build some kind of credit history.
20% APR is really bad. 10% is considered bad.
Lot's of place offer secured cards. You can easily google it to find the various places. You can also try the bank you're currently using for your checking account.