ok i got approved for a loan with roadloans for 20k at 18% apr for 72 month ( but they report the credit agencies but is way too high...)
a bigger dealer approve me for 19%..... so this is a NO
then a small approved me "in house financing" for 12% for 3 years but they wont report
now the car is 15k, and has 70k miles
what chances i have to refinance with a bank and how long will it normally take so i can refinance? im in the process of rebuilding my credit and i need this to improve it more.. ( i have no issues paying on time etc) need help
These auto loans may not improve your credit score as much as you think. You will see a bump for mix of credit if you do not have any installment loans already (student, personal). Revolving credit lines are the strongest way to build up your credit such as general credit or store cards. Additionally, these interest rates are very high and if the car is overpriced to begin with, your loss in equity is substantial especially at a time when you are trying to build credit. IMO, reconsider the necessity of these auto loans and compare with a more frugal route.
I agree that you should consider whether you need that much loan at this time or whether it is smarter to wait until you have rehabbed your credit with other trade lines. However, in response to your question if I was going to do it I would select the loan that is going to report to the bureaus even though the interest rate is significantly higher.
The reason I say this is that with either loan you will obviously be looking to refinance at some point down the road. With the reporting loan you will at least show some good auto loan history to enhance your chances. Be aware that in this case you are going to have to make payments above and beyond the required payment to avoid being totally upside down in the equity value of the vehicle and the loan amount due. And most banks have an age and mileage limit on the vehicles they will refinance. So check that out before you decide.
I know in my case when I was rebuilding from past mistakes there were a couple of loans and credit cards that I accepted and just bit the bullet. Kind of paying for my past mistakes and building toward a better future. And it worked. Today I am in much better shape for whatever I want. I'm even a homeowner. And there was a point in the beginning I wouldn't have loaned me money for a six pack.