Wednesday, May 26, 2010

When buying a new car with loan, my credit?

I am a graduating student so I don't have any credit score yet. But is it possible to buy a new car with loan?



And I have my own car which has been paid off in full, which I bought 4 years ago with loan but anyhow it's paid off.



When buying a new car with loan, my credit?

You paid of a car?



Trust me, you have a credit score.



you'll have no problem getting a loan.



When buying a new car with loan, my credit?

So you have no credit score, but have your own car that you took out a loan on and it's paid off. Are you sure you graduated?



When buying a new car with loan, my credit?

Yes it is possible to buy a new car without a credit history. I would put down the past loan you had as a reference if you made all the payments in a timely fashion. Good luck! By the way, look around for the best auto loan rate too!



When buying a new car with loan, my credit?

If you have a job and a decent trade in you can probably get a loan from the dealer.



When buying a new car with loan, my credit?

If you got a loan for you current car, that loan reported to the credit bureaus, which means you have credit, and by having credit, you have a credit score. If someone co-signed, that means the loan appears on their credit also.



Here are the factors you're going to run into when applying for the new car. 1) was the amount of the car loan near the amount you want to borrow for the new car, 2) what is your income, 3) how long have you been on the job, 4) what's your credit score.



The things banks look at are the ability to pay back the loan (income vs. debt), the stability of the person applying (length at residence/job), the collateral (is the car worth what you want to borrow) and previous credit (have you paid other people as agreed).



If you had a previous loan for (say) $8,000 and want to buy a $30,000 car becuase you just graduated and have a job. You won't be approved at a good rate...regardless of you credit score.



Here's my advice (from a guy within the dealership world). Unless it's falling apart, drive the car you have until you have at least 6 mos. at your new job. While you are waiting, save a couple hundred bucks each month (or whatever you can afford) toward the down payment. When you have established 'stability', go shopping for a new car. Get a copy of your credit report, and pay the additional $ for the score. This will tell you what to expect. Over 700 is perfect, 650+ is great, 600+ is so-so, under 600...keep building credit.



Then decide on the car and go to the dealer with your downpayment. By having a good amount of money to put down, it lets the bank know you are serious and could result in better financing APR than if you had nothing to put down.



Don't rush into it. Just because you're graduating and getting a job doesn't mean you immediately have to go into debt.



Good luck.

1 comment:

  1. It is really a good idea to choose among the most trusted companies which gives the best offer that suites your budget and needs. There are really lot of car financing companies that offers a no cosigner car loans and accepts bad credit car loans to give way to those individuals who really need a car despite of their bad status.

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