I have little credit to use to buy a car... What can I do to help build my credit up?
The lender - every reputable lender - wants EVERY borrower to have "a track record". Lenders want to see - through a credit report or credit reports - how well [or not-so-well] the borrower manages and budgets his/her/their money and income. A very good friend of mine went to a bank and asked to borrow $50,000.00 The credit report was downloaded from a credit bureau. My friend had no credit. When the various bills were received in the mail, my friend preferred paying for everything in full. RESULT: Instead of getting approved to borrow $50,000.00, my friend was approved for and could borrow only $1,500. Due to the lack of "a track record", the bank officer informed my friend the best way to be approved for a larger amount was to make monthly payments for just one (1) year. THEN pay off that small loan and apply for a larger amount. Its easy, when someone informs another of what the lender REALLY wants: the lender wants that interest. The lender wants to see the borrower's track record. I wish you well! Ron B.
Buying a car with no credit?
If you cant find an established adult cosigner, then simply DONT finance. Your income is great for a 19 year old. But with no credit and a relatively low down payment, you will simply be reamed on any financing because of your lack of credit. Whereas I might pay 1.9-2.9% for a car loan, you could be looking at 15-29% and very possibly a jacked up car price too. So, a $15,000 car might be $16,500 for you because of your lack of credit. I think your best move would be to buy a lower priced car for cash and then save up a big chunk of your paycheck for a year or 18 months and work on building credit with a credit builder loan. And then you can get reasonable terms. Pay cash for a $3000-3500 car, then get a credit builder loan for $5000 over 12 or 18 months. Then, when you finish paying that off, you will have $5000 in cash, good credit and you should be able to get $2000-2500 for your old car in a private party sale. So you'd be in a good position to move up. Although really, a $7000-7500 car for cash should be fine. Don't be in a hurry to go in debt for a depreciating asset. With your income & a good down payment, dealers WILL get you financed. Its just the terms will be predatory and should be avoided. https://www.daveramsey.com/media/flash/e...
Bad Credit Auto Loans: What are the best options for purchasing a new or used car with bad credit?
If you’re a person with bad credit, it means that your score is below 629. Here are possible options for you to consider so you can get your new or used car financed:1. Get a Car Loan from the BankBanks use standard credit rating formulas for loan approvals. If you have a poor credit score, chances are you won’t qualify for a car loan. If you’re just starting a new job or if you have any credit issues, this may not be the right choice for you.2. Buy from a Private SellerYou may find advertisements in the newspaper about a favorite car you have been looking for, but buying it from a private seller can be risky. You will have to get maintenance receipts and bring a mechanic to check out the car’s condition. Apart from these points, the major point is that you will not be able to utilize finance options with a private seller—they will demand you pay the full amount.3. Purchase from Maritime Auto Loan DealersEven if you have bad or little credit history, Maritime auto loan dealers can help you purchase a new or used car. Buying from a dealership that specializes in bad credit car loans will allow you to get vehicle financing even while you go through repossessions or bankruptcy. They accept bankruptcy clients when the financing option is most beneficial for them.
What is the best way for someone, who has very little to no credit, to approach buying a decent used or low cost new car?
Well, there's a big difference between “"little to no credit” opposed to “"bad credit”. Little to no credit is easy to work with assuming you have a decent job for at least a year and a little cash to put down. Many banks and most credit unions have first time buyers programs. Franchise dealers can almost always work with light credit UNLESS your picky and don't like what they can get you into. Used car lots specialize in all the situations the franchise stores can't do and they will both try hard to get you financed. Bad credit is tough and your going to get a bad deal because the price needs to stay up so the dealer can cover the fee that the bank is going to charge them to take the risk on you, AND your going to get a very high interest rate also due to your risk profile. Many times (actually most of the time) as soon as a “light” or “bad” credit profile finds out they “can” buy “something”, they immediately turn picky and think, “"Well I know I can buy now, but I don't want this Nissan Sentra for $7,995….I want that 5-series BMW! It's only $11,995.” They don't understand. However, if you have “light” credit, I would recommend trying a credit union. They'll most likely give you some kind of loan, it's then up to you to find a car that you like and fits into the loan guidelines. You must always remember and understand your own risk profile in a lenders eyes. you can also think about as if you were going to lend someone money considering their payment history, income, job time, residence stability, etc. Hopefully I was able to clarify the process and conditions for you a bit.On a side note, people often think that if they have 3–4 little bad pieces of credit (like a cell phone collection $60, an internet collection for $35, and a medical collection for $50) that this is basically no credit. When asked they might respond, “Well, I don't really have any credit.” Wrong! This IS bad credit. A lender looks at this and says, “"This jackass can't even pay $100 worth of bills.” They might give you a loan for $7,000 with 20% down at 24%. But a ghost (actual ZERO credit profile) with a decent job for a year and two months may get a 10–12000 loan at 6–9%.
Buying new car with no credit?
Alright so here is deal. I'm 19 live with my parents and want to buy a jeep wrangler unlimited sport. I work. And make around 1700-2000 a month. The car I want is $29.000- $35.000. I would put $6000 down and pay $90 monthly payment. But can I finance the car with no credit. If not how do I get the car? PS no need to tell me its a bad idea. I have enough money.
What are my chances of leasing a car with bad credit?
Your chances of getting approved for a lease are far worse than buying. Typically, credit scores must be higher for those who lease. There is another factor that you should consider if you have good enough credit to lease. Even though you can get a lower payment on a lease, the leasing company or car dealership will make more money if you lease than if you buy. If you lease a new vehicle every 3 years, the payment comparison between leasing and buying appears to be lower for leasing. The truth is that if you buy and own for the same period as the lease You will have more value left over in the vehicle than you saved in lease payment. The difference is because sellers obviously have to disclose the selling price but lessors are not required to disclose how much they are selling the vehicle to the leasing finance company for. They are not actually selling it to you. All you know is the monthly payment,residual value and lease rate. Do not confuse lease rate with with interest rate. The name change is for a reason. The depreciating value of the vehicle during the lease period is financed like a regular installment loan with principal and interest based on a declining balance. However, the residual value is financed with no declining balance because it is beyond the lease term and does not decrease. So even though you will not have the vehicle after the lease term. You are paying the interest on that value throughout the lease term. If you are considering leasing ask the lessor to tell you what your payment would be if you had a 3 year lease but paid for it all with one payment. Then add in the residual value. That is the selling price that the car is being sold to the leasing company. You will be surprised at how much less you can buy the car for when you can negotiate on price.
I'm 18 & I'm wondering if I can purchase a car at carmax. I have a job. But I have no type of credit.?
Auto finance is what I do for a living and there are 10 things that go into making up a car deal weather it's a purchase or a lease and all can effect the interest rate. 1. Term of loan. Shorter the better. 2. Age of vehicle. Newer the better. 3. Miles on vehicle. Lower the better. 4. Amount to finance compared to book value. Lower the better. 5. Credit score. Higher the better. 6. Credit profile. Deeper the better. 7. Down payment. More the better. 8. Monthly income. Higher the better. 9. Time on job. Longer the better. 10. Time at residence. Longer the better. As long as all of the above are in line with the lender guide lines and you make enough income to budget for the payment you should be approved. As you can see from the above list there are way to many things that go into making up a car deal to guess at your interest rate. Just so you will know this is a breakdown of F.I.C.O. scores used by one of the largest credit unions in my State. FICO system scores from 300-850. Elite-740-& up Prime-700-739 Preferred-660-699 Standard-625-659 Sub-prime-624-& under As you can see it's not all about score. Based on what you have said you most likely will need a co-signer, but with that kind of down payment it's possible that you wont. Good luck. Good luck.
Can I buy a car without any credit history?
My dad took care of me all my life. I want to buy a car on my own but I don’t have credit history. I have a stable job with a decent income. What do I do? Is this bad that I don’t have any credit history at the age of 31? Please note I did pay for my student tuition I just never had loans I paid everything upfront with my own money.