need help w/ my credit UPDATE: success but still need more help

[HJB417]

I graduated a few month a ago, and I'm trying to get a loan for a car but the problem is I have no credit history. Is it still possible to get a loan other than cosigning my parents? I've been employed since graduation if that's a factor.

 

[conjur]

Put about 30-50% down.
Check with a credit union?

Also, I'd pull my own credit report from all three bureaus and take that in and talk directly with a finance mgr instead of having various dealers and umpteen banks pull your report over and over and over.

 

[StageLeft]

Originally posted by: conjur
Put about 30-50% down.
Check with a credit union?

Also, I'd pull my own credit report from all three bureaus and take that in and talk directly with a finance mgr instead of having various dealers and umpteen banks pull your report over and over and over.

Agree 100% with all of that. Also, you may need to suffer a high interest rate and you may find that some particularly massive dealers will be more accomodating. I find that sometimes HUGE domestic dealerships basically handle financing themselves and will be willing to work without instead of sending you off to Toyota finance, for instance.

 

[Red]

Originally posted by: HJB417
I graduated a few month a ago, and I'm trying to get a loan for a car but the problem is I have no credit history. Is it still possible to get a loan other than cosigning my parents? I've been employed since graduation if that's a factor.

A lot will depend on the cost of the car... most college students can go and get a car loan with no credit or short credit for a car under $8-10k or so if you can provide paystubs. If you're trying to buy something more expensive, you'll need to put at least 20% down, or have a co-signer, etc.

Why don't people start building credit when they are 18? I don't understand!

 

[HJB417]

Thx for the advice guys, I'll bring a copy of my reports. I'll try my bank 1st and then try the auto dealers. 20% down payment could set me back a few months =/

Why don't people start building credit when they are 18? I don't understand!

I wasn't financially stable until I graduated. a summer job or a low paying work study job is just not gonna cut it.

 

[kranky]

Instead of getting your parents as co-signers, can you borrow the down payment from them? The big down payment will greatly improve your chances of getting a loan, and also probably get you a lower interest rate.

 

[HJB417]

well, good things have happeend today
I got an approval for 15K
I got a car (on hold now I guess) for 10K
01 prius 40K miles good condition
test drove a 03 earlier for comparision
unfortunately, I have no insurance
=/
NY requires liability insurance. The car dealer is telling me I need 'full' insurance to buy the car. Is this true?

 

[RossMAN]

Originally posted by: HJB417

NY requires liability insurance. The car dealer is telling me I need 'full' insurance to buy the car. Is this true?

Yes, if your vehicle is financed you are REQUIRED to carry FULL coverage insurance.

Once you payoff the car and don't owe anyone, then you can elect to carry liability only.

 

[HJB417]

Originally posted by: RossMAN

Originally posted by: HJB417

NY requires liability insurance. The car dealer is telling me I need 'full' insurance to buy the car. Is this true?

Yes, if your vehicle is financed you are REQUIRED to carry FULL coverage insurance.

Once you payoff the car and don't owe anyone, then you can elect to carry liability only.

well, my boss says some banks may not require this so tomorrow I'm gonna talk to the bank that accepted my loan request and see what I can do.

 

[conjur]

Originally posted by: HJB417

Originally posted by: RossMAN

Originally posted by: HJB417

NY requires liability insurance. The car dealer is telling me I need 'full' insurance to buy the car. Is this true?

Yes, if your vehicle is financed you are REQUIRED to carry FULL coverage insurance.

Once you payoff the car and don't owe anyone, then you can elect to carry liability only.

well, my boss says some banks may not require this so tomorrow I'm gonna talk to the bank that accepted my loan request and see what I can do.

Either your boss is a moron or there are banks out there with idiots running the place.

Can you imagine if your car gets totalled (and it's your fault) or stolen and you don't have full coverage? They'll come after YOU for the money still owed on the loan. Well, you go and file bankruptcy and the bank is out of luck.

 

[kranky]

What interest rate were you offered? They should have a figure that is "X% APR".

 

[HJB417]

well, I use lending tree.com and it says apr 4.9 interest 4.9
present value = 15000
future value = 16980

but I'm gonna call them tomorrow and lower my request to 10k.

also, about the comment 2 posts above
depending on what agreement you sign, you are still required to pay of the loan. you'll just have no car. I came across a situtation like that in an article on the internet. so using your worst case scenario with what I just said.
I buy the car today, it gets stolen tomorrow. I will have no car but I will be paying $183 for it for the next 5 years. Also, here's another thing, car insurance companies might only give u the money of what the cars worth the day it was stolen based on their estimates, so if the bank estimates that the value of my car was 6,000 for some reason, then that's what I can use to pay off my loan. But you know what, car thefts here are rare and I'll be keeping my car garaged, maybe in ghettotown, USA, it would justify the extra $400 month in insurance.