I Want To Get A Car . but I Am Barely Starting Out My Credit But Earn More than enough For A Monthly Payment What Can I Do?
Stop into your local bank or credit union and ask them how much they would loan you for a used car loan. You'll probably have to fill out a form with all your info. A car dealer will do the same thing, but I like dealing with my local bank for my finances.
If you have a co-signer that will help as well. A co- signer is someone who is willing to sign the loan papers with you. This tells the bank or finance company that they'll pay if you don't. HTH. -Jim
It might be a good idea to get a credit card of some type. One that you might use often and make sure to pay it off every month. In a few months, maybe even more, your credit rating will improve. Start a bank account if you don't already have one. But in the meantime, start searching online for cars similar to what you are looking for, just so you have a good idea what you will be paying. I like http://www.cargurus.com because they show what the current market value is. You can also go to websites such as Bank of America, which have really good payment calculators for how much you will have to pay depending on down payment, the interest rate, and of course the purchase price. Also, the purchase price - Whatever price you see online, add approximately $2,000 to that price before you will be driving off the lot, (tax, dealer fee, tag transfer, and so on), and that is without extended warranties, paint protection warranties, and gap insurance (look it up online so you know what that is). If you feel confident, really secure in your job, and willing to pay for a possible high interest rate, go ahead and walk into a car dealership. Call ahead if you want and explain your situation. Most will be willing to work with you - they really want to sell you a car, even if they don't totally believe you will be able to make the payments. Starting out with no credit is better than working with bad credit - you are more likely to get financed. Reputable car dealerships might be able to get a better interest rate than an average customer coming straight into a bank or credit union. Do a comparison: Walk into a bank or credit union and see what it would cost you for the credit usage and see what kind of deal you can get. Then go into a car dealership and do the same thing with the same down payment and other information. Tell them what monthly payment you are looking for, what you have to pay down (a good percentage to start with is 20%), and see what they come up with (but do this when you feel confident you have the will power to leave there without buying a car - I mean they really want to sell you a car - we all get excited when we look at new cars, drive them, and soak up some of the confidence the salesman will exude). I really like Credit Karma for getting a rough estimate of what you credit rating is currently. It's not 100% accurate, but it will put you in the ball park. They will have recommendations too, for improving your credit. They even have car loans offers from different companies, but I think you will get a better deal at a car dealership or with your own bank (I did recently). I've also heard that a credit union will give you better interest rates than a bank will. Good luck!
Go to different dealers and ask if they work with finance companies who work with first time buyers , at our lot we work with a few so it is possible to get a car loan without having a lot of credit.
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