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Getting car loan on no credit?

Discussion in 'Off-Topic Discussion' started by ThunderOne, Jun 25, 2015.

  1. Jul 2, 2015 at 11:43 AM
    #21
    js312

    js312 Well-Known Member

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    To clarify, what can hurt is having a statement show 0$, because it looks like you don't use the card. So, allow the balance to post when the statement cuts but then pay it in full.
     
  2. Jul 2, 2015 at 11:52 AM
    #22
    bongwhisperer

    bongwhisperer Well-Known Member

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    horn that plays "la cuka racha,"
    Go to your bank and get a student credit card, build credit that way.
     
  3. Jul 2, 2015 at 12:13 PM
    #23
    rhion82

    rhion82 El Duderino

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    You need to allow some of the balance to be left behind. It can be 10 or 20 bucks.

    Once you have the credit card for a couple of months I would try and go to a Credit Union to get a car loan.
     
  4. Jul 2, 2015 at 12:16 PM
    #24
    T4RFTMFW

    T4RFTMFW Well-Known Member

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    Is nobody else questioning why someone who is just getting their FIRST full time job is trying to buy a second vehicle for nearly $17k, while only making $28k a year and hasn't even passed their probation period at the employer? With the info provided just in this thread, he's a job loss away from possible repossession and credit suicide. Nobody needs to spend that much on a SECOND vehicle, when they haven't had their FIRST job, especially making 28k.

    This is a terrible idea. But good luck.
     
    adrenalnjunky, Jeff350 and Boerseun like this.
  5. Jul 2, 2015 at 12:18 PM
    #25
    js312

    js312 Well-Known Member

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    No, you don't. As long as it posts on the statement, it's reported to the bureaus. That's all that matters. Pay it in full at that point. Carrying a balance does absolutely nothing but make you pay interest.
     
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  6. Jul 2, 2015 at 12:21 PM
    #26
    gefrorenertau

    gefrorenertau Speak German - will travel.

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    I agree on that.
     
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  7. Jul 2, 2015 at 12:24 PM
    #27
    js312

    js312 Well-Known Member

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    I was biting my tongue.

    I don't know where the OP lives, but in my area you'd be struggling badly on $28k without a large auto loan.
     
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  8. Jul 2, 2015 at 12:28 PM
    #28
    se7enine

    se7enine MCMLXXIX

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    I've heard to keep your balance around 30% on your credit cards.
     
  9. Jul 2, 2015 at 12:30 PM
    #29
    js312

    js312 Well-Known Member

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    Highest scores are 9% or less, and that's what reports on the statement. Don't carry that over and pay interest on it.

    A few sources on why not to carry a balance. Second one confirms that the bureaus only look at the statement amount:

    http://blog.credit.com/2012/06/will-carrying-a-balance-boost-your-credit-score-58972/

    http://www.creditcards.com/credit-card-news/leave-tiny-balance-monthly-score-1586.php
     
  10. Jul 2, 2015 at 12:31 PM
    #30
    mike2810

    mike2810 Well-Known Member

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    Join a credit union. They are generally more accommodating than banks.

    I also agree with other posters that getting someone to co-sign is not good for the one who does.

    Maybe your parents can help out with a good down payment that you can repay.
     
  11. Jul 2, 2015 at 12:41 PM
    #31
    Josh828

    Josh828 Well-Known Member

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    why doesn't op sell his current truck then only owe like 5k, which is totally reasonable
     
  12. Jul 2, 2015 at 12:49 PM
    #32
    Thomas Jefferson

    Thomas Jefferson Keyboard Warrior

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    One can never have too many light bars.
    I got my first big boy job in May 2013 and bought my Tacoma in June 2013. I had student loans that I was making payments on so I technically had some record of making payments on time. I had my first months stubbs and while the dealer was certain that I could qualify on my own I had my dad cosign just so they couldn't use the excuse of having a short credit history to charge a ridiculous APR. Also I'm more terrified of what my dad would do to me if I defaulted than what the bank would do. I would talk to a dealer about it. I know they are scummy but If they want to make the sale they will get you some sort of financing. Worst case you can refinance when you build a credit history. If you're dealing with a bank for a private sale I don't think there's any way that they will give you a loan without a co-signer.
     
  13. Jul 2, 2015 at 12:49 PM
    #33
    T4RFTMFW

    T4RFTMFW Well-Known Member

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    No need to bite the tongue. This person is horribly misguided.

    28k is $15 an hour. He says after his probation period his pay will raise. Not too many entry level jobs paying $15/hr pay you $25/hr after probation ends. So maybe he sees $16.50/hr afterwards, as a realistic scenario.

    Financing $16,500, if he's able to which I highly doubt, plus insurance on a second vehicle (or even a first if he non ops the truck) and gas, maintenance? He has spent half his annual income on a used car, and still has 3-5 years of payments before he owns anything.

    I am assuming he lives with his parents and hasn't a clue what it costs to be an adult, and is out of his mind if he thinks owning 2 cars while taking in $15/hr is even remotely approaching a good idea.

    He hasn't even started his job, and is planning on buying a $20k+ used, second car with interest added. Hasn't even gotten a paycheck yet or done a full week of work at the job.
     
  14. Jul 2, 2015 at 12:52 PM
    #34
    Glock2A

    Glock2A Member

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    Why do you need a second vehicle at all?
    I could understand if maybe you wanted a DD or beater if you had some gas hog, but most gas sipping DDs aren't in that price range.
    I also agree you also need more time at an employer, no one is going to take that risk on you at this time.
    While your letting time build with a steady job, be stacking cash into an emergency/oh s**t fund and let it build with a credit union so they see you have some type of funds to make a car note.
    Credit unions are more likely to give you something over a big bank.
     
  15. Jul 2, 2015 at 12:56 PM
    #35
    T4RFTMFW

    T4RFTMFW Well-Known Member

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    And at least 3 months of pay stubs. OP has zero.
     
  16. Jul 2, 2015 at 1:02 PM
    #36
    ThunderOne

    ThunderOne [OP] Well-Known Member

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    What is three lines of credit? Is that having three credit cards? Or what?

    No, I actually have a masters degree. Getting a job on a bachelors was difficult enough, so I went back and got my masters and just graduated in May. The company I work for now is promoting me and relocating me. However, I got a little too antsy so at this point instead of purchasing a car I'm going to build up credit and figure out my budget first.

    Interesting. I was planning to never have a balance anyways.

    I won't be making 28k a year. At the moment, this is a worst case scenario. After 30-60 days, I will be making 40k plus about 10k in bonuses and other income. This is still on the low end of where I want to be, since the cost of living in Nashville is high.

    At the moment the city I live in has a low cost of living. In fact, the median household income here is a pathetic 30k a year. Rent here is cheap.

    NEVERRR

    I am working at the company now and they are growing quickly. So yes, paying me $25/hr after my probation period ends is realistic since my job will be overseeing a significant chunk of the company's income and accounts.

    I know now that looking at purchasing another car was a bit optimistic. At this point I have applied for a secured credit card with USAA. I was told it would be six months before anything would even show up on my credit report. So by then I will know where I sit with my job, and with my budget, before I figure out whether or not I can afford to purchase another car. I love my truck and don't plan to sell it, I would like just to have something to gallavant around town in and not quite suffer on MPGs as much, and have a backup so that 1. I can SAS the truck and 2. if something breaks on it I won't be carless. Right now my truck is street queen and she misses the trails. If I do decide (or am able) to purchase another car, I will reduce the coverage on the truck since it will essentially only be used for hauling and trail runs.

    Many of you are probably baffled that my ability to understand anything about credit is limited, but unfortunately this is the case for many kids who go to college in a post-recession world. One class I think all colleges should require should be financial planning. But instead they make us take history, natural sciences and english/literature for our first two years instead of teaching us something useful.
     
    Last edited: Jul 2, 2015
  17. Jul 2, 2015 at 1:03 PM
    #37
    Yotamac

    Yotamac Well-Known Member Vendor

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    Stuff, stuff and more stuff
    OP This would be a horrible decision considering the circumstances... Take advantage of the input in here... You can seriously screw yourself in the long term with a bad short term decision
     
    Last edited: Jul 2, 2015
  18. Jul 2, 2015 at 1:06 PM
    #38
    Glock2A

    Glock2A Member

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    After your 60 days and you making all this money and not having any liabilities, why don't you pay cash money?
     
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  19. Jul 2, 2015 at 1:11 PM
    #39
    ThunderOne

    ThunderOne [OP] Well-Known Member

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    I may, it depends on what my budget is like. My grandmother purchased many of her tangible assets with cash. But she was part of the Silent Generation, so she was able to reap many economic benefits that I don't think I will. If my budget is decent enough, I would set a goal to pay for a car entirely for no more than two years. But at the moment it's not a possibility.
     
  20. Jul 2, 2015 at 1:18 PM
    #40
    T4RFTMFW

    T4RFTMFW Well-Known Member

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    The main difference in her generations ability to pay cash and our generation generally not being able to is the ability to save, struggle, and delay satisfaction and have a unshakeable work ethic.

    It's a car, not a mansion. Being able to pay cash should be a goal, not some kind of untouchable reality because various reasons.
     

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