Im a 23 year old male from NY. I recently have been trying to apply for car loans and credit cards - to NO avail. I just recently have set up a S/CH account with Commerce Bank (1 month old), and wanted to buy the car through them. I have no credit history whatsoever (except for the strikes against it for applying for a few cards). I am completely aware that im a 'risk'. I also understand how badly im going to be raped for the rates etc. What would be the best, fastest, etc. methods of attaining a 20,000 car loan?
2006-08-04 18:23:50 · 5 answers · asked by DFGNDFTW 0 2 in Cars & Transportation ➔ Buying & Selling
Hold a job and pay taxes for a year. Save some money so you have an average balance each month in your s/ch account that is growing. Put some utilities in your name -- things like a cell phone and cable TV.
Debtors are looking for income-to-debt-service ratios. A car payment should not exceed 10% of your gross monthly income. Let's say payments on a car will run you about $400. You should be making at least $4,000 gross per month to service that debt load. (Debtors figure you'll need the other 90% to pay for housing, taxes, and other living expenses.)
Without stated income on a tax return to demonstrate your ability to service the debt, a parent or someone else who is willing to co-sign can probably help get you into the debt more easily.
That said, credit is readily available. Generally you need to be careful to stay away from the offers. If you have the income to support the debt yet are not able to get anyone interested in extending credit to you, especially for a car which has collateral value, then you should seriously look into the reason why. Get a credit report and see what's dragging you down.
2006-08-04 18:49:52 · answer #1 · answered by tke999 3 · 0⤊ 0⤋
1
2016-09-26 13:58:10 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Forget about Commerce. Put your money into a credit union. Credit Unions give pretty decent rates to risky people. Not to mention they have free checking and good savings rates.
2006-08-05 03:55:00 · answer #3 · answered by jay 7 · 0⤊ 0⤋
talk to your folks, explain that you want to take out a small bank loan to start building your credit rating for the future. Maybe they could forward you half the amount and stand as guarantors for the remainder?
2006-08-05 03:26:58 · answer #4 · answered by XT rider 7 · 0⤊ 0⤋
I just got one.. go to lending tree.com , fill their on-line application and different lenders will send you their rates.
Stay away from e-loan. they are killers when it comes to rates.
Also if you can open a checking account at credit union.. you can get loan from them.. and usually they will give you the best rate that fits your status.
Good luck
2006-08-04 18:29:14 · answer #5 · answered by guy_from_there 3 · 0⤊ 0⤋