I'm trying to buy a car from my dad - he told me to get a loan approved from a bank first. How do I do this?
Will this hurt my credit?
2006-12-03 14:40:03 · 8 answers · asked by Caribou2 1 in Cars & Transportation ➔ Buying & Selling
Getting a loan will hurt your credit, but may be good for it in the long run. Whenever a loan officer pulls your credit report it will negatively impact your credit in the short run. Think about your situation (credit, relationship with the lender) prior to asking for a loan, because if they deny you or give you lousy terms, the fact that you asked for a loan shows up as a negative on your credit report for subsequent attempts to get a loan. Also just having a loan will hurt your earnings to debt ratio, so if you are trying to get a car loan and a mortgage at the same time, it is better to lock down the mortgage first on the most favorable terms, before seeking a car loan, as the reverse will cost you more money on the mortgage. Good luck. There are much better sources to ask then Yahoo. The only caveat is make sure that the people you are asking for advice don't have something to gain by giving you bad advice or have a conflict of interest. If you bank with a local bank and you (or your dad) doesn't think they're dirtbags then ask them. If you even suspect they are trying to sell you a loan then you should be very suspicious. Don't forget that when a bank/credit union/manufacturer gives you a loan, they are not doing you a favor. The only reason they are willing to give you a loan is /c they think they can make money. There is nothing inherently wrong with that, but if deep down you know that you are not credit-worthy (young, no credit history, bad debts) then if someone give you a loan you are probably getting a bad deal.
2006-12-03 15:32:53 · answer #1 · answered by Anonymous · 0⤊ 1⤋
1
2016-09-26 06:31:25 · answer #2 · answered by Martha 3 · 0⤊ 0⤋
Local banks are the hardest to get loans from but they usually have the best rates too. A credit union is great. They have low rates like banks and are easier to get approved.Only problem is you need to be a member first. Now on line its quick and you shop a bunch of places in a short time. They can pre-approve you in minutes and some will issue you a check in 24 hours.Here you can get free quotes http://painintheexhaust.blogspot.com
Now your credit drops because your debt to income ratio goes up. As you pay the loan off your debt to income ratio goes down so your credit goes up provided you make your payments on time.
2006-12-03 21:19:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Loan
2015-05-01 05:05:11 · answer #4 · answered by sophia 1 · 0⤊ 0⤋
Walk into the bank and ask for A loan and if they give it to you and you don't pay it, YES it will make your credit bad
2006-12-03 15:29:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
simply go into any bank and ask a teller who you see for an auto loan. They will direct you to the person. If your approved it will help your credit (provided you make the payments on time). Make sure you take in a pay stub for proof of income and employment and proof of any other purchases you have bought on time. good luck
2006-12-03 14:50:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You go into the bank, speak to a loan officer, and apply. It won't hurt your credit unless you don't pay back the loan.
2006-12-03 14:43:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Don't ask me ask the bank! Start where you have your savings account. This will help your credit as long as you make your payments on time. Maybe daddy can co-sign the loan for you if necessary.
2006-12-03 14:56:50 · answer #8 · answered by Lou S 2 · 0⤊ 0⤋