My credit is only 4months old and I have a score of 587. If i do happen to get a loan and it has high interest rates once I've built up my credit enough will I be able to refinance for a better interest rate. I was also thinking about asking my mom to cosign. However at the moment she isnt working do they only use her credit score or do they also go by her job and stuff like that?
2007-01-07 10:29:33 · 4 answers · asked by LusciousLady 2 in Business & Finance ➔ Credit
The best advice I can give you is to pay cash for a very used car and save more cash to upgrade later. In the long run, this will be much easier and less stressful to you.
2007-01-07 10:35:54 · answer #1 · answered by KC 4 · 0⤊ 0⤋
Take $500 or so and put it in a checking account, then request a secured loan from the bank. Once approved, they will deposit the $500 loan into your account. They will hold the full original $500 until the loan you get is completely paid off. You can request that the loan payments be automatically drafted from your account. Also, you want the loan term to be for 6 months. They will also ask you what the loan is for. I told them that mine was for school books.
You will probably have to put about $50 into this project to cover interest and loan application fees, but when you are done your credit score will increase dramatically. Just don't spend the money they loan you.
2007-01-07 13:52:22 · answer #2 · answered by Smart1 3 · 0⤊ 0⤋
You will pay a higher interest rate with a score below 600. Your mom will have to have a job in order for her to co-sign for you. The banks really get you when your first trying to get started. I remember when I first tried to get a loan at 18 years old and they said I needed credit history in order to get credit. I said, how am i'm going to get credit history if you don't give me credit! Its just a big circle. Check out www.roadloans.com for car loans and also www.lendingtree.com offers pretty good options.
2007-01-07 10:37:19 · answer #3 · answered by NCSMALLBIZ.COM 3 · 0⤊ 0⤋
If you're eligible for credit union membership, that's an excellent place to get as good a rate as you can, and they're often a lot better about refinancing. Credit unions are not-for-profit membership organizations open to anyone who has a particular connection to them, e.g., lives in a specific community or goes to a particular school or has a certain occupation. If you don't know whether there's a credit union you can join, go to the following site
http://www.ncua.gov/indexdata.html
to find out what's available in your area and call some, or check your yellow pages for names and numbers.
2007-01-07 10:39:18 · answer #4 · answered by Anonymous · 1⤊ 0⤋