I'm 22 yrs old and bought a new car last year I doubt that I had much credit at the time but I still got?

Question

approved for the loan with no problems. Does that meant that I have good or at least decent credit?( the car I got was 2006 kia Rio and I pay $280 a month if any of that matters)Now I plan on trading my car in at the begining of the year and I do have more forms of credit and have been pretty good about paying my bills and car loan on time so could my credit have possibly gotten better? and would I have a better chance getting a car that was a little more expensive? I know that nobody on here can give me a definite answer without knowing my credit history but I was just wondering if anybody new a little about credit and could tell me something.

Answer 1

It is not a simple answer. If you have been doing a good job paying all your credit, then it may have improved, but if you have been extended too much credit (regardless if you are using it), it could have a negative impact.

Answer 2

I don't see from this why you expect to have a problem with financing.

I am concerned for you because buying a car every year or two burns cash at a high rate. You are on your way to credit problems in the future. Drive a car that is a bit less than you can afford and keep it for seven years, at least. Use the money to build up a cash reserve. Life without car payments is sweet.

Answer 3

you most likely have negative equity on the car - it's probably worth less at trade in than you owe on the loan. If you trade it, that negative equity will get added on to the loan of the new car and you will be paying even higher monthly payments - could be $1000's of negative equity - you might want to change you mind about trading in

Answer 4

You can request your credit report once a year for free from the credit reporting agencies.

Answer 5

It can be done, but you are putting yourself deeper in debt. Do you really need another car or just want it? Financially, you'd be better off keeping what you have much longer.