Used Car Auto Loan
Getting an auto loan on a used car with a short credit history?
I am saving up to buy a decent used car. I will be 20 this year and I have one credit card which I have had for a little over a year now. I just checked my credit score and it’s 750. I realize that this is a pretty darn good score, but I am worried that because my credit history is short, I might not qualify for a loan or might need a co-signer.
I would appreciate any advice regarding a loan from anyone who has experience with this or knows how these types of loans work.
Thanks!!
Also, my parents WILL NOT cosign for me, so this is not an option.
And because having my parents cosign for me would not be an option, who could I get to cosign for me? Do they have to be related to me to cosign?
There are so many great used cars for $3000-$4000 that if possible I would work hard to save up and pay cash. Also cars in this price range generally don’t depreciate much at all you could save up and when you have the cash upgrade to a better, more expensive car. Always though, no matter what, have a mechanic approve before you buy.
As far as needing a co-signer at your age given a credit score of 750? There are so many banks why don’t you call around and see what they think? You might find that your best bet will be with a credit union. Car payments are the mantra of the middle class though. Most people always have a car payment which is really a tragedy. What I do is pay cash and from the moment I drive the car off of the lot I start saving monthly for my next car which I again pay cash for. That way instead of paying interest on the car loan I’m earning interest for saving on my next car. Good Luck! May the road rise up to meet you!