: how do i get credit to refinance my car?
08-01-2006, 04:19 AM
well, when i went to buy my focus, they wouldnt let me put it in my own name, sinc ei have no credit, and also wouldnt let me cosign. so at the moment the car is in my grandmothers name(only person in family with good credit).
HOWEVER, just like 2 months before i got the focus, she retired. awesome. so they gave her a really bad rate(even still i got it used)... i think its like 12.3 or 12.9 or something. i pay about 270 a month with gap insurance, got the car for about 12k. 6 year plan. pain in the ass.
if they wont let me cosign, how the hell am i supposed to start getting credit? i' dont know anything about all this credit bs, i just know it sucks, and i need some. how do i start getting credit?
also...will it even help? if i like get some good credit then refinance in my name? or should i get the credit, then refinance while still cosigning with my grandmother..if thats even possible?
08-01-2006, 05:06 AM
get a credit card. then everything you HAVE cash to buy and plan to buy, buy it with the credit card then pay it off immediately. i'm biluding my credit right now because of basically a break up after 5 year relationship ruined my credit. that's one way to work on it. it will help alot. it's the whole catch 22 thing. you can't get shit w/o credit but you can't get what you need to build credit w/o credit already established. lol. that should help. it shows the companies that you stay on time and pay things off i'm gonna make sure my credit NEVER goes in the pooper again!! LOL
08-01-2006, 05:28 AM
Having a credit card helps but it also doesnt. I had a credit card when I purchased my car and had an excellent credit rating but still needed someone to cosign for me. When you are dealing with that much money I think they want to make sure your going to be able to pay it. If not you then atleast someone is. My dad cosigned and my rate is like 5 percent or something. Keep in mind the place went through the bank where my parents and I have our accounts so it helped a little.
08-01-2006, 05:41 AM
Open a bank account. Get a savings account.
It is good to have 3-5 open accounts (payments, incoming, credit cards, whatever).
I got a bank account and a basic credit card through my bank with a $600 limit to start. within 6 months I now have 2 cards through my bank, the limit is $10,000 on my second card (I left the first card open, never close a card...) and I just make sure to pay early or on time, ALWAYS.
I also got a Shell gas card/CC and use that for everything now. Pay it immediately.
My credit score went from non-existent to over 750 in about a year of doing this.
It takes time...
08-01-2006, 07:26 AM
^^^^ All good advice. I've found credit unions to generally be more liberal and flexible, and more "human" in their approach to lending etc. You might want to join one, establish a relationship with someone in the loan dept. and explain your situation. They often will have very good rates for re-financing so that you can get the car into your name and start building your credit history.
08-01-2006, 12:24 PM
Credit is more important that having money now days, I wasn't informed about it growing up either. But finally got able to buy a home and stuff. Credit = determines what you drive, where you live, and your monthly payments on EVERYTHING.
Its basically putting a dollar amount of trust in your word that you pay your debts ON TIME, those 3 day late payments you make hurt a lot. If that makes sense.
^^^ yeah true. Big thing is, as you mentioned Tim, DO NOT MESS UP YOUR CREDIT. It takes years literally before you'll be able to repair it, some cases never for some people.
Get a credit card, definitely, find one without a yearly fee and pay it off EVERY SINGLE MONTH COMPLETELY. Also you have to USE a credit card to actually get a benefit from it, just owning 20 credit cards with no balance, no use doesn't raise your credit rating much, but use those cards, or one or two of them, pay them off each and every billing cycle completely, like NO left over balance and your credit rating will go though the roof.
08-01-2006, 04:40 PM
"just owning 20 credit cards with no balance, no use doesn't raise your credit rating much"
Yup. And it actually can hurt your credit rating due to having too much potential credit outstanding, e.g., if you have too much open credit, a new lender (such as an auto loan) may be concerned you could spend a lot after they make the loan and get yourself into excessive monthly payments.
As prior posters noted, get at least a couple credit cards, use them for as many routine expenses as you can to get the usage up, and pay them off promptly every month. If you are late even one day, it will be a very, very large black mark against you, since you do not have a big credit history. Don't take any chances and mail them the monthly payment the day you get the monthly bill.
And take some time to read this stuff:
08-01-2006, 05:46 PM
it will take a while to build credit but a card is a good start and talk to the bank to see if you can get a new loan for the car w/o her on it ( that will help on the next car since u are doing it alone) talk to other banks or credit unions in you area and ask what you options are they know everything about this stuff and how to set you up good for the next car, this car might be a bullet you will have to bite for a while but plan ahead!!!!! i have some of the best credit the dealer has seen in a while and i got 4% on a used ( yes i got it when rates were down ) but i had a bad payment on the first truck i bought i think like $327/ 60 mounths
08-01-2006, 08:10 PM
As mentioned earlier, see if there is any credit union associated with the place you work. Often a work-related credit union will have looser standards and better rates for their members. You will have to become a member and have a saving account, but usually the minimum required is quite low, e.g., $100 or so.
08-01-2006, 08:16 PM
Originally posted by jmotank
get a credit card. then everything you HAVE cash to buy and plan to buy, buy it with the credit card then pay it off immediately.
exactly what i did, im 18 and i have had my credit card for less than a year and i have a credit score of 420 or higher, well i have 2 cards but car dealers call it a "cheater credit". To them its whatever gets you out the door with a couple of grand in there pocket
08-02-2006, 02:42 AM
awesome guys..thanks for all the quick help