Applying for an auto loan?

I just turned twenty two months ago and I'm looking to get an auto loan for $35,000. My Fico scores are 715, 720 and 723, but I only have two credit cards and the oldest is only one year old. Even though I have no bad history and nearly perfect credit scores, will I be able to get approved with such limited credit history and no other previous loans? (I am able to afford a 550-600 monthly payment). Is it worth trying to apply for this loan or should I wait another year when I have more credit to my name?

Applying for an auto loan?

Auto finance is what I do for a living and auto loans are based on the following factors;

1. LTV (loan to value).

2. Term of loan.

3. Age of vehicle.

4. Miles on vehicle.

5. Down payment.

6. Time on job.

7. Time at residence.

8. Monthly income before taxes.

9. Credit score/profile.

10. Total debt to income ratio.

You have not been in the bureaus long enough even for a computer to buy this deal most all major lenders require 3-5 years in the bureaus and 4-lines of credit including at least 1 installment loan paid 12 times for no less then $150.00 a month.

You have what we in the car business call a thin file, your score is great but there is nothing there to support the score except 2 credit cards.

People that think score is everything simply do not understand how credit works.

Get one of your parents to co-sign this time and next time you will not need them.

Applying for an auto loan?

Apply for the loan. You will probably be pleasantly suprised.

Applying for an auto loan?

the problem isnt so much about credit nowadays, its about income. people were buying stuff on credit and had little to no income and they ruined it for the rest of us.

im going out on a limb here and saying that you will probably need a co signer because of your young age, but i could be wrong. if you can prove income for two years and prove limited liabilities, they may just go ahead and give it to you

Applying for an auto loan?

Most lender base your allowable payment to be 12-18% of your total gross income, some as high as 50% in special situations. With little to no high credit you will be a risk to a human buyer, but if you can get the dealership to submit you to a lender that has a computer that buys your score instead of your history, then you should be good to go. Good luck and feel free to e-mail me with any questions. I do auto financing.

Applying for an auto loan?

Hi, you would get the loan, plus if it is your first car, and have not had previous insurance, that might be a little high, depending on the type of car, and the dollar amount of the car, will depend on the insurance amount. You could save alot of money if you bought a certified used car, say one year old. As they say when you drive a new car off the lot, it will lose value. Many car dealers are hungry for customers, so you could get a great deal. There are I think three sticker prices, The manufacturer, the dealer, and the one they try to give to you. I think it also has to do with the state you live in. I think the dealer usually has $3,000 to play with, so if you act at first you really like the car, then step away and look at something else, then come back again, and tell the salesman, you want to think about it for a while, but still stay in the lot, the salesman will be bitting his nails. But do not let them scare you by putting a pen in your hand, trust yourself, but do not go overboard, think about the next 12 months, can you keep up the payments, insurance, maintenance, etc. I am sure you know what you are doing, but just in case you need a few pointers. As far as financing, it is better to get your own from a credit union or your own bank, but if that is not an option, then see what they have to say, it is ok to wait a day or two to see how you feel in the morning, really think it through, and good luck, you will be happy in the end. ps, don't forget the gas prices.

Applying for an auto loan?

Go for the loan. Especially if you have good income.

Applying for an auto loan?

here are some options for auto loans

http://www.insightempire.com/Autoloanqui...