No Credit History

[steeLh]

Yeah, so i'm 19 (going on 20) and don't really have a credit history unless having a savings and checking account counts toward building credit. (doubt it)

My question being, I'm looking at getting a new/slightly used car at the moment. How much do you think I could be approved for when getting a car loan? Or is there a better chance of me being denied?

 

[Jeff7181]

They'll just stick you with a high interest rate... maybe even want to see a pay stub as proof of steady income.

 

[Cdubneeddeal]

Not a chance without a cosigner.

 

[Capt Caveman]

Get one of your parents to co-sign the loan

 

[Jeff7181]

Originally posted by: Cdubneeddeal
Not a chance without a cosigner.

Nah... dealerships are desperate for sales right now... they'll find a way to get him a loan.

 

[steeLh]

I'm also thinking I should apply for a CC, and start using it to actually build up some sort of credit. I'm responsible with my money and saving it comes easily for me, I don't have to go buy everything up as soon as I receive a paycheck or anything. Of course If I tell the dealer that it's not like it's going to change anything.

 

[TruePaige]

Down payment + High Interest + Proof of Employment most likely.

 

[Jeff7181]

Originally posted by: steeLh
I'm also thinking I should apply for a CC, and start using it to actually build up some sort of credit. I'm responsible with my money and saving it comes easily for me, I don't have to go buy everything up as soon as I receive a paycheck or anything. Of course If I tell the dealer that it's not like it's going to change anything.

Credit cards aren't a bad way to build credit despite what a lot of people will tell you. What really helps your credit is paying off balances regardless of whether it's secured or unsecured.

 

[EagleKeeper]

Offer to purchase a truck/SUV.

That should peek any dealer's interest.

 

[Scarpozzi]

Get a cosigner. For future reference here's how to build credit history:

Magic number, 2 years:

How long have you been with your current employer?
How long have you lived at your current residence?

Aside from those two questions, if you pay utilities through the electric company and phone companies....they're sometimes better credit builders than credit cards are since they're expense accounts and not debt accounts. It pays to get a credit card and use it...to build good credit just pay it on time and have some kind of history for them to reference to show that you know how to put a stamp on an envelope or pay your bill online.

 

[summit]

easy. go to your local com college. get an id for some bs class. go to credit union. apply for a loan w/ your cc id.

 

[kranky]

Originally posted by: Summit
easy. go to your local com college. get an id for some bs class. go to credit union. apply for a loan w/ your cc id.

How in the world would a college ID mean anything to a credit union when it comes to giving a loan?

 

[bobsmith1492]

Save up and buy a used car.

 

[TruePaige]

Originally posted by: kranky

Originally posted by: Summit
easy. go to your local com college. get an id for some bs class. go to credit union. apply for a loan w/ your cc id.

How in the world would a college ID mean anything to a credit union when it comes to giving a loan?

It's a student thing, it's like how much easier it is to get a student credit card than a regular one when you have no history, being enrolled at college is a sign of stability to lenders.

Not sure if it would get you very far with an actual loan though. Never tried, so I'm not going to necessarily agree with the previous poster, though it does make it easier to get a student credit card.

 

[Beattie]

You should buy used, cash. But if you want to borrow money they will give you the cash and at the same rates. They will just want to see pay stubs and stuff to prove you have a stable income.

 

[TruePaige]

Originally posted by: Beattie
You should buy used, cash. But if you want to borrow money they will give you the cash and at the same rates. They will just want to see pay stubs and stuff to prove you have a stable income.

Oh gosh, don't you even join the thread. You were the ones that said people with no history get the same rates on major loans as people with 700+ scores.

 

[Xavier434]

Originally posted by: Capt Caveman
Get one of your parents to co-sign the loan

Just do this. It is what I did and I got an amazing interest rate (thank you Dad!). In addition, I was very responsible with my payments and the result was not only having a vehicle but also great improvements to my credit history or lack there of at the time.

 

[steeLh]

Originally posted by: Xavier434

Originally posted by: Capt Caveman
Get one of your parents to co-sign the loan

Just do this. It is what I did and I got an amazing interest rate (thank you Dad!). In addition, I was very responsible with my payments and the result was not only having a vehicle but also great improvements to my credit history or lack there of at the time.

Just curious, would this affect the co-signers credit as well. Lets say I started slipping and missing payments, would I be dragging them down with me? (not that I would do that to them )

 

[EvilYoda]

Originally posted by: steeLh

Originally posted by: Xavier434

Originally posted by: Capt Caveman
Get one of your parents to co-sign the loan

Just do this. It is what I did and I got an amazing interest rate (thank you Dad!). In addition, I was very responsible with my payments and the result was not only having a vehicle but also great improvements to my credit history or lack there of at the time.

Just curious, would this affect the co-signers credit as well. Lets say I started slipping and missing payments, would I be dragging them down with me? (not that I would do that to them )

That's the whole point, yep...if one of the parties falters, both pay for it as they're vouching for you.

 

[Night201]

Maybe look into getting a loan through a bank which does manual underwriting. That's how they check your credit without a FICO score. They will actually check to see what you make and what you owe.