Credit Union and Financing

Minsu

only just got approved last week for it soo...yea cant say i havent been trying.
and in terms of the credit union thing not my area of knowledge so i have been hesitant of joining one? anything else dad?

cheshirecat

People are taking time out of their day to help you. The last thing you need to do is give them a hard time.

As others have said, you need to get yourself a credit card and use it to buy some random crap for six months. Keep a balance of approx 15% on the card and pay off the rest.

Lenders fear "ghosts" (people with no credit) more than they do people with bad credit.

Get yourself on the books, then check out credit unions around your area. You won't be eligible for membership in most of them, as many are tied to your place of employment, but you may find a few that accept members based on where you live.

Credit Unions differ from banks in two ways: they're non profit, and any account holder who deposits money is an "owner" of the credit union rather than just a customer.

As a result of these things, rates on both deposits and loans tend to be better. The customer service is also usually better, and loan officers are more likely to take into account the content of your character along with your financial status when considering a loan.

In my opinion, take that money you've saved and put it into something that is going to make money rather than lose it, but that's not going to happen, so get yourself a credit rating and save yourself some money.

Going from 8-10% to 3-4% will make a huge difference in your monthly payment.

ElVee

For my first car coming out of college, I needed my parents to cosign, otherwise I wasn't even going to get financing, let alone a halfway decent interest rate.

Fast forward over 10 years, and I have a better job and credit position such that I can get something on my own.

You should get the car you want, and a Z will likely make you very happy. But don't bend over backwards to make your first car a Z if it locks the rest of your life up with little extra spending money. You may actually come to resent the car for it. Just a little warning.

Don't forget to check out insurance rates, annual registration costs, gas costs (estimated), and regular maintenance costs (~$80/oil change alone?).

A new car at your age might be an awesome thing to do, but it also might be the worst mistake you could make, financially. So I applaud the questions and caution. And please drive with care. Ruin your car in 2 years, and you're basically bent over for the next 10, with nothing to show for it. This is why powerful, sporty cars are not for every young adult, and why insurance rates are crazy.

And nothing beats just going into a bank/credit union and asking to talk to someone. If you don't feel like they're going to help you out much, look at another one. It's in their best interest to put you in the best possible position for success.

dP3NGU1N

Then what's the point of asking for help if you're not going to take anyone's advice anyway? You're wasting your time and everyone else's.

Noone's answer has changed. nothing revolutionary has happened in the last 6 months where your credit magically materialized. If you've been sitting on your hands for the past 6 months how is asking the question a second time suppose to yield a different answer? Go back to your old thread and re-read it, those suggestions that everyone took the time to post are still valid because you haven't DONE anything.

Minsu

i am taking their advice like i said I JUST got approved for the card and can only start with my credit now and in terms of credit union i only looked at one place locally and have been hesitant because im not familiar with it and ive been researching. Ive also been working to get the DP as hefty as i can and so i can finance the least amount.

thread wasnt titled can you criticize me

asked about specific financing and credits unions that might be able to get me that loan not what i should do about it

so calm ur nipples skipper

asdfsammich

What's a DP?


Tapatalk2 ...

Z_ealot

something that happens after to many shots and not enough common sense left to make the right choices lol

oh yeah forgot we were talking about financing, so in this case i believe it means Down Payment

asdfsammich

ROFL!!


Tapatalk2 ...

Jordan11b

aneca federal credit union is a local one for me, they are really at approving people with little credit. I'm guessing u have a job?

TripleBlkZ

Most lenders will base their approval on 3 things;

-debt service = income to bills (monthy payments)
-credit (0 in this case)
-equality (security)

In you case I presume since you have no credit you will have very little bills and hopefully a job so you total debt servicing would be low, you have ~50% down payment so the lenders risk would be low case they could always repo and have room to get their money back if they sold the car.

The third is credit, prior to he big credit melt down you wouldn't have a problem with 2/3 now days I think in your case you will still be fine but don't be surpised if your rate is a bit higher then you expect or they ask for a cosigner.

Keep in mind lets say you get a rate of 13% instead of 8% that's only 5% more a year which is only ~$750 more interest a year or $65/mth more interest. Also then carrier the loan for a year to build your credit and have the bank rewrite it next year with established credit into a lower rate loan.

*sent from my IPhone pardon the spelling errors.

Minsu

yea i got a job just to pay for the car, i have no other expenses. Im gonna pay the car in full in less than two years that the plan im gonna pay 750-800 a month.
with 13-15k down i need 13-15k finance so i can walk in the dealership will full cash so they will be at my feet. thats the plan. would it be smart to get the loan put it as DP then use my cash to pay off the loan? would that not be the smart thing to do.
or just go in full cash and pay the loan afterwards?

Ipl 370gt

TripleBlkZ

Quicker you pay down the loan the less interest will be added on. So for and example if you loan is 15k and you save the money to pay it off in 12 months and do it as a lump sum after 12 month you would have paid interest on the 15k about. Now lets say as a example you are banking 1.5k/mth even in a low interest account ~1-2%/yr but paying 8+% on the loan you are losing the difference. If you take the 1500 and slap it on the loan you now have it pay down that much and when the interest is calculated (most likely a daily calculation) it down with the lower balance so less interest is charge.

Example only numbers are not correct;

15k @ 8% may be $200 interest
13.5k (1500 extra payment) @ 8% may be $150 interest per month

Now compound that extra payment over 12 months and you would be cutting you interest by a decent amount then bankin the money and putting a lump sum down.

Also keep in mind you loan agreement has to allow over payment and early buy out so confirm that before signing. And let the loan run at least a year to build your credit even if you have the money to pay it out. Most financial company's like to see repayment history on your credit not just getting a loan an paying it off in 3months that meaningless for building credit.

TripleBlkZ

Also only get the loan for what you need minus your down payment. In your case looks like will be 30k or 15k loan. 30k might be harder to get because the finance company is now fundin 100% value of car they don't care if you can drop money on it later.

And keep in mind 30k loan will be a ~$500 monthly payment and will all be that unless you rewrite, the lump sum after the fact wont adjust you paymentunlike a 15k which might be only $250/mth

TripleBlkZ

IMO take the lower payment and over pay as you can. You don't want to be stuck with a 700/800 a month payment that you have to make because you signed up for that. Things maybe be good now but 2 years is a long time and what I something happens that you lose your income. It's easy to make a smaller payment with option to over pay the having a large payment and have that unknow risk of now be able to make it and lose the car.