6.8 % on a 8k car, how shitty of a deal is it? With option to fully pay the car off without penalty. I want to be a good goy and build up my credit.
It's not great, but if your credit is shit-tier and you've got plenty of income, go ahead and do it and make double payments. You don't want to shit an extra thousand bucks down the drain just to build credit.
If your credit sucks, go google "improve my credit score" and work some other things into your habits (e.g., use your credit card instead of cash/debit; open another credit card but don't use it; make sure that you aren't closing old accounts; pay everything on time; etc)
Ive never missed a payment. It must be this. >>14328214
I am currently working kind of a low paying job, while interviewing for a higher paying job in my major. My current car is going to shit the bed any day now and I need a reliable DD.
By the way, whats the difference between FICO score and what the dealership is, because I looked my Fuck score and it says I have 760, that must be only for my credit cards then. My student debt must be buttfucking me in the other financial score.
>taking a payday loan ever
sweet jesus it's one of LPGs customers
dude i got 3.25% with crazy debt and under 700 score. this dealership is trying to fuck you. mine told me 7%. sales manager said he could do 4.5 when I laughed in his face.
easiest loan of my life.
Sat my ass in an office for 4 years. When I deployed, I just sat in an office in a different country. Most dangerous thing was I might spill hot coffee on myself. No one ever said you needed to choose a combat job.
Well let me give you some perspective OP
With average credit (a FICO of roughly 650) with no serious negative marks on your record, teh 'average' rate on a newer than 10 years old car loan is 10-12%
Fair credit is 7-9%
Good credit is around 4
Strong credit is less than 4
6.8 is pretty decent in the grand scheme of things, but i would recommend checking out the credit union options in your area and shooting for something closer to 4-5% if you can.
A ~7% loan with no early payoff penalty isn't terrible though, if you are looking to build some credit
yo LPG, long time reader, first time responder: do you de-trip to shitpost with the rest of us, or do you only post when summoned?
I'll second CreditKarma. It's a great site and they actually will show you offers on there that you're likely to get, like auto/personal loans and various credit cards. I convinced my ex to sign up and she ended up with a Discover card with a $9k limit and decent interest rate. You can also try lendingtree.com for auto loans.
From force of habit, I almost always post with my trip anon
I will third Credit Karma. Great place to get your feet with with figuring out your credit
tell them your looking to explore other credit options.
When they ask who, say credit union... finance guy will say oh well it just happens that we are an authorized branch of the union let me just run the numbers with them
Banks are more hesitant to finance older cars because:
1. One of the major reasons a new car has better rates than a used car is that a new car's resale value is easier to predict. Imagine you're the bank lending money; you might need to repossess the car someday. If it's a new car, you can easily estimate how much it will depreciate over time. That's harder to predict when the car is several years old, has thousands of miles on the odometer and could have mechanical issues, as well.
2. Credit scores are another reason why new cars have lower rates than used ones. People with higher credit scores tend to go for new cars, while those with lower scores pick used ones. That isn't always the case, as we know that many people with high credit scores buy used cars. But generally it's true, which is why lenders tend to offer higher rates on used cars. After all, a lower risk of repossession means lower interest rates -- and the risk of repossession is much lower with new cars.
Older the car is, usually the higher the rate will be, as an older car represents a higher risk
But that isn't to say you can't get a low rate. My wife financed her '05 Honda at 4.5 with her credit union
It is always to your benefit to shop the financing offer around
You can go to your bank or other banks. Be sure to bring a copy of the deal/pricing worksheet so the bank knows exactly what you need to finance.
You can also just ask the dealership finance manager to show you your actual approval -- my dealership "holds" 2 points as dealer policy and works down from there. Your buy rate may actually be 4.8% and they're trying to make a few extra bucks on you.
Ask which bureau they ran for your initial credit app at the dealer, and what your approval was based on.
It doesn't matter if you have a 752 Transunion if the bank going to give you a loan only bases off of Experian or Equifax.
I see that my Equifax is poor because I had tons of inquries, but that was because I was applying for law enforcement positions, and they for some reason required me to access my credit record. Fucking hell.
-You have to have it to get a mortgage
-You have to have it to get a car loan
-It affects your insurance rates
-It affects your ability to get public utilities like water/power/gas
-it affects your ability to get any contract based service like a cell phone, cable, or internet
-Many employers now pull your credit before extending a job offer
-Almost any decent apartment complex will pull your credit as part of a rental application
-Good credit gives you access to some kick ass perks and buyer protection options via credit cards
They use different formulas to calculate your score. It's possible one of your open accounts is pulling the average down far more on the Equifax formula than the transunion one
Ok so the checklist for tomorrow is;
1. Print off the Credit Karma report
2. Stop at my bank and ask for preliminary car loan print out through them
3. Ask the FM what credit bureau he used and what my actual scores came out as
4. Demand a lower percentage
i mean dear lord man its all online and their worst rates are better than what youve been offered.
stop being dumb. im serious. their rates are online you are doing yourself a disservice.
they even have unsecured loans for bikes and shit.