Car loans...

[oldford]

This is my first post here, but I felt like I needed to jump in here. I might be the odd man here, but I say forget the credit cards & forget the car loans. It sounds like you already have a decent amount saved, so either buy a car for what you have saved, or keep saving, but either way pay cash for your car and enjoy owning it outright. At 22 you are in a great place to not fall into the trap of credit. You don't need credit to survive in this world.

If you haven't heard of him, listen to a radio show or two of Dave Ramsey and it just might change your life
- Dave's Radio/Video Show - http://www.daveramsey.com/show/home/
- His 7 Baby steps he uses to help people win their life back - http://www.daveramsey.com/new/baby-steps/

That's what I was planning on doing. But then think about being 30 and trying to buy a house with no credit.
So I went ahead and got a truck that fits in my budget.
I have an awesome truck, the payment is like 3-4 days pay a month. And I'm building credit for the future. I hoping it all comes full circle, we shall see!

 

[freedom]

That's what I was planning on doing. But then think about being 30 and trying to buy a house with no credit.
So I went ahead and got a truck that fits in my budget.
I have an awesome truck, the payment is like 3-4 days pay a month. And I'm building credit for the future. I hoping it all comes full circle, we shall see!

Vehicles and shelter are capital investments and legitimate things to borrow money on. I've had two car notes, both paid off, and a mortgage. The last two vehicles I've bought were paid for with cash. Life s a lot easier if you learn to play the system for your benefit, not theirs. Me and the wife both have one credit card each, both get paid off in full every month, if they even have a balance. Sounds like you got a good head, just don't ever borrow for lifestyle. Kudos on ignoring the free sweatshirts and water bottles at the tables at the campus bookstore and student union. I know what a circus it was down there in 94, only imagine it's worse now.

 

[Vintagefisherman]

I know this sounds weird but if you have state farm insurance you can get a loan thru them and they give you free upside down loan insurance( you owe more than the car is worth) and if the car is totaled they will pay deductible

 

[woodstock]

Good advice on not taking loans for cars, save up and pay cash, and never do it for toys like motorcycles, boats 4 wheelers.

 

[pickensnwga69]

Join a credit union if u payedpower billon time they will see it the may want u to do a secure loan i did it when i was 20 i turned 23 today and my credit is good now

 

[Kaikias]

Vehicles and shelter are capital investments and legitimate things to borrow money on. I've had two car notes, both paid off, and a mortgage. The last two vehicles I've bought were paid for with cash. Life s a lot easier if you learn to play the system for your benefit, not theirs. Me and the wife both have one credit card each, both get paid off in full every month, if they even have a balance. Sounds like you got a good head, just don't ever borrow for lifestyle. Kudos on ignoring the free sweatshirts and water bottles at the tables at the campus bookstore and student union. I know what a circus it was down there in 94, only imagine it's worse now.

You'll be happy to know:

A new federal law passed May 22 as an amendment to the Truth in Lending Act prevents credit card companies from offering college students incentives to sign up for credit cards on or near campuses, or at events sponsored by or related to universities. Titled the Credit Card Act of 2009, the law also requires people younger than 21 to get a signature from their parent or guardian before they can be issued a credit card, and colleges and universities are required to disclose details of deals they make with credit card companies.

 

[gh00747]

lots of GREAT input guys, and GSU has changed a TON!!!

 

[aloo1]

Do not just pay the min on your cc. Pay it off unless you like giving the cc company your money in the form of interest. Your credit score will not be affected by you paying off your balance. It will how ever go down if you use your card and then just pay the min. to a point to where your balance gets close to your limit. Up until my new position this past July, I approved lending for the credit union I work for all day long and looked at credit reports all day. In your case the only reason you would be declined is limited credit history or depending on what your income is (high debt ratio if it's not enough to cover lifes obligations). By getting a card you are on the right track to building positive credit. Paying for everything in cash will make it pretty hard to get a home loan later in life. I'd advise you to take the lowest rate you can get approved by someone, and if you can get a strong cosigner the better rate you will get and more likely get approved, and then in a year refiance to a lower rate somewhere else and drop your cosigner as long as you can make the payments on your own. This will help build positive credit. Also if you can find a CD that has the same rate your auto loan has (unlikely now a days) and your have the cash to pay for the car out right, open a CD with your cash and also take out the auto loan. Your interest your earn on the CD will cover the interest you pay when financing as long as the terms(time til maturity) and interest rate match each other.
If you have any question pm me. If you know around what your credit score and your cosigners score is I can tell you what rate my CU would offer you and what terms and how much you would end up paying in interest etc so you can have an idea of what to expect when you go car shopping. (I know not exactly the info you want to give out to a stranger but you're too far away to come into my work to meet me but again understand if you didn't want to share the person info.)
Good Luck,
Alan

 

[Bass Akwards]

TO the Op, I understand you are wanting to build your credit up to eventually by a house. Do your self a favor and do not open up a credit card, CC's hurt way more scores than the help. Credit card companies and their employee's are evil people that could give two ****s about you they are only in it for themselves. One hiccup and they hammer you hard. I have been through that misery and will NEVER EVER go back. There are reasons why they give free sky miles, "cash back" and a sign up gift etc.
You should start off building your credit with a vehicle purchase to help get started building your credit score. I would finance a lesser vehicle that would have easy payments that you could possible even pay off early while you begin to establish a great credit history . Yes, the bank, or dealership is going to sick it to you hard on your 1st loan (interest wise) hard until you have built a trust worthy credit score, you want to take that ****ing on a small loan to start off. I also recommend Dave Ramsey's views on CC's, But I do not agree with a 0 fica score, not everyone is a millionaire and can pay cash for everything.

 

[dbienfait]

You should get a few quotes, I got quotes from Suntrust and Georgia's Own Credit Union... off the bat Georgia's Own was better at 4.0% but I went back to Suntrust to see if they could do better and it got me a 3.8% loan. If you have good credit make the banks compete for your business