Getting approved for finiancing?

[LudeRoca]

Anybody here finance a used car before. I'm looking for a Prelude basically. Accept a 5 spd. But i only have $4500 to drop. So i was thinking about financing one around $8000. I'm 20 and i've had a credit card for over a year now. I'm just wondering if anybodies gone through this before and how hard it is to get approved for it.

[max_boost]

It shouldn't be too difficult providing you have a job and a credit background. Worst case scenario is you need a co-signor if this is your first time. Since your finance amount is around $3500, most credit card companies offer competitive interest rates, you could just borrow straight from there.

[403Gemini]

get a student line of credit.

[FiveFreshFish]

Originally posted by max_boost
Since your finance amount is around $3500, most credit card companies offer competitive interest rates, you could just borrow straight from there.

Competitive? Most credit card companies charge about 18.5% on cash advances! :eek:

[max_boost]

Originally posted by FiveFreshFish


Competitive? Most credit card companies charge about 18.5% on cash advances! :eek: There are some lower rate ones out there like BMO which is 7.9% on advances. Actually, I believe most banks have a low rate option on their credit cards, you just have to pay a yearly fee which is like $50 depending on institution. Or another alternative is to sign up for one that is offering a promotional rate like 4.9% for 6 months. I'm presuming that it shouldn't take too long to pay down a $3500 loan?

[sxtasy]

Try starting at a bank first off. Stay away from such places as Trans Canada Credit, or those car dealerships that "finance everyone":rolleyes: those places usually charge 20% + for financing.

[core_upt]

Go to your bank first. Provided that you have a job (and have had it for awhile), have a steady place of residence (ie if you've lived at home your whole life or didn't just move out), and haven't fucked up your credit in the past they should aprove you for either a loan or a line of credit. The interest will be prime+1-2%; way less than any credit company.

[Mckenzie]

Student Line of Credit= 5.25%.

No principle until you graduate....only interest. :)

[MerfBall]

Originally posted by max_boost
Or another alternative is to sign up for one that is offering a promotional rate like 4.9% for 6 months. I'm presuming that it shouldn't take too long to pay down a $3500 loan?

Ususally these sign up promos is for balance transfers only. So you could put the rest on a credit card and then do the balance transfer, but that's risky and most likely won't work considering you have a short credit history and will be debt heavy with the existing credit card load and will not get approved on the new card.

[QuasarCav]

yeah, stay away from roadsport, I asked the guy what his rate was and he said I would probably be better off buying the car on my carappy tire card. Int rate 25.99:( .

After that I applied for a loan and got turned down, so I applied for a bank card. Int rate 7.99:)

Most banks won't want to give you an unsecured loan on a used car. In case you don't pay back the loan the bank isn't going to get as much cash back on repo for a used car.

So go for a CC, preferably from a bank.

[xrayvsn]

Look into a line of credit at the banks. As a student, you may be able to get a modest one that charges interest only while you are still in school.

Most banks will require a co-signer - ie. your parents, so that may not be an option for you, depending on your circumstances.

[Redlyne_mr2]

A consigner is not always needed if the bank is in an equity position with the car. Imo credit unions are the best institutions to deal with when obtaining small loans, they treat studetns great as well