Long story short. Im 20 years old, Ive had a cc for a about 3 years now that i will put general purchses on and for the most part pay it off every month, i have never been late. Ive had a job since i was 15 and manage my finances well. Ive been employed at my job for a year or so, so my employment history is there and good from what i can tell. I usually like to buy my cars / toys in cash, as i have the thought process of if i cant buy it in cash, i cant afford it. Anyways im looking into a new a car and can just about pay for it in cash, but i figured. hey why dont i start building my credit as it seems you need it for everything these days. went to my credit union and anyways got declined due to not enough credit history, with my application i gave them every pay stub for the past year to show proof i am more then capable of making payments, i also sent in my savings account info with proof i had enough cash in the bank, and they still told me to get lost. Anyways i own my car and my bike, i dont like to sit on toys that long as i get somewhat bored easy. Is it smart to get an collateral loan as they suggested i look into doing? or are there any other suggestions? no i cant get a co-signer. is it really that hard to start building your credit with this economy? /rant
collateral loans
- Thread starter JJackson
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Hmm that's odd. I work at a credit union and just suggest you try another one. If you have the cash to buy it almost outright and the income to make your payments you should be able to show that and get a decent interest rate on a loan for the car.
usually on a car loan the car you are paying for IS the collateral.
You need to pay off several loans to build up your credit. Revolving credit is only a portion of your score.
I would offer to put down a considerable amount of money and if they still won't give you a loan I would be very surprised.
Maybe only finance about 25% of the vehicle?
I would offer to put down a considerable amount of money and if they still won't give you a loan I would be very surprised.
Maybe only finance about 25% of the vehicle?
When I started out I took out CD secured loans... I did 4 overlapping ones at the same time with different banks.
I'm not sure if this still works or not, it might be worth looking into as a way to build a solid payment history. :shrug:
I'm not sure if this still works or not, it might be worth looking into as a way to build a solid payment history. :shrug:
ive thought about doing this, but wanted to search out all options before i had to do "whatever it takes" to get one. i want to get the loan for the full amount and then just make a few large payments and have the car paid for, so therefor it helps out my credit score. seems like i still have a considerable amount of research to do before pulling the trigger. thought it would be an easier process then what it has been. figured i could just go in apply, show them pay stubs / bank statements, they would pull my credit score (no big deal), and i would be on my marry way to building more credit. i guess someone had to rain on my parade. im starting to realize cc is only a part of my credit score, but how is someone my age suppose to build up other parts of credit? maybe im just trying to go for too much, at too young of age
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