Credit Union and Financing

Minsu

isurance is stacked with my parents so they said they would take care of it as long as i take care of car payments. Now i think ill finance 15k for lets says 3-4 years making payments in the 300-400, i heard from a banker that if i Overpay the monthly amount it effects my credit in a bad way. if i sign up for 3-4 year finance but pay it off in a year are there any reprecussions

Cmike2780

Paying more every month doesn't hurt or help your credit, but it does decrease the overall interest payed. Honestly, you should pay it off as quickly as possible. You don't know where you'll be financially in 3-4 years from now. Longer rates are usally more than shorter ones.

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[09][MB][6-Spd MT][Touring][Stillen Gen III][K&N][Borla CBE][Evo-R]

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.