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What are the chances of me getting this car loan?

I turned 18 in September of last year. I’ve have 3 bills each month to pay. I’ve had to pay: car insurance, cellular phone, and credit card(I didn’t need a co-signer, my car insurance agent *Got my credit card through state farm* put in a good word.) I’ve paid my cellular phone bill about two weeks in advance ever since i’ve got it. My insurance, I have it automatically taken out of my checking account each month. As for my credit card, I pay an AVERAGE of $430 EVERY TWO WEEKS. So far i’ve used and paid off about $4,000 since i’ve had it in the last four months. After 3 months of using and paying off my credit card, my credit limit was raised from $500 to $1,000. The reason i’ve used my credit card so much, is to hopefully raise my credit score faster. I pay about 80%-90% of my balance every two weeks. So I was wondering if it is going to be easier for me to get a $20,000 car loan from my credit union in two months, showing my good standing in credit and also by putting $2,000 down.
My credit union has a 50 year anniversary rate for new car loans. The rate is 3.9 APR. Although, for used car loans, it is 3.9%-5.5%.
REMEMBER, the loan i’m getting is from CREDIT UNION. Also, REMEMBER, i’ve had my credit card for 4 MONTHS but i’m waiting until i’ve had it for 6 MONTHS
Last thing. I will have a co-signer.


  1. Sane says:

    You’ll probably need a co-signer but you should have no difficulty getting the loan, what rate you get may be the question. It will be higher than what their prime customers get. A bit of advice, its good to use the credit card to build credit. But think about this, your paying $430 twice a month on average and paying huge bank fees in the mean time. You can save money and achieve the same results by just buying a tank or two of gas each month with the credit card then paying it off each month. Too much credit card activity may work against you.

  2. twv706 says:

    A good place to find free advice on car loans for people with bad credit or little credit is at

  3. nickhawkins21 says:

    If I were you I would go to something like and check out your credit report and score to make sure everything looks good before you even think of walking into a dealership. Also, how long have you had your credit card for? That is what really matters along with making your montly payments if any, on time. You should have no problem getting the loan, now the details of the loan are what you should be worried about, not whether or not you will get it. They could stiff you like they did to my sister in law, she did not have very much credit and little debt but since there wasn’t a lot of credit they stuck her with a 16% loan, that is insanely high and my auto loan interest rate is 5.6% so that tells you right there that is what you need to be worried about. If they want to stick you with a high interest rate of anything over say 9% or so I would walk away and just wait or save up for a higher down payment.

  4. Faye H says:

    Whether or not you will be able to get a car loan is going to depend on what your credit score is and whether or not you have enough income to make the payments.

    Of the three bills you mentioned, the only one that is showing up on your credit rating is the credit card. You’ve only had the card for 4 months which is not a very long credit history. What you are doing, using it and paying it off consistently, is certainly helping to earn you points in the credit history game.

    One of the things you might want to do is get a copy of your credit report at Make sure of what is on there. Most likely, from what you’ve said, there will only be the one credit card. Unfortunately, that does not give you your credit score though. You’ll have to either pay one of the credit reporting agencies for your score, or apply for a loan or if you’re friendly with someone at your bank, sometimes they’ll get it for you. I got mine that way. Just asked someone at the bank if they’d get it and they did. Once you know what your score actually is, you’ll have a better idea of where you stand.

    Your biggest obstacle is going to be the short history though, I think, because of your age and the short period of time you’ve been being reported to the credit agencies.

    I do think you’ll probably be able to get the loan, providing that you have adequate income to make the payments. But you may pay a bit higher interest rate. Negotiate with them. Sometimes they’ll start out with one interest rate and when you tell them it’s too high, they’ll drop it down. Or you might just have to try a couple different lenders. The auto dealership probably has a bunch of different lenders that they work with, or you might just try the bank you already do business with. Also, State Farm has some sort of banking service. I’m not exactly sure what it is but if they make auto loans, that might be your best bet since you have a history with them already. Go to the State Farm Website and click on Banking. Then click on Auto Loans.

  5. Amanda H says:

    You have a clear lack of understanding of credit.

    Your cell bill and insurnace are not on your credit report. Therefore, you have only ONE account on your credit history, and it has only a 6 month (by the time you get the loan) history. 2-3 years is considered a short history, so 6 months is VERY short.

    Also, charging more and paying off more is doing nothing for you. You can charge $5 and pay it off and its the exact same thing. Making more frequent payments also doesn’t do anything– the credit reports are set up to show reporting on a monthly basis, and as long as your current that’s all that matters.

    In fact, having a 0 balance and no payments is equal to having a $200 balance and an on time payment. The credit company simply says you are “paying as agreed” each month in either scenario.

    Your credit score also considers utilization– the balance vs. the limit– and by charging it up, even if you pay it off, it could be reporting a higher balance depending on what day each month the CC is updating your report. Stay below 20% of your limit at all times.

    You should be able to get a reasonable car loan, but probably not the special 3.9% rate becuase of yoru short history. It took me 2 years to get into the 700 range and I had 3 credit cards, all with on time payments. (I was 20 at that point.)

    The more money you put down, the better rate. Try for atleast 20% (4K on a 20K car).

  6. spifiman1 says:

    First of all, the only thing you mentioned that actually appears on your credit history is your credit card, second only having that card for 6-months is not going to do you any good when you are trying to purchase a $20,000.00 vehicle. You did not mention what your score is so let me explain a couple of things. Your score is made up of the following;
    1. Payment history 35%
    2. Time in bureau 15%
    3. New credit 10%
    4. Type of credit used 10%
    5. Debt to income ratio 30%

    As you can see,No 1, 2 and 3 are the most important. You have very little history & very little time in bureau. What ever lender you go through is going to look at the following before they make a decision. How much are you trying to borrow in relation to what the vehicle books for in N.A.D.A., how many miles are on the vehicle, how old is it, how many months are you trying to borrow the money for, how long have you been at your job, how long have you been at your residence and do you debt for the payment. Most banks will not go over 20% debt to income for a vehicle payment. This means that with $2,000.00 down you need to make at least $2,000.00 a month before taxes to qualify. You will most likely need a co-signer.

  7. Theresa M says:

    you may not need a co-signer. sounds like you make good money. you might want to consider a larger down payment.

  8. ginger779904 says:

    It does not sound like you have any discrepancies on your credit. I am sure you will get that loan, especially with a co-signor. I really do not think you need one, going by what you described.

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