New credit and financing

[thebikedoctor33]

So I just turned 18 in Jan and imediately got my first card. I also have some students loans which I have had no problem with. I checked my score, which is 730, which seems decent all things considered. However I was unable to finance $10k through Audi, nor the same amount through PNC even with a decent cosigner.

I am trying to figure out how I can get some money together for a new car asap. I am driving an 01 Acura Cl Type S now which i'm trying to sell asap, but of course we all know how alot of people are tight financially so i havent been able to move it even for a decent price, yet.

Do I have any other options? Should I try going through a bigger bank? Which one? My primary job, which allows me to take home about 2k a month, is under the table. Is this a big factor as to why I can't get financed? I mean, taking home 2k is like making at least 2500 a month. And i'm at home still so theres no rent or mortgage. Just insurance, cell phone, etc.

Do I have any options?!? I keep seeing great deals pass me by without being able to jump on them...

Thanks for the knowledge guys!

[IceMole]

You have no credit history plain and simple and you're being paid under the table so no verifiable income or job stability.

[pondside36]

The under the table income is what is getting you declined... you can get undeclared income loans.. but the interest rates are high and if you do more than 10k it raises a flag with the IRS... actually any purchase over 10K will raise a flag with the IRS...so unless you want to file some taxes, I wouldn't spend or get a loan more than that if you are capable..just from my experience working under the table through college..

[wolfdog]

If your current car is fine, keep it and build credit in the mean time. Use your credit card to pay bills then pay the full balance when due. After some time your history will be sufficient and your age a little more suited to a $10k loan.

People in this country think they deserve better than they actually do based on their credit and earning power. Do the smart thing and keep your present car (unless it's in bad shape) and earn your way to your loan.

[kwimberly]

Aren't you the dude that wants to open a car dealership?

[pondside36]

Also be smart about your credit card, credit card debt is one of the reasons our economy is struggling so badly.. people and banks over extend credit until it is out of control... I was driving a 86 Grand Prix when I was 18, then a Dodge d150 pick up.. didn't buy my Audi until I got out of College and could afford a decent down payment and reasonable monthly payment... save some of your sweet un-taxed dollars while you can... or save enough to buy a new car outright....

[HeHateMe]

you need verifiable income. a 730 score is pretty damn good. but without pay stubs or w2s , it will be hard to get financed. Have you tried any online loan services/banks at all?

[JMG]

Score means nothing if you have no history to back it up, nor any real income. Taking home $2000 a month, most banks won't let you borrow if your payments are more than around $300 unless you have a co-signer. You could also put more money down. Credit Unions also are a little easier to work with, provided you have history... so that's no good.

Get a co-signer.

fyi, there is more to owning a used Audi than making payments. These cars are not cheap to fix.

[AudiA4Turbo22]

someone with a great score on here couldn't get financed for a G37 because he has no history even though he's well through college!

[Kerschera4]

use your credit card in place of cash i.e. use it at fastfood spots, small purchases, etc where you could use cash instead and pay it off in full. building a solid history is just as important as a good score and doing the above will accomplish both.

as for getting a loan now, try a full-on credit union. you may have more luck there than a bank.

[auggy]

Two potential options:

1. Save for a little while and buy a car from a private party outright. If you make 2k/month under the table it shouldnt take long to save 10k.

2. Have your parents or someone you trust get financed in their name and make the payments to them (but make sure that the title is in your name, if possible).

[thebikedoctor33]

well i have another job that is regular taxed. but i only work two-three shifts a month. so thats like 500 max haha. i guess i just have to wait it out till i sell my current ride. its just killing me on gas. i get like 20mpg... not so great.

whats the deal with straight up credit unions? what are some of the big ones that i might be able to check out?

thanks again for all the info guys!!

[kwimberly]

i get like 20mpg... not so great.

Welcome to city driving with an A4!

[Kerschera4]

a credit union is like a normal bank but specializes more in bank loans, auto and home financing, etc. just search for something in your yellow pages

heres what i did when i bought my car (im 21) i bought my car used from a private party and paid in full. I then went to a credit union and got a loan for only $6k. I paid what i could for the car and decided to only finance a portion of it so i would be more likely to get the loan. my credit score is 757 and i was given the loan without a cosigner.

the trick is to realize what you actually need. if can afford to pay 6k for a 12k car pay the 6 and only try to get a 6k loan, dont go out and try to find 11k to fully fund your car at 18 bc you will be hard pressed to.

a little savviness goes a long way too. i was able to take half of what i financed (about 3k) and throw it into risk free CD's and am earning interest that more than covers what i will pay in interest on my loan as well, and im actually turning a small profit

[thebikedoctor33]

Welcome to city driving with an A4!

except this is with my Acura. and i do about 80% highway driving. 30 miles a day and about 4 miles is on local roads, everything else is highway. it sucks. if i drive "spiritedly" i'm lucky to get 17...

it basically like i have all the money for a b6, its just that i have 7000 tied up in my current ride and i've missed two great deals already...

[wolfdog]

Here we go again with the CDs...

Anyway, 20 mpg isn't all that bad. Swapping into a 1.8 certainly isn't going to save you tons of money so being patient is your best bet.

[HeHateMe]

here We Go Again With The Cds...

[geoshu]

I work in a bank; without verifiable income, a good credit history, and at least some kind of down payment, no one is going to finance you 100%. To the bank, you make no money, so you have on way of paying off the car.

Get a cosigner and build your credit, and then get a job with a pay stub. You have no other choice, no verifiable income means no job., which means no loans for you.

[A4TL]

charge it on your credit card :)

by 21 wife had about 300K in card limits. not needed but if you wanted to invest couple hundred grand at 0% when the markets were hot you could (win/lose) your azz.

I'm guessing you didn't get on the credit card boat early. its so easy to turn an amex into a 25K limit (just use their online form and ask for it;done).

with car rates so high its cheaper to use a credit card to pay for a car. i've been seeing $39 fee;2.9% for life (1/48th payment) all over the place or for short term payoff you could do 0% for 12-15 months on promo's.

I wouldn't go posting about cash under the table and irs on a public forum. big brother you know.

[Sammy7]

i guess i just have to wait it out till i sell my current ride. its just killing me on gas. i get like 20mpg... not so great.

Is your current car paid off? If it is and you do the math, you're probably going to be spending a lot more on the new car payment that what're you'll be saving on gas. There's nothing wrong with wanting a new car if you can afford it, just don't talk yourself into thinking that it's a sound financial decision. Keep trying to sell your Acura, but also start putting money away for the new car. Whenever you sell it, you'll have money stashed away for a down payment

[AudiA4Turbo22]

dude forget the under the table cash, because remember this: if ur getting paid under the table u basically aren't an employee so u have NO job security he can kick u out in the next 5min if he wanted to, u have no security! ditch the job and get a job that pays u with paychecks even if u end up making a touch less!

[thebikedoctor33]

dude forget the under the table cash, because remember this: if ur getting paid under the table u basically aren't an employee so u have NO job security he can kick u out in the next 5min if he wanted to, u have no security! ditch the job and get a job that pays u with paychecks even if u end up making a touch less!

while it does make sense to get a job that is legit for some reasons. job security isnt one. my employer is more a a brother than a boss. the business would be hard pressed without me. he even offered to cosign on a loan with me. haha.

but i do have a job that pays checks. i only work like 24 hours a week there though. sometimes less. i suppose i will keep my car till winter, i really dont want fwd for where i live. i would never be able to go out, i live on really steep hill. but, thanks for the advise guys. you helped quite a bit

[TurboQuattroPwr]

How have you established enough credit history to achieve a 730 fico in 6mo? I'm guessing you have been a joint user on someone's account in addition to your newly opened acct. If I were you I would just 1) save the money and buy the car outright or 2) purchase the car outright minus like 2-4k. Banks need to see you ability and willingness to repay debt so you might wanna build some more history with your current credit acct while saving money and do option 2 from above.

Good luck!!!