Finance guys I could use help

[frostbit3]

Originally Posted by camslambam

I make $1,000 a month but will be taking out a loan for a $350,000 lambo.


Screw my future, right?

You only live once!

[jump_daddy33]

About 3 years ago, I had a 650 credit score and bought a mustang gt at 12%+ APR through Capital One. This past weekend I just bought my wife a new vehicle and the dealer actually gave us our credit scores and mine was now at 756. I traded in the mustang last may for my 2010 SS and my score was 720. I got financed at 4.25%. Bottom line is, you'll get hosed on your APR but if you persevere, you'll eventually improve your score and dealers will do anything to earn your business.

[MarylandSpeed]

Think of it this way. You are basically asking a bank to give you $20K plus, and all you have to show is a credit card with two 30 day plus late payments, and a subprime 635 credit score. You really need a 680-700 credit score to get a loan without drama.

I think IF you get a approved, it will be at an interest rate not worth it. The refinance excuse makes no sense when you are putting so little down, because you will always be too upside down.

That being said, if you have a cosigner, that could be a great thing that lets you get a lower rate and rebuild your credit.

[Presidentty]

I see my self as responsible. But I've already asked my mom that's a def no. And I want to avoid asking my grandma, because she gets stressed out easily and that would def not be good. And as far as LTV is concerned lets say the car is valued by Nada and KBB at $24,000 and the purchase price is $20,000 with a $3,000 downpayment. Would that something I would be upside down on or how would the LTV percentage work out on that. And sorry, I'm just trying to learn as much info as possible, so that I can make an educated decision.

[upflying]

You need at least 20% down..$4800 to make a lender feel easier about loaning you money..

[880]

I would wait a couple of years. I didn't buy a nice car until last year when I turned 28. For the first 6 years out of school, I took my money and always maxed out my 401k and Roth IRA.

Sure I missed out on driving a nice car for 6 years, but now I just spent a total of 85k on a weekend car and a beater. And I'm also planning to spend another 30k on a future toy or mod my current cars.

It's hard to think about your future when you're 21. I would encourage you to wait at least 1.5 years to pay down your student loan, save some money for your future, and rebuild your credit.

[Blitz]

Originally Posted by MasterJefe

Do not ask for a credit increase on your cards before getting the car loan. Your score takes a hit when you ask for a bigger credit limit and your rate on the loan will suffer for it.

This is a myth.

Yes, it will take a small hit if the Card company makes an inquiry to your credit but that would be the only reason. Most of the time, if a you have had a card a while and pay it off regularly they will bump the limit up.

Your credit score actually improves based on your total credit used to available ratio. The key is, just because they increase your credit limit, doesn't mean you should use it! Keep all cards below 50% of utilized credit limit and you are good to go.

I have a card that has an annual fee on it (that I get waived each year) but the main reason I keep the card is b/c it has a ridiculous limit and helps my credit score like you wouldn't believe. I only use about 5% of the limit if that and again, that is the key. If they ever start actually making me pay the annual fee, I would have a tough time canceling it just for that reason.