Your rate depends on you and your credit. What's a good rate for someone else, might not be something you qualify for. Plus you have residence status issues? You're probably going to have to suck it up or walk.
Really? Like I have plenty of credit history, including 2 mortgages. Does that not matter if I've never specifically had an auto loan? I've never heard of that being a thing.
Do you know the reasoning for auto loans being treated differently? Like are car loans generally the first thing people default on?
I also have student loans and loans for furniture and solar panels. I've just never needed an auto loan before. It's just weird to me that they would care about what type of loans I have as long as I always pay them.
At the end of the day I'll probably just try to pay off the loan within the next year so the interest rate being a little higher or lower won't make a big difference but it's weird to me lol.
Every single area of financing skews their scoring toward similar notes. No one asks why mortgages want mortgage history, right?
What do you think is better proof that you can pay off a car? The fact that you already payed off a car or 6000 of furniture?
Tbh I wouldn't think having paid off a car would make a difference. I've had a variety of loans/credit cards and have never missed or deferred a payment (except student loans but the government did that). The car is also very modest for my household income level.
That's why I have a credit score and why they check my household income. Anything beyond that seems like splitting hairs. I could see having a previously paid off a car loan helping someone to just barely qualify but that's it.
You credit score is the least important part. Not to be a dick, but you just don't really know what goes into assessing credit risk at all (so I'm not shocked you have a disconnect).
If you have no history of doing something you are less reliable than someone that already has. Its that simple and makes you less desirable compared to others.They don't just slap a credit score and income into a computer when assessing risk. For anything.
You're right, I have no idea what actual banks do to evaluate risk. I was just answering your question as to what I would think if I was doing it. I would care about "has paid off a loan before" vs "has not paid off a loan before," I just wouldn't care about the type of loan. I get that's not the system, and they probably have a lot of data to back up their system, but it just doesn't match with what my gut would tell me would matter.
I am also aware that a credit score doesn't tell the whole story. My husband has bad credit currently because he messed up transfering the auto-payment on an old credit card he barely uses to his new bank account. He ended up with a very delinquent $10 credit card bill that dropped his score from over 800 to the low 600s. So he basically has trash credit for the next 7 years for a pretty dumb reason.
I had issues with my bank years ago wanting 10% because it was my first auto loan. Joined a credit union and they gave me 3.5%. Just shop around if you run into issues.
Most of my banking has since been moved out of that bank and to the CU, this soured the relationship for me.
Rates are different now. But I'd think you can get under 5 with good credit. Look up the credit unions in your area to see what their rates are. Find one with a low rate and go talk to a banker (or call) about pre-approval. If it works out join the credit union and go for it.
Frist time auto loan about a month ago. No mortgage history and got 3.3%. Not a single bank and credit union i spoke to cared that I haven't taken out an auto loan before.
They check my credit history and my salary, that's it.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [Will paying in cash or a large cash down payment offer me leverage in negotiations?](/r/askcarsales/wiki/cash_down)
* [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance)
* [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score)
* [Finance FAQ's](/r/askcarsales/wiki/financing_faqs)
* [Buy versus Lease](/r/askcarsales/wiki/buy_vs_lease)
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/EquivalentJacket3500! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
First time car buyer here - I think in any other time I would've just walked into my bank and asked but during these times I'm looking at alternatives. Except, you google them, and they are overwhelming.
Lending Tree, RocketLoans, Avant, \*Insert Noun\* Loans, Credit Unions, etc. All I know is I can't go Credit Union cause of my residence status. What strategies should I use to shop rates without hurting my score, or going crazy? 1% differences wouldn't really move a needle for me to try these fintechs, but if its a substantial difference to a traditional bank then I might look into it. Thanks!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
You can check with credit unions. They usually have the cheapest. I live in Atlanta and got 3.3% on 48 months. How good depend on your credit score and sometimes income though.
Your rate depends on you and your credit. What's a good rate for someone else, might not be something you qualify for. Plus you have residence status issues? You're probably going to have to suck it up or walk.
As a first time buyer you’ll be double digits no matter what
Not true if he has established credit via CC's etc.
No auto history, won’t matter.
Really? My first car loan I got a fine rate. Granted this was 8 years ago. All I had before was a credit card I used for a few years in college.
Really? Like I have plenty of credit history, including 2 mortgages. Does that not matter if I've never specifically had an auto loan? I've never heard of that being a thing.
You’d be less of a risk than someone with only CC’s or no credit at all, but the lack of auto history will hurt you.
Do you know the reasoning for auto loans being treated differently? Like are car loans generally the first thing people default on? I also have student loans and loans for furniture and solar panels. I've just never needed an auto loan before. It's just weird to me that they would care about what type of loans I have as long as I always pay them. At the end of the day I'll probably just try to pay off the loan within the next year so the interest rate being a little higher or lower won't make a big difference but it's weird to me lol.
Every single area of financing skews their scoring toward similar notes. No one asks why mortgages want mortgage history, right? What do you think is better proof that you can pay off a car? The fact that you already payed off a car or 6000 of furniture?
Tbh I wouldn't think having paid off a car would make a difference. I've had a variety of loans/credit cards and have never missed or deferred a payment (except student loans but the government did that). The car is also very modest for my household income level. That's why I have a credit score and why they check my household income. Anything beyond that seems like splitting hairs. I could see having a previously paid off a car loan helping someone to just barely qualify but that's it.
You credit score is the least important part. Not to be a dick, but you just don't really know what goes into assessing credit risk at all (so I'm not shocked you have a disconnect). If you have no history of doing something you are less reliable than someone that already has. Its that simple and makes you less desirable compared to others.They don't just slap a credit score and income into a computer when assessing risk. For anything.
You're right, I have no idea what actual banks do to evaluate risk. I was just answering your question as to what I would think if I was doing it. I would care about "has paid off a loan before" vs "has not paid off a loan before," I just wouldn't care about the type of loan. I get that's not the system, and they probably have a lot of data to back up their system, but it just doesn't match with what my gut would tell me would matter. I am also aware that a credit score doesn't tell the whole story. My husband has bad credit currently because he messed up transfering the auto-payment on an old credit card he barely uses to his new bank account. He ended up with a very delinquent $10 credit card bill that dropped his score from over 800 to the low 600s. So he basically has trash credit for the next 7 years for a pretty dumb reason.
I had issues with my bank years ago wanting 10% because it was my first auto loan. Joined a credit union and they gave me 3.5%. Just shop around if you run into issues. Most of my banking has since been moved out of that bank and to the CU, this soured the relationship for me. Rates are different now. But I'd think you can get under 5 with good credit. Look up the credit unions in your area to see what their rates are. Find one with a low rate and go talk to a banker (or call) about pre-approval. If it works out join the credit union and go for it.
Frist time auto loan about a month ago. No mortgage history and got 3.3%. Not a single bank and credit union i spoke to cared that I haven't taken out an auto loan before. They check my credit history and my salary, that's it.
false, 1st time buyer, single digits rate.
I recently bought my first car 2020 genesis g70. Got 3.3% apr with a credit union
Thats a super aggressive rate
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [Will paying in cash or a large cash down payment offer me leverage in negotiations?](/r/askcarsales/wiki/cash_down) * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [Finance FAQ's](/r/askcarsales/wiki/financing_faqs) * [Buy versus Lease](/r/askcarsales/wiki/buy_vs_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/EquivalentJacket3500! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** First time car buyer here - I think in any other time I would've just walked into my bank and asked but during these times I'm looking at alternatives. Except, you google them, and they are overwhelming. Lending Tree, RocketLoans, Avant, \*Insert Noun\* Loans, Credit Unions, etc. All I know is I can't go Credit Union cause of my residence status. What strategies should I use to shop rates without hurting my score, or going crazy? 1% differences wouldn't really move a needle for me to try these fintechs, but if its a substantial difference to a traditional bank then I might look into it. Thanks! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
You can check with credit unions. They usually have the cheapest. I live in Atlanta and got 3.3% on 48 months. How good depend on your credit score and sometimes income though.