4 Thoughts on I bought a used car with 10% rate. Is it true it’s that high because of my credit history?
  1. Reply
    October 30, 2011 at 2:37 am

    It is certainly possible to have a high score but at the same time be too limited. I’ve seen people with only a couple lines of credit, have a plus 700 score, but have very small limits and no installment history. Best thing to do is get your free credit report from experian, equifax, or transunion adn see for yourself.

  2. Reply
    Norman O
    October 30, 2011 at 3:03 am

    Do you have any major purchases on your credit report? A previous car, home, boat, etc? That’s what the banks look for in addition to your high score. If you have never borrowed money for a large purchase before, you are a higher risk to the lendor.

  3. Reply
    October 30, 2011 at 3:07 am

    My boyfriend is in the same situation right now. He has credit cards and has been responsible with them but has never financed a car or anything before so nobody will finance him now because he’s a first time buyer.

    I would say your options are to either take the 10%, pay responsibly for a year and then refinance when you have some car payment history OR get somebody who has had a car loan co-sign with you, then after a year you could refinance and take them off the loan. It would obviously be cheaper to do the co-sign thing but it’s a big favor to ask of someone so it would be totally understandable if you just were to take the 10% for now.

  4. Reply
    October 30, 2011 at 3:25 am

    Credit score isn’t the only factor. Credit History is also. So is your income to debt ratio. Your length of time on the job, your living stability (been living in the same place a long time?) and many other factors go into securing a line of credit.

    Who the lender is also has a lot to do with it. If you aren’t shopping around for the best lender you won’t get the best rates. Just like you won’t get the best price on the car without shopping around you have to shop for the best lender. Unfortunately the one the dealer works through is rarely the best lender in town.

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