do YOU think I can get an auto loan?

[commandess]

alright, here's my situation. it's a little unique. i'm 19 (20 in only 3 months) and was a full-time college student up until recently. I decided I needed a break. When I go back in January i'll be starting my second year. anyway, I have never had my own car before. I always drove one of my parents cars. now my mom's car is a '97 and we're constantly having trouble with it, so I figure it's time to get rid of it and buy a new car. For MYSELF to buy a new car (& share w/ her for now). And my dads vehicle is a truck (not double cab) so we don't have a "family" car or a vehicle we can all go out comfortably in. I've had a credit card with capital one for a little while and I just checked my fico score for the first time and it's a 687 according to the one place i checked and they said that was fair/good. Now here's where it gets interesting I'm unemployed or "other", BUT WITH income. I get a US Military Allotment in tune of $1,500/month because my parents are both 20 yr. each retired. my problem is not enough money for a loan, my problem is proving myself with an "unemplyed" on my application and trying to get them to understand that I have plenty of money without the need of employment. And yes, I have proof. bank statements. the US Government direct deposits it into my bank account every month. Oh, by the way. i'm looking to get a slightly used (certified) vehicle. 20-25k. that's kinda what im curious about, if i'd get approved for that much. and my parents cannot cosign for me. It has to be all me. my goal is to wait until right after October so i'll have 2 more credit card payments by then so my score should be up just a tad more. Do you think I could get a loan in my situation and what do you think would be the best route? capital one blank check?...since i have history with them. yeah i wrote too much, but thanks for reading :]

[sickcallawayc12]

See what you can do at a credit union. They're the best bet versus a bank IMO. Income is income. I get annuity payments from a car accident from way back and that is what I use when financing for a car. Figure in your expenses and such also. They will want to know the most that you can pay each month and that will help them determine how big of a loan they're willing to give you. I can't imagine you would get 20 grand though. Why so much?

['97ventureowner]

Welcome to AF!
Financial institutions are screening their loan applicants more closely now with all the credit problems that have cropped up recently. Those that were "borderline" or just meeting the minimum requirements are finding it much harder to get credit these days. See if you can talk to some of the loan officers and tell them about your situation before applying and see what they say. Once you start applying for credit for an auto loan, the financial institutions will run a credit check on you. If you have too many in a short period of time, that can negatively affect your score. So it's best to try to limit the inquiries to those you are serious about. Also each lender uses one or all of the 3 credit reporting agencies so your score may be very different between the three. ( From what I've seen Trans Union seems to always be the lowest score reported among the 3.) They still might require you to get a co-signer for the loan, no matter who ( as long as their credit is good.) Have you actually seen your credit report and what is listed on it? The reason I ask is that Capital One is known for not consistently reporting payment activity, (both good and bad) to the credit reporting agencies. That can have a bad effect on your score and report.
And when you say "blank check" from Capital One with whom you have a credit card, you don't mean those convenience checks that they offer, sometimes with special rates or for balance transfers? If so, that is really not the best route to go as the fee for using those checks can range from 3% on up of the total of the check. That can be a hefty fee on top of what you write then add the interest you will pay on top of that , and you will see how high that amount can be. Recently many banks have done away with the "ceiling limit" that is charged as a convenience fee, and also started to charge a minimum fee of $5. ( Many banks used to cap the fee at $75 but have done away with that, so the sky's the limit on those fees.)
Overall, sickcallawayc12 is correct in that a credit union would be your best bet to try first as they are more lenient and can have better rates than a bank. Also keep in mind that although "income is income", they also look at your debt to income ratio when determining eligibility for a loan. Good luck.

[Ray paulsen]

I like the detailed answers you got so far, however your credit history is short and has not been established along with your type of income dont qualify with most major lenders.I am sorry to be harsh but I dont think you will fly on your own without a co- pilot and even then, my thought are you wont..
Sickcallaway is 100% right when he mentioned to you he cant imagine you qualify for that amount, even if you lowered your expectations and bought a vehicle $15000. on the road over 60 months your payments will be over $300. a month, and on your income even if you had a 5 star credit rating you would not qualify for that large of an amount.
You want my advice look for a car while your saving, you may just find a good deal for cash that will get you by till such time you have established an exceptable income and rating with major lenders... If you end up thinking thats the way you want to go , let me know I will help you get value for your bucks

[commandess]

Okay, first of all let me just tell you, how much trouble i’ve had trying to reply to this thread. lol. I tried the night I first posted it, but everytime I went to send my response it would tell me I wasn’t logged in (when I was), then I’d go back and everything I had written would be gone. I’ve done this about 4 times. I got fed up so I forgot about it for a few days. lol. I guess it timed out because I took too long to write my reply. Now I know next time I have something long to write, write it out in Word and then paste it in Okay, here I go…

I wasn’t aware that 20k was considered a lot. That’s not a lot to me. I do have a specific vehicle in mind though and it costs around that much if you were wondering. And I don’t have any expenses. My military allotment is strictly “spending money”. I live with my parents. My parents do not have to pay rent and stuff for our house either. My father is a pastor and we’ve lived in parsonages since I was 7. The church gives you a house and stuff.

Yes, I’ve seen my credit reports and scores from the different agencies, there is nothing bad on them at all. Two scores are in the late 600’s and the other is in the low 700’s. By blank check I mean their auto loans. That’s how they do them. You’re approved for a certain amount and then you get a blank check in the mail. You go shopping for your car and just write the check up to the amount you were approved for. & I don’t have any debt. I use my card and pay in full every month.

I don’t see why my “type of income” wouldn’t qualify with most lenders. It’s the governments money and guaranteed income/payment. It’s better than someone with a job (to me) because they can always quit or get fired. Over $300 a month is not a lot to me, I expect my payments to be more around $500 a month. Again, the allotment is strictly spending money/car money. There are no expenses from that. It’s not like that’s my income and I have to pay rent and buy groceries with it. it’s not for living expenses. It’s “car money”. Allotted to me by my parents and given to me by the US government. I am surprised actually, lol, at how “harsh”, I think that’s how you put it/how much you think I wouldn’t be able to get a loan. Because I know a guy my age (20) who’s credit history was only 8 months long (1 credit card) and with only one month on a job got financed by Toyota at 9% (with no co-signer) at around 20k.

In any case, I appreciate the feedback. I HAVE joined a credit union and they will be the first place I try. Redstone federal credit union. They’re the largest in the state I currently reside and in the top 40 in the US. They’re military. To them my employer is considered to be “military dependant” and occupation student. lol. To me they seem like I’d have a good chance with them. I could be wrong, but then again I could have some luck, who knows. I am going to try next month. Not that far away. I’ll let you guys know what happens.

[Ray paulsen]

# 1... your type of income is better than someone with a job becauce they can quit or get fired,,, if thats how you look to qualify for a loan give your head a big shake, cauce thats not how lenders look at your $ 1500. a month income.

# 2... your allotment is strictly car spending money... tell that to the lender along with you not paying rent or having to buy groceries, its got no play with a lender.

#3... you know a guy your age getting financed at 9% for about 20K with little credit history - he has got a JOB and am 100% sure his income is much more than 18K in order to qualify for that type loan.

# 4... your last post """"""""
I am surprised actually, lol, at how "harsh", I think that’s how you put it/how much you think I wouldn’t be able to get a loan """"""""


Yes thats how I put it... and stand by it... till you prove me wrong, you have a credit card with Capital One,,, I happen to be an affiliate by choice of Capital One as I consider them to be the best on the Internet when it comes to loans, and you dont qualify with them for a car loan.
Why dont you right now fill out an application with Capital One, you will find one on this web page on my website http://www.usedcartips.org/BEFORESHOP.html
I am always looking to add new material to my site, if you qualify for any amount at current rates without a co- signer, how you did it will be added to my website