I am 20 years old and i can putt 3000 down on a 23000 dollar car. And i was never late for my credit card! Aldo i live with my mom and have zero expenses and i make about 1700 a month. With a company that i have bin working for for 2 years. ! 🙁
It’s going to be very difficult to get a loan with a 560 credit score. I am assuming that this is your mid score or middle score with one being higher and the other being lower. You will need a 740 to get the best interest rates and a 760 to get the best insurance rates so you are quite away from being in the credit game.
However, you could possibly put an add in the paper asking for private lenders to support you in your wish of a loan. You will be offered loans at double or triple even quadruple the going rate at a bank but they are taking on a tremendous risk of a 20 year old with no real credit history, working at a job making only 1700 a month living at home.
A loan at this amount would start to cost you about $300 to $400 a month because of a high interest rate. Then you need to add on the cost of insurance at about $100 to $150 for full collision coverage. If not, you lose the car, destroy your credit. again and suffer for 7 to 10 years.
It read review may sound like you can afford it but do you have an emergency fund to cover your loan and insurance and all other expenses in an emergency?
Life changes drastically in short time periods and you are in a very high risk bracket. Let’s play the What-If game and see what could happen.
What if you got your expensive $23k car with high insurance rates and then your mother needs you to pay rent? What if you lose your job? What if you meet a girl and want to get married? What if you get in an accident? What if. So many possible what-ifs that would cause you to not be able to pay for your car loan, lose it and destroy your credit for 7 to 10 long, difficult, financially bankrupt years.
Now. What if you kept your current car going with inexpensive repairs. hey, anything is inexpensive against a $23k loan at 10, 16 or 24% loan. now any extra money you make you put away into a savings account. Then when life changes you have the money to put it toward a smart, wise choice instead of an expensive ego building bad decision. Yeah, you look great at a stop light with a $23k boat anchor holding you hostage against smart investments, life changing decisions, a girl that wants a nice ring, wedding, life, investment opportunities, etc. As Dave Ramsey says, Live your life today like nobody else, so you can live your life tomorrow like nobody else. In other words, be smart about your financial decisions today so you can relax and enjoy your financial decisions tomorrow without debt and without stress.
Be smart, don’t buy the car, save, get a better job, go to school, save, invest in wise, safe investments and learn from the wealthy what to do with your money.
I need this car loan so bad my car is about to die!
Oh yeah, a new car will lose up to 60% of it’s value just driving off the lot. not a good investment choice.
Answered by Vantage Credit Alliance – Attorney Credit Repair 129 E Southfield Rd., Spanish Fork , UT , 84660 , 801-769-9443 (Novice with 41 pts.)