Getting car without credit score

[Talo 26]

Hi all!

So I recently entered the states and I got a job now. Getting there is not super easy by bus though so I am considering getting a used car. Any ideas/experiences on the best way to do this?

I have a bank account here and a debit card but no credit card. Of couse I don't have a credit score. I went to the bank and talked to them about a loan but the employee told me that they are probably gonna deny it. He suggested to go to a car dealer and get a loan with them. He said that they are probably going to give me a high interest one but I should take it anyway to build credit score. Any other idea?

Thanks!

[Highmystic 234]

1 hour ago, Talo said:

Hi all!

So I recently entered the states and I got a job now. Getting there is not super easy by bus though so I am considering getting a used car. Any ideas/experiences on the best way to do this?

I have a bank account here and a debit card but no credit card. Of couse I don't have a credit score. I went to the bank and talked to them about a loan but the employee told me that they are probably gonna deny it. He suggested to go to a car dealer and get a loan with them. He said that they are probably going to give me a high interest one but I should take it anyway to build credit score. Any other idea?

Thanks!

Sounds like you are start starting out from scratch.  A dealer who will finance anyone comes with a high rate, and probable double what the vehicle is worth.  Take the deal and get the very cheapest dented up vehicle you can get as long as it gets you from point A to point B.  Worry about class and impressions later when you can afford a better ride,  save as much as you can for a better vehicle. 

 

[TBoneTX 45,580]

Or, try a private purchase from an individual seller.  Find an honest mechanic who will give your prospective vehicle a quick inspection to see that all crucial systems are operable and safe.

 

Let us know the result of how you choose to proceed!

[Talo 26]

9 hours ago, Highmystic said:

Sounds like you are start starting out from scratch.  A dealer who will finance anyone comes with a high rate, and probable double what the vehicle is worth.  Take the deal and get the very cheapest dented up vehicle you can get as long as it gets you from point A to point B.  Worry about class and impressions later when you can afford a better ride,  save as much as you can for a better vehicle. 

 

Pretty much. My wife is here but she has a loan for her car. Good advice. I think that's what I'm gonna do. 

[Talo 26]

9 hours ago, TBoneTX said:

Or, try a private purchase from an individual seller.  Find an honest mechanic who will give your prospective vehicle a quick inspection to see that all crucial systems are operable and safe.

 

Let us know the result of how you choose to proceed!

That's probably the way to get the better price but the problem with that is financing, I would need the cash and right now I can't get a loan. I will post about the experience after I do it. 

[PeachesMagee 62]

When I got my first car, I went to a dealer who searched for a loan for me. Eventually, they found a Credit Union that would give me a loan.

Then, once I made enough payments, I went to the Credit Union and re-wrote my car loan with a lower interest rate.

Now, thanks to that car loan and the Credit Union that allowed me to get it, I was able to get a line of credit, and a credit card......and this past November, bought a condo...no co-signing, all under my own name.

[Talo 26]

15 minutes ago, mtplace said:

When I got my first car, I went to a dealer who searched for a loan for me. Eventually, they found a Credit Union that would give me a loan.

Then, once I made enough payments, I went to the Credit Union and re-wrote my car loan with a lower interest rate.

Now, thanks to that car loan and the Credit Union that allowed me to get it, I was able to get a line of credit, and a credit card......and this past November, bought a condo...no co-signing, all under my own name.

Good to know! I will take a look at credit unions then! Thanks!

[DELETEME1234 208]

Some other general tips to build a credit score is to become an authorised user on your wife's credit cards (and even see if you can get on her car loan) assuming she has a good history and score, typically some of that score will carry over to you (it might take a billing cycle or two). Secondly try to get a secured credit card (at a credit union) to build up a score. Either way these are general suggestions that won't yield results until after a month or three.

[Talo 26]

3 hours ago, Poseidon1212 said:

Some other general tips to build a credit score is to become an authorised user on your wife's credit cards (and even see if you can get on her car loan) assuming she has a good history and score, typically some of that score will carry over to you (it might take a billing cycle or two). Secondly try to get a secured credit card (at a credit union) to build up a score. Either way these are general suggestions that won't yield results until after a month or three.

Awesome! Great advice. Allthough it might take a couple of months it will be good to build credit score, beyond getting the car.

[Fr8dog 312]

I can vouch for the secured credit card. I did not need a line of credit or a loan when I came over, so we decided to see if it was possible to built credit without using my wife's. It is and it goes pretty quickly if you do it right.

Keep your balance below 20% and pay it off every month. One year in you can get an unsecured card (usually with 0% for several months) keep doing the same but leave a small balance during the 0% phase.

My score went from 0 to around 750 in 2 years

 

[GoodbyeArgentina 17]

Hi Talo!! I entered the country as well with no credit history at all. I started with a secured credit card my local bank was able to offer me. As a previous poster said, use it carefully and pay on time. Just four months later I was offered a regular credit card with a small credit line and no fees. That will help me a lot to start building my credit!

As for the car, unfortunately I had to pay cash for it. 

[Talo 26]

7 minutes ago, GoodbyeArgentina said:

Hi Talo!! I entered the country as well with no credit history at all. I started with a secured credit card my local bank was able to offer me. As a previous poster said, use it carefully and pay on time. Just four months later I was offered a regular credit card with a small credit line and no fees. That will help me a lot to start building my credit!

As for the car, unfortunately I had to pay cash for it. 

Thanks! I will get my first payment at the end of the month so I'll get one of those as soon as I can!