[Camaro_Corvette]

Originally Posted by Deathmore

Hey everybody I'm trying to buy a new Camaro and after much thinking I decided I'm going to go with the 2SS. The problem is I have absolutely no credit history. I'm 20 years old and have always lived a Cash only lifestyle, I don't even have so much as a phone bill in my name(Prepaid all the way). Worked out well except now I'm trying to get below a 4% interest rate, otherwise it just doesn't make Sense to get the 2SS which is what I really want. I will have at least $10,000 to put down on the $40,000 2SS but I still really need to build my credit up. What besides just charging everything I buy and paying off could I do? Also I would like to buy the car in the next 6 months so I need to do it fast.

Local banks that know your family and know your history might cut you a deal on a loan. They did with me, and your lifestyle sounds exactly like mine was at your age. Sadly, cash is not longer king.

[Deathmore]

Thank you everyone for all your help, I know a co-signer is the best way to go, and I have a lot of people who would gladly co-sign for me. One is even a multimillion dollar business owner. I simply don't want to depend on someone else when I know I can do it myself. I can afford the car even with interest rates as high as 16% I simply won't buy it at those rates. I make over $40,000 a year and have absolutely no dept and no bills. I just cant justify paying that much in interest when I could buy it in cash if I waited another year. What kind of credit score would I need to get rates around 4%? Also I've lived in the same house for my entire life and have had the same cell phone number for 3 years and can prove it.

[Envy]

Originally Posted by Deathmore

Also I've lived in the same house for my entire life and have had the same cell phone number for 3 years and can prove it.

So you still live in your parents home and you think a 40K car is a better idea than a place of your own?

And argue all you want about your phone...but you have no obligation to your current "pay as you go" phone which translates as a lack of stability and commitment in most creditor's eyes.

[Steve Dallas]

TAANSTAAFL...

[Jason@JacFab]

As everyone said, there is no way to do it fast. You're going to want to do away with the pre-paid phone as mentioned above, it may be possible to port your current number over onto a new phone contract with the carrier of your choice.

Get a credit card. Use it up to just under half it's limit (assuming it will be a low limit card $500-1000 if it's your first one). Make payments. When payments show up on the credit report they usually show "made minimum payment", "paid under/over minimum payment", "late/no payment"... Even if you pay just $1.00 over the minimum it should show as you make payments higher than the minimum, which will make you look good. If you get a bunch of cards, keep them all under half of what their limit is, this also makes you look good.

No late payments!

I got my first credit card in highschool ($500 limit)... Used it for many years, got a couple more (higher limits), played the credit games, etc... Dealers can't believe I have such a high credit score for my age (now 27).

Something else I was told either by a credit union, or bank, can't remember... When you buy something of high value and pay it off, that shows as your new "high credit limit" to banks... For instance, buy a $10,000 car, and pay it off, your new "high credit limit" shows as $10,000, even though you don't have a credit card or line of credit for $10,000... Even if you trade in that $10k car, and it gets paid off whether it's rolled into the new car loan, or paid off by the dealer, that will show as your new "high credit limit"... In my case, my first car loan was $2500, paid it off in a year, then $8k, then 13k, 20k, 34k, now I have the Camaro.

I don't know if the last part is true, but it makes sense to me... Start out small, wait a couple years, do some smart car flips, and you'll have a decent credit history.

[got adrenalin?]

Originally Posted by Deathmore

Thank you everyone for all your help, I know a co-signer is the best way to go, and I have a lot of people who would gladly co-sign for me. One is even a multimillion dollar business owner..

Of course he would ... if you defaulted you would just be a write off ...

[rmyers]

Maybe show up with 20k, which would be 50% down. That may be the only way to get a good rate with little to no credit history.

[rmyers]

I'm with Envy on this one...if you are 20 years old making 40k per year, a new 2SS is not what you need. You need to be saving your money and moving into your own place.

[Dave Coyle]

Best way in your case is to just go find a very rich person and get married!

[2010SS2SS]

Student loans don't count for lines of credit with lenders! Been doing finance in the automotive business for 20 years. Best bet is a co-signer or find a lender with a first time buyer program. Usually requires being a college grad working in your field of study

[Deathmore]

Originally Posted by Envy

So you still live in your parents home and you think a 40K car is a better idea than a place of your own?

And argue all you want about your phone...but you have no obligation to your current "pay as you go" phone which translates as a lack of stability and commitment in most creditor's eyes.

Though the phone part is true, my father actually passed away to prostate cancer this year and due to that it just doesn't make sense for me to leave my mother with my younger brother and sister alone at this point in time. I actually planned on being in the army right now, but dad got sick and that changed things fast. I feel I need to stay around and helps with her house bills at least until my brother and sister are done school.

[Mr_Draco]

Originally Posted by Deathmore

Hey everybody I'm trying to buy a new Camaro and after much thinking I decided I'm going to go with the 2SS. The problem is I have absolutely no credit history. I'm 20 years old and have always lived a Cash only lifestyle, I don't even have so much as a phone bill in my name(Prepaid all the way). Worked out well except now I'm trying to get below a 4% interest rate, otherwise it just doesn't make Sense to get the 2SS which is what I really want. I will have at least $10,000 to put down on the $40,000 2SS but I still really need to build my credit up. What besides just charging everything I buy and paying off could I do? Also I would like to buy the car in the next 6 months so I need to do it fast.

A 4% rate isn't happening in your case with no credit, realistically you'll be looking at 6-7%. You will have better luck getting a loan through your bank then you will the dealer and even then you probably won't get 4%. Either way don't be surprised if you are told that you must have a co-signer.

When I bought my car, I had 5 years of credit history, wrote a check for $20k and it still took the dealership from 10am till closing to find a lender that would touch me due to "lack of credit history".

[Monchy36]

Credit Card only help if is 3k up... Now you have 10k to put down that mean you have a Bank Account right? So get a secure Credit Card over 3K and use it for your daily basics... Food, Gas, etc... Make sure before the end of each month is pay off! And look for look for a online credit score check, i use CreditKarma.com doing it right you CS it will go up fast! Bigger the amount on the Credit Card more is going to help you!

PS: your money always stay in your account... Good Luck!

[45th]

Originally Posted by babytiger

To answer your question, have your name added to the credit card of someone with STELLAR credit. It will still take a year or so to see a noticeable improvement.

Im also 20 and this helped me the most