Cheap car loan

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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daniel2304
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Cheap car loan

Postby daniel2304 » Wed Apr 01, 2015 5:25 pm

Hi all,

I saw a lot of people here who have a car loan for 0.99% for 60 months and most of the loans are from a credit union. I'd like to know more about it. What credit union that I can apply for? (Giving that I'm an international student with excellent credit score, no vet, no residency - but I can possibly find a co-signor).

I'd very appreciate if you could give me some guidance and information about credit unions that give out cheap car loan.

I currently reside in Dallas, TX.

Thank you in advance for your inputs!
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.


Battery111
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Postby Battery111 » Wed Apr 01, 2015 6:31 pm

Big question is do you have excellent credit, or no credit? They're two very different things. I don't know off the top of my head, but there are many credit unions with extremely broad categories for those allowed to join.
Citi AAdvantage Executive World Elite MasterCard
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daniel2304
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Postby daniel2304 » Thu Apr 02, 2015 8:02 am

I said I had excellent credit score. But all of mine are unsecured (credit cards). I want to have an installment loan to establish a strong credit profile.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

takeshi
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Postby takeshi » Thu Apr 02, 2015 9:47 am

It's a bit much to expect us to list every possibility. If you've read up about such offers then look into the CU's mentioned and see if you qualify for membership.

Keep in mind that such offers come and go. PenFed was offering 0.99% but I don't think it was on terms as long as 60 months. USAA also offered my 0.99% at one point but I don't think it was for 60 months either.

There may be other additional stipulations for such offers such as using their car buying service, setting up automatic paymentd, etc.

daniel2304
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Postby daniel2304 » Thu Apr 02, 2015 10:12 am

Thanks takeshi! I guess I'm not familiar with how a credit union works. This practice seems really strange to me. I don't think my country has such community financial services like that. And since I'm not a resident or citizen of the US for that matter, I don't know if I will be qualified. I just want to gather some information before doing research about the credit unions that I could fit in though.
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

jcarte29
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Postby jcarte29 » Fri Apr 03, 2015 12:49 pm

daniel2304 wrote:I said I had excellent credit score. But all of mine are unsecured (credit cards). I want to have an installment loan to establish a strong credit profile.



In no way would I be able to truly answer your question unless I pulled your credit, but being in the car business I can give you some insight tied with an example.

.99 is most likely an incentivized rate, and as another poster mentioned, may have something attached to it (set up auto payments, use a "car buying service" (which is total bull to me)). The other way .99 is offered is through a manufactorer offering a low incentivized rate in lieu of cash rebate (normally around the same kind of discount, the financin just secures it with the bank backing the manufactorur).


As someone who has "excellent" credit but its a 1000 dollar CC or two (once again, I'm not trying to say this is your situation at all), you might have to start with a higher rate on a car and prove your worth the first, say, 12 months, then you can re-fi or be in market to qualify a higher, if not highest, tier (equates to lowest rates).


Brief example, I sold my neighbor a new Toyota Tundra. He was originally gonna pay cash for it (as he had done for everything prior, aside from his house next to mine), but I convinced him it was better to get some car credit on his profile. He was north of 700, but that was primarly due to his mortgage (he had no credit cards either). He didn't qualify for the best *auto* rates, granted it was still a single digit (7 or 8 I think) and within the year he paid off his loan (remember, he was gonna pay cash to begin with.) Going forward he's golden as responsible as he has proven to be.

Moral of the story, there is a such thing as "car credit," "House credit" and your credit, and while they are tied together they are also independant.
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

daniel2304
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Postby daniel2304 » Fri Apr 03, 2015 2:28 pm

Thanks for your reply!

My total credit line is more than 100,000 with the variety from Amex, Chase, Discover, Citi and Capital One.
I didn't have car loan because I paid cash for my current car. It was 5 years ago. It's still running good.

I'm so tempting with cheap car loan from the bank because I read somewhere that credit report should have a diversified loans to reach 740 or 800. In a very ideal world if I could get a cheap loan and the bank could give the check, like someone did, I would take that money to invest somewhere since my car is still working great. But that's another thing.

I still believe that I need an establishment loan for my credit report. It works differently from the revolving line and later on it could help with other things like mortgage or business loan.

I guess what you was trying to say is that although with a high credit score, I still need to pay a high rate of interest car loan to be able to get a cheaper one next time?
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

jcarte29
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Postby jcarte29 » Fri Apr 03, 2015 2:45 pm

daniel2304 wrote:Thanks for your reply!

I'm so tempting with cheap car loan from the bank because I read somewhere that credit report should have a diversified loans to reach 740 or 800. In a very ideal world if I could get a cheap loan and the bank could give the check, like someone did, I would take that money to invest somewhere since my car is still working great. But that's another thing.

I still believe that I need an establishment loan for my credit report. It works differently from the revolving line and later on it could help with other things like mortgage or business loan.

I guess what you was trying to say is that although with a high credit score, I still need to pay a high rate of interest car loan to be able to get a cheaper one next time?


At least in the four years I've been in the car business, yes. Not that you deserve to pay a higer rate, you deserve the best rates, but as you mentioned in your reply it will help to build some diversity in your credit file. Car credit is a way of doing it, because it's secured, its established, and so on.

Like I said, you're still going to get a competitive rate, anyone who would try and offer 10 or more points is a moron.

The average rate for a new car right now is around 3 or 4 percent, which means advertised rates lower than that came by one of a few ways: either the rate is "bought down" (by dealer, bank, or individual), or incentivized (manufacturer or bank/credit union).

Late Edit: If you're a member of a credit union, and they are willing to offer the .99 for your loyalty and/or membership, take it and run. That kind of goes to the paragraph above where the incentive came from the CU though. anyways, you get the idea I hope lol.
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Apr 03, 2015 3:08 pm

daniel2304 wrote:I'm so tempting with cheap car loan from the bank because I read somewhere that credit report should have a diversified loans to reach 740 or 800. In a very ideal world if I could get a cheap loan and the bank could give the check, like someone did, I would take that money to invest somewhere since my car is still working great. But that's another thing.

I still believe that I need an establishment loan for my credit report. It works differently from the revolving line and later on it could help with other things like mortgage or business loan.


A 740 is pretty easily obtainable with just credit cards for someone with a clean history. I've only had credit cards, and I'll have a 740 again pretty soon (as my accounts and inquiries age a bit more). An installment loan would certainly help you to get to 800 more quickly, but you don't need an 800. The best mortgage terms usually only require a 750 or 760, and you can certainly get there with only credit cards.
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daniel2304
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Postby daniel2304 » Fri Apr 03, 2015 3:13 pm

Thanks for your replies, both of you!
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.



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