hmm.

Well, it sounds like you've got a pretty limited credit history, which isn't really your fault since you're only 19. One thing I would do is try to keep a balance on my credit card of about $200 or $300. For whatever reason, having a balance on your card that isn't too close to the limit is better than a $0 balance. When I bought my house, the mortgage broker actually told me to charge $400 or so on my credit card to get a balance on there (my limit on that card was about the same as yours).

I guess what you're going to end up relying on is:

income (how much do you make)
job history (5 months isn't a very long time)
credit score (pull your credit score from msn so you know where it is)

I'd imagine you'll need a co-signer, which sucks for you because you won't build any credit if you have a co-signer on your loan. The only way to find out though is to go to a Credit Union or bank and apply for a loan to see what they'll approve you for.

 

it's going to be hard, sorry to say. I got my first car at the age of 20, that's with 2 years of work/credit history and at the time I was buying I was interning at Intel. I still got a VERY high interest rate (10.25%). I had/have a good credit history, no miss payment, credit card ALWAYS payoff balance.

Here is something I learned when I got my condo. Any time you pull your credit (open/close bank/credit account, simply pull your history) your credit points would go down. When you look at your credit history, they can pull it from 3 different places and should be about the same. If you are above 700-720 points you are really good. You can get just about anything as long as you have the income to cover it. So having multiple credit card doesn't mean it's good. They see it as 'unsecure line of credit'. Vs. have a mortgage, which is a secure line of credit and they (bank) doesn't really see it as negative. After 6 years at the age of 24, my credit was at 760+, but that took 6 years. Just to give you an idea. Good luck!

 

Maybe they have more money down, or somehow have more credit history. I didn't get approved for my first car loan until I was 20 but I was making a lot of money at the time so I'm sure that helped. Once you get a loan like that you build credit QUICK. Try going to a credit union, they're usually a bit easier to deal with.

 

Yes, Sonicsuby is right, credit union is easier to deal with AND usually better rate. BTW, here is a trick. Find someone with GREAT credit history, say your parents. Open a join credit card with them. Use it a few time, and pay it off. After few months to a year they credit history will tag onto YOURS! Supposely But remember, even the bad stuff would tag on. So find someone with a perfect history. Good luck!

Leo

 

Your going to need a co-signer. You should wait a couple years before buying a new car. Just keep making your payments on time.

 

you need minimum 1 year credit history on your card before anything major like a car purchase is approved. granted with a high income...money talks, but like the rest of us you need more credit history. best thing, save up money and drive that rodeo to the ground.
due to your age, i say get a co signer for at least 6 months then transfer in your own name.

 

You're close, but not close enought How that actually works is that if you have family/wife/girlfriend with good credit and long standing accounts, have them add you as an Authorized User on their accounts. The risk to them is fairly limited as long as they can revoke that prvilige. By doing this, on the next reporting cycle, or the one after, you credit report will show that you have had whatever account you were added to since its open date. We use this procedure with new home buyers every now and then that do not have enough credit history to qualify for loans in their own right. It takes a little time, but since you're thinking April, it should be perfect.

Also, I would say go with a credit union, but to take it a step further make sure you have an account with that credit union. I have been a member of my credit union since the day I was born (well almost) and as such, when my wife was added to my account, she picked up all my history. So in your case, if your family uses a credit union, have them add you to an account (it can be set up so you have no access to their other accounts) and take advantage of their history there. If they don't belong to a credit union, you should join one now. Open an account, and maybe see what kind of rate they'll give you on your existing credit card. If its equal to or better than your current rate, swap your ballance over. the reason you would do this is to build a payment history with them between now and your anticipated purchase date. Credit unions typically hold onto the loans they write (thy stay in their portfolio). Because of this, their underwriting/qualification parameters are unique to them and they can make exceptions where companies that sell the loan later can't.

I hope that helps,
Chris

 

Why do you want a payment of some kind so badly? A better idea would be for you to save your money and try to get your own place. Having your own apartment > having a cool car. Trust me.

Plus, once you get utilities and rent going on, you'll build more credit history and should be able to get approved for your own thing down the road when you can really afford to have it.

Having a car payment will suck when you want to move out, especially if it makes you unable to move.