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Posted in Auto Loans
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Question By
LTrue

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22, Nanny, Cash Income, No Credit History, Need Auto Loan
My daughter needs a car loan. She is 22 with one more year of college. She is a nanny and earned $16,600 in 2013, but it was all cash deposits into her checking accounts and not claimed with the IRS. She has no credit history. Was even denied a secured card so it is very hard to estalbish credit. She needs a car loan. Any tips for her?

I am willing to cosign, but am in the middle of refinancing mortgage, so I don't want to do that if it is going to hurt my score."

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Thats a tough one!

Helpful to 1 out of 1 people

Since she has no verifiable income it's gonna be tough to get anything. But she can start to build her credit. 

if she can scrape together a sufficent amount of cash, she should try openng a savings account with a local bank or credit union. Then ask for a secured card attached to that account. That will help her start to build credit. 

A loan, even if you co-signed will be impossible without verifiable income. If you do ever co-sign a loan, Be sure that you are willing and able to pay off that loan if she defaults. It could ruin your credit if she missed even 1 payment.  

She is better off saving money toward the purchase of a used car. If she can save 50 to 75% of the purchase price she might be able to finance the balance from the issuer of the secured card once she has a history with them. Be sure to talk with the creditor and "Pre-qualify" for a loan rather than walking into a dealer and letting them try to get her into a loan. Of course this all hinges on her varifiable income. If she could get even a part time job that reports her income, she would be much better off. 

Good luck

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