Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
jacobdontknow

0 Contributions
0 People Helped
Could another auto loan be the solution?
I have a very short credit history. (only nine months). I currently have a very poor credit score but I am financed on a Harley Davidson. I have made 8 payments on time, 1 late. If I were to go and attempt to finance a used car/truck do you think:
1. I would get approved?
2. Would making my payments on time on a auto loan really help my credit score or would it hardly make a difference?
3. Should I wait to until my credit score is higher before I attempt to obtain a second auto loan?

Additional info:
My debt to income ratio is only 12%
I am 19.
Credit score is 583 via CreditKarma.com

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7351 Contributions
3807 People Helped

You're thinking. That's good!!

Okay, that late payment on your record is going to create a negative for a little while.  Keeping your payments ontime from now on is a good thing.  Please do that, because it's very important.

Believe it or not, it MIGHT help your credit score a bit more to get a secured credit card.  Yes, they do have a high interest rate and you do have to place money in an account, and it will be a low credit limit but it can qualify you for a better card in several months.  Just make sure to use no more than 20% of the limit and pay the TOTAL AMOUNT DUE in full every month.  That's a big help in building your credit score. 

You're young and just starting out, so I recommend waiting a bit for another car loan.  Build up a savings account to provide funds to cover emergencies (make the goal for this at equal to 6 months total living expenses).  May sound crazy but I''ve already been there (and didn't have savings) and you DON'T want to go there.

You might even see if you can save up enough to make a substantial down-payment on a car or even pay cash for it.  I had sold my home and used part of the proceeds to buy a car for myself for cash. The rest was allocated to living expenses.  It's a good feeling to do that.  

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.