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
Bector06

0 Contributions
0 People Helped
Should I look to buy a new or used car? (Soon to be college grad)
Hi there,

I'm graduating soon and am doing research as I'm looking to buy a car (I'll need it for my job). I want to know if I should buy a new car, or if I would even qualify for a loan, or if I should look to buy a used car instead. Here are a few factors to consider:

My credit score is in the low 600s. The only activity I've had is being a co-signer for my sister for the past 3 years and she's always made payments on time.

I can put a down payment of $3,500 and my budged is $15,000 for the car.

I just finished an internship so I won't have paychecks coming in until I start my new job, which will be either in August or September. Though I do have an offer letter from my future employer showing my yearly salary (high 50k), not sure if that matters to the lenders at all.

So, would I be able to get approved for a loan? Should I just wait till I start working and try to improve my credit score over the summer? Or should I just go for a used car (that I would pay cash for)?

Thanks for your help!

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
5038 Contributions
1134 People Helped

Used car for cash.

You need income and employment history to get loans.

Find yourself a car for a grand or two and work on building your credit. Three credit cards and one installment loan are the basic credit building tools, but you will probably have to wait until you have income coming in. You may look around for a credit card that will let you use "income available to you". Do all the reading that you can on credit and start with a Secured credit card that is reported to all three credit bureaus.

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.