30
Apr

im 18 i have a job and i know that i can afford 200 dollar car payments no problem. Only looking to spend about 5 to 8 grand on a vehicle. But i have no credit. And i was wondering how much interest will i be charged?? 10? 15? 20? please help?


Answer:
If I were you, I wouldn't even finance a vehicle. Just save up a couple of grand and buy a used car from a private seller. But, if you must finance, being 18 and having no credit, your interest will definitely be in the double-digits. Perhaps if someone co-signs for you, then the interest will be less. Why not open a secured credit card at a bank, and then use it and pay it off for at least six months? This is an simple way for a young person to establish credit. And, if you must finance, I'd suggest going through a local credit union if you’ve one.

Answer:
First, you'll need a cosigner. Second, $200 payments won't finance very much. And don't forget insurance.

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This entry was posted on Wednesday, April 30th, 2008 at 3:09 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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