I Have Average Credit Is 85 A Decent Auto Loan Rate
Q: I am a 22 year old-working-half-time-grad-school-half-time student. Work income of about 1000/per month. Parents support me 1000/per month. My only expenses are $800 for rent and my student loans are deferred for 3 years..till i graduate law school. I have a credit score of 625-630. I applied for a $20,000 car loan and was quoted at 8.5% for 48 months. My payments will be approx. $540 per month. Is this a good rate? With my stats, do you think I can get a better rate? Is it worth it to "shop around" since people checking my credit reports will only bring it down? Is 625-630 a bad score for a person my age?
A: -I would say you have an excellent rate for your FICO score. We have a 680 FICO and our interest rate is 9.0%. -Anything under 620 and you will be lucky to get a credit card. Look at your credit report and fix everything you can before getting a car. All you need is 700+ to get decent rates. Shoot for 5.5% to 6% after that. Inquiries into your credit history don't do much damage. Now for the real issues. If i was sending my kid $1,000 per month and she went out and bought a $20K car I would have to resist a strong urge to strangle her to death. Cutting her off would be my actual response. Wait until your first law job before any purchases like this. .