I am 22, a recent college grad and I will begin my full-time job as a teacher in Mid August. I only hold a debit card and never had a credit card, I recently applied for one with my credit union but I was rejected. Despite that, my credit score is in the 720s because I've started paying my school loans since my sophomore year.
I bought my first car like 3 weeks ago. All the fees related to the car came out to a total of 10k (it was a used 2016 car from a dealership), I put down 2k. So the remainder 8k was financed. The finance person at the dealer told me that it was going to be hard to find a bank willing to loan me 2k unless I had a cosigner or put down a bigger payment. I couldn't do either so the finance person said she managed to find a bank that gave me 13% APR, $160 per month for 72 months. She said that was the best I could get. I was desperate so I accepted it but I know it was a bad deal. I talked to my credit union and they said they could probably refinance my car loan me around the 4% range because of my credit score. However, since I haven't started my full-time job and the seasonal job that I have right now does not pay me enough for them to approve me with a good interest rate.
My first car payment isn't due until the 1st week of August. I am planning to apply for refinancing with my credit union in Mid September or October so that I have at least a month of paycheck stubs to demonstrate my financial standing.
Will 3 months with that car loan make a drastic difference? Will I accrue a lot of debt during those months cause of the 13% APR? Do you guys think I could get a good an APR in the 4% range as the credit union said? I hate accumulating debt which is why I started paying off my school loans early so this stresses me out a lot T-T. Any advice would be appreciated.
Submitted July 24, 2020 at 04:41PM by GlummyChum https://ift.tt/2OXasbi
