Which banks and/or credit unions are you using for auto loans?
Purchasing a new vehicle for our college student. I'd like to help build her credit, therefore she will be the principal borrower and I will be a co-signer.
Specifically looking for lenders offering simple interest loans, that allow principal-only payments and have no pre-payment penalty or related fees.
Thanks!
Which lenders and/or credit unions do you use for auto loans?
byu/Disrupt0101 inpersonalfinance
Posted by Disrupt0101
4 Comments
Rocket money has been a great one.
You can instantly (less than 30 days) give her great credit if you add her as an authorized user on your oldest card with perfect payment history and low utilization. She doesn’t even need to be given the card for spending. My son had a 730 score as soon as he turned 18 with no accounts of his own.
Then she can get her own CC card and use it responsibly for some day in the future when she’s no longer on your account.
As far as car loans, my current one is with Capital One. Before that Consumers Credit Union.
But the /r/personalfinance preference is to pay cash for something used and reliable.
None. The only way I could see financing is one of the very low interest rate (3%APR or less) deals you might get from the manufacturer on a new car.
It’s not worth taking on car debt to build credit.
If you were going to finance a used car anyway, sure, do it that way. But unless you’re making more on your own money than the loan costs you, better to pay for the car instead of finance it.
She can build credit by using a credit card to pay for things, and paying off the entire balance each month, with no debt.
Whichever gives you the lowest interest.