applying for a loan

[TurboTagTeam]

Getting a decent loan is not easy when you are young. I am 18 years old. I have no credit cards, and I'm still building credit, however I got a decent loan on my car. The reason is because of my job. I had to send my Year to Date paystubs to the bank to get the loan. Since I make a decent amount of money (>60k a year) the bank financed me. Also my job has a guaranteed pay raise over 4 years so they took that into consideration also.

[2point4DSM]

I got this paper from my cousin who is a loan officer. It's several pages but I'll try to sum up the basics.

Credit scores range from 350-900.

35% of the credit score is based on credit utilization. How much credit you have and how much of it is used.
15% of the score is based on the age of your credit.
10% based on type of credit. Borrowing from finance companies or other high-risk lenders will negatively affect your score.
10% of the score is based on credit inquiries. If your shopping for new credit you may represent more risk.

And there are 150 other things they look at.

What does it take to have a high credit score:

-At least 3 years of clean credit history.
-At least 3-5 credit cards with balances below 30% of their available credit.
-One or two seasoned installment accounts.
-One seasoned mortage account
-No finance company accounts.
-No new opened accounts within the last two years.
-Virtually no inquiries for new credit.

Lately, I'm using my credit card to buy everything I normally buy like groceries, gas, fast food, etc. Then when the CC statement comes in I pay it all off. Btw, this is for stuff I would have bought using cash or my debit card anyway.

[max2k1]

car loans are a pain in the ass to get when you are young. The messed up part is that you would have an easier time getting approved for a mortgage then you will for a car loan

[WrxJC]

the reason its easier for a mortgage than a car is because u can't drive off with your house or "hide" your house from them. SO, its not actually THAT crazy, there is less "flight risk."

[WrxJC]

[QUOTE=Don't get hung-up on your credit score. Its more important to show an ability obtain credit, use it and pay it back, consistently on time.
Someone with a 700, 10 year credit history, and no negative occurences is a better credit risk than the 790, 2 year history and 3 negative occurences.

Good luck.[/QUOTE]

This doesn't entirely make sense to me. I'm 21 years old. My credit score is in the 800's. The credit score REFLECTS payment history, etc etc. It's nearly Impossible for someone to have a credit score of 790 with 2 yr history and 3 negative occurences. Your credit score is all that matters. When a bank or car dealership runs your credit, they see your score first, and then, if they look further into it, they see your history...obviously negative things show up 1st. MY POINT is...since your score is a reflexion of ALL your credit history combined, you SHOULD be hung up on your score.

[GTIivVR6]

Originally Posted by 92talonTSI

im 18,im still in highschool, i got a decent job (5 grand a year woot) and i want about a 3 grand loan to get a car. ive had a credit card since september, and ive had a ton of money on it. ive paid all the bills early or or time and in full. think im eligable?
my parents ahve great credit too if it helps

dude i took out a 3 grand loan when i was 17 with my mom as a co signer....your def. eligable....you will probably need a co cigner though like everyone else is saying...and i wouldnt say its for a car either....say your taking a trip or something because they will want the title of the car if you say its an auto loan..or they could say the car is not even worth 3 grand and say no lol...