Well, first it takes a while for your credit history to develop, 3 months isn't going to cut it. One poster already explained what makes up your credit score, I'm going to go over it again:
2.Total debt owed vs. available credit- 30%
3.Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and new accounts- 10%
All these factors come into play. Since you've had the account < 6 months, #1 and #5 I mentioned above is affected. It takes at least 6 months to a year for payment history to reflect on your report. The dealership is right to an extent about getting more credit cards to build credit. That's where #4 comes into play. A good score shows a mixture of different types of credit, not just one credit card. Here's another thing that you might want to take into consideration:
1. LTV (loan to value).
2. Term requested.
3. Age of vehicle.
4. Miles on vehicle.
5. Down payment amount.
6. Time at job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
These are factors that are taken into consideration when applying for a car loan.
If you haven't been at your job for a while, and have a good down payment, without a credit score on a NEW vehicle? Now you can see why it might not be possible to do it by yourself. Now, your mom might be able to co-sign on the car, that's a possiblity. But also keep this in mind. You're 18, and you're trying to get a jeep. The insurance alone will eat you alive unless you add the car to your parents policy, and still the insurance will be high. just a thought.
My suggestion would be to do this. Apply for a secured credit card. How it works is that a deposit, usually tied to a savings account is used as collateral in order to establish a credit line the same amount of the deposit. For example, you deposit $300, you would get a $300 credit line. Now this can work to your favor, because since the deposit is lined to a savings account , you could use this not only to save up for a car, but to build credit at the same time. You can increase the credit limit by adding to the deposit which will help your credit (see #2) because you want to have a large cushion of avaiable credit, versus the debt you owe. A good way to use the card would be to make a small purchase($20/month) that can be paid off on time while adding to the deposit every month. Usually a year after paying on time and keeping the balance manageable, the card either converts to a regular card, or a better card's offered, and most importantly the deposit is no longer needed and is given back to you with interest. That deposit could be your down payment right there. By that time, the other card would have reported and you would've built more credit, which will take some time, more than 6 months.
· 1 decade ago