I know this isnt exactly related to money and investing but its the closest thing i could relate it to lol

Well to start off im only 18, and currently financing an 03' miata.... sadly.... The car was about 13,000 and i got it using a first time buyers program at some dealer putting 2500 down and paying 350 a month. ive made about 3 payments on it and i still own about 10,000 on it. so far this is my only way of building up credit since i live with my mom and she pays the rent.

im looking to get an s2k now but they either dont have anything for me since i have no credit built up yet, or they wont take a car with 10,000 still due on it.

i applied for those credit cards at target and old navy to see if i could start off small with them and then build up some more credit but they wouldnt give me the card due to insufficient credit experience, same thing with the bank.

how long does it usually take build up some decent credit at this rate? and is there any other way i could build up some credit faster besides moving out. i plan to get this s2k within the next 6 months hopefully, and i should have a nice big fat down payment by then so i dont think that would be a problem, but how low would i have to get the estimated payoff for the miata before most dealers would accept it?

and before you guys start stereotyping the typical 18 year old living with mom and having her pay for everything please dont, i make all my own money, and alot of it for an 18 year old, just kind of new to financing and stuff like that. any advice/criticism would be appreciated. thanks!

 

Well, I'm sorry to say that at 18 years old you are at 0 on a scale or 1 to 10 in credit worthiness. I'm afraid you need to age a little. You aren't going to be a serious consideration for credit for another 5 to 7 years.

 

even if i looked at an s2k around 17,000 with like a 4000 down payment? plus whatever ive paid off from the miata? im not looking to finance a 2007 30,000 s2k.

 

Paying rent won't do anything for your credit. No one is extending you credit when you pay rent (you pay it in advance), so it's irrelevant and will never show up on your credit report.

You need to go to your bank -- whomever you have a relationship with -- and explain that you need a low-limit credit card. Explain that you are looking to build credit, that you do not intend to use the card for anything except, say, gas purchases, and thus do not need or want a high limit. Explain that you intend to use it for these small, consistent purchases, and intend to pay it off every month. Since you're already a customer -- and they already have access to whatever cash is in your checking account -- they'll probably extend you a small $500- or $1000-limit card.

Keep the balance near zero, pay it off every month, and wait. You will max out your score in a few months. As cthree said, though, the length of your history is about 1/3 of your score, and there's not much you alone can do about it.

You may also be able to get your parents to put your name on their credit cards. This will allow those accounts to show up on your report, and will (artificially) extend your credit history and boost your score. I have my name on credit cards my parents opened before I was born, and yes, it helps.

- Warren

 

even if. Who loaned you the 10 grand for the miata?

 

Another obvious but painful truth: if you cannot obtain credit for some expensive toy like an S2000, you probably cannot really "afford" it anyway. Buying a new car when you're still in debt for an old car is a bad idea. Your Miata's a fine car, and your wisest financial decision right now would be to keep it until it turns to dust.

- Warren

 

A company called Safco. theyre specifically there for first time buyers and people looking to build credit.

i already went to my bank (Wamu) and they said there was no way for me to get a credit card, this was my 3rd time trying already.

and like i said im not looking for a NEW car like an 07. if i could find an s2k for about 17,000 and put around 3-4000 for a down payment, would the credit matter as much? or can they find ways around it?

 

You're 18 still paying off your miata. You said you made 3 payments and already you're looking to trade in your miata for another car. Banks are right not to offer you any credit or loans.


Why do you want an s2k?


now that i bash you enough, time for credit building advice.


Pay off that miata, learn from your mistake and not to car hop to a different car every 3-6 month because you feel that your current car is not cool enough, doesnt have enough horsepower, can't impress the ladies.

Getting a credit card with no credit history is no big problem. Go to your local bank where you have an account with them and sit down with the banker and ask for a small limit credit card. If they refuse you one, apply for a gas card from discover or mastercard or a visa. These card tend to run high interest rate on 18 year old. If they accept you, DO NOT UNDER ANY CIRCUMSTANCES use these card at all. Just leave the account open and put away the card so you will never use it and screwed up the credit building process.

Young people fresh out of high school always abuse the credit card thinking that its free money and that they'll pay it off later end up screwing themselves with the accumulated interest.



Be smart, don't give these bankers free money. Pay off your miata !

 

Well 17000-4000 = 13000 which leaves you a little short.

You have no steady income. You have no credit history. The only way to get a loan with those credentials is to bend over like you're doing with rip-co and in today's credit climate even that is doubtful.

I think you're SOL. Sorry.

Sell the car you have, payoff the ridiculous loan you've got and buy a beater for cash. Go to college and all the card companies will be throwing credit on you. Otherwise you are in a very bad spot for many years to come.

 

Keep the miata man your just digging yourself a big ass grave in the end if you buy the S2000. Your not going to get much for your miata when you try to trade it in if you paid 13k for it your lucky to get 6k.

Save up for a few years until you can afford one. If you want a credit card to build credit maybe try and get your parents to Co sign for you.