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How do they have 1.49%? The website says 1.74% for 60 months.
New and Used Car Loans | DCU | Massachusetts | New Hampshire
I believe you also have to have your employer do direct deposit, otherwise they charge you 0.50% more.
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Bruce, it says Lowest rate quoted includes a 0.75% discount for payment made by automatic transfer from your SchoolsFirst FCU account. Lowest payment factors based on the lowest rate quoted; highest payment factors are based on the highest rate quoted.
So I think if you do automatic payment from another bank like Wells Fargo, then they charge you 1.49% + 0.75% = 2.24% for 60 months? I don't like credit unions that 1) make you use their savings account or 2) have employer do direct deposit. The autopayment I understand but being restricted to their account and/or direct deposit kind of limits you.
Just received a Chase offer via Tesla for 70% financing at 2.34% for 72 months with Tesla Resale Value Guarantee. That's 0.1% higher than USAA, but much lower than local credit union (SECU). Basically pay $3/month for RVG vs. USAA rate. Very tempting.
Cyclone
Cyclonic Member ((.oO))
DCU provides another 0.25% discount to green cars to the advertised rated. So 1.74 -> 1.49%. I got 1.74% -> 1.49% for 65 months at 110% financing on my S from DCU.
If you are financing 50k or less I would look at Energy FCU. They have .99% for 48 months.
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Will be difficult my friend, unless you have had other $100k cars paid off in the past, perhaps. In this case I would look at a lender you have a long relationship with such as your own credit union or bank as well as a large (25-30%) downpayment.
Getting your credit score into the 700's shouldn't be too difficult - it took my wife (then girlfriend) less than 2 years doing all of the right things. Now her score is higher than mine! Best of luck.
McHoffa
CyberOwners
My credit score has dropped below 700 from 725 a year ago because I no longer have a car loan or other loans. I've only got a mortgage and some credit cards. Sad that to get my score back up I have to take out a loan of some sort. It was highest when I had both a personal loan via my credit union and a car payment. Paying things off doesn't always pay off :smile:
Hmmm. It doesn't sound right that losing personal loans would drop your score like that. Do you think maybe you didn't have as many credit cards balances when you had those loans?
I have no debts (mortgage paid off and don't carry credit card balances month to month) and still maintain a score over 800. Granted, it was near 820 when I had a mortgage.
I have no debts (mortgage paid off and don't carry credit card balances month to month) and still maintain a score over 800. Granted, it was near 820 when I had a mortgage.
Your paid off mortgage is still in the equation. The weight it's given will decrease over time.
McHoffa
CyberOwners
I actually had more credit card debt at the time. According to a couple apps I use to keep up with my credit, the two things hurting me now are that my credit is ALL credit card debt aside from the mortgage, and that the average age of my credit is too high (37%, even though it was more like 60% a year ago). Credit scores are a strange thing.
gizmoboy
Member
The FICO (and other) credit scores are a bit arcane.
Having no or "too little" debt counts against you -- not as much as having too much debt, but still a fair amount.
If you have no debt or always pay it off, they can't tell how you really will be at carrying a debt load. (Few are in the business of lending to give you a few months or a year's bridge for 1.5% interest and then have you pay it off).
hybridbear
Active Member
This is what negatively impacts my wife & me. We live in an apartment & have never had a mortgage. We currently have no auto loan. We've had numerous auto loans in the past, but they've all been short term. The longest term of any loan was 36 months, and the longest it took to pay off any loan was about 12 months. Usually the kind of loan we need is a loan for a year or two as a bridge...the kind of loan that banks don't like. We use our credit cards for all our spending to earn cash back rewards, but we pay off our balances every month & have never paid a penny of credit card interest. I had student loans that I paid off in less than 6 months after finishing college & starting work. All of the aforementioned events show up on our credit report. It's a real struggle to get our credit score up to about 750, even though we have tried to be very responsible. Being only in our mid 20s, the length of our credit history is still short & that negatively impacts our score too.
Some of the comments in this thread about reasons to not pay with cash even when you have it on hand are quite interesting. If/when we buy a CPO Model S, we'd likely just about be able to pay cash for the entire cost between savings & trade in value. The type of loan we'd need would be a "bridge" for about 6-12-18 months, depending on how costly the car ends up being. Once that is paid off, we'd be able to replenish our savings. I wonder if perhaps it wouldn't be better to not use up so much cash from savings, but rather to instead take a larger loan over a longer period of time. This is a very intriguing topic.
Odd. Before I financed part of my P85D at DCU all three scores above 850 and my only loan was my mortgage. No revolving debt on any credit cards so my only debt at all was my mortgage.
Cyclone
Cyclonic Member ((.oO))
Also, FICO Vantage scores go to 950. They are have variants for auto loans, mortgages, etc. Many lenders still use tradition FICO though since its scoring ranges are built into the partner applications.
I'm very similar in age to you and wanted to give my thoughts on this.
Try not to worry too much about the fact that your credit file contains primarily revolving credit cards. A mortgage, auto loans, etc. are not critical factors to obtaining a high FICO credit score. At the age of 25, my credit profile (at least from a very high level) looked very similar to yours: multiple credit cards that I used primarily for rewards and paid in full monthly, and one Chase auto loan. My FICO scores were all above 760. I'll provide a link below to a blog post I wrote many years ago pertaining to FICO scores:
FAKO and FICO credit scores | Andys Blog
What's important to keep in mind is that your credit score is just a snapshot. In other words, if you're thinking about applying for credit in a month or two, it pays to play the FICO game and make your credit report look as attractive as possible. As an example, if your credit card reports statement balances to the credit bureaus, you could pay off the balance in full before the statement cuts so that it reports a $0 balance to the credit bureaus. That's what I did when I applied for my first auto loan at the age of 22. The dealer pulled a 782 auto-enhanced FICO (scale of 200-950) enough to qualify me for Tier-1 pricing and a 0% interest rate. Link below to the benefits of playing the FICO game:
The Benefits of Playing the FICO Game | Andys Blog
It's getting late and I should really head to bed but I'll really quickly rattle off a response to this one here: with interest rates being so low, some people have the mentality that it might make more sense to hold onto the cash instead of using it as a down payment on a depreciating asset. I'm sure there are plenty of people who could have paid for their Model S in cash, but instead, decided to hold on to their $100,000 and take out a loan. Why? Sure, they're paying 2% interest on an $80,000 loan, but on the other hand, they kept the $100,000 in their bank and can invest it in stocks, mutual funds, etc. As long as they get >2% return on their investments, they're coming out ahead. I'd be more than happy to pay 2% on $100,000 to a lender, if I'm also earning >2% on $100,000 in my bank.
Whats the lowest credit rating someone here got a loan on this car for? just wondering. I know i can afford it Monthly but some past BS caused my credit to drop a good bit. also has anyone here actually said they make a little more than they do to get the loan? if so how much more did you have to say. like did you try loan before with say 70K then tried again saying 100K etc? what about if you have commissions that may make that 75 go to 70 or 85 do you put 85 and use that as an "out" if they ask etc or what?
This is asking for trouble. Honestly, I did a pre-approval with my bank asking for a loan up to $50k and they approved me for $75k. That's my annual salary and with two young children, a mortgage, and other payments, WAYYYY more money than I would ever consider taking a car loan out for.
