I started this thread so I didn't snipe the USAA Insurance thread.
Has anyone gotten a used car loan thru USAA? I'm thinking about having my daughter finance a portion of the used car price to help establish her credit. This is her first car. Trying to see what the actual pro's/cons are.
we just did a used car loan through usaa two weeks ago (bought an 06 explorer to tow our camper). the loan was approved in 2 minutes via internet application; they beat the dealership's interest rate by over 1.5%; you'll get another discount on the rate if you apply online and authorize a direct payment plan through your savings/checking account. they can even express mail you the check for your loan amount in less than 24 hours. pretty simple. drop me a personal e-mail if you have any other questions.
If their services and rate are anything like the ones for new cars, go for it. I believe they also offer a discount on the interest if you set up (or her) automatic monthly deductions.
Refinanced my wife’s car with USAA and get a decent rate. When we traded in the car on a ’07 USAA offered us a better rate than offered through GMAC.
Check the rates before you buy, just do not go with a finance company because of the name. I did that with my VA mortgage, and it (the mortgage) was sold to another company within the first two years.
If this is the first step to establish your daughter's credit then I would be cautious... It can be a little pricey to have a large loan as your first step toward credit building... We looked at doing the same thing for my wife's first step in credit, but the rate was about 4% higher than if it was financed in my name... So we started her out on a low-limit credit card for two years to establish her credit before we applied for a loan in her name and it all panned out well...
I would guess that you being the co-signer would help with lowering the interest, but at a cost to the actual benefit her credit would gain... From what I understand (and don't take this for the Gospel Truth) when parents co-sign loans, it tends to benefit the child less...
As far as USAA goes, I have everything through them... Checking, savings, credit cards, car loan, car insurance, renters insurance, additional life insurance, and my retirement investments... Nothing but good things so far...
Hope this helps and gives you some insight for setting up a loved one's credit...
Originally posted by jgcoastie: If this is the first step to establish your daughter's credit then I would be cautious... It can be a little pricey to have a large loan as your first step toward credit building... We looked at doing the same thing for my wife's first step in credit, but the rate was about 4% higher than if it was financed in my name... So we started her out on a low-limit credit card for two years to establish her credit before we applied for a loan in her name and it all panned out well...
ET3 Sends...
Whether you go the car loan route or not, obtaining a credit card in her name would help alot, just be sure she uses it wisely. She can pay in full every month and you won't have to worry about the interest rate. She'll still build a credit history. Using it for gasoline and such would keep the monthly bills fairly low, and hopefully would be the same money she'd be spending anyway.
