Wasn’t it harder to be financed for some things. My mom was telling me about when she turned 18. She had every card, out there. She also told me she received instant approval on an auto loan and put a 6k down payment on a credit card. What happened to these days?! Wasn’t it harder to get financed and interest rates were higher? My dad bought a Mercedes in 99′ with tier 1 credit but was still charged like 9-13% intrest
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- www szbenz com/2011/03/wasnt-credit-a-bigger-issue-back-in-the-day/
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Accessories March 14th 2011
March 14th, 2011 at 8:03 pm
With interest rates high - people didn’t borrow all they could.
They behaved themselves…..
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March 14th, 2011 at 8:35 pm
You have to be more specific when you say “Back in the day”. With the recent failures of so many major and minor banks, as well as mortgage companies, credit criteria have tightened, making it more difficult to arrange financing. But, this has mostly affected people with damaged credit, since they’re the ones who have defaulted on past loans and/or credit card accounts. People with perfect credit histories are still able to borrow money, so keep your payment history clean.
It was pretty easy to accumulate a lot of different credit cards, though, just as recently as about 4-5 years ago. Most lenders don’t like to see you put a down payment on a car or house with a credit card, as the payments that you will have to make on the credit card will change your debt to income ratio. If it raises it over their threshold, you stand a good chance of getting turned down for the car or mortgage.
And finally, the vehicle has a lot to do with the rate that you pay on a car note, so if your father bought a used Mercedes (you didn’t specify new or used), the rate will be higher than if he bought a new one. And since you couldn’t be specific on the rate (there’s a big difference between 9 and 13%), and I don’t have a copy of his credit report to look at, I can’t tell you why he paid that rate 11 years ago.
March 14th, 2011 at 8:59 pm
Bigger issue? Back in what day? Yes, credit was much easier to obtain 4-5 years ago. That’s what the “credit bubble” talk is all about.