Paid of loan early and I am looking to get another

cullet16

Hi, I am new here so I apologise if my question has been asked many times before.

I have just paid off my loan early and am looking to get a new loan so I can get a new car.

My question is would it be beneficial to wait a certain length of time before I start doing pre-checks for a new loan as I do not have a huge amount of credit history and I was thinking a completed loan may help in getting a better apr.

Any advice would be hugely appreciated.

bigadaj

The mse advice would be to not take out a loan, save the loan payments up and then use it to buy a car in a year or two and save on the interest.

Wilkins

The longer you wait, the less you will need to borrow. Set the money aside that you would have paid in interest. Preferably, save up the full cost and buy cash down. Try not to think it terms of getting a credit history, think in terms of getting what you want more cheaply. Anything bought with a loan is more expensive.