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New Member
Army275RGR
Posts: 14
Registered: ‎04-27-2014
0

Re: 22% downpayment not enough?

Im in my twenties, im single, have health insurance and a retirement plan at work. Im gona try to enjoy life, and not kill myself my entire youth to pile up cash. Thanks for the advice tho.

Frequent Contributor
coterotie
Posts: 487
Registered: ‎11-30-2012
0

Re: 22% downpayment not enough?

I'm not going to be like the other guys and criticize your choice.  You want to drive a hot car?  Drive a hot car.  However, I will criticize your way of going about it.  You could have walked in there gotten the car nothing down and a ridiculously low interest rate.  Instead you walked in unprepared figuring your 10K could bluff your way into a car.  Based on your userid, my guess is you're in the military.  That kind of planning and thinking in your day job gets your butt blowed up.  You use checklists and op plans at work and you have to use them out of work as well.  Head over to the rebuilding forum and see what you have to do to get your scores up in the shortest amount of time.  More savings for a larger down payment aren't going to help as you will be paying way too much in interest and stripping out your cash reserves for emergencies.  You also need to develop a plan to keep your credit from getting sloppy again.

A short list plan would include:

  1. Increasing the limit on your secured card to at least 1500, 2000 preferably.
  2. A second bankcard trade line that is unsecured
  3. A retail type tradeline
  4. Account with a credit union such as penn fed or one of the other military linked CU's
  5. Open a small secured instalment loan at that credit union
  6. Figuring out a way to get rid of any open collections etc. that are causing your score to be lowered.
  7. Setting up any payments you have on autodebit from your DDA, with your savings utilized for overdraft protection.

If you jump on this stuff now, I would put money on you having the car at a good interest rate in 6 months.  And a score at least 100 points higher than it is today.  An added benefit is if you need security clearances in the future, you won't need to spend months writing letters of explanation about why you screwed up or coming up with a big lump sum to clear up any open collections.

 


Army275RGR wrote:

Im in my twenties, im single, have health insurance and a retirement plan at work. Im gona try to enjoy life, and not kill myself my entire youth to pile up cash. Thanks for the advice tho.




 

New Member
Army275RGR
Posts: 14
Registered: ‎04-27-2014
0

Re: 22% downpayment not enough?

You are right about the bluff. I will start to put your advice to work. Btw I used to be in the Army.

Community Leader
Valued Contributor
azguy13
Posts: 5,375
Registered: ‎04-30-2013
0

Re: 22% downpayment not enough?


Army275RGR wrote:

You are right about the bluff. I will start to put your advice to work. Btw I used to be in the Army.


I used to have to go to the car dealerships with the lower enlisted in my squad so they didn't get taken advantage of by the "retired CSM" who ownes the small car dealereship and will "finance anybody."

 

I am fully aware that the Army (probably military in general) does not educate on the world of credit. Lucky for me, I had a squad leader when I first got to the 101st that taught me enough about credit so I would not hurt myself in the long run. The worst thing the Army does is the MILES program for first time car buyers. I think they were trying to push that on me at 18% even after I told them I was offered 6% from USAA.




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New Member
Army275RGR
Posts: 14
Registered: ‎04-27-2014
0

Re: 22% downpayment not enough?

Experian says that late payments, low credit limits, and debt to income and inquries are hurting my score. The late payments must be those CA that are refreshing old accounts am i right? im current on everything from last two years. Either way i paid them today so they can stop refreshing those accounts, i think thats bs if you ask me.

Frequent Contributor
coterotie
Posts: 487
Registered: ‎11-30-2012
0

Re: 22% downpayment not enough?

Did you get a PFD?  If so, your score could easily jump 50 or 75 points.  If you didn't they will continue to hurt your score.

 


Army275RGR wrote:

Experian says that late payments, low credit limits, and debt to income and inquries are hurting my score. The late payments must be those CA that are refreshing old accounts am i right? im current on everything from last two years. Either way i paid them today so they can stop refreshing those accounts, i think thats bs if you ask me.




New Contributor
jaebsf
Posts: 69
Registered: ‎03-26-2014
0

Re: 22% downpayment not enough?

Good point. If you are going to pay off a collection account you might as well negotiate in deletion. It just makes sense.

Established Contributor
RushXTC
Posts: 724
Registered: ‎07-01-2013
0

Re: 22% downpayment not enough?


Army275RGR wrote:

Lots of missed payments, collections...etc...etc loans and credit cards. What a person with a 561(according to experian) would have. I literally own everything I have except my truck because of my irresponsibility. I have ONE credit card and it's a secured card from wells fargo with a 300 limit. Its paid off right now.  I was trying to buy a 2014 SRT 8 Challenger btw. Great car, awesome power.....but I cant have it. Boy it sucks having a terrible history of credit, i really feel this system is in need of an update to reflect a persons true capacity to pay off a loan.


Reflect the true capacity? It does reflect the true capacity... You missed payments, Got sent to collections, etc. That's your "true capacity".

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