First of all I just wanted to say hello! I’I've been lurking since late January 2012 and I finally feel like I have something worthwhile to Share! I started my journey back to good credit in November 2011, and I couldn't’t get a leg up to save my soul. I just couldn't’t figure out what I was doing wrong! Then in late January of 2012-I found this board and I must say THANK YOU ALL SO MUCH! It was because of all the wonderful advice I read on this board that I was able to understand credit and start fixing my credit the RIGHT way!
APPROVING BANK: American Honda Finance Corp../Capital One Blank Check
BUREAU PULLED: Transunion only ( I heard many people talk about auto enhanced scores, however there was nothing enhanced about my score – it was the exact number that Transunion shows on my FICO report)
CREDIT SCORE: 599 – it was a 624, however I didn't’t know that CapOne’s secured cards didn't automatically reflect your posted payment as the available balance straight away so my statement closed showing a high balance as a result my score dropped 25 pts 
CUSTOMER STATE OF RESIDENCE: Massachusetts
NEW/USED: Used
YEAR OF VEHICLE: 2009
MAKE: Honda
MODEL: Civic
MILEAGE: 31,392
RETAIL/LEASE: Retail
AMOUNT OF LOAN: $19,455.44 / $16,848.20
TERM CONTRACTED: 60 mos. / 72 mos.
APR/LEASE RATE: 10.49%/ 17.55%
MONTHLY PAYMENT: $415 / $414.18
ANNUAL INCOME: 28k
MISCELLANEOUS COMMENTARY: Okay so this is going to be kinda long, my apologies in advance: I applied for AHFC online, I was denied immediately, which was a no brainer for me I still don’t even know why I applied. So after reading numerous threads on Myfico I tried Capital One. I was approved instantly for $16,848.20, the catch was at 17.55% APR. I went to one Honda dealership who basically lied and told me I had to trade in my vehicle, and put money down to cover the negative equity, no matter what Capital One said – “No Ma’am!” I walked out. I’ve been down that road before and THAT IS HOW I ENDED UP PAYING A CAR NOTE ON A LEMON IN THE FIRST PLACE.
On Monday (6/18/2012) my car decided to commit suicide on the Massachusetts turn pike! I knew then I was SOL because I live 24 miles from work, and with a 7Am start time public transportation was a no go. The problem was, I didn't have this down payment the dealership claimed I needed to have. So, I decided to go to another dealership. After talking to a Capital One rep, they were extremely knowledgeable and helpful by the way, and I was shocked because I read so many horror stories on this board as well as Credit Karma; I guess that’s AFTER you cash the check 
. Anyway they explained that I didn't need a DP and I didn't need to do a trade. After brainstorming I decided to use my CapOne check as "leverage", well at least in my mind. We had already negotiated a price $14,200, down from $14,888. I checked the NDA and its around $16-17k depending on the condition. I told them flat out that I didn't need financing; I already had it, and under no circumstances was I going to trade in my clunker. In case anyone is wondering the negative equity would have caused me to pay a down payment, and I wasn't in the position to afford one.
I just finished dumping over $2k in repairs in that 2007 Chevy Cobalt and it still crapped out on me. Did I mention it only had 64k miles on it?? Anyway… The dealer asked for a chance to beat CapOne’s APR. I obliged of course, and then I low-balled the APR. I told him 10.99% when it was really 17%. Finally the finance officer emerged from “behind the curtain” and asked to chat with me. He asked where I got my figures from because what he’s getting from CapOne is 20% APR and I have to put something down as well as trade my car in. I then explained the blank check program and told him that it had nothing to do with the dealership’s financing through Capital One, and I’d be writing him a check the following day, and then I calmly asked when I could expect delivery on the Civic?
He then counter offered and asked: “What if we offer you 9.99%, no money down, AND you don’t have to trade in the car?” All I really wanted was an auto-starter/security system which I knew I couldn't afford after Gap insurance and the extended warranty. Hell I think I couldn't even afford that after title/taxes and doc fees. I told him, if he could do all that I’d buy Gap insurance, get the security system with the auto starter (which I wanted anyway), and join their stupid Safe ride motor club under the “Gold” plan. I said all this assuming he couldn't come through; especially since I read that Honda doesn't really look twice at people with my credit score and I have a judgment on my report – Which I’m disputing and fighting to have vacated BTW.
I was so sure of it, I asked CapOne to overnight me the check. I should have known he knew he could do it anyway because he had me fill out ALL the finance paperwork. And he kept using phrases like: “When my finance manager signs off on this….” Rather than: “IF my finance manager signs off on this…” and, “Since you’re going to have two car loans now…” instead of “You may end up with two loans IF this deal is approved…” Trust me, I’ve been laughed out the door so many times, by so many dealerships BEFORE I've even had the chance to look at cars I knew that filling out the paperwork was a feat within itself. Heck, the fact that I could even negotiate left me a little wet behind the ears, LOL.
Today (Tuesday) I called him to tell him I’d be dropping off the check, I completely and purposely “failed” to bring up his “chat” with the finance manager about Honda financing; I didn't want to seem desperate and lose my "leverage", LOL. He then stated that he was just about to “text me” which was weird I’d rather he’d call; he wanted to know what time I wanted to come in and resign the paperwork; he then informed me that I got approved for the Civic through Honda financial, the only catch was that my APR would be 10.49% at 60 months. I wanted to push my luck and say: “Give me 10% or cash the check!” However, when I thought about the fact that I would have financed $14,200.00; $18,372.87 after extended warranty, gap insurance, taxes, title and documentation fees at 17.55% at 72 months, my payments would have been $414.18 and I wouldn't have my automatic starter/alarm system kit not (which is what I really wanted as well). I would have had to come out of my pocket anyway or give up the extended warranty and Gap because I only had $16,848.20 to work with through CapOne, I decided to just cave, and here I was thinking I had leverage, LOL.
I forgot about that stupid safe ride, but I held up my end of the deal and added it in; no, it wasn't 9.9% but it sure WASN'T 17.55% either! Yes, I thought about going for a cheaper car, which for me meant changing the year, and a higher interest rate with CapOne, for some reason after the 2009-year the interest rate leaps to like 19% another “No Ma’am!”. So here’s the break down of my loan:
Car cost - $14,200 Alarm system w/remote starter $799 (don’t ask me why I chose this one instead of the cheaper one… I know, I know). Saferide Motor club - $399 (I’m kinda glad I got this, because last membership cycle I called triple A seven times, and you know we only get four free services per membership year, and I’ve already had to call them once on this past Monday when my car decided to just give up the ghost on the highway…) Gap insurance $750, extended warranty $1898 (which is what I wouldn't have been able to get with a $16,848.20 loan from CapOne), Tax/Title/Doc fees - $1,411.44 which comes out to 19455.44 minus my $100 deposit to hold the car $19355.44 financed. It’s costing me $5,599.76 to finance with a total of $24,955.20. I will have paid over the life of the loan if I don’t refinance. Luckily, I plan to do just that with my bank in exactly 6 months. PS my bank told me that there was no way in hell they’d finance me while I was still in the rebuilding stage.
All and all I’m extremely happy with the way everything turned out. I didn't get my first choice car, but I was able to get a car that I really enjoy driving, and I didn't have to roll in that clunker. Now I know you're asking yourselves what am I going to do with the Chase loan? I still owe $5,588 on it; however, a family member offered to give me $3500 for it, he builds cars. That price is more than what the dealership offered. This leaves me with a balance of $2,088. I decided to put the money towards the loan and continue paying on it until I get my end year bonus at work and close the account. Good Riddance Chase, and Good riddance to that money pit of a Chevy!
I hope my story gives someone hope, it can be done – you can get semi decent financing with lackluster credit. Trust me I’m currently paying 21% on that crappy Chevy. I thought Honda financial would stick to their guns; especially since I have a 599 credit score, and I’ve only had my two capital one cards (secured and unsecured) for 2-3 months. I also have a million inquiries; as I stated in the beginning - I had no Idea what I was doing, and a random judgment that I still can’t account for, I don't even remember owning that credit card! Believe me it wasn't easy fixing the damage I did to my credit, I spent many days in tears especially after seeing that judgment and SEVERAL inaccuracies on my report by Chase auto finance, mysterious credit lines and utility bills opened – I got those deleted thank God! Not to mention that my credit score dropped last month. However, with the help of God, all you kind folks and your tips on this board – as well as my own resolve to see this thing through, I am back on track and much more wiser too! Also I think it helped that I went into the dealership financed with Capital One’s blank check. I never seen so much “magic happen” when you’re already financed, and not in need of the dealerships assistance. Now I need to figure out how to get out of paying for the FEDEX delivery fee for that check – oops…
God Bless!
Congrats to you kikibloom!
I appreciate you posting your experience because it gives people like myself hope
I have to wait for a judgment to drop from my credit report soon and I read these success stories like yours and even though I know everyone's situation is different, it feels good to see someone "in your shoes" come out on top.
I'm taking it all in and waiting for my moment to strike 
and I feel that this time around I am waaaaay more prepared.
Knowledge is power and this forum has been a blessing to me.
Congrats again, and thanks for your post!
@Anonymous wrote:Congrats to you kikibloom!
I appreciate you posting your experience because it gives people like myself hope
I'm taking it all in and waiting for my moment to strike
Knowledge is power and this forum has been a blessing to me.
Congrats again, and thanks for your post!
Thanks so much, and yes I know exactly how you feel! I used to read these boards with so much hope and drive saying to myself over and over "I know my situation is not theirs, but if they can get back on track so can I...." It took patience, determination and discipline believe me there were days when I just wanted to say forget it!!. However the more I frequented this board, the more encouragement I got. Which was awesome because when you're trying to fix your credit, it can be a very lonely journey, especially when you're surrounded by people who have A+ reports and they don't know what it's like to be rejected at 29 over a mistake you made at 22. Also, you're so right, knowledge is power; once I understood HOW to pay my bills (not just paying them on time, but making sure I'm staying under 30% utilization), I saw MAJOR changes in my credit score. So I say, hats off to you and keep up the great work. Trust me, you'll be posting a success story on these boards in no time, keep up the good work! I can't wait to read about accomplishments!
I still have a long road ahead of me, but at least I'm NOT where I started
