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Member
choiceguy
Posts: 15
Registered: ‎09-17-2012

Bad Timing

Transmission went out on my daily driver this week.  I'm not putting any more money into it because it has 200K miles.  In the last 6 weeks, I have gotten 3 new credit cards, Lowe's card, Walmart Discover, and a high limit jewelry store card with a 3k balance.  I'm looking to buy a good used truck.  I have steady income 45k per year, with not a long credit history, roughly 2 years revolving lines.  I have only been out of school for a short time.  What am I looking at as far as financing for a used vehicle?  Are my best options to go to the dealership and finance through them or the bank?

Moderator
Revelate
Posts: 6,738
Registered: ‎12-30-2011

Re: Bad Timing

[ Edited ]

If you have a credit union, go through them first.  Dealer financing is typically a second plan unless you had a report which looks like mine did when I needed a car.

 

Beyond that you likely know your credit score if you were credit card chasing, can you provide that?  Also do you have any auto loan on your record in the past?  Auto loans are the easiest loan type to obtain, so while sure it was suboptimal getting credit cards right now it's hardly the end of the world and even an unpretty dealer loan can be refinanced in a year easy in your situation, and probably after the six payment reports on the loan, by which time all your credit cards will be more than six months old too.

 

I did a similar two-step with my used card with a bunch of new accounts opened up after financing the vehicle, so really six months is fine though mine turned out to be 8 months so I could easily verify income from my new job.


Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 672, Wally TU 686, EX 702 (04/14)
Goal Score: 700 in all three (01/01/15)


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Member
choiceguy
Posts: 15
Registered: ‎09-17-2012

Re: Bad Timing

My Fico score from here was 697 with the large new jewelry card reporting.  Utl was something like 40% at that pont, it is much lower now, less than 30 and probably closer to 20.  I have no bad marks on my report, AAoA is probably my biggest problem.  If I knew that I was going to need a new vehicle, I definately wouldn't have opened up those 2 new credit cards this past month. 


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