small loan poop car or new car big loan

[Anonymous]

what would be best to improve my score?

I do need a new car the one i have now was paid in full at time of purchase but its approaching the end of its life and need to decide soon.

a used car 10k ish that i can pay off quickly

a new car 30-40k ish that will take 72 months to pay off?

I would like to purchase a house or at least be in a good position to do so, im self employed but I put myself on payroll so i get a W2

I also would like to get a LOC for my business going for extra inventory and if we get in a cash flow crunch.

any suggestions?

FICO is 654

EQ-635 (pulled score from bureau)

TU-763 (pulled score from bureau)

EX-705 (pulled score from bureau)

2-9% utilization

authorized user on a account thats been open for 15 years and 17.50k limit

secured credit line of 2.5k personal

capital one unsecured line $300

bank unsecured/co-signed CC $500

[rosegardener]

How soon are you planning to do the house?  I do believe that there is a six month window of No-no with credit apps before a mortgage. 

If you are planning to do it in a year or so I would opt for the 10k car, assuming its reliable and wont cost the earth to maintain.  Quickly paid off tradeline and less DTI impact

[Anonymous]

sorry for not being specific i would say at least 1 year out. but sounds like a plan would this hurt my credit once that auto loan payment fell off?

[rosegardener]

Positive account information reports for 10 years, baddies with a few exceptions hang around for 7.

So, no, as long as you paid it well it would not hurt your credit at all.  At a year out the inquiry wouldn't factor into scoring either (it would still be on there and viewable by lenders but not affecting your score anymore)

[Anonymous]

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@Anonymous wrote:

what would be best to improve my score?

I do need a new car the one i have now was paid in full at time of purchase but its approaching the end of its life and need to decide soon.

a used car 10k ish that i can pay off quickly

a new car 30-40k ish that will take 72 months to pay off?

I would like to purchase a house or at least be in a good position to do so, im self employed but I put myself on payroll so i get a W2

I also would like to get a LOC for my business going for extra inventory and if we get in a cash flow crunch.

any suggestions?

FICO is 654

EQ-635 (pulled score from bureau)

TU-763 (pulled score from bureau)

EX-705 (pulled score from bureau)

2-9% utilization

authorized user on a account thats been open for 15 years and 17.50k limit

secured credit line of 2.5k personal

capital one unsecured line $300

bank unsecured/co-signed CC $500

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I am planning to buy new car in a months times once I pay off my no-interest CC. The reason for buying new car is my old car is on last leg and secondly I am planning to buy a house in about 2 years time so that all the loss is restored in that time and credit clears out. I would go for new car only since I would be driving this till it dies off. My current car is 14 years old.

[creditnocash]

im in the same boat. 

my car that ive had for four years (95 acura integra) 

is on its last limb. 

i bought it for 1200 cash and probably sunk in a good 4k extra. 

i have a about 2k for a down payment, not including my car. 

im looking into leasing but not sure with my credit report. 

i have no loan history since i bought the past 2 cars ive had with cash. 

all my cc has always been paid on time or pif. 

my scores are in my sig. 

i think i have about 2 1/2 weeks left on this car and im determined not to put anything in besides gas. 

[webhopper]

Look at something maybe new or preowned around the 12-19k range. They do exist and can be excellent cars. I bought a volvo s40 for 19k which had about 14k miles on it. Now it has 105k miles... no major issues. Ive only paid for preventative maintenance and tires. I was much happier in that purchase than I would have been with either a POS beater or a new luxury car with a pricey note. Companies with good lease programs such as volvo; acura; maybe even bmw might give you a good value for your dollar on a pre owned vehicle while still making you feel as if you didn't settle for poop. If you buy poop now you may be eating it later on down the road.