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07-17-2012 05:27 PM
I have taken much advice from this forum over the past 2-years, and have raised my score from the low 500's to now 724 (TU). This post is a salute to those who have shared the tips, tricks, and wisdom over the years.
I FINALLY HAVE A GOOD LOAN.
** My Toyota 0% financing loan that I received today showed a 724 score, and an A+ credit profile. NICE! Keep in mind that I still have a BK and a few other things on the credit that most folks would assume could prevent any loan from happening. Also, know that as I am receiving this 0% apr, I am getting rid of 2-vehicles that I had to pay 22% interest on over the years due to poor credit (I do not recommend this as the best credit building method at all).
The best few pointers that I can suggest that I have learned and practiced recently for others
1.) keep your credit cards paid down to less than 30%, and your TOTAL cc debt to 30% or less (Suggest about 10% so that you are not paying the card companies too much in interest). PAY THEM SO THAT YOUR STATEMENT POSTING DATE reflects the 30% or less balance (not after this).
2.) VERIFY ANY & ALL DERRAGATORY account(s) on your credit profile that are recent (those with derragatory activity in the past 2-years).
3.) PURCHASE one, or more, credit monitoring. Personally, I find that the experian is helpful (about $12-14 per montha average). Their score system is close enough for you to get an idea of how your real fico score is, and you will know immediately when things post to your credit file.
4.) Walmart card provides the free TU score one time per month with their online card center.
5.) DON't ASSUME your credit is too bad to apply for a loan at a credit union or a lender that typically desires A-credit.
6.) BUY A HOUSE THAT YOU CAN AFFORD -- something that has potential equity/equity you can build on. This alone helps your DTI threshold/future lending ability. One day, after you put all of your sweat and love into that home, you can sell it for much more than you paid and have 'real-equity'.
THANKS ALL!!!! IT HAS BEEN A LEARNING JOURNEY!
07-17-2012 06:07 PM
nice. I don't need a new car or a house, but I hope to get there soon too!
07-17-2012 08:20 PM
Congrats OP. How old is your BK. Mine is 4. Never thought I could get a 0% auto loan....don't need one anymore but it was offered to me at the Nissan dealer when I was looking and I thought that I could never qualify for that based on the BK
07-17-2012 08:23 PM
my BK was discharged in 2006 - They told me that the BK did not matter-- just the score. The finance agent at the dealership is the key/where he can call, point out the score and DTI (my DTI is very low - like 19% total with the truck loan/house/everything) - It took 30-minutes to get the Toyota financing approval. He told me that the BK just needed to be about 2-3 years out and good credit following to get them to approve.
07-17-2012 08:26 PM
And I should re-iterate that I too would have never thought that I could get 0%. I think those of us with damaged past-credit do not have confidence. During the finance meeting tonight, he told me to get my other loans out of the high interest rates since I have the top tier credit. I suppose it was just very strange having him tell me that I was in that top-tier.
In that past year, I have been able to get a good home loan (no PMI) and a 4.75% interest rate, car loan, home equity etc.. all at favorable rates. I purpose to pay everything on time and down to the right usage levels.
Hopefully, this post will help others be more confident and have the opportunity to pay less finance $ in the future!!!!
07-18-2012 05:08 PM
Thanks for sharing. Truly very encouraging!
07-19-2012 01:55 AM
Are you guys serious? I have never hear of a zero percent auto loan?
07-19-2012 06:08 AM - edited 07-19-2012 06:12 AM
they are common around here in this region (GM offers it also). But please do not think that I am unaware of how the tactic works:
-they will give you $2500 rebate if you have your own financing (I had 2.9% as a backup ready to roll)
or 0% if you use theirs but ONLY $1000 rebate back. Meaning $1500 less cash back right from the start for going 0% -- it is marketing. It still saved me a few $ to take their 0% vs my own low APR.
-also keep in mind that they likely build interest in to the MSRP, in the years that they offer this 0% tactic.
However, I talked them down more than sticker, getting some of that back. Regardless, if you compare the total amount financed over 5-years with the vehicle I bought 5-years ago.. I am getting 4x more vehicle (sticker price and much older vehicle) for my money with this finance package.
07-19-2012 10:12 PM
Wow I need to get me one of these next Truck I buy which won't be for quite some time but that's awesome!!!