topic Re: New car.. in Auto Loans

New car..

blackarsenic — Thu, 03 Feb 2011 21:42:32 GMT

Hello all, I'm about to get a new car. My EQ is 510 and my Trans is 530. I'm 28 New Yorker with no prior auto loans. The thing is with my refund I just paid off almost ALL of my debt which wasn't a lot ($3400). So as of now i'm completely debt free beside the $48 balance I left on first premier. How long should I wait till I start car shopping? I was looking @ march as my date to buy. Also any advice on how I should approach this?

Re: New car..

Anonymous — Thu, 03 Feb 2011 21:27:07 GMT

I would wait until you have at least a 600 fico. Paying down your debt might have given you a boost, but the reality is you probably need a higher score for a decent interest rate at best. Keep on raising those scores, you can do it!

Re: New car..

blackarsenic — Thu, 03 Feb 2011 21:49:33 GMT

How long does it usually take? All my bill with the exception of 1 is at 0.

Re: New car..

Creditaddict — Thu, 03 Feb 2011 23:27:30 GMT

@blackarsenic wrote:
How long does it usually take? All my bill with the exception of 1 is at 0.

What are the negatives on your report? BK,Collections, lates?

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:30:50 GMT

Seriously deliquent, bad payment and high limit.... All gone now. I did the simulator and it showed that my score would only jump to 610-640 in a months time. How accurate is that?

Re: New car..

Creditaddict — Thu, 03 Feb 2011 23:33:34 GMT

@blackarsenic wrote:
Seriously deliquent, bad payment and high limit.... All gone now. I did the simulator and it showed that my score would only jump to 610-640 in a months time. How accurate is that?

How are serious deliq. and missed payments gone now?

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:36:03 GMT

I mean, I don't owe anyone anything but 1 card, and that's $48 or $45. I paid my collections off last year but still had high credit usage. Also was late with 2 payments last year.

Re: New car..

Creditaddict — Thu, 03 Feb 2011 23:38:08 GMT

You will get a boost with now not having any debt, but the late payments and collections are going to hold you down and then never having a car loan before is going to be an issue too.

Are you looking to buy new or used?

how much are you spending?

How much are you putting down?

Re: New car..

MarineVietVet — Thu, 03 Feb 2011 23:38:38 GMT

@blackarsenic wrote:
Seriously deliquent, bad payment and high limit.... All gone now. I did the simulator and it showed that my score would only jump to 610-640 in a months time. How accurate is that?

Delinquencies don't automatically go away because an account is paid off. Can you give more details about what kind of derogatories you have?

Is it just late payments? How old are they? Are they 30 day lates? 60? 90?

Do you have any charge offs or collections? Judgements? I ask because all those things can damage your scores for many years but there are ways of possibly removing them early depending on what the derogatories are.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:40:05 GMT

Used, $18000 Subaru Legacy, $2500 down. Or a $15000 Nissan Altima.

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:42:46 GMT

Degoratories 3 60 day lates

Late payments 9 months ago

and recent high credit was @ 91%

Re: New car..

MarineVietVet — Thu, 03 Feb 2011 23:46:01 GMT

@blackarsenic wrote:
Degoratories 3 60 day lates
Late payments 9 months ago
@Anonymous recent high credit was @ 91%

Plus collections from last year? How many of those?

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:47:40 GMT

I paid of my collections last year. There was 3 of them as of Feb 2010

Re: New car..

MarineVietVet — Thu, 03 Feb 2011 23:54:50 GMT

@blackarsenic wrote:
I paid of my collections last year. There was 3 of them as of Feb 2010

It's always good to pay off any debt but the damage from those collections is the same whether paid or not.

May I make a suggestion? I think you should start a new thread in Rebuilding Your Credit detailing your situation including everything you've listed here and follow advice given to you there. IMO (In My Opinion) until you repair and rebuild your credit profile you will either pay a very high interest rate for a car because of your present scores and/or have to put down a very large down payment.

I personally would put off thinking about a car until a lot of credit repair is done. I wish you well in your journey.

Re: New car..

blackarsenic — Thu, 03 Feb 2011 23:56:37 GMT

Man, how much more repair can I do? I only owe $48 dollars in debt. Can I like bring my score and statements to the dealers?

Re: New car..

Creditaddict — Fri, 04 Feb 2011 00:01:24 GMT

@blackarsenic wrote:
Man, how much more repair can I do? I only owe $48 dollars in debt. Can I like bring my score and statements to the dealers?

Like previously posted, if you list over in rebuilding, you will probably get a lot of feedback about writing these companies that you had collections with or late payments and ask for a good will of them to delete the negatives related to your account etc.

I would wait until you receive all your statements in the mail showing everything paid off and pull your TU again and see if you have made it to 600... and I would probably lean towards Nissan because they are a little more relaxed with approvals into not perfect credit... but save save save up until you need to go buy because I think you will need more down to make this deal happen

Re: New car..

blackarsenic — Fri, 04 Feb 2011 00:03:42 GMT

Thanks everyone, truly appreciated it. A lil disheartened but informative nevertheless.

Re: New car..

BungalowMo — Fri, 04 Feb 2011 09:47:13 GMT

Personally, I think that until your reports are cleaned up (lates & collections GONE, not just paid up) you'd be better off saving up & finding a used car for about 5-7k. I have mid 700 scores & wouldn't buy a car that expensive. You can find something for less. I've had a 95 Bimmer for over 4 years that I paid 7k for. That car gets me to work & back at 100 miles every day....I just keep up with the maintenance-tires, belts fully synthetic oil changes. She keeps on running!

Get the car you can AFFORD....not the car you merely WANT.