topic Re: Get a new vehicle first or a secured card? in Auto Loans

Get a new vehicle first or a secured card?

Anonymous — Tue, 03 May 2011 08:05:43 GMT

Hi all~

I'm planning on geting a new wheel in a month or so. This will be my very first auto on my CR. I'm driving a Toyota Camry right now. Although I'm making monthly payments, it's registered under my mom.

My current EQ score is 652 and TU score is 642. I haven't pulled EX yet.

As much as I need a new car, I want to rebuild my credit.

Initially, I was going to apply for a secured card (probably BoA or Wells Fargo) and then wait until the end of June or early July to get a new vehicle. But now, I'm not sure if that's a good idea. I'm concerned that the new card would drop my score down and the auto loan interest would be higher.

I have one secured HSBC card ($500 CL) and one Macy's store card right now. What would be a good plan to both score a new car and rebuilding my credit?

Also, can I get a lease with my credit? I know it's low, but just asking if it's possible. I'm looking into VW or Hyundai right now. Thanks much!!!

Re: Get a new vehicle first or a secured card?

cdtotten — Tue, 03 May 2011 14:33:14 GMT

Opening a new account would likely drop your score due to lower AAoA, a new inquiry, and the new credit ding. If you must buy a car soon, then I would hold off on that, and consider opening it 6 months to a year after your car. That being said, with those scores (if they are FICOs), then you shouldn't have too much problem securing a car loan - leasing may be a little tricker. It requires a lot better score to lease than buy. Hyundai is typically pretty lenient with their financing terms, because they have to be. You would probably have better luck with them then VW.

What is the reason that you must have a new car?

Re: Get a new vehicle first or a secured card?

Anonymous — Tue, 03 May 2011 18:01:40 GMT

Thank you for ur reply, cdtotten.

I've been driving this Toyota Camry with my sister. We've shared this car for about little over two years now. Until now, we really din't have any problem sharing one car. Until a few months ago, we worked at the same building and we live together. But she's getting married soon in a few months and I'm planning on moving out in a next couple of months. Since wedding is costly and my sister has a tight budget, I decided to get a new car for myself and give the Camry to my sister. That's why I need a new car in a couple of months.

I will definitely look into Hyundai. Their new models look very stylish Thanks again!

Re: Get a new vehicle first or a secured card?

cdtotten — Tue, 03 May 2011 19:13:43 GMT

Sounds reasonable. Good luck in your auto search and let us know if you have any questions during the process. Some really smart people on these boards (me not beeing one of them lol).

Re: Get a new vehicle first or a secured card?

Creditaddict — Wed, 04 May 2011 19:52:36 GMT

to your lease question, you might be hard pressed to get someone to lease to you with under a 650, leases tend to be harder to get than financing.

Re: Get a new vehicle first or a secured card?

Anonymous — Thu, 05 May 2011 15:07:18 GMT

@Anonymous wrote:
Hi all~
I'm planning on geting a new wheel in a month or so. This will be my very first auto on my CR. I'm driving a Toyota Camry right now. Although I'm making monthly payments, it's registered under my mom.
My current EQ score is 652 and TU score is 642. I haven't pulled EX yet.
As much as I need a new car, I want to rebuild my credit.

Initially, I was going to apply for a secured card (probably BoA or Wells Fargo) and then wait until the end of June or early July to get a new vehicle. But now, I'm not sure if that's a good idea. I'm concerned that the new card would drop my score down and the auto loan interest would be higher.

I have one secured HSBC card ($500 CL) and one Macy's store card right now. What would be a good plan to both score a new car and rebuilding my credit?

Also, can I get a lease with my credit? I know it's low, but just asking if it's possible. I'm looking into VW or Hyundai right now. Thanks much!!!

1- You will probably not be able to lease a vehicle- leasing standards are more stringent then financing standards.

2- Your score is 642? Why? What is on it that is dropping it so low?

3- What is your income (gross), debt, length of time on job?

Re: Get a new vehicle first or a secured card?

Anonymous — Sun, 08 May 2011 07:44:17 GMT

Hi usmc58555,

Here are the answers to your questions.

1- You will probably not be able to lease a vehicle- leasing standards are more stringent then financing standards.

Yes, it seems like I would need to finance a vehicle instead of leasing.

2- Your score is 642? Why? What is on it that is dropping it so low?

I had some baddies from few years back and no new credits. I currently have one secure card and one store card, but apparently that secured card which supposes to report to all three credit bureau is not listed on TU for somehow. That was another reason why I wanted to get a new secured card.

3- What is your income (gross), debt, length of time on job?

My income is about $51K. I have federal school loan about $33K and most of credit debts have been paid off and now have under $1K debt. I've been working over 3 yrs at a same place now.