topic Re: How bad will this hurt? in General Credit Topics

How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 14:34:41 GMT

I have been considering buying a RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

Re: How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 15:04:24 GMT

It probably won't hurt much. What is keeping your scores where they are?. Do you have baddies or is your UTL too high? If your scores were 60 points higher this would not be an issue at all.

Re: How bad will this hurt?

CH-7-Mission-Accomplished — Sun, 28 Jun 2015 15:24:38 GMT

@Kyliemarie85888 wrote:
I have been considering buying a RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

How about teaching your boys the joy of camping in a tent while hiking in the mountains or in a campground? Most boys would rather do this than hang out in a motorhome. (Motorhomes: Think retirees).

I have been reading a lot about personal finance and the rule seems to be borrow only for necessities, pay cash for luxuries.

Just something to think about.

I know RV's can easily cost 60K - 100K or more, so I might be concerned about a 10K RV needing expensive repairs.

Your boys won't be boys forever, but the important part is that you spend time with them. They don't need an RV to enjoy their parents.

You could also rent a lot of nights in a nice cabin for less than 10K if you don't like sharing your bedroom space with bugs and bears.

Re: How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 16:13:39 GMT

My scores are low because I racked up about $5,000 in credit card debt recently. I went on maternity leave and my newborn ended up having to have surgery and two hospital stays. Long story short, I went on maternity leave longer than I planned. I didn't have a savings nest like I know I should have. I have just finished paying off the medical debt that totaled around $7,000 so NOW I can work on paying down that credit card debt. I don't have any recent bad marks. I had one from Chase not too long ago, but wrote a goodwill and it was removed within a month.

Re: How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 16:16:15 GMT

True about camping with tents, but I'm a bit of a girly girl with a big imagination. I like having doors that lock when I'm asleep. Also, I live in the south so the bugs aroud here are ridiculous. I would prefer not sleeping with them. The campers I am referring to are the travel trailers. You can buy a small one brand new for $14,000. I just want a used one big enough for us to take weekend trips as a getaway. Thank you for your input!!

Re: How bad will this hurt?

Berk — Sun, 28 Jun 2015 16:26:33 GMT

@Kyliemarie85888 wrote:
I have been considering buying an RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

I would go to your bank or credit union and see what kind of a rate they would give you on a used Rv loan in the amount of 10K. Just for comparrison - I bought a used RV for 13K 15 months ago. I financed 10K for 10 years at about 7.5% leaving my payments at $115.00 a month. All my scores at the time were around 750-760. All three took about a 20 point hit with this loan I paid it off in a year and bought another one for 23K and financed 19K for 12 years at 5.88% leaving me with payments of $195.00 a month. This time only Experian suffered a three point drop. Both times I obtained financing through the dealer. I'm quite certain that I could have obtained better financing through my credit union or a bank.

Hope this helps.

Re: How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 17:29:30 GMT

Hey. I just went camping in a tent for 5 days and I understand wanting a RV. I saw that the campsites give prime locations to RVs now. And I had a family of granddaddy long legs covering my tent.

You should look for used RVs on Craigslist.
There are some for 4k and if you get one that has the basic electric, ac, and plumbing in good working order then it could be a family project to update the cosmetics.

Re: How bad will this hurt?

bestchoiceglobal — Sun, 28 Jun 2015 17:43:02 GMT

I totally understand that girly girl thing ha! I can't do tent camping but have been itching for a family getaway. We are doing a trip in July & are going the cabin route! I think we paid $75 for one night...anyways whichever way you go, enjoy your family trips!

Re: How bad will this hurt?

Anonymous — Sun, 28 Jun 2015 19:21:30 GMT

Another reason I suggest getting a loan through your bank because dealers go crazy and pull your credit a gillion times.

http://ficoforums.myfico.com/t5/General-Credit-Topics/Car-loan-hard-pull-question/td-p/4095954

Re: How bad will this hurt?

MarineVietVet — Sun, 28 Jun 2015 20:16:49 GMT

@Kyliemarie85888 wrote:
I have been considering buying an RV for a while. My boys aren't getting any younger. We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

Hi there.

Getting that loan will likely drop your scores a bit (how much is difficult to say because your profile is unique) but the "newness" will start to wear off in 6-12 months after applying and if all else remains stable you'll begin to go back up.

Re: How bad will this hurt?

RobertEG — Sun, 28 Jun 2015 22:09:46 GMT

You will take a hit for the new credit inquiries made to get the loan. You can miminize that by making sure that the pulls are all coded as auto related, which FICO will then score as only a single inquiry.

Once approved, the new loan will lower your average age of accunts if reported to the CRAs.

That could be avoided if you obtain a loan that is not reported to the CRAs. Perhaps a loan with your local credit union if they dont report their loans?

As an installment loan, it wont affect your % util.

Re: How bad will this hurt?

Anonymous — Mon, 29 Jun 2015 00:17:51 GMT

I don't think you'll be hurt credit wise too badly with this. I like the suggestions of others, however, I am also a camping fool, and I can tell you that tent camping is not for my DW and I. We started with a pop up and then to a hard sided 16 ft with bunk ends that fold down. We love it and it has a little shower/toilet, sink, refrigerator, a/c, microwave, radio and propane heat. We got it used and paid less than $8k for it used. My suggestion is if you can pull it, you might find some really good buys out there for less than what an RV would cost, plus, in an RV, once set up, do you really want to be unhooking everything to drive anywhere? Just a thought.

Re: How bad will this hurt?

Berk — Mon, 29 Jun 2015 01:46:39 GMT

@Kyliemarie85888 wrote:
True about camping with tents, but I'm a bit of a girly girl with a big imagination. I like having doors that lock when I'm asleep. Also, I live in the south so the bugs aroud here are ridiculous. I would prefer not sleeping with them. The campers I am referring to are the travel trailers. You can buy a small one brand new for $14,000. I just want a used one big enough for us to take weekend trips as a getaway. Thank you for your input!!

I bought a nice used one for 10K 15 months ago. It was a 2006 Forest River Flagstaff 32" Travel Trailer. It was in pretty good condition for the year. Slept 5 if three were kids. Big enough to be comfortable in if it rained for a day. Just remember this - make sure you are well versed in how to properly set up, take down, maintain, and tow a travel trailer. They are not something you just grab and go with. Also, your tow vehicle must be able to handle the trailer and the driver must be able to handle the vehicle and trailer. You will also need insurance if you finance. They require a fair amount of maintenance if you want to keep them performing well so be prepared to spend some money. Every thing camping related is more expensive.

Don't just jump into this without doing your homework or you may be setting yourself up for failure.

I suggest renting a travel trailer for a long weekend or a week and see how you like camping before spending money on something you know nothing about.

Re: How bad will this hurt?

StartingOver10 — Mon, 29 Jun 2015 02:04:09 GMT

There is more to consider if you are changing your monthly payments. DTI is a huge factor when going for a new mortgage. You said in one of your posts that the existing debt of $5k could not be paid down due to a $7k medical bill you were paying off. You also mentioned that your scores were lower, under 650, because of this $5k debt. That tells me you are maxing out your current limits. Adding to the debt puts any new mortgage in jeopardy. Are you planning to pay off the RV when your current home sells? If so, you don't have to worry about the fact that your debt is increasing. If you do not have the ability to pay it and you are seeking a new mortgage, realize you could be pricing yourself out of your next home. Check with a mortgage lender before you make this decision so you have all the facts to make an informed choice.

Re: How bad will this hurt?

StartingOver10 — Mon, 29 Jun 2015 02:08:26 GMT

Remember your FICO 08 scores are completely different from your mortgage scores. Check your mortgage scores here so you know what your mid score is before you have any lender pull your report and before you add more debt.

Re: How bad will this hurt?

gdale6 — Mon, 29 Jun 2015 03:47:21 GMT

Welcome to My Fico OP

I have merged your two threads into this one, please refrain from cross posting the same thread in multi forums, I thank you for your understanding.

Re: How bad will this hurt?

takeshi74 — Mon, 29 Jun 2015 12:26:54 GMT

@Kyliemarie85888 wrote:
My scores are low because I racked up about $5,000 in credit card debt recently. I went on maternity leave and my newborn ended up having to have surgery and two hospital stays. Long story short, I went on maternity leave longer than I planned. I didn't have a savings nest like I know I should have. I have just finished paying off the medical debt that totaled around $7,000 so NOW I can work on paying down that credit card debt. I don't have any recent bad marks. I had one from Chase not too long ago, but wrote a goodwill and it was removed within a month.

Have you considered renting an RV until you take care of those other items?

@Kyliemarie85888 wrote:
We currently have our house on the market. It seems like it is going to take forever to sell. My question is how bad do you think it will hurt my credit if I were to take out a small loan for approx $10,000 for a RV? My credit scores on fico 8 are around 660-670. I know waiting until after we buy a house is probably the best idea, but it just doesn't seem like it's going to sell anytime soon and I am dying to go camping and enjoy the summer with my husband and two boys.

Doubly so for the reason stated above. If you don't know when it's going to sell and when you'll close on the new home then I wouldn't recommend taking on new credit. How long has it been on the market? How is your market doing? Have you talked to your agent about this? Are there things that you should be doing to the home to help it sell such as fixing up things that would concern buyers, staging the home, etc?