topic Re: Really complicated matter with my credit in General Credit Topics

Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 01:08:11 GMT

So here's the thing, I have been trying for the last few months to get a car. However, because of my lack of moderate income and poor credit history I have not been able to have any luck with getting one that is new(or at a new car place) without a certain downpayment. I was close at one Honda place but they wanted at least $1k down.

My fico range is 625-675 with others reporting my score as 649(it was 669 a month or so back but score has been pulled down from applications for a car place and Paypal credit) and that is because I was approved for four commenity bank credit cards(three in 2013, one this year) for four of their stores. I have only made two orders without returning and have no balances. I receive government income and less than $500 a month(if I paid rent it would be over $700 a month). Is my score deceiving me because of my lack of history but having all those cards?

I really want what I have offered here to not be a death nail for my nice car chances because used cars and BHPHs have high interest rates and I don't want a car I have to repair every month. I have also read so many articles on these BHPHs that it isn't funny. I dread having to buy a car like that. I need a car to get on my feet and get off this income so I can go back to work and school.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 03:01:14 GMT

If you only get $500 per month how the heck do you plan to make the loan payments on a new car?

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 04:13:44 GMT

The monthly payments I am assuming will be $400-$450 if I could put down $500. And I would think if they knew I bought a car and was gonna be making payments on one that they would move my income level up. But it doesn't matter, with a new car, I plan to find a job. I can't leave my house because I have agoraphobia regarding people I know and knew. Always had this problem. If I didn't I would have a job right now where I am.

Re: Really complicated matter with my credit

Gunnar419 — Sat, 26 Sep 2015 13:02:39 GMT

I am sorry for your problems, but you are NOT in any position to buy a new car and it's puzzling that you believe that you are or should be.

If you absolutely must have a car in the near term, your circumstances make it sound as if you should be looking for a beater that you can pay cash for or an older car from a used car lot with low monthly payments. Once you have a job that can support the monthly payments, you might look at new cars, but even then you'd be better off financially by buying a newish used car for much less money.

If I'm misunderstanding your circumstances, please correct me. But with no job and an income of $500 a month, how would you even hope to pay for a new car? You mention that "they" (the government?) would move your income up if you incurred a $400 or $500 car payment, but I know of no program that would do such a thing.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 13:48:57 GMT

@Anonymous wrote:
I receive government income and less than $500 a month (if I paid rent it would be over $700 a month).

@Gunnar419 wrote:
If I'm misunderstanding your circumstances, please correct me. But with no job and an income of $500 a month, how would you even hope to pay for a new car? You mention that "they" (the government?) would move your income up if you incurred a $400 or $500 car payment, but I know of no program that would do such a thing.

It reads to me more like income would go up as a housing allowance, not for having a car payment.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 15:07:17 GMT

Note to the OP:

Like others have said, we're sympathetic and you are no doubt being honest. But your posts have some baffling things in them that make it difficult for outsiders to give you meaningful advice.

For example, you mention that you have a panic disorder that prevents you from leaving the house. But you are soliciting advice on how you can most easily buy a new car. Unless your house is enormous, you probably won't be able to drive the car inside, so it is unclear to us why a new car is the right thing for you to be looking into.

Best wishes regardless....

Re: Really complicated matter with my credit

Callandra — Sat, 26 Sep 2015 15:08:38 GMT

@Anonymous wrote:
The monthly payments I am assuming will be $400-$450 if I could put down $500. And I would think if they knew I bought a car and was gonna be making payments on one that they would move my income level up. But it doesn't matter, with a new car, I plan to find a job. I can't leave my house because I have agoraphobia regarding people I know and knew. Always had this problem. If I didn't I would have a job right now where I am.

I'm sorry to hear this and I know how you feel; I've spent my whole life with anxiety/depression and on and off medication. But getting the car is not going to solve your fears (and I'm trying to say this in a friendly way) but I suggest getting help for that first before plunging into buying a car. The car will only add stress and $400-500 a month for a car is a lot of money. Do you live near public transportation/have someone who can drive you for a while when you start a new job? I recommend getting the job first, make sure it's something you can commit to and once you're more stable, then get the car (and save up for a down payment!). I think it's just going to be hard for either a dealer or a bank/CU to give you a loan in your current situation for the car. Your scores aren't horrible and while you won't get the best rates, you shouldn't be too bad off (look at DCU when you are ready; everyone says they are excellent for car loans).

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 18:36:42 GMT

No, out of town work. Until I had the money to find my own place around where I would work.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 20:12:34 GMT

Well let me ask this question. For my situation what interest percent would I be paying? When I did a calculation on a site, I put 9% and 10% separately and with $500 down on something $18,000 and it was $400+ a month.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 20:18:53 GMT

If you finance a car you will also have to purchase insurance, so it's a lot more than just the car payment. You really should be looking for a used vehicle, it is unrealistic to be considering new at this point.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 20:27:03 GMT

What about a leftover new car? I don't want to get a car that will break down after a week. Carfax and autocheck have flaws each. I did too much reading on that stuff.

Re: Really complicated matter with my credit

Anonymous — Sat, 26 Sep 2015 20:33:30 GMT

@Anonymous wrote:
What about a leftover new car? I don't want to get a car that will break down after a week. Carfax and autocheck have flaws each. I did too much reading on that stuff.

I drive a mini van that I bought used for $950 over five years ago. It has been very reliable and I've done nothing but regular maintenance. Not all used cars have issues. It's a matter of doing the research to find the ones that are likely to have the fewest problems, and seeking a private seller who has maintained the vehicle well. I did my research on edmunds.com, and bought the car through Craigslist.

Re: Really complicated matter with my credit

Callandra — Sun, 27 Sep 2015 00:12:51 GMT

@Anonymous wrote:
@Anonymous wrote:
What about a leftover new car? I don't want to get a car that will break down after a week. Carfax and autocheck have flaws each. I did too much reading on that stuff.
I drive a mini van that I bought used for $950 over five years ago. It has been very reliable and I've done nothing but regular maintenance. Not all used cars have issues. It's a matter of doing the research to find the ones that are likely to have the fewest problems, and seeking a private seller who has maintained the vehicle well. I did my research on edmunds.com, and bought the car through Craigslist.

Private sellers are the way to go. My Dad sold my last Honda Civic (2002, 2 door, 55k miles, pristine condition, never been in an accident -- I miss that car ) in 2012 for about $6k. Look for one that is well maintained (they do exist) and I recommend a Honda or Toyota, they tend to last.

Re: Really complicated matter with my credit

Gunnar419 — Sun, 27 Sep 2015 15:22:24 GMT

@Anonymous wrote:
What about a leftover new car? I don't want to get a car that will break down after a week. Carfax and autocheck have flaws each. I did too much reading on that stuff.

Can you please explain in more detail how you would get the monthly income to pay for a new (or even newish) car? You asked what interest rate you'd be likely to pay, but the plain fact is that you'll be paying $0 at 0% because you won't get a new vehicle unless you have enough income to qualify for the loan (or you lie about your income, which you might get away with but which would put you in a disastrous position, owning a vehicle you can't pay for). It can't be income you might get in the future. It has to be income you already have. If you do have such income, please clarify so we can help you better.

If you don't have it, then definitely research and consider buying an older car that has a reputation for reliability. The suggestion Callandra made for a Honda or a Toyota is good. I'm low income myself and drive a 20 year old Toyota that runs like new. It's not pretty, but it works great and my experience isn't that unusual.

Re: Really complicated matter with my credit

Gunnar419 — Sun, 27 Sep 2015 19:17:58 GMT

@Anonymous wrote:
I really want what I have offered here to not be a death nail for my nice car chances because used cars and BHPHs have high interest rates and I don't want a car I have to repair every month. I have also read so many articles on these BHPHs that it isn't funny. I dread having to buy a car like that. I need a car to get on my feet and get off this income so I can go back to work and school.

Did you edit your original post to add this paragraph? (Sorry, I don't recall it being there when I first read your post.) As others have suggested, if you want to avoid used car lots, then your best option is to buy from a private seller.

But believe the people who say that you can quite often get a "nice" car that's got 10 or 15 years on it. Just do your homework on the vehicle's reliability and history, and maybe have a mechanic check it out before you buy.

That said, you appear to be determined to ignore every bit of advice that doesn't somehow give you some magical formula by which you can purchase a dealer-new car. From everything you've written, you are absolutely NOT in a position to buy one.

Many of us here have struggled with unemployment, panic disorders, depression, physical disability and other problems. Many of us are or have been poor. I paid $700 for my current car. It's all I could afford. I haven't had a new vehicle since 1991 because I can't afford one. Others have to take public transit or get rides with friends and relatives. The idea that somehow we should all, despite our limited resources, just be able to go out and finance brand new cars is nice in the same way that unicorns and the big rock candy mountain are nice. We have to live in reality, though, and work with the resources we have.

Your best hope of getting on your feet again begins with realistically assessing your limitations and making realistic choices. We can help you do that, but not if you ignore the best advice we have to offer and remain fixated on this idea that you MUST have and are somehow entitled to have a vehicle from a new car dealer.

Re: Really complicated matter with my credit

Anonymous — Sun, 27 Sep 2015 23:06:12 GMT

It is as simple as this:

If you can't manage to save up a sizeable down payment you cannot afford a car.

Why? Because if you had enough extra money to make payments on a car loan you would be saving that extra money now and over a few months it would turn into a downpayment.

Try this instead: take the money you believe you could be using to pay a loan and save it in a high interest account. You say, $400. After six months you will have $2400 to put down against a $4800 car and if you can manage that you can manage the payments for the other half.

Re: Really complicated matter with my credit

Anonymous — Mon, 28 Sep 2015 00:06:04 GMT

Like the others have said. With $500 a month to pay with you will be over that with a new card and the insurance (keep in mind if you dont own the car outright dealers will require FULL insurance which is a bit more expensive. Not to mention the cost of gas to actually get your car on the road. I pay 30.00 a week with my 42MPG and that is just back and forth from work.

I would just say, that if a car is something you need make sure to be inside your means. A car that will eat all of your money, wont do you any good if you cant afford to go anywhere or maintain the vehicle itself.

Re: Really complicated matter with my credit

Anonymous — Mon, 28 Sep 2015 00:15:08 GMT

Mechanics cost a lot don't they?

Re: Really complicated matter with my credit

Anonymous — Mon, 28 Sep 2015 00:32:39 GMT

Your first post isn't clear about your income. Many read it being $500, but I interpret it as government benefits + $500. If so, then presumably, your income is around $1200-$1600 minimum monthly. If so, you can get a car loan, but you'll be very limited in what you can buy. If the Honda loan + $1K deposit deal was for a new, or at minimum a certified pre-owned, go back there pronto. Also, try Carmax. Figure on full coverage insurance being $100-$200 per month, or possibly far more depending on your past driving history and other factors. Good luck.

Re: Really complicated matter with my credit

Anonymous — Mon, 28 Sep 2015 00:43:37 GMT

They do, but I think you are confusing the word "Used" with "Broken". At the end of they day you have to do what is best for you. I just urge you to look at used cars. They dont have to be a 83 buick lasaber or anything. Something in the last 10 years (as others have said Toyota has a great on the road percentage) will be reliable with an abundance of savings.

This forum is completely dedicated to helping people maintain the best credit and to be happy and comfortable in whatever situation they are in. Those who have posted here want to help, and have likely gone through similar situations, and just want to help you avoid something that might put strain on your life.

My biggest advice, if not buying a used car, would simply be to take your time. Don't rush. Look around, find the best deal, and keep doing the math. You'll want to know every step of the way where you are at and what you can do from a financial standpoint.

Stay safe