topic Re: Need Help to finance a BMW in 8 mos! in Rebuilding Your Credit

Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 04:21:48 GMT

I stumbled on this forum, and I think you guys are great! Please help me with my dillemma needing to lease a Bimmer during this credit crunch!!!

I need some help figuring out how to start, and how long it will take to get my score high enough to lease a $50,000 car or purchase a $40,000 car (BMW). (And which is usually easier to get at those prices. I have turned 27 and I have proposed to clean my credit by the end of the year. I didn't know how bad it really was until I looked around and was basically laughed at. I believe i need a 670 or 680.

ATM, I have a 600.

I have 2 CC's, 1 AutoLoan for $17.9k & 2 accounts in collections that I know.

- 1 Credit Card I just opened 2 months ago from FIRST PREMIER BANK with a $250 limit

In hopes of building a history, (as it's my first credit card since turning 18 and running up a $500 and a $300 balance on a CapOne and an Associates card which I did not later pay off until 2001.) I keep that with a 25% balance on it. Supposedly they will give me another $250 in 4 months. This card has and will be paid on time.

- 1 Credit Card that I am only an authorized user on, as I thought it would help me a couple years ago. It is my girlfriends and it's from BANK OF AMERICA and it only has $150 available on a $2000 limit. It's been open since 04/02 and has a highcred of $2350 at one point, but has only been late [a (2)] once about 8 months ago.

- 1 Auto Loan from MARK ONE FIN on a CPO BMW I purchased at a small auto lot open since 12/06 for $17.9K - 60x495. I got into it knowing it was special finacing at 18.5% because I believe that I could establish a history better (maybe it was wrong?) This account has never been late and was not being reported on all credit 3 bureaus until supposedly last month after having a battle with several supervisors, one which pulled my credit just to make sure, and told me I had a "602", and that he was going to make sure they would report it as well as the history that had been ommitted. I have made 18 payments out of the 60 and having paid all the interest up front in the first year and half of the loan, the cars payoff drops the entire $495 payment every month and is now at $14500.

- 2 Collections Accounts

$433 COMCAST - 06/06 of which only $89 is due

$628 BANK OF AMERICA - 10/07

Other than that I have nothing else on my report, I used to have several small loan repayments on my credit which were bossting my score at the time I purchased the car, but I believe those got erased last year as they were from 00 or 01.

I would like to lease the car in 8 months.. I know I have to pay the collections account, but which one first, and how? In full? Arrangement? And, as far as the Bof A card, I don't know if it will negatively affect me if I remove it, as I did once last year at the time she told me she had made the late payment, but I later added myself back on the card in fear of not being able to pull my score up quickly enough.

Also, I would be able tyo pay her card down in about a month or two to about $200. Is it worth it?

THanks In Advance!!!!

Message Edited by YngMoneyMIA on 07-10-2008 09:21 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 04:38:08 GMT

Why do you need a BMW

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 04:40:30 GMT

It doesn't HAVE to be one, I'm between a couple cars actually. I just need to trade mine in then.

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 04:46:57 GMT

YngMoneyMIA wrote:

I stumbled on this forum, and I think you guys are great! Please help me with my dillemma needing to lease a Bimmer during this credit crunch!!!

I need some help figuring out how to start, and how long it will take to get my score high enough to lease a $50,000 car or purchase a $40,000 car (BMW). (And which is usually easier to get at those prices. I have turned 27 and I have proposed to clean my credit by the end of the year. I didn't know how bad it really was until I looked around and was basically laughed at. I believe i need a 670 or 680.

ATM, I have a 600.

I have 2 CC's, 1 AutoLoan for $17.9k & 2 accounts in collections that I know.

- 1 Credit Card I just opened 2 months ago from FIRST PREMIER BANK with a $250 limit

In hopes of building a history, (as it's my first credit card since turning 18 and running up a $500 and a $300 balance on a CapOne and an Associates card which I did not later pay off until 2001.) I keep that with a 25% balance on it. Supposedly they will give me another $250 in 4 months. This card has and will be paid on time.

- 1 Credit Card that I am only an authorized user on, as I thought it would help me a couple years ago. It is my girlfriends and it's from BANK OF AMERICA and it only has $150 available on a $2000 limit. It's been open since 04/02 and has a highcred of $2350 at one point, but has only been late [a (2)] once about 8 months ago.

What is your oldest account? For max points on util you want to keep total util under 9%. If the card is nearly maxed, you are losing points on util. Does the late payment show on your report? A recent 60 day late may be hurting you more than the history is helping, tough call.

- 1 Auto Loan from MARK ONE FIN on a CPO BMW I purchased at a small auto lot open since 12/06 for $17.9K - 60x495. I got into it knowing it was special finacing at 18.5% because I believe that I could establish a history better (maybe it was wrong?) This account has never been late and was not being reported on all credit 3 bureaus until supposedly last month after having a battle with several supervisors, one which pulled my credit just to make sure, and told me I had a "602", and that he was going to make sure they would report it as well as the history that had been ommitted. I have made 18 payments out of the 60 and having paid all the interest up front in the first year and half of the loan, the cars payoff drops the entire $495 payment every month and is now at $14500.

- 2 Collections Accounts

$433 COMCAST - 06/06 of which only $89 is due

$628 BANK OF AMERICA - 10/07

Is only the OC reporting these accounts?

On the Comcast, do you mean you paid part and still owe $89?

Are the dates listed the dates the accounts went delinquent?

Other than that I have nothing else on my report, I used to have several small loan repayments on my credit which were bossting my score at the time I purchased the car, but I believe those got erased last year as they were from 00 or 01.

I would like to lease the car in 8 months.. I know I have to pay the collections account, but which one first, and how? In full? Arrangement? And, as far as the Bof A card, I don't know if it will negatively affect me if I remove it, as I did once last year at the time she told me she had made the late payment, but I later added myself back on the card in fear of not being able to pull my score up quickly enough.

Also, I would be able tyo pay her card down in about a month or two to about $200. Is it worth it?

THanks In Advance!!!!

Message Edited by YngMoneyMIA on 07-10-2008 09:21 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 05:36:18 GMT

Just need to get this straight , you want to purchase a 40k BMW (or lease one thats 50k). You have 1 CC opened 2 months ago ($250 limit, 25% balance on it--$63?) :... 1 CC that is your girlfriends with $1850 owed on a $2000 limit...An auto loan from 12/6 thats owed $14,500 (with 18.5 % interest)... Two collection accounts with out standing balances of $89? and $628 ..

I'm not sure how much you make, or how much you'll put down for a down payment; but dude, your not even close to buying or leasing this car. You need to clean this report up with a broom. The one thing going for you is the fact that these don't seem to be too far high balances (other than the auto loan). Pay off all the low ones as soon as you can ( I'd try and refinance the auto loan too, 18.5% is nuts). Unless you have a real good salary or globs of $$$ you won't get near a car in this price range.

I plan on buying a Lotus Elise at about the same time (8 months), its between 40 and 50k and I hope to put at least 20k down (crosses fingers). I might get a 30k auto loan through my CU and believe that may be more than I want to finance! My credit score is written below, and I have 2 CCs- one with BoA $0 balance CL of $25,000 and a Chase card with a balance of $1500 and a CL of $27,000, nothing else on report....

Good luck with cleaning up your report

Message Edited by XoXoX on 07-10-2008 10:36 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 05:40:54 GMT

What is your oldest account? For max points on util you want to keep total util under 9%. If the card is nearly maxed, you are losing points on util. Does the late payment show on your report? A recent 60 day late may be hurting you more than the history is helping, tough call.

THe oldest account is the B oF A card, and it shows a "2" 8 1's ago. I can get it down to 9% as long as its worth it. I don't want to waste my money.

Is only the OC reporting these accounts?

On the Comcast, do you mean you paid part and still owe $89?

Are the dates listed the dates the accounts went delinquent?

NCO FINancial has the $628 B of A account in collections.

CRD PRT ASSOC have the remaining $89 for COMCAST

only $89 left for COMCAST

Yes the date listed are dates when delinquent

I really appreciate your help. Someone told me to only "PFD" or to forget about it? Do I ask for that in writing or do I have to send something.

And XoXoX,

?????????

Message Edited by YngMoneyMIA on 07-10-2008 10:40 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 05:43:48 GMT

There is a certin order you have to follow when trying to "clean up" your credit.

You do not just right to a PFD unless you have done everything up to that point and usually after the SOL has passed.

Take the time to read around and it will benefit you.

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 05:53:17 GMT

What I'm trying to say is that if your going through a dealership for financing (or any banks for that matter) any baddies will kill you on interest rate or the dealers will just decline you. I've been there at your age. You need to have a superclean record in order to finance any legit amount, especially in these times. Good luck

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 06:07:42 GMT

YngMoneyMIA wrote:

What is your oldest account? For max points on util you want to keep total util under 9%. If the card is nearly maxed, you are losing points on util. Does the late payment show on your report? A recent 60 day late may be hurting you more than the history is helping, tough call.

THe oldest account is the B oF A card, and it shows a "2" 8 1's ago. I can get it down to 9% as long as its worth it. I don't want to waste my money.

Is only the OC reporting these accounts?

On the Comcast, do you mean you paid part and still owe $89?

Are the dates listed the dates the accounts went delinquent?

NCO FINancial has the $628 B of A account in collections.

CRD PRT ASSOC have the remaining $89 for COMCAST

only $89 left for COMCAST

Yes the date listed are dates when delinquent

I really appreciate your help. Someone told me to only "PFD" or to forget about it? Do I ask for that in writing or do I have to send something.

And XoXoX,

?????????

Message Edited by YngMoneyMIA on 07-10-2008 10:40 PM

You need to find out if the OC or the CA owns the debts.

Unless you can PIF on the BoA, tread lightly as it is likely still within SOL.

If you can PIF, contact BoA and see if they still own and will withdraw the account from collections and let you PIF. Do the same with the other collection account.

If they can't/won't then DV the CA and if they validate, offer a PFD. Again, be careful of what you do unless you can PIF. Since the account is still within SOL, they can easily sue you.

The good news is that I believe a lot of car dealerships use a auto-enhanced score, which means more emphasis is placed on past auto loans when calculating your score. So, keep that car loan clean.

Message Edited by sidewinder on 07-10-2008 11:07 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 06:27:51 GMT

Thnx Sidewinder,

I will call Comcast and PIF if they withdraw TOMORROW, same with B of A.

What do you think I should do with the B oF A CC that I am an authorized user on....Should I pay it down to 9% as well, will it help with the extra $$ available? Or should I 86 it and just have my small $250 CC down to 9%?

Re: Need Help to finance a BMW in 8 mos!

BungalowMo — Fri, 11 Jul 2008 12:39:47 GMT

YngMoneyMIA wrote:
It doesn't HAVE to be one, I'm between a couple cars actually. I just need to trade mine in then.

Just some insight from someone also cleaning up their credit & also owns a Bimmer. If you do want one (and I can't blame you) you don't NEED a new one! Find a sweet used one that's got all the service records & such. It's not hard to find one with one owner & in nice shape.

Wait to buy the new one when you no longer have a report to "clean up".

Found this for 5.5k Runs as sweet as can be!! All I've put in it is routine maintenance.

'95 with 120k & has never left me stranded in 3 yrs of ownership & now 168k on the odo. (came w/all service records, radio codes etc...)

Re: Need Help to finance a BMW in 8 mos!

bridgetkaryn — Fri, 11 Jul 2008 13:22:10 GMT

Hi There,

As a girl with a LOVE for nice cars, shoes and clothes but also in the process of cleaning up my credit, there are so many better things you can do with your money than buy a new BMW... From a girl who has turned things around in the last year and a half and come to a harsh reality check, it feels soooo much better to drive a more economical car (I have an 07 civic) and own a home than spending $40k on a car and renting ie- paying SOMEONE ELSE'S Mortgage....

My suggestion: Buy a sensable car -$12-18K that gets good gas milage, put the all additional funds that you would save (gas, insurance and car/lease payment excess) into a savings account with a 3% or more interest rate for a year or two, get your credit scores up into the low-mid 700's and buy a house/condo/townhouse... You lose money every year with a car, and in most instances, you gain money every year with a house... Your car won't last you forever, but smart financial decisions now, will make your life easier in the future.

Just some thoughts from a girl who had a Beemer and learned better

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Fri, 11 Jul 2008 13:33:07 GMT

I agree with the pp, what's wrong with a nice affordable car like a toyota or nissan? why be in more debt with a car note that could range from 450.00 plus each month when it is difficult for you to pay for a collections bill under 250.00

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Sat, 12 Jul 2008 05:31:28 GMT

I still have an 05 Honda Accord coupe, thatI bough new in April 05 with my girls credit, I paid that off and she's driving that now. Then in Dec 06 I bought my CPO 03 325CI coupe with all the bells and whistles. (wish I could put a picture up with my M3 chrome and all but I dont have a site to upload them to). I had to put down 7,000 for that and a loan for 17.9k, and pay 495 a month with 18%, but I did it anyway to "build" my credit and be able to drive something ok.

But, the point is not owning a house, because I bout and sold a 1 bedroom apt facing the water here all under her credit, not at all thinking about mine whatsoever. I bought that for 285,000 and sold it for 365,000 in 2006, but I wouldnt dare buy anything for another year or two. Real estate is not a viable investment right now, especially with Fannie and Freddie going to hell. I am leasing a loft now for 1350 and everyone in the bulding pays 1800 and up plus maintenance with a mortgage. No thanks, I'll buy a 6 series during this recession...that's why I came on this forum to get my 6.

From now on it's all about my credit.

Message Edited by YngMoneyMIA on 07-11-2008 10:28 PM

Message Edited by YngMoneyMIA on 07-11-2008 10:31 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Tue, 15 Jul 2008 17:06:41 GMT

I've paid off the Comcast collections account. Let me know if I did it right......

I called Credit Protection Assoc. and I paid the remainder ($89.27 plus the fee, so everything came out to $96.77).

I had to call back today, just for them to resend another email to me stating that the account has been "paid in full", from the original $433 debt.

Is that all I need, or do I need to follow up even more in order to get it stating that it is paid in full on my CR????

I just want to confirm again, that for the BofA collections, I should still call the bank directly, and see if they will take the account from collections back into their system? Although it says $628 on my CR, should I neg. for the original debt, which I believe is around $450? Should I pay it all at once, or break it into 2 payments?

When can I expect to see a jump in my FICO score, and how many points?

Also, as far as the CC that I have from BofA, that I am an authorized user on, but is almost at its limit....Will it hurt my score if I remove it?, should I pay it for my gf, so it could benefit my score? Should I wait to get another card in the future, and then take it off?? WHat should I do?

Thanks for the help guys.

BTW, here is a picture of my Bimmer

But I NEED that 650i

Re: Need Help to finance a BMW in 8 mos!

midwestgirl44 — Tue, 15 Jul 2008 17:17:18 GMT

You don't NEED anything!...especially a very expensive BMW when your credit is in the tank. First, you should have done a PFD to the CA. Now you have a CA PIF, but alas, it's still on your report. Good luck getting it off now after they've gotten their money.

Also, you haven't gotten to your reason for NEEDING a 40k sports car when you seem to have a perfectly nice one already, unless you plan to live in it.

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Tue, 15 Jul 2008 18:32:27 GMT

Lord please allow me to hold my tongue

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Tue, 15 Jul 2008 18:41:40 GMT

You should have offered a PFD for the CO. It will no change your score just because you've paid it. It will still stay on your report.

Regarding the BMW, I'm not sure if anyone realizes this but this guy is gonna try to get this car REGARDLESS of the advice everyone has given him. I do agree with everyone that it wouldn't be the best choice. And disagree with the OP on the Real Estate Market. Actually Fannie Mae/Mac are not in the hole and have plenty of money and are now officially gov't backed. This is the BEST time to buy a house and take advantage of the "recession" It is a buyers market not a sellers. (I'm licensed in real estate btw)

And 18% is CRAZY!!! I thought dh and I paying 13% was bad IMO, work on your credit, search here and learn learn learn. Refinance your BMW that you all ready have, that looks PERFECTLY fine to me.

Good luck and I hope you listen to what everyone has to say.

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Tue, 15 Jul 2008 20:54:21 GMT

I called Comcast and asked if I could bring it back out of collections, but they told me that they didn't own the debt anymore....So I paid it, now that I have, can I still try to take it off?

For the BofA, should I ask them for a PFD as well?? Should I ask to bring it back from NCO? it was opened in 10/07.....

As for the Reral Estate, I have an inactive Florida Real Estate license, and have since gotten my Series 3, and have gotten myself into the financial markets. But I just have a love for that car....we'll see,...let me get my score up to 680-700...and I'll reevaluate my decision, I shouldn't be so hardheaded.

Message Edited by YngMoneyMIA on 07-15-2008 01:54 PM

Re: Need Help to finance a BMW in 8 mos!

Anonymous — Tue, 15 Jul 2008 21:23:26 GMT

Try to get something from B of A...saying the account has been PIF...once you get that letter...fax it to the CRAs...along with a letter...disputing the CA...saying they have no right to try and collect on the debt...or be on your reports....because you paid B of A in full...ask for deletion...on the BofA TL...on your reports...does it say...closed(transferred)...or does it just say charge off???...