Changing my ways

[Anonymous]

Hello all, I am making my first post after spending hours browsing the message boards the past few days.  My situation is that I need a car and have been turned down 4 times the past month. I'm working a job that doesn't make good money but I can't leave because of the impact I make on the youth in my community (my choice ). My salary is only $28000, and my savings cannot be used because it's my emergency funds. I have no funds for a down payment. 

I have no credit cards, loans, or mortgage (my wife and I rent). 

Any advice? I can provide more info if anybody wants to help... by the way,  this "community" is awesome. 

[Luscher]

Get a credit card and use it for gas every week. pay it off in full every month and in 6 months you will have a credit score. Maintain the mentality of always paying in full and before you know it you will have a great score. The reason you cannot get an auto loan right now is because they consider you a "ghost" which means you have no score and no way for the lender to know how risky you are. You could possible get an auto loan if you have a cosigner but it is up to you.

Also, the first credit card I got with no credit was a Discover card, BUT! I have heard of a lot of people who were denied for one too. So if you cannot get an unsecured credit card you can look into getting a secured credit card just to get yourself established

[Anonymous]

Definitely sounds like good advice, I will research CC's tomorrow and apply. I've been wanting to do this, guess I've just assumed I would be denied. Secured card is an option which I will also research. 

Thanks for the advice! 

Any advice on options for getting a car now? My wife is in college and we're struggling with full time job/full time college and only one vehicle. 

[Creditaddict]

Where did you apply and get denied?
You have no fico score?
Local credit union where you live?

[MakinChangesNow]

I applied online at Bank of America, Wells Fargo and Cap One. I was also denied at my local credit union. The first 3 I applied for 20k and the credit union denied me for 10k.

The guy at the credit union said my automotive credit through ex was 698, eq was 702 and transunion was 0.

[Creditaddict]

Cap1 denied??!!!
Carmax near you?
Apply at roadloans.com I'd bet 95% they will approve but rate might be little ugly... Don't put in how much just let it tell you how much!

[Luscher]

If you really NEED another car and are going to resort to road loans or another company like that with ridiculous rates I would just tap into the savings account. You will end up paying way to much for what ever car you are going to get if you apply to one of the companies that approve anybody no matter your credit

[StartingOver10]

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@Luscher wrote:
If you really NEED another car and are going to resort to road loans or another company like that with ridiculous rates I would just tap into the savings account. You will end up paying way to much for what ever car you are going to get if you apply to one of the companies that approve anybody no matter your credit

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^^^Agree with the above. OP, you are making $28,000 per year and yet you are looking to purchase a vehicle using financing. It is the worst possible thing you can do when you are struggling financially. Taking on a payment is a receipe for disaster when you admitted that you and your girlfriend are already struggling. It is admirable that you are doing what you choose to do with your community, but don't put yourself under the additional stress of a car payment when you simply don't have the income to support the loan.

You would be best served to get a beater car for cash. Yes, you will need to keep up on the repairs for the vehicle, but at least you won't have a payment and risk losing the car to repo. If you really want to get a newer vehicle that you don't have the cash for right now, then put together a plan to raise additional funds through another part time job or some service or item you can sell during your off hours. Once you have those additional vehicle savings to apply for a very large down payment, then consider purchasing a vehicle with a small payment after you are financially on your feet.

[MakinChangesNow]

Thank you all so much for your advice! I do agree that roadloans might not be the best choice, but it may be my only option. I wouldn't say I'm "struggling" financially, but I just don't have an abundance of cash in my checking account. I do have a motorcycle worth a few thousand that I am putting for sale... and am strongly considering just buying a clunker with that money. 

Just at a crossroads where neither option looks great. I will take all of this advice into consideration... thanks again. 

I really just want to finance a vehicle and get some credit in my name. Thoughts? 

[Creditaddict]

Roadloans while usually ends up being for bad credit financing does offer GREAT rates too and the nice thing is they give you options for how much you borrow and how much you put down to get a better rate and it's instant... at this point i would check the rate and then way out with an approval in hand if it makes financial sense.