I'm in the process of rebuilding my credit since I was an absolute moron for years. I've paid off every single credit card, judgement and collection account I had and I've very recently opened three small credit cards (Capital One, Orchard, Best Buy Rewards) and one "line of credit" (Crown Jewelers) to help show that I'm a respectable person again. My Credit Report still has tons of inaccuracies but, it's getting straightened out daily through truecredit.com.
I drive a 2000 Ford Ranger with 160k miles and I know that I will need a new vehicle soon. I knew my score is super low so I tried the online guys to prevent the embarrasment. Capital One Auto Finance.... rejected. Roadloans.... accepted. Terms: $15,000 - 72 months - 14.54% interest. ($313/month) I figured this is pretty much what I'll get since my credit score is still below 600.
I've heard about the Credit Unions.... blah, blah, blah. I've done some research online for the past few nights and I found a local CU that I wanted to join. I swung by today and opened an account (Checking and Savings with $100 between them, I think $5 was the minimum.) The lady asked why I joined and I told her because I needed a car loan and I've "heard such great things about you." She did the ChexSystems thing and I started to sweat. I knew that I had a paid Collection regarding a $700 NSF "what-have-you" from 3 years ago. Seconds later, she told me about the "unpaid bill" with 5/3 Bank but, said it wouldn't prevent me from opening an account. WHEEEEH! (It was paid but, not reported fully.)
Long story short, within ten minutes, her and the branch manager were filling out an online car loan for me and I started to dread the Credit Score that would show up. She was pulling up TransUnion and I knew my score was about 578. NOPE. She said it was 673 and I qualified for their "Tier B Credit" with an interest rate of 6.25% for 48 months or 6.75% for 60 months. I nearly fainted. She said she'd call me within the hour because it just needed approval from headquarters. Well, I got that call and she said everything was good but, they needed to verify income (last pay stub) and it's good to go. I'll fax it over in the morning and she'll put it on file. It's all down hill from there.
COULD NOT HAVE GONE SMOOTHER. For all those doubting.... try a Credit Union. I will have saved thousands, easily.
In case you didn't read the book I just wrote......
Roadloans: $15k for 72 months @ 14.54% ($313/month)
Credit Union: $15k for 60 months @ 6.75% ($297/month)
Message Edited by Parrott on
07-14-2008 07:22 PM
I can spend approx $300 for some more life in it or try a credit union. After reading your post I'm opting for the credit union. Thanx for the inspiration