How long should i wait! I want a new car now!! :)

[Learning_Tee0225]

Alrighty, so ive began the journey to fix my credit at the begining of this year and have had success in getting things deleted off my report as well as adding new lines of credit..currently

2 active credit cards  500$ CL 20% utlization  and  300$CL 17% utlization

3 accounts still in collections from 2006-2007 (1 will be paid in full but not deleted by end of month)

1 pd collection from 2006

Looking to finance a 2009-2012 Honda Accord v6 with about 3gs down Loan amount around 22k pymnt less than 420$

Either finance through my credit union Navy Federal or thru the dealer whichever offers better APR..

TU @ 595  Eq @ 573        what do you guys think? am i asking for the most? i plan to refinance within 6 months because im still doing major work on my credit just need a car sooner then i thought. any help insight would be greatly appreciated!

[Anonymous]

You are going to face a significant challenge in financing with your current situation. I know NFCU is very generous and lenient so you may want to start with them. Speak with a loan officer about your financing options. They can probably tell you what down payment you will need and what interest rate you might get (If they are willing to do the loan at all). Unless your income is substantial I do not think you are going to get 22K and not at under $420 a month.

As to dealer financing you will probably find a loan but you are not going to like the interest. I would guess it will be 20% +. Again the amount available is going to depend on income. Your best bet is to take the 3000. Buy a car to get you around and work on repairing your credit. It will be the best benefit in the long run. When you figure out what the true cost of a car will be with your current credit - you can take the purchase price and nearly double it for the final payoff on a bad credit loan.

[Learning_Tee0225]

Thanks for your response..sadly thats what i was fearing but at the same time i guess i just need to have a little patience the last thing i want to do is get into a bad deal and ruin all the hardwork ive been doing to repair this credit!  I make 40k a yr have been at the same job for oer 6 years do you think possibly shooting for a lower amount like18k would make any difference?

[Anonymous]

Your income and job stability are good. I agree that taking on too much at a high rate is just a bad situation I've been there and done that. My loan was only about 12,000 but when I finished paying it I had paid over 20,000. So my advice stands. Buy the beater and keep working on improvements. Or buy what is minimally acceptable with the smallest loan you can. If I could do it all over again....

P.S. edit- And just so you know there is light at the end of the tunnel - I became a homeowner in January of 11 after the rebuild / re-establish process was done.

[Anonymous]

Be real careful about thinking that you will refinance this in six months. Do not ever base a buying decision thinking that you will just refi to a lower more affodable rates. There are loads of people that have said the same thing only to find out that they seriously misjudged just how hard that can be. Good luck with it, but do not get in over your head.

[webhopper]

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@Learning_Tee0225 wrote:

Thanks for your response..sadly thats what i was fearing but at the same time i guess i just need to have a little patience the last thing i want to do is get into a bad deal and ruin all the hardwork ive been doing to repair this credit!  I make 40k a yr have been at the same job for oer 6 years do you think possibly shooting for a lower amount like18k would make any difference?

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I would try to get a loan through Navy Federal for a reliable used car...  something around the 10k-15k mark.  Don't sign up for anything with an extremely high rate.

You will be better off waiting for this car than signing up for it now!

[Anonymous]

NFCU pulls equifax for most loans. you have room for improvement. get those credit cards down to below 10% and i am sure you will get around 600, NFCU will give you a decent rate with around that score and 20% down.

[Creditaddict]

The thing that comes to mind for me is your credit card debt...

With 1 card of $500 and 1 at $300, are you paying in full each month and you just don't do it before statement so they report, or are you carrying balances month to month?

Why have you not applied for a Credit Card with Navy yet if you are a member with them?

Depending on why you have balacnes on 2 small credit cards and if you were declined by navy for cc or didn't apply, I think taking on a $420 payment for a card is way to much because if the numbers you gay are exact you literaly need a 5% loan or lower to get that payment and take it from me and the other warning about your plan to refi in 6 months... It ended up taking me over 2 years!!!

[Learning_Tee0225]

Creditaddict - thank you for your response

the two cards i have carry small balances under 100$ each  57$ on the 500$and 49$ on the other... my 500$ CL is a secured Visa though Navy Federal  i didnt apply for a regualar card because my credit was no where near ready for that would of most definately a DENIAL at the time i got the secured card. later on i was apporved for an orchard bank mastercard..(300$cl)

I do play the statement game paying it down prior to them being reported but its rare they go over 100$- The monies there for monthly payments of 420$  i just dont have the credit to support me.

What are the reasons you were not able to refinance in 6 months? if given any. 

[Learning_Tee0225]

dodgeball

thank you for that! ive been wondering what CA they pulled from i applied last year for a auto loan (denied) but the letter they sent said they pulled my TU file which was odd cause like most i see they pulled there Equifax..