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I Need Advice.. Hows my situation?

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New Contributor

I Need Advice.. Hows my situation?

I'd just like to get some advice on what I should do.  I want to purchase a car (2008/09 Honda Accord) by the end of the year.  My current vehicle may be own here way out of this world.  As of today, my credit scores are EX 607 TU 648 EQ 655.  The EX and EQ actually went down from March of this year due to me opening up Best Buy ($2200 limit-using $1800) and Walmart cards ($300 limit--using $0), i assume.  I have $2,549 in credit card debt. I also have a personal loan totalling $4,000.  The balance on my current 2000 Jeep Grand Cherokee loan is approx. $4,000.  I definitely dont want to rollover any negative equity, so plans are to have it paid off by the end of the year (hopefully it will last that long).  In addition, I have 4 separate student loans totaling $11,000 (more will show, as I'm still in school).  1. Do these SL's severely effect my credit score (they are not in default)?  I really think my  score went down because of all these new SL's.  I will need a car but I want all my ducks in a row so that there aren't any hang ups.  I refuse to pay a high interest rate.  I plan to have all my credit card debt cleared out by the end of the year.  Hopefully I can get scores in the upper 600's ,low 700's. Other info, I have 1 unpaid collection to Nationwide insurance in the amount of $400 from 7 years ago, 1-30 day late from a furniture company 5 years ago.  Myfico brings up issues about length of credit history which i've had for 6 years now and too many new accounts (6 in total--bestbuy, walmart, and those 4 SL's). 2. What should I expect when I just have a mortgage & SL's only, as far as credit score? 
 
 
 
 
Thanks ALL!!
Message 1 of 7
6 REPLIES 6
New Visitor

Re: I Need Advice.. Hows my situation?

i am going through a similar situation...i don't know what to do...if i should refinance my auto loan because i am trying to get a mortgage...todays market is driving me crazy!! but if you want my honest opinion on what you should do....i would say DO NOT BUY A NEW CAR unless you have to..i can see if you want a new gas efficient car or something but i would say don't get one soooo expensive...cars are just liabilities, new cars are not worth it these days!!
Message 2 of 7
New Contributor

Re: I Need Advice.. Hows my situation?

Yeah, I see what you're saying.  I'm gonna wait a lil while longer.  I"m just ready to treat myself since I work so hard.  I'm working a full time, a part time, and school part time.  I am scheduled to graduate in 2 years and then i'll be able to get a significant increas in salary.
 
But I will see how much longer my Jeep will last.  We shall see.  Thanks for your input.
Message 3 of 7
Valued Contributor

Re: I Need Advice.. Hows my situation?

The high ratio on your best buy card is hurting you......If you have that paid off by the end of the year you should see a good gain in points (30 or more).
 
Having the car paid off by the end of the year will help...you should still be able to get some trade in $ on it to put down on the new car.
 
I suggest buying an '08 at the end of the year because you will get a better deal on it since the new ones will already be out....dealers push to get all the old stock out starting late August early September.
 
Also, once those new accounts hit 6 months you might see a couple of points....
 
One other thing...once the credit cards are paid off let just one report a small balance (as little as 1%) and you will see even more points....the mix of credit by paying a mortgate, a SL and a Credit card in a timely manner every month will do wonders for your score.
 
Good Luck!
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09
Message 4 of 7
Established Member

Re: I Need Advice.. Hows my situation?

I say...you have enuff to focus on right now...if its not totally, necessary to get a new car then you should consider paying down some of your other debt.  If you must, get another car....why, does it need to be a 08' ? Although, you get a discount at the end of season...you can get a good value at buying a 2-3yr old car under warranty...and lower insurance rates also.  A new car end up losing a chunk of its value as you drive it off the lot...
 
With that being said, remember...a car is a piece of metal that will eventually, rust.  In this economy, you want something reliable....not necessarily, brand spanking new. I have a 95 Accord that I love but  my a/c is not currently working Smiley Sad (i live in florida) its no fun...and I have to hold myself back from walking into a Honda dealership everyday! but in this economy, its scary to think about the monthly pymt.  I know, my day is coming to buy another car sooner than later but I want to purchase a home in the near future. Hope, Iam not being harsh...most people in the forum are looking for solid, honest and helpful information....bcuz, we need and want to get ahead...I hope, I was helpful.
 
Good luck
Message 5 of 7
New Contributor

Re: I Need Advice.. Hows my situation?

Wow!! Thanks Mel.  That definitely gives me somethin to work towards.  Hopefully, I'll have everything lined up for the end of the year.
 
THANKS AGAIN!!
Message 6 of 7
New Contributor

Re: I Need Advice.. Hows my situation?

Grib, thanks for your advice/comments.  I think its coming up on the time for me to get a vehicle.  I'm satisfied as long as I am in a position to get a car and not have any worries about financing or making a rash decision.  Your advice was very helpful and very much appreciated.  I'm ok too, until i pass the dealership but we'll see.    Any complaints about your honda, as far as engine wise?
Message 7 of 7
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