I’ve been browsing the MyFICO forums for a while now and I have been relieved to know I’m not the only person who has made serious credit missteps and I have been impressed with the insight and wisdom of many of the contributors. I would appreciate any and all advice you guys can offer me as I rebuild my credit and look for auto financing.
I have been unemployed for more than a year but I have finally gotten a great job and will start in two weeks. I went through a bankruptcy in 2003 and my credit went into the toilet (low 500’s). My credit reports and FICO scores are finally turning the corner and I feel like I’m rejoining society again! My credit info is below:
UPDATED CRs - September 1, 2010
TU - 739
4 school loans from 1994 no delinquencies (current balances total $40,000)
1 Household bank card $320 limit with $20 balance (opened 2008)
Gym membership installment loan for $1400 with $100 balance opened in 2007 (will be paid and closed in December)
1 closed Macy’s account with $0 balance and no derogatory notes (opened in 1990 and due to fall off soon I believe because of its age)
1 paid judgment for $5,000 from 2001 due to age off CRs in January 2011
Zero inquiries
EQ - 721
4 school loans from 1994 no delinquencies (current balances total $40,000)
1 Household bank card $320 limit with $20 balance (opened 2008)
Gym membership installment loan for $1400 with $100 balance opened in 2007 (will be paid and closed in December)
1 paid judgment for $5,000 from 2001 due to age off CRs in January 2011
Zero inquiries
I have some other good trade lines that have aged off my report because they were paid off over 10 yrs ago.
With this new job I really need a new car and I’m trying to decide what my best options are. I have $3000 for a down payment and would like something used in the $8,000 - $9,000 range. I see ads for dealers who do in-house financing (buy here pay here) and think they would probably work something out for me but the markup on these cars is SOOOOOOO high and outrageous I simply cannot stomach the idea of using them and being upside down on a car loan at the outset. I would not mind paying a very high interest rate for right now because I know I could refinance my loan or even sell my car and get something else at a better rate early next year when the judgment falls off my credit reports and I have a little time on my new job.
Ideally I would love to be able to buy a car from a dealer auction (at a significant savings) and finance it but I’m not sure whether that’s a realistic option with my recent work history and credit reports (if it is an option for me please let me know because I can get access to these auctions through a family member and it is the preferred option). Can anyone give me some ideas about the best way for me to purchase a car in my current situation? Are there specific lenders who will work with me even though I have been unemployed recently?
Thanks in advance
