Options and Suggestions

[Anonymous]

Hello All,

This is my first post here but I have been lurking for about a week reading.  I've recently begun rebuilding a credit history. 

Background:

• I got my credit reports and I am sitting at 620-630 across the board. 
• Zero credit lines open, zero collections, zero judgements or bankruptcies; for all intents and purposes I am clean aside from being 60 days late on a Credit Union loan once 6 years ago when the company I worked at closed (This is slated to be off my report 11/2011 per the Credit Union I belong to)
• I pay my bills on time now (though none of them show on my report) and I don't have any credit cards (I know I know..working on that).

The Question:

I have been at the same company for 5 years, but I am moving to a new state because I took a job there.  I am going to be sitting on 50k a year gross with less than 1/4 of that going to living expenses.  I am making less at the company I am leaving but I need a newer car now as I need to commute and I want something reliable.  Does anyone have suggestions as to where I should look for financing?  I am debating going through Carmax as  I've had friends get approved there with credit in the 500s

The Concern:

I know my credit rating shows little to no history which is going to lead to a higher APR.  I can deal with that, the car loan and a few smaller secured credit cards in good standing should allow for a decent refi (I hope) in a year or so.  I am willing to pay as much as $500-600 a month on the loan.  My main concerns are not debt to income, but time on the job and having a paystub to prove income.  I can't really wait till I've been there long enough to get a stub as where I am moving you need to have a vehicle and I currently have none. 

Thanks for reading and the suggestions to come, all constructive criticism is welcome.

p.s. yes I've looked at beaters, I wouldn't stake my getting to work on one, they all need a bit of work and after this cross country move I won't have much to work with at first.

[chasmith]

If you have your offer letter, use that and paystubs from the job you're leaving to prove income.  You are proving a reasonable story - you took a new job at an increase in pay, and need a reliable car.

Try Ford Dealer / Ford Credit.

[Anonymous]

Hey..

Sounds like it could happen to anyone who doesnt know about credit and never bothered. I think you should try Nissan and their financing NMAC. They have been lending recently and black friday could be the day you get an exceptional deal. I have read on here and other boards that people with scores that you have, been getting approved at super low rates. Go to a nissan dealership, pick out a car you like etc etc and ask how much it is - negotiate the price of the car (AND NOT THE PAYMENT) - they will ask you how much you can afford per month, just say I am here to negotiate price of the car. After you agree a price... ask them you want to finance through NMAC (google wht rates they are offering when you buy) and demand you get that rate or else you walk - AND BE PREPARED TO WALK - remember - their business is to sell the car and move the unit out and not to make the money on the interest (dealerships can be shady and may want the spread) - but see if this works.

Secondly - after you get your car sorted out - GET A SECURED CARD FOR THE NEXT 6 MONTHS AND PAY IN FULL!!

Good luck!

[Anonymous]

Ok having no open lines (including credit cards) and having a negative entry left is Kinda bad.

You may not get a great interest rate, or need to come with a larger amount down.

At least you are not a zero or a ghost, but you will need to work with a dealerships finance office. Dont try online apps, your case is something that people need to review manually.  Maybe a credit union if you are a member could work.

[Creditaddict]

As another poster mentioned, I would look at Nissan and Infiniti, they are very lenient.

One you have this car financed, I would look into getting 2-3 Credit cards to build a positive history that will really give you score bumb

[mross1080]

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@Creditaddict wrote:

As another poster mentioned, I would look at Nissan and Infiniti, they are very lenient.

One you have this car financed, I would look into getting 2-3 Credit cards to build a positive history that will really give you score bumb

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+1

[Anonymous]

Thanks for all of the replies guys.  I am going to set up a meeting with one of the dealerships near me.

[Anonymous]

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@MichaelBernard wrote:

Thanks for all of the replies guys.  I am going to set up a meeting with one of the dealerships near me.

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Go in with a car in mind and a payment.

[Anonymous]

I have a car or two in mind.  Has anyone had luck with audi?

[Anonymous]

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@Anonymous wrote:

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@MichaelBernard wrote:

Thanks for all of the replies guys.  I am going to set up a meeting with one of the dealerships near me.

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Go in with a car in mind and a payment.

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YEAH, I dont think this would be a good idea. Do NOT go in the dealership with a payment in mind, this is a trap. Once you tell the salesperson and the finance guy what payment you want - I can challenge you that you will not leave the dealership with that or a lower payment. Always negotiate the price of the car and not the payment. If you tell them what payment you are looking for - they will know how much more they can get you for. Do some research on the cars you want - what MSRP's are and how much lower can they go. Negotiate the price from there and then factor in the APR to get the payment. Remember, if its a car you like and you tell them the payment you are looking for and you get attached - you will be thinking whats $50 more a month and BAM you are committed, attached and now you are paying 3 grand more. ($50 X 60 months)....

Good Luck...

Oh. P.S - Audi's are nice cars but at your credit, with no trade lines established - I wouldnt go there. I know you said you dont mind paying the interest - but why? Go to Nissan or Infiniti - get yourself a nice, reliable car and at a really good rate - plus - Audi's are kinda hard to qualify for - where as Nissan, according to recent evidence - just wanna sell... so with your scores and credit history - especially if you demand the rate and are ready to walk away - you will get it...