Should I Wait?

[Anonymous]

Hi everyone,

I am in a dilema.  My old truck is on her last leg and my credit isn't the best. My scores range from 612-638 and currently have 8 collections, 1 tax lien and 11 charged off accounts.  I do have a repo BUT I do not see it in my credit report. That is the bad news.

However, all of my negatives except the tax lien is schedule to be remove by Nov 2016. 3 of which will be removed in Feb. Majority of them will be remove by Aug 2016.

My annual income is 40k and have 2 current revolving credit with ultilization of 33%.

If I decide to purchase a new truck soon, I can put a max of $2000 down payment and finance the rest.  Currently looking to spent between 20-25K for a new truck.

My question is, should I wait till Nov and purchase a new truck? 

Any help would be greatly appreciated.

[Anonymous]

Welcome to the board.  Yes wait till they fall off to apply for the best rates.

[StartingOver10]

---

@Anonymous wrote:

Hi everyone,

I am in a dilema.  My old truck is on her last leg and my credit isn't the best. My scores range from 612-638 and currently have 8 collections, 1 tax lien and 11 charged off accounts.  I do have a repo BUT I do not see it in my credit report. That is the bad news.

However, all of my negatives except the tax lien is schedule to be remove by Nov 2016. 3 of which will be removed in Feb. Majority of them will be remove by Aug 2016.

My annual income is 40k and have 2 current revolving credit with ultilization of 33%.

If I decide to purchase a new truck soon, I can put a max of $2000 down payment and finance the rest.  Currently looking to spent between 20-25K for a new truck.

My question is, should I wait till Nov and purchase a new truck? 

Any help would be greatly appreciated.

---

My concern is that you have two accounts already with a 33% balance and all you can come up with is a $2k down payment but you want to purchase a $20k to $25k truck which will be a large monthly payment.

If I were in your shoes I would do the following:

• Wait until the derogs fall off your report
• Save more for your down payment - save at least what the new payment would be each and every month which is very likely to be $500 to $550/month based on your score (assuming a high rate of interest here) plus insurance. Reassess to see if you are ready when you get to the end of the year.  11 months at $550/month + insurance is going to be well over $6k which will help you reduce the amount you need to borrow.  If you have trouble saving the money, then don't buy the truck as it will put you in bad financial shape.
• Work on your credit so that you can be in the mid-600s min when you go to make application for a new truck
• Find a cheaper truck or put down more down payment so you are financing less

[Anonymous]

+1. I would put as much down as possible. Because it will be a long time to get on the right side of that loan. 

[Chris679]

It would make more financial sense to pay off the credit cards before worrying about the down payment for the truck. Unless you have 0% apr promos that's going to save you much more money. If it were me I would see what kind of rate I could get now from my local CU. if it's not outrageous you can always refinance at the end of the year when your report cleans up. You would pay more in interest this year but that could be worth it if you think the truck won't last the year.

[Anonymous]

Thank you everyone for your advice. I can definitely pay off all my cc balances if I want to and to be honest I am very comfortable with a $500 monthly payment.

Either way, I will pay off my cc this week and see what kind of bump my credit report will get next month. Once again I appreciate everyone's advice. Thank you.

[sccredit]

IF you're truck won't last and you have to purchase something put down as much as possible so that you are in a position to refinance it once the derogs fall off in the fall.

[Anonymous]

Some of those scheduled to fall off in nov, you can call the cra about 6 months before they fall off and ask to be taken off this will only work with some credit agencies, check out the rebuilding forum.  Also if I were you I would look into a credit union when you do want to apply, some good suggestions would be DCU, Penfed, Navy fcu(I would look at the one that pulls your highest score).  Also ask youself do I really need a truck?  Take in account you could be possibly paying $4 a gallon for gas in the future, alot of people get things they want rather than need, you can pick up a really nice car for about 10-12k with low miles if you look hard enough.

[Anonymous]

Here are some stuff I forgot to mention. My job(pool service/repairs) require me to have a truck. Also, my annual mileage average around 25k miles.

If my truck feels reliable, I would not think bout buying a new truck. It's a necessity not a luxury.

Last year my truck's timing chain broke. Total repair and tow cost me 4k. Every year I'm spending 4-5k repairing my truck. If I were to do it again, I would had junk my truck when she broke and used that money for down payment. Oh well.

[Anonymous]

You could run a van!