Hey everyone! Here is an update on my situation lately....
First, some background to better explain this...
About 7 years ago, I was involved in a car accident where a person was killed. The accident wasnt my fault, and it was truly an accident and proven to be. At the time, GEICO stood by my side and never flinched. They handled all lawyers, courts, lawsuits, etc. Of course later, they canceled me. For the last few years, I have had to put up with inflated rates from nationwide. I never knew there was an insurance record that actually stays with you for 7 years! Well, it was because of this and my crappy credit rating, I was never able to get insurance with USAA. All they would ever give me was a savings and checking account. I have always had to listen to my fellow military members rave about USAA's great service and rates, but never able to partake.
Well, I sort of understood why interest rates make payments high because of crappy credit. Now I know....
Accounts as of this morning:
BOFA credit card: $1500 limit; $25 dollar balance
Capitalone Platinum: $500 limit: $50 dollar balance
Military Exchange Credit card: $5000 limit: $100 balance
Loans:
Loan with Wachovia dealer services, 06 Toyota Tacoma, $24,000 payoff $580 a month payment 11% interest
Loan with Citifinancial, 02 Mercedes E Class, $25,000 payoff $730 a month payment 13% interest
Interest percents are a best guess, but I am very close...
I have no other bills....TU 686 Eq 684 Ex 685 as of 3 Dec 07
Well......
Today I called USAA and requested their insurance. The underwriter said ok, it's been years since the accident, we will cover you. He said my credit score was a factor, as well as the age on the accident. Now here is the kicker. I was paying $180 a month for the above vehicles. Matter of fact, this $180 payment was lower than I have paid in the last few years. Know what my rate was with USAA? $90 a month! I almost crapped in my pants! Instead of nearly $1000 every six months, I pay only $520 for a six month policy! This was incredible. This alone would have made my day, but I thought, what about a credit card? I have always wanted an AMEX from USAA, but me and DW talked about it and decided against it. AMEX just isnt accepted in enough places. So, I went for the prepaid offer, and lo and behold! Approved, VISA, 13% APR, 0% for the first six months, $10,000 credit limit! Keep in mind, this is the first 30 minutes! Then I thought, hmmm, I would LOVE a new mercedes! So we said, what the hell, lets go for it! I asked for a $50,000 loan preapproval. I was approved, 7.6% interest. We went to the mercedes dealership with the toyota. I wanted a G-wagon, (they had an 03 on the lot for $48,000), but DW wanted an ML. They only wanted to give me $19,900 for the truck, which made me upside down about $4000. I decided to pay that in cash, so I wouldnt be upside down on the new benz. But because of my credit scores, mercedes credit BEAT the USAA quote! They offered me a $50000 loan, 6.2% interest! So we took that offer! I thought I was doing good! But when I called USAA to cancel the $50,000 loan, they were suprised they were beaten. Know what they said? They offered to refinance my OTHER benz. $25,000 refinance at 7%! I was almost floored! they dropped my payment by $150! This has been an awsome day!
In closing...All I can say is, you have to keep you credit CLEAN. If I have learned anything, DONT USE YOUR CREDIT IF YOU DONT HAVE TO. This time last year, my FICO score was below 520. Now I am close to 700. You have to control spending and control EVERYTHING! I probably will not app for anything for the next year! The knowledge I have gotten from this post has helped all this come to pass. Keep up the faith guys....
Stpn2me
"Sleep well tonight, America's premier fighting force is on point, The 82nd Airborne!"
TU - 673 EQ - 672 EX - 669 as of 13 Nov 2015
I bet it is MC, I will have to ask this morning! I was so excited, I just assumed it was a VISA....I will let you know this morning....