Next Steps/ Car Loans

[EaglesFan2006]

Hey all...i've been on the forum a while. I think i've made some pretty good strides in credit repair. Ive gotten rid of a lot of negative items. At last check my scores were between 600-637 (highest being EQ)...since then though i know they've gone up, as i've gotten rid of a few negatives on each report. I have my student loans as being in good standing. On TU and EX I still have 4 collections down from 7 or so. I think I can get some removed, they're all at least 4 years old now. I also really lack any revolving credit, good or bad...which i know i will need some.

I'm wondering what more i can do...i really want to start future planning but i'm strapped by this. how can i go about getting approved for revolving credit? Is there a legit service or financial advisor out there who can look at my reports and evalue where I really stand?


On another note, i'm wondering since in the near future i'll really need a car how i can get a car loan...would i just go to the dealer? i see 'bad credit' ads from them all the time...what sorts of red flags do they look for.


please help me if anyone can, in any way. i would really appreciate it...thanks so much

[Anonymous]

I think that if you can get those last baddies removed, that you'll see much better results (prime cards that you'll want to hang onto) with your revolving credit apps. You don't want to get saddled with dead-end, never-gonna-grow rebuilder cards as your oldest tradelines. Avoid them when at all possible. Finish your repair job before moving on to rebuilding. You won't regret it all!

If you've not done so already, you should establish a relationship with a credit union with a deposit account, I think. I wouldn't app for credit just yet-- get those baddies eliminated first. Build up your savings, and give them some incentive to really love you.   When you've cleared your baddies, app for a card with your credit union, one major bank card (go secured if you have to), and one store card.

The other benefit of doing business with a credit union is that you might find better rates for an auto loan.

[EaglesFan2006]

I agI agree and thanks for the advice...I actually opened up a savings at a CU a few weeks ago, so that's a good start.  I can hold off on revolving credit, my only incentive to get it is to raise my score

The auto loan concerns me more because I'm not sure how much longer I can go without a car...I don't need anything epic for a car, but I will need one.  Is it possible to get one?  Does leasing help?  I'm not sure much about how this works.

[Jazzzy]

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@EaglesFan2006 wrote:

I agI agree and thanks for the advice...I actually opened up a savings at a CU a few weeks ago, so that's a good start.  I can hold off on revolving credit, my only incentive to get it is to raise my score

The auto loan concerns me more because I'm not sure how much longer I can go without a car...I don't need anything epic for a car, but I will need one.  Is it possible to get one?  Does leasing help?  I'm not sure much about how this works.

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Please don't lease a car. That is very expensive and (with very few exceptions) not a good idea.

Put off buying a used car as long as you can, which gives time for credit repair. Then approach your CU first.

[Lel]

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LynetteM wrote:

Please don't lease a car. That is very expensive and (with very few exceptions) not a good idea.

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I know what you are trying to say - over the long term (particularly if you decide to buy the car at the end of a lease), leasing can be much more expensive than purchasing the car outright.

However, the monthly payments of an auto lease are usually less than the payments for an auto purchase.  If near-term cash flow is an issue for the OP (and he/she doesn't indicate whether it is), then an auto lease would not be such a horrible thing to consider.

A used car would be an option, like you mentioned, but the interest rates on are typically higher for a used car vs new car purchase.

Regardless of whether the OP purchases or leases a car, his/her interest rate will be affected by his/her credit score. 

ETA: Looking again at the original post, this discussion of leasing vs buying might be a moot point.  A lease is probably not going to be a viable option given the negative factors on the OP's credit report and his/her current credit scores. 

Message Edited by Lel on 08-21-2009 10:11 AM

[EaglesFan2006]

So what are my options then...i'd love to put it off, believe me...but it might not be possible with work?

would getting a store card help my chances to get some credit?  would a down payment help?  i know my credit isn't very good, but it can't be that horrible that i can't do anything in life...