Need direction

[cjcw]

I have had a really bad weekend that is going to cost a lot of money. My husband has a low credit score from not paying credit cards. Now we are stuck with no cash or credit to pay for a new AC unit that will be approximately $5000.00 , my cat needs surgery to remove some teeth, costing $1500.00 and my husband needs new tires. $1000.00

 We will have the money for my cat's surgery, it's the AC unit that is the problem, it's hot in Texas.  My husand and I have the same credit score, 580. We need a 600 to qualify for financing. I need help choosing what would be the best direction. Should we pay down credit cards to raise our score or would it matter since we have owed for a long period and too much of a credit risk. 

[pizzadude]

Moved to rebuilding your credit

[JoeRockhead]

Really depends on what else is holding your score down... If you're carrying high balances on either individual cards, or in aggregate, paying down revolving credit could do the trick.  You'll get more specific advice if you can give more details. 

• How many cards do you have? 
• What are the limits of each card, and what balances are you carrying?
• What derogatory information is in your file, and when did those occur?

[LIGHTNIN]

Check with your electric company, to see if they have a program to get a loan.

I live in TN,our electric company had a 0% loan for 10 years to install a hvac unit.the loan payment was included in our monthly electric bill. Sadly TVA done away with the loan program. 

[FicoMike0]

Ditto @JoeRockhead 

Folks like Joe really know this stuff, but you have to give him the details.

Btw, I've read that care bears credit is good for things like vet bills. I understand it's hot in tx, but we are heading for fall and winter. Maybe not immediate emergency.  Tires are pretty high priority. 

Some tire shops have financing, but might be predatory.

I agree that getting scores up is a good move. Also, this is the time to plan the debt, not jump with the first offer. Credit card financing any of these is a bad idea, the interest will eat you up. Not including the care credit deal, I've read they offer a good deal as long as you can meet the payoff schedule.

If you're a credit union member, you might get a reasonable loan there.

Is the truck paid for? Might refi at lower rate than other options.

[1lifeisworthit]

Well, we know why your husband has bad scores (not paying his credit cards) but we don't know why you have bad scores yourself, and knowing that might help people to help you.

Have you kept up with all your card payments? Are you an AU on any of your husband's cards? If so, then simply removing yourself as an AU will take away that bad history within 30 days, leaving you with only your good history, or at least, good enough history. Giving you enough of a rise to apply for financing yourself.

If nothing like that can be done with your score, you have to work with what you have.

You say you have $1,500 for the cat. Well, talk to the vet about where you can get financing for the vet bills. See if they have any payment plans. If they don't, there are other options. I just did a google search for "financing vet bills" and several options popped up.

Get the tires right away with the cash you do have on hand.

Buy some good strong fans with the money you have left after the tires. Use them to create air flow through your house. For instance, If you have an upstairs, have the fans blowing the air OUT, while downstairs have the windows open and fans blowing air IN. If you have a single story house, have the fans blowing in on one side (the east or north) and out the other side (the west or south)

Spend the fall, winter, and spring making a serious effort to pay off your revolving debt and to get some savings together. Be stern with yourself regarding sticking to your budget, finding more money, and avoiding new credit accounts. In the Spring, you'll find your financing options much better for your air conditioning, and you'll've freed up money for payments as well.

Good luck, OP.

[pbtxlady]

The last time my a/c went out, the house got up to 95 inside before the repair guys came. It's definitely an emergency. We can and do have unseasonably warm days year round. Also, maybe her system is like mine, where the heat doesn't work if the a/c doesn't? That's not very pleasant in Jan/Feb either. 

Wish I had a good suggestion, but my a/c is really old, so I am dreading sitting in that boat with you. Do you maybe have homeowner's insurance that will cover part of the cost? I added a rider to mine a few years ago for just a few bucks a year and a low deductible (covers other things too). If your system is too old they won't cover the full replacement cost, but if you have to finance the balance, maybe the lower loan amount would be easier for you to obtain. 

[Realist]

Late reply I know, but I'm only going to speak on the AC portion of this post.  

1.  Lived at a house where we used very nice window air units to keep it cool.  We did have central air, but for 10+ years, it never worked.  Brought in a company, tested and filled it with freon, and in less than 24 hours it disappeared.  Tried to sell us on a new central air unit.   Fast forward a few more years of using window units, a neighber of an in-law, that worked in the field as a career, stopped by to take a look.  For less than $100, he fixed the issue and leak (plus freon cost), and it worked for years until we sold the home.  Ten plus years, we didn't have access to our central air, until we accidently found someone that knew their stuff, and wasn't trying to rake us over the coals.  It was a friend of the family.

2.  Second home was entirely C/A with exception to one loft room.  Somehow, they thought this wasn't needed.  Sporting a portable AC unit, this room would barely break lower than 85 degrees on a good summer day.  Portable AC units are the most inefficient units on the market.  Called an AC company for a quote, to tie this room into the existing ductwork, or to add a mini split unit.  That was quoted no less than 5k-6k.   They walked past the inefficient portable AC unit without a word.  Instead we declined the quote purchased a window AC unit for $500.  It reduced the room temp down to cold, with zero issues.   Exterior window units are MANY times more efficient than interior portable units.

They didn't win the business, and they didn't even say a word about an alternative, or what might potentially help.  Afterall, they were quoting new business.

Never ask a barber if you need a haircut. The answer is you always do.

Never ask someone who's financial income is tied to a decision, if you should partake.  The answer is always yes.  

There is always something to be sold to those that do not know, can't figure out, or can't do themselves.   The difference is whether it's a fair price, a bit out of range, or whether it's an outright scam.