     Rob | Monday, November 29, 1999 - 09:11 pm 
I know that is probably a stupid question.
I will be making (or attempting anyhow) a new car purchase in the not too distant future. The car I want will run me about 18K.
My student loans are about 18K total but I am current and have good payment history.
My salary/income is about 42/year but I typically make closer to 50 with commissions so may be able to have my employer verify that higher number.
As for bank cards, I have one Master card (MBNA) that is maxed out but with good payment history and one loan through MBNA for my computer that has perfect payment history but is close to being maxed out (they gave me 1500, the computer was 1499, and I have just started paying on it). My other cards have 0 balances but good history, especially the past 7 months where I have been concentrating on them with vigor. My rent history is pristene and has never been late.
Now that you have a sketch of my history, am I going to embarrass myself by walking into the dealer in a few months? I have never bought a car and was thinking about going the route of a "first time buyer deal" or something.
On a sidenote, how detrimental will it be to me if I have a credit check run for the car loan, get denied, and decide to go to a used dealership only for them to see "Previous inquiries on history" in my record?
Thanks guys and gals!
Robert |
| Steve Mckinney | Tuesday, November 30, 1999 - 05:14 am
I am attempting to rebuild by credit. In addition to the wonderful tips posted on your new and old forums, are there any other savvy ways to manufacture positive credit and boost my rating. For example, it was suggested to me that I open three savings accounts at three different banks. Then get loans secured by the amounts in those accounts. Pay each of the loans back over a 6 month period. The banks would report this to each of the Bureaus and this would dramatically boost my rating. What are your feelings about this and the maunfacturing of positive credit. Thanks. |
| Robert Bielak | Wednesday, December 01, 1999 - 06:55 am
Rob -
Assuming your previous and current credit obligations are paid as agreed/never late and never have been, and based on your (documentable) salary, you should not have a problem. Student loans are student loans. The issue won't be that you have one or two cards/loans maxed out, but what your TOTAL credit limits versus your total debt owed are. If you've got five cards @ 1500 limit on each, that's 7500 bucks credit limit. If you owe $3500 on two of the cards, and zero on the others, that should be reasonable.
How long have you been at your job and your residence? Those are more important that one or two maxed out credit cards.
And the bigger your down payment, the easier it will be as well. |
| Robert | Wednesday, December 01, 1999 - 12:57 pm
Well,
I just started this job. I will have been here for about 4 months when Imake the purchase. But I was at my last job for over a year.
My residence? Since June. It's an apt. I've been late in the past on some cards so my history isn't perfect. |
| Robert Bielak | Friday, December 03, 1999 - 06:06 am
All depends on the lender's requirements now. Some are adamant about time on the job or residence. Other's don't like collections.
If you get rejected, and you have the extra $$$, offer a bigger down payment.
If they aren't happy with your credit but give you the loan with more $$$, then expect a higher interest rate. Don't worry, though. I did that years back when my credit sucked more than a Hoover. I was paying 20% on a $21k truck that I put $8 down on - but I did it to get the loan through Chrysler Financial. I kept it for a year then traded it back in to Chrysler and got my first of two Gold Key Lease's. But the first loan let me prove to them I was a good risk. |
