So I'm looking in to buying a vehicle for the first time

[Slydragon]

I just want something nice that works.

This is my first time so I'm lost and kinda not wanting to do it. I hate hassling over crap and on top of that my credit is shot, It was ok up until 7 years ago when my daughters mom up and left and left me with my girl when she was 3 months so I had to adjust from 2 incomes to just mine for rent and everything else and my credit went to shit because I could only really afford basic stuff.

So I would bus it with her everywhere, I put her in a sling(yea I know I look gay, but it was easy that way damn it) and put my headphones on and off we go. I would go to work on the bus and my mom would pick her up from there because she live close to the store.

Then I moved back home when she was 2 years because the apartment went to shit under new management, hell 2 weeks after I left a dead body was found there over drugs. Also my grandma was dying and my mom needed help.

We been sharing a car and it work for awhile but now I need a car of my own. So I got 3500.00 saved up and I don't mind paying for a older car straight up cash. I seen some on auto trader/craigslist but what else is there to pay? I know you pay to change the title and crap like that (what else/how much?)

With my crappy credit should I just look at private sellers and not even bother with dealers? I'm really clueless/lost on this. I have had the cash for awhile now but I been putting it off. I tried about a year ago and got burnt because the dealer said it was a done deal, to get insurance and bring it back. I go back and he pulls the bank wants more down. So I did not get it and I had just paid almost 200.00 on insurance that was canceled and I only got half of it back so that turned me off and I waited a year till I had a bit more cash.

[balli]

With my crappy credit should I just look at private sellers and not even bother with dealers?
I don't know how much the current economy has frozen up auto lending for poor credit customers, but typically, buying a car on credit is one of the best things you can do to restore your rating. If you can get a loan, could get a co-signer to bring your rates down and you have a steady job, I'd put that $3500 down on a cheaper car (like 7000) and pay off the rest in monthly installments. I don't think it matters if you get the loan through a bank or the dealership, but with the economy right now, well financed dealerships might be more willing to take the risk on lending you the cash.

Oh... and my 2 cents- get a bike.

[Slydragon]

Oh... and my 2 cents- get a bike.

With a car seat in back for my daughter. :lol

[PM5K]

I was a little confused before I read this thread because I'd seen you in a car before, but now that I've read it I understand.

Props to you for doing whatever you have to do to take care of your daughter.

As for your question, remember your daughter when buying a vehicle, you want something safe and reliable to transport her in.

If it was me I'd want to have more than 3500.00, but you'll probably get something better than what you are already driving.

Are you getting an income tax return, or is that the money you already have?

As for costs: I can't give you an exact idea but your insurance may go up, you'll also have to pay tax and registration. You may or may not have to get a new inspection, it depends on how much time is left on the current.

Also, often when people get to selling their vehicle sometimes they put off some maintenance items since they are getting rid of it so you might have to get the oil changed, or the serpentine belt, things like that.

With 3500 and shitty credit Craigslist is going to be your best bet. I'm no expert but you'll probably want to set aside 250.00 for the taxes, etc so that leaves you with 3250.00 to buy a car. (Registration on my vehicle runs 55.00 but on a car it might be less, and tax on a car sale is 6.25%) You can actually call a title transfer place and they can let you know about how much it would cost on a 3K dollar vehicle.

Also: If you fucked up your credit seven years ago it should be fine now, most accounts will come off after seven years, but that depends on what exactly you mean when you say that your credit is shot.

Good luck, I'm also in the process of getting a new vehicle, not my first, but something new so it's time to sell the old one.

Also: I was just looking at the buyers order from my last vehicle, it was bought from a dealer, not a private sale so if you buy on Craigslist or something you probably won't have to pay all of this, and a lot of it is probably BS that they put, like undercoating or key fees (If you watch Seinfeld you know what I mean), any way here is the fees they charged me:

MISC County Fees
Administrative Fee
DOC Stamps
State Inspection
TAG And Title
Sales Tax

Also, I know a guy that can do an inspection for you if you'd like, last time I checked he charges 100.00, he's inspected the last two vehicles I've bought.

[PM5K]

With a car seat in back for my daughter. :lol

http://ecx.images-amazon.com/images/I/41C14YESX4L._SL500_AA280_.jpg

[Slydragon]

No my income tax is going to house taxes this year. My mom is a house wife, which is great because she picks up my daughter from school and watches her while I work so my dad is the only working person and he just barely makes it also so I'm helping there because they help me so much threw out the years.

[Slydragon]

http://ecx.images-amazon.com/images/I/41C14YESX4L._SL500_AA280_.jpg

Can that be stackable in case she invites some friends to come along to the park also.

[PM5K]

Well you can certainly still get something decent with 3500.00

[PM5K]

Can that be stackable in case she invites some friends to come along to the park also.

Shit I'd just buy her and her friends bikes too, you can get bikes for everybody for cheap from Walmart...

[Slydragon]

So say I get a car from craigslist and I see it and like it, How would it work? Do I pay the guy and he hands over the keys/title or is there more paper work first then I head over to the title office?

[PM5K]

Used car sales are typically as-is, you'd really want to get a third party inspection because if the whole thing falls apart and you wind up with a 4K dollar bill from the mechanic you're shit out of luck.

I can't say exactly how it goes but when I bought a car from a private party I had a mechanic check it out, then we went to the title place where he signed the title over, I paid him, then I paid the title place the taxes and registration fees.

I probably wouldn't want to do it any other way, that's really how it should be done, the only thing I don't know about specifically is what should happen with the plates, when I bought that one I kept the plates and I never got new ones.

[JohnnySixString]

Used car sales are typically as-is, you'd really want to get a third party inspection because if the whole thing falls apart and you wind up with a 4K dollar bill from the mechanic you're shit out of luck.

I can't say exactly how it goes but when I bought a car from a private party I had a mechanic check it out, then we went to the title place where he signed the title over, I paid him, then I paid the title place the taxes and registration fees.

I probably wouldn't want to do it any other way, that's really how it should be done, the only thing I don't know about specifically is what should happen with the plates, when I bought that one I kept the plates and I never got new ones.

Most definitely get a third party inspection. I used lemonbusters quite a few years ago and the guy came out to the truck. It was just over $100 and he did a thorough job checking everything. You can get a local mechanic shop to do it cheaper, just make sure they're ASE certified. And don't forget you'll need insurance, so set some cash aside for that. Car loans are great for building credit, but they are also fabulous at destroying it should anything happen. If you have stable work and can handle the payments though, you could look at something in the $6-7000 range so you could put down half and pay it off easier. And build your credit up that much quicker too. If you don't want a payment over your head right now, you can still find plenty of good used cars in your price range. Craigslist is a start, but autotrader.com and others have cars in the $3000 range too. And lots of dealers have decent cars in your price range and you can haggle them down easier than a private seller. In any case, like PM5K stated, get a third party inspection.

As far as title and stuff goes, when you buy from a private seller all they have to do is sign the back of the title and the tansfer form from the county, which you can print off the net. You then take the title and the form to the tax collector office and pay for the tax, title transfer fee and registration if necessary. Find out when the plates expire when you transfer the title and registration. I once helped a guy con a crackhead out of his car. He showed up with the guy's title that he had signed in order to be advanced some crack. I printed up the form and told him all he had to do was get the seller's signature on it. It's amazing what a crackhead will sign in order to get that rock! Later that same day, he had a $3000 car for about $100 worth of crack. And I didn't feel the least bit bad about the cops ordering the crackhead to surrender the car keys, because he was an asshole neighbor,lol. I'm not telling the story for you to find a crackhead to con (but hey, ya never know), but that's how I find out that's all you need to transfer a title with a private "seller".

[Blake]

I just want something nice that works.

This is my first time so I'm lost and kinda not wanting to do it. I hate hassling over crap and on top of that my credit is shot, It was ok up until 7 years ago when my daughters mom up and left and left me with my girl when she was 3 months so I had to adjust from 2 incomes to just mine for rent and everything else and my credit went to shit because I could only really afford basic stuff.

So I would bus it with her everywhere, I put her in a sling(yea I know I look gay, but it was easy that way damn it) and put my headphones on and off we go. I would go to work on the bus and my mom would pick her up from there because she live close to the store.

Then I moved back home when she was 2 years because the apartment went to shit under new management, hell 2 weeks after I left a dead body was found there over drugs. Also my grandma was dying and my mom needed help.

We been sharing a car and it work for awhile but now I need a car of my own. So I got 3500.00 saved up and I don't mind paying for a older car straight up cash. I seen some on auto trader/craigslist but what else is there to pay? I know you pay to change the title and crap like that (what else/how much?)

With my crappy credit should I just look at private sellers and not even bother with dealers? I'm really clueless/lost on this. I have had the cash for awhile now but I been putting it off. I tried about a year ago and got burnt because the dealer said it was a done deal, to get insurance and bring it back. I go back and he pulls the bank wants more down. So I did not get it and I had just paid almost 200.00 on insurance that was canceled and I only got half of it back so that turned me off and I waited a year till I had a bit more cash.

man, I feel for ya.

Whatever you do, stay away from the little used car dealerships.

Also, while you are living at home, take advantage and do you and yourself a favor and go to college.

[CosmicCowboy]

Considering your financial situation, the first thing you need to remember is to not let your ego get involved. You are looking for a vehicle that can get you and your daughter from point A to point B.

You can find vehicles under $1000 cash that run. They may be ugly, they may have body damage, but they will serve their purpose. Tax and title is cheaper the cheaper the vehicle is. Drive it till it breaks. If it's a little thing, fix it yourself. If it's a big thing take the car to Newell Salvage or SMI, sell it for $250 and start over.

Unless your job is absolutely 100% secure you are nuts to dump all your savings into a down payment on a used car and take on new debt on top of that.

[CosmicCowboy]

Heres an example.

http://sanantonio.craigslist.org/cto/1018596693.html

Buy it, spend another $500 and you have a good reliable car that's paid for and still have cash in the bank.

[CosmicCowboy]

Heres another one to look at...

http://sanantonio.craigslist.org/cto/1018514923.html

[ORION]

Might be cheaper to buy a Chinese immigrant and a rickshaw

[Slydragon]

CosmicCowboy I been looking at cars like that (90's) They must have AC tho because my daughter has eczema and the heat is brutal on her even more so in a hot car in mid summer.

Thanks for the replies, I'm off tomorrow so I will look around/call places/people

Once again, thanks for the info everyone.

[ORION]

CosmicCowboy I been looking at cars like that (90's) They must have AC tho because my daughter has eczema and the heat is brutal on her even more so in a hot car in mid summer.

Thanks for the replies, I'm off tomorrow so I will look around/call places/people

Once again, thanks for the info everyone.

anytime...

[Taco]

go to carmax, you can get a good used car with warranty

http://www.carmax.com/

[Drachen]

This may sound like a silly question, but do you have your money in a bank, or a credit union?? If it is a credit union, I would absolutely try to get a car loan (despite your credit). I would even take the advice of the person that said you shouldn't blow your whole wad. Maybe you could look for a car in the 2-3k range and get a 1k loan (Say you had a 2k car, you would pay 1k down and get a 1k loan for 2-3 years, or if it was a 3k car, you would pay 2k down and get a 1k loan for 2-3 years). This would allow you rebuild your credit while not having to drain your savings. Also, if (as noted above) something happened to your job, you could pay off the loan because you already have the money in the bank. If you are not a member of a credit union, join one now. The ownership is different (the members are the owners not the stock holders) and most of them had very little to zero exposure to the housing mess, so their money wasn't drained having to cover sub-prime home loans, or the derivatives that have taken down the financial system. This has allowed them to continue lending at about the same rate. I bank at firstmark and they haven't even increased their rates for auto loans since before 08/07 (which is when I joined). They have the same rate if it is a new/used/or motorcycle loan, and their best rate is 4.24%. I realize you won't get that rate, but I wanted to show you it doesn't start high. I know I sound like a commercial for them, but it is because in my 29 years I have never had a better banking exp. than with them. If you already have a relationship with a credit union, they can probably help you, but if not, open a savings with $5 to become a member then start talking to them about a loan.

Ok, commercial over. Really I am sorry, I don't work for them, but I like them. Also, if you have questions about rebuilding your credit, I know a pretty good amount about that because I decided I wanted to buy a house in May 07 and my credit scores ranged from 495 to 520, so I started working on my credit and bought a house in April 08 with credit scores ranging from 660-685. I worked very hard on it, and learned a lot through the process. If you don't want this to be a thread hijack, then just PM me.

[RandomGuy]

You should seriously consider a new car.

I recently bought my first new car, and can offer some help if you want.

The next couple of months will be the best time in your lifetime to purchase a new car, simply because there are so many unsold cars out there, dealerships are DESPERATE to sell. You will get a great deal, if you manage your purchase carefully. Get a quote, and don’t be afraid to ask for more, no matter what kind of “no haggle” policy they might say they have.

New cars make sense from a couple of standpoints:

One is that your costs are very predictable. Buy and older car and you have much more variability in terms of not knowing when a repair bill will creep up on you.

New cars make sense if you intend on holding them for 5+ years. 7-10 would be ideal, longer if the car has proven reliable.

With this in mind, choose something small and fuel efficient, with a good safety rating.

From there, go on to find one that is fuel efficient. Gas is fairly cheap now, but WILL get more expensive, sooner than most think. Going for something fuel efficient now is a choice you will not regret.

Start with either the fuel economy:
http://www.fueleconomy.gov/feg/findacar.htm

or the safety rating and then to fuel economy:
http://www.iihs.org/ratings/default.aspx

The corolla or civic is generally a good choice, but don’t discount a good Ford Focus, which would end up being a VERY cheap option, and is pretty fairly equivalent to either the corolla or civic, don’t let anyone tell you otherwise.

This is all I have time for at present, but check your mailbox.

[RandomGuy]

This may sound like a silly question, but do you have your money in a bank, or a credit union?? If it is a credit union, I would absolutely try to get a car loan (despite your credit). I would even take the advice of the person that said you shouldn't blow your whole wad. Maybe you could look for a car in the 2-3k range and get a 1k loan (Say you had a 2k car, you would pay 1k down and get a 1k loan for 2-3 years, or if it was a 3k car, you would pay 2k down and get a 1k loan for 2-3 years). This would allow you rebuild your credit while not having to drain your savings. Also, if (as noted above) something happened to your job, you could pay off the loan because you already have the money in the bank. If you are not a member of a credit union, join one now. The ownership is different (the members are the owners not the stock holders) and most of them had very little to zero exposure to the housing mess, so their money wasn't drained having to cover sub-prime home loans, or the derivatives that have taken down the financial system. This has allowed them to continue lending at about the same rate. I bank at firstmark and they haven't even increased their rates for auto loans since before 08/07 (which is when I joined). They have the same rate if it is a new/used/or motorcycle loan, and their best rate is 4.24%. I realize you won't get that rate, but I wanted to show you it doesn't start high. I know I sound like a commercial for them, but it is because in my 29 years I have never had a better banking exp. than with them. If you already have a relationship with a credit union, they can probably help you, but if not, open a savings with $5 to become a member then start talking to them about a loan.

Ok, commercial over. Really I am sorry, I don't work for them, but I like them. Also, if you have questions about rebuilding your credit, I know a pretty good amount about that because I decided I wanted to buy a house in May 07 and my credit scores ranged from 495 to 520, so I started working on my credit and bought a house in April 08 with credit scores ranging from 660-685. I worked very hard on it, and learned a lot through the process. If you don't want this to be a thread hijack, then just PM me.

I agree. Credit unions are a great way to go these days.

The problem is finding one in your area of course, and if you plan on moving that makes thing problematic.

[RandomGuy]

Ok, commercial over. Really I am sorry, I don't work for them, but I like them. Also, if you have questions about rebuilding your credit, I know a pretty good amount about that because I decided I wanted to buy a house in May 07 and my credit scores ranged from 495 to 520, so I started working on my credit and bought a house in April 08 with credit scores ranging from 660-685. I worked very hard on it, and learned a lot through the process. If you don't want this to be a thread hijack, then just PM me.

Yup. One important part of this process is both knowing your credit score and how it is calculated.

[Drachen]

You should seriously consider a new car.

I recently bought my first new car, and can offer some help if you want.

The next couple of months will be the best time in your lifetime to purchase a new car, simply because there are so many unsold cars out there, dealerships are DESPERATE to sell. You will get a great deal, if you manage your purchase carefully. Get a quote, and don’t be afraid to ask for more, no matter what kind of “no haggle” policy they might say they have.

New cars make sense from a couple of standpoints:

One is that your costs are very predictable. Buy and older car and you have much more variability in terms of not knowing when a repair bill will creep up on you.

New cars make sense if you intend on holding them for 5+ years. 7-10 would be ideal, longer if the car has proven reliable.

With this in mind, choose something small and fuel efficient, with a good safety rating.

From there, go on to find one that is fuel efficient. Gas is fairly cheap now, but WILL get more expensive, sooner than most think. Going for something fuel efficient now is a choice you will not regret.

Start with either the fuel economy:
http://www.fueleconomy.gov/feg/findacar.htm

or the safety rating and then to fuel economy:
http://www.iihs.org/ratings/default.aspx

The corolla or civic is generally a good choice, but don’t discount a good Ford Focus, which would end up being a VERY cheap option, and is pretty fairly equivalent to either the corolla or civic, don’t let anyone tell you otherwise.

This is all I have time for at present, but check your mailbox.

Just so you know Ford just released their warantee figures (how much they have to pay out for issues on their cars that are under warantee) and they have dropped by 50% since 2004. They are now saving 1.2 billion a year because of this. It is interesting what great things can happen when a car company focuses on quality. Also the focus and the fusion have won best initial quality (above corolla and civic). I can't remember which year (last year or the year before, or maybe both). All this info leads to the point that Fords are now a viable option for purchases. Though, even though I understand the argument for a new car, with your current situation I still don't know that I would go with a new car.

[RandomGuy]

Just so you know Ford just released their warantee figures (how much they have to pay out for issues on their cars that are under warantee) and they have dropped by 50% since 2004. They are now saving 1.2 billion a year because of this. It is interesting what great things can happen when a car company focuses on quality. Also the focus and the fusion have won best initial quality (above corolla and civic). I can't remember which year (last year or the year before, or maybe both). All this info leads to the point that Fords are now a viable option for purchases. Though, even though I understand the argument for a new car, with your current situation I still don't know that I would go with a new car.

It is hard to tell exactly whether new/used should be considered.

One has to put together a few things, like personal budgets to caclulate available free cash flows, and that allows one to figure out what to spend, as well as putting a value on personal preferences.

Both new and used cars are essentially expenses, with cash flows out, either in payments, or in increased repair costs.

Both new and used cars have their advantages/disadvantages.

Sly dragon needs to do some thinking about what he needs/wants, in addition to some concrete steps.

First step is gathering data.

Get a credit report and therefor a true reading of his current credit rating, which I would bet is a little better than he might think, as long as there isn't anything recent.

Second step is doing a cash flow budget to see what can be reasonably afforded. This is the hard part.
--do a rough estimate of how much you will be driving.

--call an insurance company, and give them your information, along with a driving history, and a few sample vehicles. depending on whether you borrow for the purchase, the lender will require more insurance, but the company can get you a range of prices.

--How long do you want to own the car? This makes a HUGE difference in the new/used decision. the longer you want to own it, the more a new car makes sense.

Personally I would lean towards getting a new car, but that might not be the best thing for our young father here. Buying a new car in the next 6 months or so will afford a once in a lifetime opportunity to get a great deal on a new car, and that should not be overlooked.

Anyways, lunch hour is up.

[Sportcamper]

Another idea..
Try to find a GM car from a citizen who recently passed away… There are lots of Oldsmobile’s or Buicks with low low miles on them in prestigious neighborhoods for sale…The spoiled grandkids don’t want to drive an Olds 98…

I purchased two such Yank-Tanks in show room condition over the past decade…

[PM5K]

Obviously if you can get a loan I think you should, but I'm guessing you either can't or don't want to.

I probably wouldn't buy a 1K dollar car, if I had 3500.00 I'd use every penny I could, but it wouldn't be a bad idea to set aside 250.00 in addition to the 250.00 for taxes.

As I recall you work at HEB right, they have their own credit union, do you belong to it? If you do I'd probably go to them first.

Get 2K more and you can buy my car ;-)

[Sportcamper]

Re peat post...I seem to be flooded...:lol

[PM5K]

Re peat post...I seem to be flooded...:lol

?

[pkbpkb81]

I just want something nice that works.

This is my first time so I'm lost and kinda not wanting to do it. I hate hassling over crap and on top of that my credit is shot, It was ok up until 7 years ago when my daughters mom up and left and left me with my girl when she was 3 months so I had to adjust from 2 incomes to just mine for rent and everything else and my credit went to shit because I could only really afford basic stuff.

So I would bus it with her everywhere, I put her in a sling(yea I know I look gay, but it was easy that way damn it) and put my headphones on and off we go. I would go to work on the bus and my mom would pick her up from there because she live close to the store.

Then I moved back home when she was 2 years because the apartment went to shit under new management, hell 2 weeks after I left a dead body was found there over drugs. Also my grandma was dying and my mom needed help.

We been sharing a car and it work for awhile but now I need a car of my own. So I got 3500.00 saved up and I don't mind paying for a older car straight up cash. I seen some on auto trader/craigslist but what else is there to pay? I know you pay to change the title and crap like that (what else/how much?)

With my crappy credit should I just look at private sellers and not even bother with dealers? I'm really clueless/lost on this. I have had the cash for awhile now but I been putting it off. I tried about a year ago and got burnt because the dealer said it was a done deal, to get insurance and bring it back. I go back and he pulls the bank wants more down. So I did not get it and I had just paid almost 200.00 on insurance that was canceled and I only got half of it back so that turned me off and I waited a year till I had a bit more cash.

i was selling cars till everything went to shit. at a big dealer you wont get approved but i would try drive time or jd buy ryder to see what they can do
pm if you need any thing i may be able to help. do you know your credit score it may not be as bad as you thank

[pkbpkb81]

ford also has a great first time buyer program it's good on focues and rangers haveing a child i recamend the focus

[mrsmaalox]

Hmmm lots of good advice for lots of different situations. But for your situation, Sly, I think Cosmic Cowboy has the best solution. I guess I'm just stingy with my cash and I never drop all my cash in one place. Hell I don't even put it toward down payments. I'm always more comfortable with a little breathing space. It would really suck to sink all your cash into a car, while trying to repair your credit, and have something catastrophic occur, lose your car, screw up your credit more and have no cash. Talk about one step forward, 2 steps back! Good luck to you and your daughter :toast

[Slydragon]

I don't know my my credit number and I did try a loan from my bank but was told no because of my pass.

I'll keep reading and thinking but can not really post till later, I'm at work and typing on my phones on screen kb sucks

[Drachen]

if you are buying your credit score go to myfico.com. It is run by the fico company which is the company that supplies your credit score to the "big 3" (experian, equifax, and transunion). This is the only place where you can get your true FICO score. Even if you go to the website of one of the big three, they are trying to push a new credit score calculation of their own. Unfortunately, this number will be pretty much useless since over 92% of banks use the FICO score.

P.S. if you go with firstmark they use equifax exclusively so you can check just that one and save yourself money. I would recommend pulling all three though, that way you can check for accuracy. Before you do that, do a google search for "myfico coupon codes" and you can usually find a coupon code that will take 10-20% off of the price for pulling your reports.

[PM5K]

I don't know my my credit number and I did try a loan from my bank but was told no because of my pass.


What bank and how long ago?

I really think you should use this opportunity to find out what's really going on with your credit because you'll eventually want to buy a house for that little girl and then you'll really need to have good credit because it's a lot harder to buy a house all in cash than it is to buy a car all in cash.

As mentioned, find out what your FICO credit score is, most places have a free trial and even if they don't it won't cost you very much.

You can also get your credit reports (not credit score) for free once a year:

https://www.annualcreditreport.com/cra/index.jsp

[Drachen]

What bank and how long ago?

I really think you should use this opportunity to find out what's really going on with your credit because you'll eventually want to buy a house for that little girl and then you'll really need to have good credit because it's a lot harder to buy a house all in cash than it is to buy a car all in cash.

As mentioned, find out what your FICO credit score is, most places have a free trial and even if they don't it won't cost you very much.

You can also get your credit reports (not credit score) for free once a year:

https://www.annualcreditreport.com/cra/index.jsp

Just remember that the places with the free trial are not your true credit score unless it is from myfico.com - read the fine print on those. I signed up for a scorewatch type thing with them and I got a 30 day free trial (if I remember correctly), you are able to cancel it before the period is up, but it only provides equifax if I remember correctly. You don't have to sign up for such a thing if you just want to do a one time purchase of your credit reports/scores (something like $50 for all three unless you use a coupon code). Also, pm5k is correct. If you are ONLY looking to check the accuracy of the reports and don't care to find out your score then you can get your free annual credit report. This may be a good place to start.

[PM5K]

Just remember that the places with the free trial are not your true credit score unless it is from myfico.com


Just remember, MyFico is one of those places with a free trial...

[Drachen]

Just remember, MyFico is one of those places with a free trial...

Great reading comprehension! I am glad the part where I said I got a free trial from myfico didn't escape you. The only reason why I clarified it is because you said "places" when if you want your true FICO you should have said "place." The others are a decent general guide, but not very useful when trying to place where you are in the credit pecking order (it would be infuriating to me to get my score from one of those places where it tells me I have a 713, then go apply for a loan and get approved for a crappy rate because my CS is actually 671). It would be like having a yardstick when you need to measure in meters.

[PM5K]

Great reading comprehension! I am glad the part where I said I got a free trial from myfico didn't escape you. The only reason why I clarified it is because you said "places" when if you want your true FICO you should have said "place." The others are a decent general guide, but not very useful when trying to place where you are in the credit pecking order (it would be infuriating to me to get my score from one of those places where it tells me I have a 713, then go apply for a loan and get approved for a crappy rate because my CS is actually 671). It would be like having a yardstick when you need to measure in meters.

That's really splitting hairs since I specifically said FICO, not credit score or FAKO...

[PM5K]

I am glad the part where I said I got a free trial from myfico didn't escape you.



It totally did escape me, in fact I still don't see it.

[Drachen]

Just remember that the places with the free trial are not your true credit score unless it is from myfico.com - read the fine print on those. I signed up for a scorewatch type thing with them and I got a 30 day free trial (if I remember correctly), you are able to cancel it before the period is up, but it only provides equifax if I remember correctly. You don't have to sign up for such a thing if you just want to do a one time purchase of your credit reports/scores (something like $50 for all three unless you use a coupon code). Also, pm5k is correct. If you are ONLY looking to check the accuracy of the reports and don't care to find out your score then you can get your free annual credit report. This may be a good place to start.

Refer above to where I said I got a 30 day trial with myfico.

I realize you said FICO, I am just assuming that someone who has not worked on their credit before probably doesn't know that there is a difference, especially since most of those "places" say that they will give you your "credit score" not your "FICO" or "FAKO." That assumption may be incorrect and the OP may know all about the differences between the two, but I do know that I did not, and most people that I talk to also do not. Thus the clarification. I don't want someone to get started working on improving their credit by going to one of those "places," and think they are making progress, only to find out that they aren't. Some may get frustrated, give up, and think the whole credit score business is a conspiracy (yes I have heard this too).

[PM5K]

Well Scorewatch is from MyFICO so I assumed you meant what you said which was "Scorewatch type" not actually Scorewatch.

You said it only provided Equifax which doesn't make sense since Scorewatch is from MyFICO and they provide your FICO score...

[Drachen]

Well Scorewatch is from MyFICO so I assumed you meant what you said which was "Scorewatch type" not actually Scorewatch.

You said it only provided Equifax which doesn't make sense since Scorewatch is from MyFICO and they provide your FICO score...


Ok, I see where you may have been confused, I just couldn't remember the name of the product and I should have said "a score watching type thing." I guess my subconcious is smarter than my concious mind since I wrote the correct name for it. My fault.

As far as the equifax thing, the contracts that FICO holds with the three credit bureaus are slightly different than one another. Each of the "big 3" has contracted a slightly different version of the FICO equation for their purposes. So your equifax FICO is different than your Transunion FICO. Some places use only one credit report exclusively and so this may make a difference (as noted firstmark uses equifax, and security service uses transunion for example). This can have a great effect since (for a long time until recently) my transunion FICO was about 35-45 pts below my equifax and has only recently begun to be more in line with one another (still about a 9 pt difference). If each of the 3 credit bureaus used the same equation, then there would be no need for 3 credit bureaus (I personally feel that there should be no need for 3, but apparently the market believes otherwise).

[Duff McCartney]

Here's some advice don't buy American cars. Buy either a Honda or a Toyota. With proper care that car will last you 20 years. Maybe more.

[PM5K]

I hear some older Volvos are good as well, and can be had cheap...

[PM5K]

Did you buy a fucking car yet or what?










:downspin:

[BacktoBasics]

All kinds of bad advice going on here.

For starters the FICO score you pay for is different than the FICO score they pull at a dealership and most banks. Its an auto induced score so if you have shitty auto history the score will be worse.

Things don't typically just fall off after 7 years. You can however take steps to have certain items removed with the proper documentation. Debts get sold and each time a debt is sold it seems like a new debt. Especially if they change account numbers when the debt changes hands. (I've been preaching credit prepping before a purchase but few listen)

Credit Unions are a good start but I would spend at least 60-90 days trying to get things removed from your bureaus before applying for loans. If you go out and apply everywhere and shotgun your credit you're fucked. Take it slow at first because you already know you have credit issues.

Finding a vehicle isn't the problem financing one is.

If you want help with your credit report and how to clean it up I can help. PM me for details if you want help.

For all we know he has 3k in credit issues. At that point just use your 3,500 to fix your credit and make a small downpayment with whats left over.

or pay cash and take the long road to fixing your credit if its that bad.

[RandomGuy]

Refer above to where I said I got a 30 day trial with myfico.

I realize you said FICO, I am just assuming that someone who has not worked on their credit before probably doesn't know that there is a difference, especially since most of those "places" say that they will give you your "credit score" not your "FICO" or "FAKO." That assumption may be incorrect and the OP may know all about the differences between the two, but I do know that I did not, and most people that I talk to also do not. Thus the clarification. I don't want someone to get started working on improving their credit by going to one of those "places," and think they are making progress, only to find out that they aren't. Some may get frustrated, give up, and think the whole credit score business is a conspiracy (yes I have heard this too).

Be careful because a lot of the free trials have switched to 7 day periods, then they charge you a monthly fee, so you have to get your report, then quickly cancel the subscription. This happened to me. My "free credit report" ended up costing 15 bucks.

[RandomGuy]

Here's some advice don't buy American cars. Buy either a Honda or a Toyota. With proper care that car will last you 20 years. Maybe more.

Not quite so true anymore.

American car quality has started to close the gap with the Japanese.

Astonishingly enough, the Koreans have actually caught up in the quality arena too.

I would not have accepted a free Korean car 6 years ago, but today would have no qualms whatsoever about buying a KIA model.

[RandomGuy]

Things don't typically just fall off after 7 years. You can however take steps to have certain items removed with the proper documentation. Debts get sold and each time a debt is sold it seems like a new debt. Especially if they change account numbers when the debt changes hands. (I've been preaching credit prepping before a purchase but few listen)

It depends on the debt, and you are right. Some things will drop off and the older they are the less they weigh into any lending decision tho'.



Credit Unions are a good start but I would spend at least 60-90 days trying to get things removed from your bureaus before applying for loans. If you go out and apply everywhere and shotgun your credit you're fucked. Take it slow at first because you already know you have credit issues.

This falls into the category of knowing how your credit is rated/scored. The more credit you apply for, the worse your score is, i.e. they count a lot of credit applications against you.

[BacktoBasics]

Over 7 inquires a year is considered "excessive". I know some salesmen that run you to 7 different banks or more on just a single application.

"shopping" your credit is never a good idea.

[BacktoBasics]

It depends on the debt, and you are right. Some things will drop off and the older they are the less they weigh into any lending decision tho'.




uI agree however. If you have more collections than good accounts, regardless of score impact, it still behooves the guy to eliminate the collections. It'll just present better. Especially at a credit union that looks more at the big picture vs. just a FICO score.

[mrsmaalox]

So B2B, what is your final answer to Sly? After reading all this credit stuff, I still think he should find an adequate car for a portion of his $3500, pay cash, stash some for auto maintenance, and concentrate on fixing up his credit before going the loan/financing route. What do you say?

[BacktoBasics]

I don't know exactly what his credit situation is. I'd have to see exactly whats going on and then advise him.

[chreph]

Get a used 2001+ hyundai elantra for $3K or $3.5K cash and be done with it. I've had 4 hyundais and all have been extremely low maintenance and reliable. I still have an '02 elantra GT (the hatchback with leather, etc) that my wife and I bought new. It still drives smooth, has leather/sunroof/etc and with 100K on it now and the only thing besides general maintenance that had to be done was replace the thermostat (covered under warranty, but would have cost $10) and I replaced the radiator due to a small crack (plastic radiators only last up to 70K if you're lucky but it only cost me $170). They are reliable and even better, cheap to fix. You can pick up used engines for $200 - $300 for them and have one handy in case you need to pull anything off of it.

I'd sell you mine (which I predict will probably go to 150K, if not more) but I've already promised it to my sister-in-law when she turns 16 in a year and a half.

[Drachen]

All kinds of bad advice going on here.

For starters the FICO score you pay for is different than the FICO score they pull at a dealership and most banks. Its an auto induced score so if you have shitty auto history the score will be worse.

Things don't typically just fall off after 7 years. You can however take steps to have certain items removed with the proper documentation. Debts get sold and each time a debt is sold it seems like a new debt. Especially if they change account numbers when the debt changes hands. (I've been preaching credit prepping before a purchase but few listen)

Credit Unions are a good start but I would spend at least 60-90 days trying to get things removed from your bureaus before applying for loans. If you go out and apply everywhere and shotgun your credit you're fucked. Take it slow at first because you already know you have credit issues.

Finding a vehicle isn't the problem financing one is.

If you want help with your credit report and how to clean it up I can help. PM me for details if you want help.

For all we know he has 3k in credit issues. At that point just use your 3,500 to fix your credit and make a small downpayment with whats left over.

or pay cash and take the long road to fixing your credit if its that bad.


Ok, this is a valid point as far as the "auto-enhanced scores" and I guess I should have mentioned it because some banks do use auto-enhanced scores. I have not run into one credit union that uses either auto or credit card enhanced scores. I have literally called the Credit Union to find out what the FICO requirement for a loan is (i.e. all other things being equal, what FICO score = what rate), then I ask them which credit report they pull. I pull that report at home, and bring it with me to the bank, just in case there is some issue. Every single time, the FICO that they receive is exactly on the dot, what I just pulled. Maybe there are credit unions out there that are not the same, but in dealing with United SA, SSFCU, and Firstmark this is exactly how it has gone.

As far as going all over town and applying for car loans this is fine as long as you do it in a set amount of time. You are allowed 14 days to shop for a car loan, and 30 days to shop for a mortgage. What this means if you go to a car dealership today and they pull your credit you can apply for all the car loans you want in the next 14 days and it will only count as 1 "pull" as far as your score is concerned. The other pulls will show up so that you can see who pulled your credit, but your score will only be affected by the first. So that car dealer that says they are going to pull your credit, then sends your info to 7 banks is not hurting your credit any more than you going to YOUR bank and them pulling your credit once. The same thing goes for mortgages, only you have 30 days instead of 14.

Just a warning though, THIS DOES NOT APPLY TO CREDIT CARDS. If you are shopping for a card, be darned sure that you want that card before you apply.

[BacktoBasics]

Ok, this is a valid point as far as the "auto-enhanced scores" and I guess I should have mentioned it because some banks do use auto-enhanced scores. I have not run into one credit union that uses either auto or credit card enhanced scores. I have literally called the Credit Union to find out what the FICO requirement for a loan is (i.e. all other things being equal, what FICO score = what rate), then I ask them which credit report they pull. I pull that report at home, and bring it with me to the bank, just in case there is some issue. Every single time, the FICO that they receive is exactly on the dot, what I just pulled. Maybe there are credit unions out there that are not the same, but in dealing with United SA, SSFCU, and Firstmark this is exactly how it has gone.


I totally agree that most credit unions simply pull raw scores

As far as going all over town and applying for car loans this is fine as long as you do it in a set amount of time. You are allowed 14 days to shop for a car loan, and 30 days to shop for a mortgage. What this means if you go to a car dealership today and they pull your credit you can apply for all the car loans you want in the next 14 days and it will only count as 1 "pull" as far as your score is concerned. The other pulls will show up so that you can see who pulled your credit, but your score will only be affected by the first. So that car dealer that says they are going to pull your credit, then sends your info to 7 banks is not hurting your credit any more than you going to YOUR bank and them pulling your credit once. The same thing goes for mortgages, only you have 30 days instead of 14.

Thats not accurate. You can usually get excessive pulls removed but a lot of times its not a central pull from one location dispersed to banks it looks like a pull independently from multiple banks (so it could be for anything a boat, motorcycle, home loan, tractor.....). You have to request the removal in writing. I've shotgunned credit before. I've had customers come in with shotgunned credit. Its alive and well.

Just a warning though, THIS DOES NOT APPLY TO CREDIT CARDS. If you are shopping for a card, be darned sure that you want that card before you apply.

Word

[gay abc]

.

[Drachen]

As far as the FICO corporation is concerned, it is true that you have 14 days to shop for the auto loan. If the pull is coded as an installment loan, rather than an auto loan when pulled, that can adversely affect the credit score. This is one reason why it is important to keep tabs on your report because errors are not uncommon. I think it is criminal that the credit bureaus are not regulated more than they are. I mean a very common "error" is that when you have a collections account for a credit card, it should fall off 7 years after the date of last activity. That means, the last time you paid on it or charged on it (whichever is later). Collections companies will keep an account alive by reporting a new date of last activity every time the account is sold. This is illegal and can usually be corrected by sending a letter to the bureau reporting it (though, I would go a step further and send a letter to the collections company as well warning them to stop this nonsense). You may also do the same if you went out shopping for a car, had 30 pulls, and it dinged your credit score 30 times. I have heard of something similar happening, but 1.5 years ago when I went shopping for a car, I had a total of 25 pulls on my report, all counting as 1 "hard" pull. Your credit is pulled all the time without your knowledge. If you have a credit card, they will pull your credit anywhere from once a month to once a year to check and see if you are still credit worthy. These count as "soft" pulls and don't affect your score, though they still show on the credit report.

[BacktoBasics]

As far as the FICO corporation is concerned, it is true that you have 14 days to shop for the auto loan. If the pull is coded as an installment loan, rather than an auto loan when pulled, that can adversely affect the credit score. This is one reason why it is important to keep tabs on your report because errors are not uncommon. I think it is criminal that the credit bureaus are not regulated more than they are. I mean a very common "error" is that when you have a collections account for a credit card, it should fall off 7 years after the date of last activity. That means, the last time you paid on it or charged on it (whichever is later). Collections companies will keep an account alive by reporting a new date of last activity every time the account is sold. This is illegal and can usually be corrected by sending a letter to the bureau reporting it (though, I would go a step further and send a letter to the collections company as well warning them to stop this nonsense). You may also do the same if you went out shopping for a car, had 30 pulls, and it dinged your credit score 30 times. I have heard of something similar happening, but 1.5 years ago when I went shopping for a car, I had a total of 25 pulls on my report, all counting as 1 "hard" pull. Your credit is pulled all the time without your knowledge. If you have a credit card, they will pull your credit anywhere from once a month to once a year to check and see if you are still credit worthy. These count as "soft" pulls and don't affect your score, though they still show on the credit report.
Its amazing that the single most important financial tool this country uses is so poorly run and monitored.

[PM5K]

I think at the end of the day Sly probably just isn't interested in getting something financed no matter what.

[Drachen]

I think at the end of the day Sly probably just isn't interested in getting something financed no matter what.

BacktoBasics: WORD!

PM5K: I agree, Sly hasn't posted to this thread in a while. That is ok, though, maybe someone learned something.

[Slydragon]

Ok sorry I have not posted, I read tho. Yesterday I was working late and on top of that my throat is sore and I got a cough that hurts like crazy so I went to bed early.

Felt the same today but I was off so I woke up took my daughter school and then went to pick up my new glasses, well as they were adjusting them they broke WTF I waited over week and feel like crap and that happen. Almost turn me off to car hunting.

So from there I hit up lots and some just piss me off. Sales guys would act like I was not there so I would wait till they "felt" the needed to walk towards me. They would come with in hand shaking distance I would turn and walk out.

I went to this small lot by my work place the old man(owner) was nice, he recognize me from my work it's like 4 blocks over. So I got a 2000 Blazer from there.

total price was 6508.00 with my 3000.00 down, I pay 370.00 for 9 months which for me is not bad because I did not want a 2 year payment plan.

It was in house finance which I know will not help my credit because it will never show up, but the other places I went to would check it and then come back saying if I can get a co-signer I could get a car.

I don't want a co-signer I don't feel right having someone do that for me. I mean I will pay but you never know what can happen down the line. I bet people who got laid off this year were thinking just a year and a half ago that they had great job security.

Anyways I still feel like shit but here are 2 pics of my first ride and my daughter loves it. First thing she ask "Does the Ac work and the heater for the cold morning"

http://img11.imageshack.us/img11/4259/dsc06145kf8.jpg

http://img167.imageshack.us/img167/3272/dsc06146km3.jpg

I know I could have done, should have done.....but I really needed a ride now. The car we share seem to break down allot and I hate struggling to find a ride to work because the bus does not go near there from my house it would require 2 buses.

Overall I'm happy and in 9 months with everything going correctly I will not have a payment no more. Thanks for all the replies and PM's. I want to pay this off first and then start the repairing my credit process. With out a ride to work there is no cash to start the repair process.

[Slydragon]

Once again thanks for all the help/pm/replies, this is a great board and now with a ride of my own I can make it to a few GtG for games come playoff time. :flag:

[PM5K]

Ouch, hopefully you're a very good driver, those things are notorious for rolling over (not by themselves obviously)...

I think the newer four door version is supposed to be better though.

[koriwhat]

I want to pay this off first and then start the repairing my credit process.

do what i'm about to do... go to your bank and get a CD in a substantial amount like $2500, then get a loan from the same bank for the same amount and repay periodically. doing so and on time will build your credit.

[PM5K]

So what are the specs on it, what year, how many miles, etc?

Too bad you didn't have the 5K to buy my Jeep:

http://img136.imageshack.us/img136/3136/1001438gy6.jpg

[Drachen]

That is great Sly, congratulations! I wish you and your daughter well with that. Just one thing to tell you. You may begin working on your credit without any money (except having an envelope and a stamp). Go get your free credit reports from the links earlier in this thread and check for accuracy, and start writing letters. That way, by the time you have paid off your truck, you may have decent credit.

[PM5K]

I agree, it's something you'll want to put off, but the problem is that fixing your credit can take time so get started on it asap....

[leemajors]

hopefully the fuel pump doesn't go out once a year like it did in my blazer after a while. i had to get rid of it because of the 17 mpg hwy tho.