Credit Repair 101

It was northtowne subaru, i have been on a waiting list for an STi for awhile now, and they guy knows someone who sold a guys wife a legacy and the guy has been debating on trading in his 04 STi for awhile, thats what i have been on the waiting list for, for the past 5 months so he talking to the guy to see if he is ready yet to trade it in.
They said mine is worth about 12k trade in, so i’d owe 8.6K to cover the buyout value of it.
I have 6K at least to help cover the overhead on what i owe reducing it down to the 2.k which they would throw on top of what i would be financing for the subaru.
i have 2 cards, store cards, (JCP) and another i forget, but i owe 700 on the JCP and that pays it off, it is still with the original lender and nothing has gone to collections yet, i had to stop paying for 2 months, but am currently paying once again on all cards, i just missed 2 months on 6 of them, so once my trouble situation got caught up, i was able to get back on track with my payments.
So they are not going to go to collections, but it did harm me pretty well from having a 650 down to a 516.

I do not have that option, but they said i probably would not need one throwing about 6k down on it. The interest rate is going to be higher yes, but i can afford it. My gross income per month is 2600 roughly without looking at it, and i brought proof with me, it was somethng family related that went south, and i had money to help at the time, and fell behind due to the economic stuff that happened, but i DID get myself back on track once i recouped from the family emergency.

Putting $6,000 down and rolling in $2k, into a new car - which is going to typically depreciate a larger percentage right off the lot isn’t going to help you. Figure even a EXTREMELY SMALL percentage of 10% depreciation which is unrealistic on a $40,000 car. That’s $4k, plus taxes, plus $2k you’re rolling in. You’re still $8,000 upside down at the end of the month. Not to mention your insurance is going to go up significantly(especially because insurance companies are now basing policy premiums on credit ratings.)

I can’t speak for another dealer’s finance department. Good luck though. Again, your absolute best shot is if you had a co-signer.

You also need to take into account - PTI. Payment to income. If you’re rolling in $2k, financing taxes and fees. I’m assuming its a $34,000 STI. With your negative equity, $6,000 down and taxes and fees…You’re roughly financing $37,800. 60 months at 20% interest - you are at $1,003/month. All due respect, there is no way a bank is going sign you up for that. Especially, because I’m assuming that if you made $2500/month…you’re payment to income is 40%. That is INSANE. The banks are going to see that you defaulted on a $700 debt from JcPenny…and you want a $1,003/month loan payment.

Good luck! I almost bought an STI last month, they are pretty sweet.

I would imagine $6k would go a long way towards catching up payments and keeping current…

I’d say that’s by far your best bet.

We are getting a used one, not a new one, sorry if i did not clarify, i’d never buy a new again, i just had a bad experience with it. Looking to get into a USED subaru. The JCP one i can pay the 700 dollars and close the account, i only chose the lower ones to stop paying on, i kept up with BoA, and Chase, the store credit cards and the 1 major one i fell behind in making 6 total, but the ones that mattered, GMAC i kept paying on, because i figured it would look better that if the bank sees they lent money for a car, you didn’t give up paying on the car, you chose the credit cards to give up so you can make the car payments.
All this help is appriciated!, i just don’t know how i feel about getting my credit back up now, and later still trying to get financed for a used car and getting that upside down of 8k added onto the new “used” car that is my dilemma.

That means the banks will probably be basing their estimates off of NADA trade-in which doesn’t help your case. Either way, good luck and keep us updated!

I think that i will pay off the ones i need to to get caught back up on missed payments and see where i land then, that way i don’t have to spend all of the 6k, and i can still have some to knock the overhead down with i guess.

According to NADA, trade in price is pretty much right on with 12K for my SUV.
http://www.nadaguides.com/usedcars.aspx?LI=1-21-1-5013-0-0-0&l=1&w=21&p=1&f=5014&m=1035&d=6421&y=2007&c=18&vi=97866&z=14216&da=-1&mi=28,000 unless i have read that wrong?

Why the fuck are you worried about getting a new car? It would make NO SENSE at all to buy a car and get raped on interest.

PAY OFF YOUR DEBT

worry about the car later.

How can you be so dumb as to take financial advise from a person trying to sell you a $20k car?

lol

$5 says he buys a car anyway.

How about those Bills?

I am a woman first of all.

Second, i have already explained the reasoning behind wanting to buy the car, even if the rate is a tad higher.
I am not so dumb, it is just 2 things.

  1. i won’t have this much in cash again to throw down at the overhead that i owe on my car.
  2. my car is not going anywhere but down in resale value, which is going to screw me over later in terms of being more under on it than it’s worth.
    i thought that possibly getting into a used car, and getting rid of this, yes i will be paying a tad more interest, but at least i will have a way better vehicle, and if i ever decide to sell that, at least the resale value on it is going to be worth more than what mine is, 2 fold.

sorry, i had to.

All cars go down in resale. With a 20% interest rate on an STi you will be upside down for years on it.

Have you seen insurance rates for an STi?

Fix your credit before you think about another car.

The depreciation rate of your current car is BY FAR the least of your financial issues right now.

I almost pissed my pants when I read that

:bigclap:

That much i understand, but i’d get alot more enjoyment out of the STi, than the Equinox. I do know you are right though, credit first i suppose.

yep, finally the truth comes out.

oh, and on top of ALL of this, new credit accounts hurt your score EVEN more.

i probably sound like an asshole, but sometimes it takes brutal honesty to get a message accross. fix your shit, THEN buy a new car.

I thought the American way was to buy a car you cant afford and rack as much debt as possible:gotme:

Bump!!

Adam or anyone else.

I have some questions about removing bad remarks(paid in full or paid settlement amounts in full) that are over 3 years old. these old remarks are killing my score. do I have to call and beg the lenders and or collection agencies to remove these remarks?