Questionhi, i am buying a used car at budget car sales on friday. the reason is two-fold: number one: for the transportation (current car is a hurtin' '89 cougar)(which i am not going to sell outright due to the conditon and yes i will accept almost anything budget offers but will push for 500), number two: to improve my credit score by paying off the loan on-time monthly with auto-deductions from my bank account.
the budget car sales rep has assured me the best he can do for me with my credit is 23.9%. this seems awfully hih (three times what someone with fair credit would pay?) this is factoring in the following facts:
i am paying $500 cash downpayment, plus a trade-in (hoping to get 500 for the cougar). my credit score is currently around 552 (experian as of today), i have had a steady job for the past 2 plus years, same address too with great reference from my landlord. back to my credit score -- i have some rather derogatory stuff on there, including payments which were over 150 days late in the last few years (but i have never "settled" -- i have always paid back in full, and have practically no outstanding debt at present), and several items went to collections but were and are paid in full presently.
is 23.9% unreasonable considering all these facts? i am currently studying hard on and working hard on improving my credit score (it went up 27 points just this week after i disputed a thing or two, or asked for some remarks to be less derogatory).
my credit union has assured me if i make 9 payments on-time, they will refinance the loan at a lower rate. and yes, i will be sure there is a no penalty for early pay-off clause in the contract for the car.
one more thing: budget tells me their "program" for people with credit like mine is the best as they will report every month to all 3 credit bureaus about my on-time payments. is this for real?
AnswerHi Andy
Be proud of the fact you got no bankrupt showing on your credit bureau and not much outstanding dept
Are you saying your credit union will finance you down the road but not at present ?
23.9% is about as bad as it gets you must buy the least expensive transportation that will fit your needs
Every lender claims to have the best program, i am not going to say budget is lying but i would take that statement with a grain of salt
Over the years i have seen how some of those smooth finance/business mgr's operate and the one area that concerns me is you buying and signing a contract you dont fully understand the final outcome
If you want me to help you further phone for some facts and dont let lender tell you we will do all the paperwork when you arrive which means you must have pre selected vehicle and know the amount to be financed
my Questions to you
year-make- model -miles-term
will ownership be in your name
is there a buy out clause at end of term
If you reply lets keep it private... click on private before sending...
In the meantime go to my website and learn some steps, make sure you navigate to I GOT POOR CREDIT
http://www.usedcartips.org/
Regards
Ray
