The New Guy, His Mediocre Credit, and Your Advice

For just about anything you want to get off your chest about credit cards.
DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Thu Oct 06, 2011 1:15 pm

roland wrote:Mediocre credit. I'm looking for what I can do better, or what else I can do that I might be overlooking. So I'm looking for your advice. :)

applied for a couple more mediocre cards (this and the car shopping give me 7 hard inquiries)...denied, except for...

So...what can I do to better my credit situation? I'd like to improve it to the point where I don't have to settle for mediocre cards in the future, where I can get good rates on loans, and when I reach the point in my life where I'm ready to buy a house I can get a decent rate on that too. I know it won't be quick, but I'd hate to spend 5 years runnin' down the wrong path. :rolleyes:


Others should be warned. NEVER, NEVER, NEVER allow a car dealer to pull credit!!! They will give you a dozen hard inquires then tell you your credit sucks and they can only lend you at high rates. If you must finance a car, always go to a bank first, arrange your financing, then buy from the dealer. If the dealer can beat the deal, fine. But have the backup plan and car price settled in writing first!

As for what you can do, be patient and very responsible with your credit. There is nothing you can do but allow time to pass.


Iroquois
Platinum Member
Platinum Member
 
Posts: 99
Joined: Thu Oct 28, 2010 1:17 pm
Location: Chicago

Re comment on financing with car dealers / never had a problem

Postby Iroquois » Fri Oct 07, 2011 10:20 am

I've leased or financed new cars through reputable and name brand car dealers. I have never had any problems with the process or how they mechanically pull credit info. Dealers frequently will have better financing rates than banks will be offering and periodically even get the manufacturer's subsidy to lower prices even more when new models are rolled out.

Always a good debate as well as whether or not you want to own a depreciating asset or merely lease it. But thats another subject altogether.

That said while my experiences have been good, car dealers don't enjoy the best reputations and there is no doubt a good deal of reason for that.

roland
Green Member
Green Member
 
Posts: 17
Joined: Fri Sep 23, 2011 11:44 pm
Location: San Antonio, TX

Postby roland » Fri Oct 07, 2011 3:12 pm

Mogul of Pineapples wrote:You certainly did luck out! By the way, welcome to the forum!


Thank you!

roland
Green Member
Green Member
 
Posts: 17
Joined: Fri Sep 23, 2011 11:44 pm
Location: San Antonio, TX

Postby roland » Fri Oct 07, 2011 3:17 pm

DoingHomework wrote:Others should be warned. NEVER, NEVER, NEVER allow a car dealer to pull credit!!! They will give you a dozen hard inquires then tell you your credit sucks and they can only lend you at high rates. If you must finance a car, always go to a bank first, arrange your financing, then buy from the dealer. If the dealer can beat the deal, fine. But have the backup plan and car price settled in writing first!

As for what you can do, be patient and very responsible with your credit. There is nothing you can do but allow time to pass.


Patience can be so hard to come by. :ppp

But I agree...lesson learned on the dealership inquiries. I bought the previous car in cash so hadn't had the pleasure of going through financing.

So many days I feel smart for learning new things to improve my credit, but then there are other days where I feel foolish for not having known something better.

Iroquois wrote:I've leased or financed new cars through reputable and name brand car dealers. I have never had any problems with the process or how they mechanically pull credit info. Dealers frequently will have better financing rates than banks will be offering and periodically even get the manufacturer's subsidy to lower prices even more when new models are rolled out.

Always a good debate as well as whether or not you want to own a depreciating asset or merely lease it. But thats another subject altogether.

That said while my experiences have been good, car dealers don't enjoy the best reputations and there is no doubt a good deal of reason for that.


In this instance, one of the lenders did beat out the bank's interest by half a percent...and covered the whole cost of the car (whereas my bank fell a couple thou' short...that should have been my sign to back-out).

As far as reputations or owning vs. lending...def' a whole other thread. lol

zapper_89
Platinum Member
Platinum Member
 
Posts: 62
Joined: Thu Aug 25, 2011 8:51 pm
Location: South Bend, IN

Postby zapper_89 » Sat Oct 08, 2011 1:09 am

I wish there was a way to get any of my three cards on my CR. I always buy in cash off of Craigslist.

User avatar
Pete838
Centurion Member
Centurion Member
 
Posts: 197
Joined: Sun Dec 12, 2010 11:26 am
Location: Florida

Postby Pete838 » Sat Oct 08, 2011 8:10 am

DoingHomework wrote:Others should be warned. NEVER, NEVER, NEVER allow a car dealer to pull credit!!! They will give you a dozen hard inquires then tell you your credit sucks and they can only lend you at high rates.


When shopping for a major purchase, like a mortgage or car note, several hard inquiries are expected. Most scoring models count several of these type of inquiries within a short period (30-45 days) as ONE inquiry for the purpose of determining credit worthiness.

I agree that it is best to go to the dealership with bank financing already secured. It puts you in an empowered position. But I will still allow the dealership to run my credit and try to offer a better deal. Last time I went shopping with a credit union approval letter in hand (the particular CU doesn't issue a blank check, instead issuing a letter stating that they will issue a check for the final amount), the dealer was able to offer 1/2% lower rate, so it was in my interest to allow the dealer to run my credit. The difference was only about $10 per month, but over the life of the loan it is significant.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

SlowLearner
 
Posts: 1
Joined: Sat Oct 08, 2011 2:05 pm
Location: Alhambra, CA

Postby SlowLearner » Sat Oct 08, 2011 2:10 pm

roland wrote:Mediocre credit. I'm looking for what I can do better, or what else I can do that I might be overlooking. So I'm looking for your advice.


It sounds like you have your credit cards fairly under control. I have always had a problem with that. A friend bought me a kindle book. Since I didn't pay for it, I decided to read it. I think this was the author's 1st book, but I found the content helpful. Do a search on Amazon for "Credit cards - Murder in the first degree". There is information in there I found helpful.

roland
Green Member
Green Member
 
Posts: 17
Joined: Fri Sep 23, 2011 11:44 pm
Location: San Antonio, TX

Postby roland » Mon Oct 10, 2011 6:27 pm

SlowLearner wrote:It sounds like you have your credit cards fairly under control. I have always had a problem with that. A friend bought me a kindle book. Since I didn't pay for it, I decided to read it. I think this was the author's 1st book, but I found the content helpful. Do a search on Amazon for "Credit cards - Murder in the first degree". There is information in there I found helpful.


That's a nice title. I may try to check that out. A decade OK I wasn't so OK with keeping credit cards under control...but I learned. And now I'm working on learning some of the finer intricacies of credit.

And to go with that title, I'm about to post a topic in the lounge called "How I Blew $39,000". :cool:

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Tue Oct 11, 2011 3:33 pm

I should clarify. I have also taken dealer financing on a new car when the dealer could do better than the bank or when I got a rebate or something for it. The key is that I always had an approved loan from a bank and knew my credit score beforehand. I also did all negotiation based on a cash sale and just let the dealer add the "financed" price as an option with all terms listed (required credit score, name of financing bank, etc.). This prevents them from jerking you around or shopping your credit. They commit to loaning you $20,000 from Mickey Mouse National Bank at 4%, 48 months contingent on a credit score of 720 and that is written on the deal you sign. When you sign the credit app or the form authorizing a credit pull, you write on the form "Mickey Mouse National Bank Only" right above your signature.

If you do this right you'll be fine.

I agree there are reputable car dealers. Things are not nearly as bad as they were 20 years ago. But they still know the same old tricks. You can still get screwed by a disreputable salesman or finance manager even at a reputable dealer. It pays to be vigilant. Trust but verify!

zapper_89
Platinum Member
Platinum Member
 
Posts: 62
Joined: Thu Aug 25, 2011 8:51 pm
Location: South Bend, IN

Postby zapper_89 » Wed Oct 12, 2011 2:11 am

It may sound like DoingHomework is a bit paranoid; however, you should always protect yourself from the anomalous sleazeball. I don't know how it works in the Auto industry, but companies are usually paid for merely running the credit app. Some individuals are willing to run multiple apps just to pocket a few extra bucks.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests