Just got my post-junum dispute (first round) Experian and Equifax reports back. 2 negs deleted off each report, only negative item remaining is a repo with $3000 unpaid charge off, which is 6 years old. Positive info: Providian, opened 8/00 550 limit, 40 bal, never late Cap One, opened 11/00 "140" reported limit, 500 actual, 50 ballance, never late. So, do I go for another card, and if so, which one? Or do I stick with the two cards, and obtain some type of retail card? Will a 3rd or 4th card really help that much? My main goal at this time is to obtain an auto loan in about 6 months. $24K car with about 4K down. What are my chances at getting a decent rate with a 6.5 yr old unpaid repo on the reports? Thanks for any help!
Once that repo gets to the 6.5 year mark you should just dispute it as obsolete. If you do that, often the CRA's will go ahead and delete an item early if it is that close to the 7 year mark. You should try to do that before you shop for a car loan. You'd likely be able to get a loan anyway, but at a higher interest rate. You might consider getting a retail card. Just do it soon so that the inquiry won't deduct from your score by the time you apply for the car loan. Also, the account will be established longer and should help boost your score.
Re: Yes you do ! I would personally apply for a retail card (preferably Macy's since it reports to all 3 CRAs), then I'll wait for the repo to be deleted from all reports before attempting to obtain a car loan (as posted by mvfl, "you'll get better interest rates that way). Good luck !
Re: Yes you do ! Well, I must respectfully disagree (in part) with some of the replies you have received. First of all, I recommend getting every possible credit card you can and "retail" cards only if they are from major gasoline companies or major department stores. I personally use 6 different credit card companies continually and they make me good money each and every month plus improve my credit ratings too. Here is the best way to go in my opinion. Use your credit cards to buy everything that you possibly can. That includes your groceries, your gasoline and all other possible purchases. Use a separate card for each week of the month and rotate them through all 6 before starting over. Be sure to open a good savings account at the highest possible rate of interest and be sure that you have on-line access to the savings account as well as for as many of your credit cards that you can. Put your money in the savings account and spend the plastic. By rotating the cards, you are forever pushing the time of payment as far as possible into the future, thereby gaining the maximum amount of interest on money you have already spent. Always pay the cards in full just prior to the billing date so as to never incur late charges nor interest charges.When the accrued interest is greater than $100.00 move the accrued interest into a no-load mutual fund such as the Twentieth Century growth fund account. Make sure that the fund you get into is rated as a growth fund in order to get the maximum amount of growth with the least possible risk factor. This process can make you rich over the years, keep your credit shiny bright and in good financial standing. As far as the negatives currently on your record, you can just get them deleted right now and not have to worry about them. Not at all hard to do. Bill Bauer bbauer1@netzero.net
Re: Yes you do ! Bill, that's great advice for someone with enough credit to do it (and the ability to keep up with the plan). However, danrs simply asked if he might qualify for a car loan and if he should get a retail card. With a total limit of only $1000 on his cards he is probably in no situation to do what you suggest. But, maybe once that repo falls off, he gets a car loan and eventually qualifies for better cards/limits he could give it a shot - as long as he trusts that he won't get himself into trouble that way
