I am (very) new to this site. But it came highly recommended to me. I am hoping it will lead me to the road of good (I'll even except OK) credit... Little background---I am divorced with 2 kids; receive child support and I work full time. However, due to layoffs in the past and some poor choices, I was forced to file bankruptcy 2 years ago. As a result, my credit is very bad. My 1991 car died and I needed to replace it. I wanted to purchase an older used car, but did not have the cash available. As happens after bankruptcy, I was contacted by several car dealers that "help restore credit." As a result, I ended up with a relatively new car with very high interest rate. My car payment is$350/month. Needless to say, because the car is only 2 yrs.old, my car insurance is also high. I would love to get rid of the car and purchase one for $3000-$5000. However, I cannot seem to find a loan due to my current credit situation. It seems the ONLY people that are willing to loan me money for a car are the dealers who will sell only a like-new car with high interest rates added to the high sticker price. Does ANYONE have any advice/suggestions as to how I can get a small car loan if with my credit being less than perfect....actually less than OK...lol Cindy
Look into a local public credit union for a loan. They can be a little easier on those of us who are credit-challenged!
How much do you owe on the car you have now? How much is the car worth? If you owe less than it's worth, you might be able to refi it, might even have a chance of a slightly lower rate if you've made all your payments on the car loan and all other creditors since the BK. BK isn't exactly the kiss of death anymore. What's the most important thing is to NEVER have a late payment afterwards. If you're upside down on the car (you owe more than it's worth), the only option I can really see is keeping it. Trading it in will just cause them to add on whatever balance is still owed onto the new loan, making your payments just about the same and making you immediately SEVERELY upside down on the new loan. Is there anything you can do part time to bring in a little extra money each month? Babysit one night a week? Help tutor other kids? Sell Avon?
One last thing, is your insurance company giving you a "single parent discount"? Many do, so if they're not I'd ask.
Hi thanks for you comments and suggestions. I currently work 2nd shift averaging 50-60+ hrs a week. So, as you can see a part-time job is not an option as I see my kids far too less as it is. I am doing all I can to keep us surviving. Thanks, again, for your advice.
Wow...I couldn't imagine trying to work that much and raise kids on my own. I am really in awe of those who can do it. I 2nd shift, about 50 hours a week and complain when I come home and I have to do the dishes! Let me give you a pat on the back for working so hard to support your children!
You ahve been given good advice as far as credit unions are concerned so I will only add that you should surf to http://www.daveramseyclub.com/forum.asp and see what advice/support the particpants there can offer. Also, when you get a moment, visit your local public library and see if they have a copy of Dave's book, Financial Peace or Financial Peace - Revisisted. Michael
