I now have 3 CapOne cards ($1750 total), 1 Citibank card ($15000 total-recombined), an MBNA ($500), Orchard ($1000), Sterling ($600), FCNB ($300), Target ($200) They are all opened between July and October 2001. Only 1 CapOne, the Target, and Sterling is reporting right now. Should I cancel some of these cards (obviously not MBNA, Target, and Citibank) like 1-2 of the CapOnes or just keep it all as is. I'm getting nervous that this much credit will prevent an autoloan that I need to get by November. Of course, maybe the cards won't show up in time! Or: do some auto dealers permit people to charge a car on the credit card? The car I want is about $13,000. Steph
I forgot...I am an AU on my brother's Best Buy ($600) card but I hate that store and would never use it. I did this when I had major derogs, little credit, and needed a retail in the mix. Steph
Yeah I figured. Shoot. With my Citi interest at prime plus 5 now I thought that would be a better deal than I could get from another lender. Steph
citibank convenience check to your bank account, bank check to dealer. fyi, the limit at one VW dealer for down payment was $3500 in atlanta, $2000 at another. You can charge down payments.
Actually it a must to charge the downpayment I would say. That way if you need to back out or if the dealer messes with you, you can dispute the charge.
'Charging' a down payment is really questionable....I don't know the law in all 50 states, but I know it is illegal in a lot of places. I don't know the terminology, but it is something along the lines of you 'can't finance a finance contract'...meaning the charge card is not actually your money 'down' on the loan, it is someone elses. No lender would let this happen (I would think)...think if the possibilities. If you dispute the charge, the credit card company witholds payment, they don't get their money. I know for a fact it is illegal in Maryland. I also know the FMC nor GMAC will not allow it (not saying they wouldn't have to know, but that is up to the dealer and how much he is willing to risk hes license). The other lenders I dealt with are not national, so that would not matter here. I am not saying it is a bad thing... if you can work it out to take advantage of some of the great intro and/or BT rates, then it could really pay off. Just be carefull. Legal aspects aside, there are other things to be careful of in this situation. The desire to 'own' a new (or different) car can be strong. I have seen 'showroom fever' do wicked things to people. Just remember, that car is NOT an investment. Far from it. If you are getting ready to go in to debt to buy a car, do you really think you should be going into debt on your credit cards at the same time? I am not saying this is bad, or trying to tell you what to do, just saying that I would be worried- especially with the slowing financial market right now- about using all my available consumer credit allowance as well as my revolving debt at the same time. It really doens't leave a lot of room should an emergency pop up. I know I am one to talk....I got burned before when I was maxed out from college and ran into a medical problem that forced me into BK. I don't want you to think I am the pot calling the kettle black, I am just sharing what I learned from my experience. Hope this helps! Shawn
Well, I also have $5000 LOC through AMEX. I was thinking about writing checks to myself, dumping money in my bank account, and paying at least a hefty down payment using the Citi and AMEX Loc. I would hope about $4000 down on a $13000 car would be sufficient even with my past derogs. I am concerned about having so many cards. I also have $20000 of student loans that must be repaid starting next November, though I've paid it down. My main concern right now is should I cancel any cards? Steph
I agree. The problem is, I do not have my own car right now. I am using my mother's 1984 Isuzu which barely runs, and when she needs a car she's got to go pay $20 a day to rent one, as I am under 25 and they'd want $40 a day from me. I had a serious car accident in June that totalled my 1995 Camry. The insurance settlement was a huge rip off. So, I really do need a car. It's not fair that my mother has to keep renting a car but we were waiting to see what derogs would fall off mine. Getting either one of my parents to get a loan (my dad makes over $100K a year) is out of the question because my mother has 24 derogs and my father has 47. Steph
Aren't citi convenience checks considered cash advances? If so, the APR on those things are terrible!
They are considered balance transfer offers if you have one on your account. Call up citi tell them you want balance transfer checks, if you are approved for BT offer, you will get checks. FYI, my TU score was like 580 (3 baddies), chase approved me with $3500 cash down on a $30K finance (car+tax+tag+finance charges) at 7%, you'd be surprised how flexible new car dealers are right now. Dispute as much as possible, and go in and get that new car. I looked at a used car, great, something to break, worry about warranty, etc.. All those worries are gone. And I was approved for used cars at 10.25% and 14.5%, I could have bought a 99.5 used car with 30K miles for like $100/month less than a new one with 0 miles. Clean up your reports asap, and go in with cash ready. Ask the finance manager, almost any place does take a certain amount on charge card.. Tell them you want this car, this APR rate, and this down payment. The ball is in your hands right now, the auto market is hurting BAAAAD. They will "STACK" your application to get it approved at a good rate and have you in the car the same day.. My suggestion: Pick a car, get your credit ducks lined up, then fax your application into the dealer, Let him get you approved before you walk in on the car you want. Then bargain him down from there. Worked like a charm for me. I got 14.5%, 10.25%, 8.75%, finally 7% all from two credit applications. Funny huh.
Sam- you did really good. I can't belive your score was a 580. I don't mean that in a bad way, just thought it would be higher with those great terms. Car dealers 'will' take CC's for down payments, you just have to be careful because it is a little shady. When I think about some of the things I've seen (or heard about) being pulled.... Steph- If you need a car, you need a car. I didn't mean it in a negative way or anything. I guess the thought of debt still gives me the shudders. I had been looking around at different vehicles myself, but as the tech market has been sliding I have been thinking I like my current paid off model right now.....Hopefully things will turn around for the economy here soon! Shawn
I was spending more $$ per month on my previous 90 vw (race/daily) car. I saved $300-400/month by buying the audi belive it or not. Remember whose in command, you are the buyer, its a buyers market, and if they want to make their sale, they'll stack your application at a decent rate to get it put through. With the prime rate drops, and 0% financing, they should show you some single-digit financing luving, or go somewhere else.
Oh, I know you didn't mean it in a mean way. I just didn't clarify before that the car was a need, not a want. We do not have public transportation here and this house needs 2 cars again because my mom does volunteer work and takes my brother places, and I work full time and go to school full time and my job keeps me in the car most of the day. I might get a used one if it's decent enough. Steph
Wow, when I bought my car a few years back, the dealer was pushing for me to put more down on my credit cards. I also read (on another board I think) about somebody who tried to buy a car on their visa to earn airline miles. The dealer refused to put the whole thing on the card. They had called Visa to complain and was told that the dealership had violated their agreement. If they accept visa for their parts or service departments then they have to accept it for everything. Don't know how true any of this is. I live in California.
You know, that sounds just like the kind of thing that would happen to turn around a law like that.... It reminds me of when they started letting you use your Discover Card to pay for your income tax, people with 100k tax bills were doing it just to get the miles. Doesn't sound like a bad idea to me.... I guess there are a few things in play with this issue. The obvious is the cost involved- depending on the card type (Amx/Visa/MC/Etc), the dealer is going to have to pay bank fees in the range of 1.5 to 3% for the transaction (plus the .75 cent transaction fee!). That put's him at xx% above invoice for this cost to begin with. I owuld think that would be the dealers only objection. Another is that there is a difference between buying a car with your credit card and using a credit card for the downpayment. If you 'buy' the car, there is really only one financial transaction involved. You financed through an alternative source and it appears to be a legit transaction. The problem comes into play when you use your credit card for a 'down payment'. Bank A, the Auto Finance Corp, is basing your loan (interest/terms/etc) on the premise that their security- the car- has XXX% equity, whether that be positive or negative. When you use your credit card for the down payment, 'you' are not really putting the money down. You are in fact aquiring additional financing for the down payment. I can't remember the actual wording, but it is something like 'you can't finance a finance contract'. If you were to default, it is possible that another institution, Bank (B) the Credit Card company, could also lay claim to the car (that one does have a lot of if's and but's, but it is a possibility). I can find out the specifics on it this weekend. Remember, this was in Maryland, so your milage may vary (no pun intended) I am not knocking it- some of the intro and BT rates are 'right on' for doing this. I know that you can buy a house on your Amex Card, so why not a car? I remember when I first got my Amex Card (94). I called Amex to find out my 'limit' as it was not printed on my statement anywhere. I was in College at the time and this was important to me! The rep that answered the phone politely told me that Amex cards do not have a 'limit'. "So I can go out and buy a house with it?" I asked. "Maybe", he said. I asked what he meant by that.He said that 'technically', I could go out and buy a house, but I may not be 'approved'. "How can I not be approved?". He said the transaction might be higher than my spending pattern. "You mean my limit?". "No", he said, "Amex cards do not have a limit". This went on for about 15 minutes. At the time, I thought it was hilarious. Hope this helps! Shawn
My father used a citibank check for a used car purchase, paid a small fee but same great interest rate. For Cap-One combine the cards to the one reporting, most people write via planet feedback. The direct line is 1-800-955-1455 ask to be connected with Office of the Consumer Advocate. Hours Mon - Friday 8 am - 5 pm. EST I like dealing with Mr. Miller, lately I have been dealing with Mr. Eugene Cooke. Either one should be able to help.
