Hello I have been a surfer on this website and have gained alot of info..Here is my situation EQ 560 TU 598 Ex 592 Providian GOld $300 april 2001 Getsmart $400 June 2001 FCNB $300 May 2001 Orchard $500 Joint August 2001 Target Visa $4500 AU Sept 2001 CCB $700 June 2001 Orchard $300 Jan 2002 Orchard $300 Jan 2002 Just approved for a Cap one and cl will probably be $300 New Carloan 22.5% rate $25,000 financed with Wells Fargo 01/02/02 My EQ back in April was 513 My Exp back in April was 539 My TU back in April was 542 3 chargoffs back in 1996 Hechts, Circuit City and Sears.. I am 23 and need to buy a home next year.. Income is $42,500..I would like to have a 650 beacon when I apply..
Getsmart, You seem to be doing everything right. You have built up a line of secured and (or) subprime cards that is helping you to create positive credit lines. Unfortunately, your oldest account is under a year old and you have applied for (and been accepted) for a lot of new credit recently. My advice is to use what you have and let the accounts age. Don't apply for any new credit because the inquiries on your reports are probably helping to decrease your score. By next year your three chargeoffs will be removed and your accounts will be between 1-2 years old. You should have no problem applying for a home then. Right now just work with the creditors you have - ask for line increases every 6 months (without them pulling a hard inquiry). Also, will your bank allow you to refinance your auto loan in six months if you were to make your payments on time? 22.5% is alot. Hope this helps and good luck. Dani
I don't mean to be a downer but, you need a reality check. You have an car loan that is over 50% of your income financed at predatory rates and you NEED to buy a house? How pray tell do you intend to pay for the house? Do you have any money saved for a down payment? Do you have anything saved period? I'd suggest the first order of business is either getting more affordable transportation or getting that GodAwful interest rate re-fi'ed somehow and at the same time start to live below your means. You're not close to beiing financially responsible enough to buy a house.
Keepmine, I agree with a lot of information that you provide to this board, but I think you're being a little harsh. The poster apparently has past mistakes and I believe is trying to start back on the right footing. Can I agree with paying 22.5% for car loan? No, I can't say it is something that I would do, but different strokes for different folks. The only thing that is hurting the poster is the length of time for established credit, the excessive inquiries, and the old chargeoffs (that will fall off next year). I believe if the poster puts their mind to it and saves some money and lets the accounts age if it possibe to purchase a home late next year. Dani PS We also don't know if their is a significant other involved which would clear the income issue for homebuying.
Dani, I didn't intend to be harsh. Just reality. It's not just 22.5% that's a killer but $25000 {over half there income}. At 60 months, that's nearly $700 month just for the car payment. God knows what the full meal insurance deal for a 23 year old is but, I'll bet between the payment, insurance, and operating cost, the poster is spending in the neighborhood of $1000/month just on transportation. What I'm sugeesting is put the house plans on the backburner until they can get there finances sorted out and a savings paln in place and get out from under that subprime auto loan.
I agree with you about the high subprime loan and the possibility that the indivdual was trying to purchase a home and still pay a high auo payment each month. If the individual was trying to do this by his/her self it wouldn't be fiscally possible on his/her current income. I just didn't want the poster to feel that we were being harsh on him/her when that wasn't our intention. Have a great weekend. Dani
Well I have about $9000 in my savings right now and combined with my Fiancee we have around $15000 saved...I I am planning to refinance with a credit Union down nearby probably in May..II am recieving a settlement of $18000 next month and I was going to use that money to open the account with the CU so that when I apply I may have a little leverage...I am continuing to save roughly $200 a month towards my home down payment so that when the time comes we will hopefully have $20,000 to put down on the home and another $15,000 and a security fund....But I need to get my scores up dramatically really soon...But thank you for your insight
Sorry NO NO ...Payments are $439.....I would never do that to my self...I bought a 99 Diamante for about $17995..I put $3000 down on vehicle and with my interest rate I believe the loan came out to be with interest included about $25000 with interest.........Payments 439 a month...So Sorry there is no way I would ever do that to myself while trying to buy a house ......
Sorry Getsmart. When you posted $25000 , the asssumption was that was the purchase price. That puts a much different spin on the situation. Good luck!
getsmart, WFFA will refinance after about 12 months of perfect payment history. However, I think the car must be under 60,000 miles. They will also provide credit cards and personal loans to their customers who have maintained a good record.
I may use about $3000 to knock off some ot the negative equity but I do want to make sure we have atleast a 25 or 30k for a down paymnet onthe home loan....I just want to make sure that my interest rate is not too bad when I buy the home and I am hoping by putting 30k down that the lenders will not try and screw me..I rather suffer with a 22% rate for 4 and a 1/2 years than say a 12% on a home loan for 30 years....But I am definetely going to try and refinance in the next few months...I just hope this credit uniont that I want to join is somewhat liberal on their loans..
I would think seriously about paying that car loan off. You financed 15K, but w/ interest your final cost is 25K. That's about 10K you would be saving by paying it off now. Plus you'll have an extra 439 a month to save toward your house.
Getsmart, A couple of suggestions on the home loan. First of all if those chargeoffs drop off on schedule and you and your SO have 24 months of clean credit, you can qualify for an FHA loan. They are time consuming to close and the closing cost are higher but, you do get conventional rates. However, with the sort of down payment you're talking about, you ought not to have much trouble. Also, at www.motleyfool.com, there is a home buyers board that is very active with several mortgage brokers that are very helpful. It may not hurt to run some ideas by those folks. Now, hopefully the CU can releave you of that wretched auto loan.
Plus I want something very manageable..In the $150 to $180 price range..Still want to be able to live and have a beach house or condo one day..
