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Some Finacial advice
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09-18-2024, 10:09 PM | #1 |
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Some Finacial advice
In March of this year, I signed what will probably be the most stupid financial decision of my life: A 16211 car loan at a 27% interest rate! I was in need of a car and really wanted a 335i badly. Having no credit at the time, I had a difficult time even securing this loan. Realizing what a fool I was a few days after purchasing it, I came up with enough sense to go back and cancel the $2600 warranty I had purchased leaving me with around $13600 left to pay off. Lucky for me, the previous owner had done most all of the major repairs to it allowing me to focus my money towards paying down my loan. 6 months later, here I am with 7500 left to pay off. I have been doing double payments a month plus putting my college refund I get toward my loan, which I have calculated will have the car paid off by March of next year, turning my 5-year loan into a 1. My credit score has gone up since then but I can't get anyone to Refi with me because of the car's mileage and year. I've checked about every personal loan option there is and can't get anything below 29%. I've also tried applying for 0 APR credit cards but can't get approved.
My question is should I just continue paying it down and stop trying to get a refi or personal loan, or keep looking around to find something better? Any suggestion for good lenders for new credit guys like me? Moral of the story: BUILD CREDIT OR PAY IN CASH! |
09-18-2024, 10:27 PM | #2 |
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Keep trying to get a credit card with a 0-3% balance transfer option, they're out there. Usually need to pay it off in a year. But you can do it in six months, so that's great. Check your local credit union, they may be a better option than the big nationals. Worst case you pay it off in March and learned a lesson!
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09-18-2024, 10:49 PM | #3 | |
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09-18-2024, 10:53 PM | #4 | |
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StradaRedlands5910.50 |
09-18-2024, 11:41 PM | #5 |
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My wife and I have been together for 19 years now, I'm 37. We have a zero debt policy in our life. If we can't afford to pay for something in cash, we can't buy it. We are unfortunately lucky (car accident settlement) to even buy our house with cash. No matter how poor we were, zero debt. My first 10-12 years of owning a car, they were $500-$2000 cars. Always did my own wrenching; clutch jobs on jack stands, automatic transmission valve body jobs on the ground, etc...
Edit. $18,000 student loan took 5 years to pay off. But we also saved money while doing it too. |
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09-19-2024, 12:15 AM | #6 | |
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09-19-2024, 06:17 AM | #7 |
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I have learned to do all of the maintenance myself. Most banks won't finance you if your car is more than 10 years old or is over 100k. Also, even though I'm making double payments, the banks only reporting one so one of the guys at a refi company said I'm probably going to need at least 6 payments reported before I get accepted. That probably won't be the case tell late October.
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09-19-2024, 06:25 AM | #8 | |
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09-19-2024, 06:27 AM | #9 | |
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09-19-2024, 12:01 PM | #10 |
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Hopefully it's a good car for you that you can keep a long time! Over 10 years, the cost of ownership even including exorbitant interest will all average out!
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BMW Guy28.50 |
09-19-2024, 12:10 PM | #11 |
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Keep in mind that applying for a bunch of cards/loans and other things are going to plummet your credit score for a couple of years, it doesn't matter if it is approved or denied it will negatively affect your score until that hard inquiry falls off your credit report. I honestly think you are better off just doubling up your payments like you have been doing for some time. It will also slightly help to improve your credit score a bit.
Also start off with a credit card that designed for lower credit scores like Capital one Quicksilver or similar. You won't get the crazy starting promos, but you can't just expect companies to give you all kinds of promos when it sonds like you are a subprime borrower. There are tools out there that can give you some ok ideas of what cards you might qualify for like Credit Karma (keep in mind there is risk with anything you provide your information to nowadays). Anyway, I would strongly recommend you stop applying for all these cards or loans and focus on paying down what you currently owe on your car. Focus on applying for 1 solid card that you can actually qualify for and buckle down for a few year. Make purchases with your card, and pay it down. I usually recommend people carry a small balance every other month on a credit card. The reason for this is that it actively shows FICO that you are actually using the card AND paying it off on a regular basis. This is a good resource to start with: https://www.myfico.com/credit-educat...r-credit-score keep in mind that credit scores are quite complex but FICO is the market leader in credit score keeping. |
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09-19-2024, 04:28 PM | #12 | |
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09-19-2024, 04:50 PM | #13 | |
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Which score is 716? because there isn't just 1 score theres tons of different scores and lenders will use different scores for different situations. Your scores can vary wildly by sometimes 100 points or more. Some scores even have an entirely different range that don't top out at 850. Its wild! If you sign up for myFICO they will actually give you a ton of insight into that, they have a car buying score, a credit card score (and even different revisions of those scores). For example Capital one might use FICO BankCard 3, then you go to Chase and they will use FICO BankCard 7 which will be different and will qualify you for different levels. Its all needlessly complicated IMHO. Although FICO is usually the market leader some lenders won't even use FICO, some will use the VantageScore from Experian or a different score from another credit bureau. |
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09-19-2024, 05:10 PM | #14 | |
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09-19-2024, 06:20 PM | #15 | |
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Exeter is a "sub prime" auto loan company and is likely to add tons of hidden fees and have pretty high interest rates themselves. Did they give you information on the loan the approved you for? There are a few lawsuits against them for various shady business practices. |
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09-19-2024, 06:31 PM | #16 | |
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09-19-2024, 10:31 PM | #17 | |
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