I am hopefully going to sell my scout and truck here soon, which should give me around $13,000 to spend. I am planning on purchasing a nice newer dirt bike which will cost me $4000 to $7000 depending on how new I go, then I plan on getting a little 4cyl 5spd ranger/s10/tacoma or something for around $3000. I just want to be able to haul two dirt bikes to races on the weekend and get decent milage out of it (I should be able to pull 23/29 in an S10). As of now, I don't have any real credit. I've had a checking account for 4-5 years and never overdrawn, plus a savings account up until about 2 years ago. The question: Should I finance either the bike or truck to start building credit for myself? What I don't spend on them is going into a savings account, so my bill paying would just involve taking the money from a savings account and sending it off. I won't need a job to pay the bill because I will already have more then enough money to cover the whole cost, although I am hoping to get one here soon.
First off, they're going to require income for your loan despite savings. (unless you earn a shitton of interest which I dont think you are) Second, finance the car/truck. Interest on bikes is a good 2-3% higher than cars because really if you default on the loan it's a shitton harder for them to sell a used bike than a car. Also, go with a credit union as you'll a) get lower interest b) deal with nicer people c) fuck the man. Oh and if you have no credit expect super fucked in the ass interest or to have to co-sign. I REALLY suggest getting a co-signer if you were to take it out within the next 3 years as those issuing credit are getting far pickier about who they loan money to. Edit: Couldn't this be in Gearhead Garage. Also: even almost drunk my advice posts rock.
True, I was just thinking that it was more related to car buying than credit building. *Shrug* My post still stands. Also, Tassia is a ho that needs to get back on skype and aim.
If you can afford (the crappy interest rate you'll get) it get a co-signer and finance. I did that for a friend so he would build his shitty credit and so far it's working out pretty well.
you have to be careful with the co-signing thing.... Credit bureau's are not boosting scores as much with co-signers anymore... I read recently that they are even changing how the points system works. I'll look for the article when I get home. Co-signers won't boost you credit rating as much as it used to...it helps with your interest and monthly payments...but not your score.... If you REALLY want to boost your credit do the financing on your own - pay half or so the cost of the vehicle then whatever the monthly payment amount is always pay 1 and 1/2 more the payment - or double it (ie payment is 100.00 pay 150.00 or 200.00. You pay it down faster, you have a steady payment history, you pay less on the interest rates since you are paying it down faster... The same rule goes to credit cards.... except NEVER have a balance on the card more than half of your credit line. So if your avail credit line is 5000 never have more than 2500 on it. The credit bureau's look for steady payment history and no over-reaching on available credit. Also - if you have ANY judgments those need to go away FIRST. They will impact your score heavily no matter how well you keep on top of your other credit accounts....
Pay cash if you can. The credit industry is being more a rip off wht falling economy. but if you must, the truck will be easier to finance. As for an S-10, I got 31 mpg hwy/26mpg city with my old '95 S-10. I was guttless as hell, but a miser on gas.
ya i just had to buy a car for my gal because we were tired of buying cheap $2000 cars and then having to fix them just to keep them going. So we bought an almost new one. I have AWFUL credit because of my ex-wife but the credit guy at the dealer said that a co-signer would help with the interest rate and the monthly payments but wouldn't make my credit go as high as if I did it myself. I need all the help I can get to get my credit higher so I just bought it. have extremely high interest rate but once my credit is a bit better, I'll refinance at a better rate hopefully.
it sucks that the banks have you by the ball's and that EVERYTHING revolves around you're credit score in the US. What a terrible system :/
you're telling me! 2 whopping years of my ex-wife ruining my credit and I'm screwed for years and years. I have $20,000 (not including the car I just had to buy) in debt. Luckily my parents paid off all my debt so I can start again (just paying them instead of the creditors) but it still takes a long time to get the credit score back. And once you have bad credit, everything in life is more expense. Like I mentioned in another thread, I have to pay more money for car insurance than someone else exactly like me with good credit. I get terrible interest rates for any kind of loan. I'm not approved for most things. I BARELY squeaked by to get that car loan and I'm paying like 20% interest at the moment. So all this extra money I have to pay because I'm getting penalized for having bad credit sucks as I can't save any money into my savings. I don't have a nickel in savings. Luckily, I'm a little more financially stable now as I always have money in my checking account but still. And with gas and food prices skyrocketing...boy does life suck!
In Canada after 2 years you’d still likely be getting crappy lending rates, but it all depends on if you’ve re-established your credit history, I’ve seen people who are getting prime + 1 lending unsecured 2 years after bankruptcies. If you have assets you can secure you can improve your situation much quicker, it’s getting the initial credit products that’s the problem here. After 2 years of re-established history of on time repayments you’d no longer have problems getting credit, assuming it’s affordable to you. (another huge issue I have with the US credit system). I don’t know about car insurance, I don’t think they do credit checks in Canada to determine the rates. In Manitoba where I live we have public(Gov.) insurance. It’s a little alarming that the Gov has a monopoly in car insurance but with that said its also very good because you know that everyone is with the same company so there are never any disputes among companies and things move much quicker. We also get dirt cheap rates because of it. At 23 I have in my Name a sports car(6 months pleasure insurance/6 months storage) and an SUV that’s insured all purpose year around and I pay about $1800 for them combined yearly. That’s with $200 deductibles’ and 5 million liability coverage.
