I need help!! Rebuilding and need advice..

Question

Hello, I am pretty new to this forum, but Ive found alot of info out here (so thanks)! My situation is pretty dire, but its getting better. I have been working on my credit for about 8 months through Lexington. They have improved, but not that much. I am currently in the market for a vehicle. I have two cars paid off (buy-here pay-here), and they both are on their last legs. My mom uses one and Im in the other. Recently, the one Im driving can barely go. So I have to get something ASAP!About 2 weeks ago, my scores were Eq:614 Exp:609 Trans:720..I dont understand why the gap is so large between Exp/Eq and Trans but thats what myFico was saying. I decided to try and get approved just to see if it was even possible. I was approved through Roadloans with no money down, 18% interest, $287/mth for 72 mths on a 13,500 loan. I know that is high, but I felt good to know I was even approved. After reading these posts, I realized if I apply for auto credit withing a certain timeframe, they will be considered as 1 hard pull. So, I applied other places..online and called around. I was approved for 3 different loans, and decided to take the one from a dealership. The loan is for $15,000, pymts $350, interest 14.9% for 5 1/2yrs for 2013 Nissan Maxima with 56,000 miles. I know this rate is ridiculous, but I have feel I have no choice. My plan is to take this offer, but pay off early. I'll continue paying my bills on time, get my scores raised and hopefully re-fi next year. Now, my scores are Eq:607 Exp:607 Trans:698 from hard pulls I assume.As I understand this is something most of you would not do, I simply do not have a choice. I have been at my bank for about 4 years with no negativity or insufficient funds. I deposit money from my chk every week and have a good relationship with them. However, they check Equifax and score has to be 625. I dont have the time to wait for it to increase. CU is not an option (only one where I live), because I just found out I have an old account  there which is $85 that has to be paid. I will pay that in full this week.. They said I can only get a savings (for 3 mths I think), before even considering a checking acct. So, I know I couldnt get a loan at this time with them. So, Im interested in knowing where to go from here? What is timeframe I can expect to refinance? Where does my scores need to be?  Im just getting back on my feet, in my last semester of school and anticipate my income being alot more next year. Income now $32,000 annually.Any comments/suggestions are greatly appreciated!:-)  

Answer 1

misslovely wrote:
Thanks so much for your response and suggestions!! I do have all 3 credit reports..Ive been tracking them for awhile and watching them move (like a hawk)! Lol! I did go ahead with the car and loan, because I really had no choice (as I mentioned earlier). Thanks for that advice. It made me feel better knowing that someone else agreed on moving forward. You mentioned if I have at least 3 cc's, that will help more with the Fico scoring. I do have 2 capital one cc..one of them CL is $750. The other is $2000..just got an increase about 2-3 wks ago. I have store cards..JCPenney, Belk, Torrid, TJMaxx, ranging from $100-$500 CL. I dont know if the store cards are considered cc though, so am I covered with the cc or do I need another credit card, such as cap one?As far as the credit unions, I also see many people speaking highly of DCU. I thought all credit unions had stipulations with becoming a member, such as a family member being a member or working at a certain place. I did have a chance to browse over the website (DCU), so Ill apply for this today. What do you mean by "share account"? Is this just a checking or savings at a credit union?I will definitely keep payments current and on time. I also dont have lexington anymore. I was just using them to help with credit score to get a car. Now that I have that, as you said, that payment can go towards my car payment!:-)Thanks so much with your reply! I appreciate more than you'll ever know. Great suggestions! And since you took time to reply in such a helpful way..I wanted to ask about the meaning of terms in the forums. What does gardening and watering mean? Lol! I think that's some of what Ive been reading. You also mentioned, "As Dory said in 'Finding Nemo' to keep swimming..", I assume that means to keep going with trying to get on track. Am I right? Im just not familiar with alot of terms and abbreviations (in the forums), so I was hoping you could help me out.:-) Thanks (SO MUCH) again, and I look forward to hearing from you!You're welcome - 'Just keep swimming' means keep going, keep trying hard, never give up.'Gardening' and watering means not to apply for new credit and let your accounts grow, maybe asking for a CLI now and then, but pretty much just trying to grow without new apps.You said you have 2 CCs and some store cards, the store cards count as revolving credit accounts, so you are covered.   In a manual review with a human, the store cards do not have as much merit as a large company CC does, but just during a manual review, like for a mortgage or asking a CCC to reconsider their decision.DCU is a great CU also.  Many of the CUs that want to have exposure to more customers have made changes to membership requirements, like SDFCU.  I dont work for the Federal Government but they did have an option I could qualify under, however, even though I am a military vet, I cant qualify for membership at the Navy Federal CU.I would suggest reading in the Rebuilding Forum, where there is lots of good info, including the abbreviations commonly used:http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Helpful-Rebuilding-Threads/td-p/224981 The amounts of your CC limits arent critically important right now, just that they are revolving accounts and you pay on time.  CLs are important as you try to grow your credit, as in a new app getting a higher starting line because you have others that are high.  Example - CC one gives you a 2k line and you get a new CC, they might give you 5k to get you to like them better and use them.  New CC three says hey, I can give you 7.5k and so on. Glad you fired Lexington and can put that 'retainer fee' to much better use! Good luck on rebuilding and getting that auto refinanced.  ETA: A 'share account' in a CU is like a savings account in a bank organization.