Payments or Cash?

[mike25]

Originally Posted by MY68RS

I posted this in my build thread but no one help so I will post it here as it is related. "Ok from what i think i can see, i will have a deposit by check of $25,000 for my ZL1 coming sometime
In 4th qtr. I don't know which will get here first, my deposit or the ZL1.
Another issue i could face would be credit to finance roughly
$500 a month or so for 5-6 years to pay the other HALF
of the car off. Its been 7 years since i had decent credit and now
There are about 2 charge off's in 2007 walmart and a cell phone bill
Against it. Should i take some of that $25k and fix the 2 bad marks
On my credit OR wait for it to show up when i get financing?
Any ideas?" I have no idea what my credit rating score is.

fix it now and let your score start recovering.

[2cnd chance]

They should fall off you credit report after the 5th year. If you pay something now the five years start over under paid but paid late. Check your personal situation through a professional.

[mike25]

Originally Posted by 2cnd chance

They should fall off you credit report after the 5th year. If you pay something now the five years start over under paid but paid late. Check your personal situation through a professional.

Never heard this before..if that were the case, i would imagine every 5 years different markets would see rushes of sales, only to be repossessed/ forclosed etc etc..but who knows..thats news to me.

[Needs Exhaust!]

Cash money baby!

I'm arab, so you know how we roll .

[DonNC]

Originally Posted by ya boy willz

I'm walking in to the dealership with a duffel bag full of $100s, dropping it on the counter and telling them to hand me my ZL1

Expect a nice little visit from the IRS in your future!

[TOMS1SS]

I put 20k down and financed the rest. My current payment is about $350 a month. I could have paid cash but for me the value of a car loan on my credit for 5 years couldn't be discounted when I forcefully let my underwater house go. If I had paid cash I would have saved about $3,500 over making payments, but like I said the benefit to my credit rating is worth ten times that.

[1BADZL1]

Originally Posted by mike25

fix it now and let your score start recovering.

Thanks Mike25

[1BADZL1]

Originally Posted by 2cnd chance

They should fall off you credit report after the 5th year. If you pay something now the five years start over under paid but paid late. Check your personal situation through a professional.

ouch...I know... They keep sending me letters in the mail wanting money..
lets see they are on my desk as we speak...or one is anyway...
Discounted offer... valid till 9/3/11
Says I owe $1,627.48
to T MOBIL.
Settlement offer $50??????????????????????
oh REALLY?
let me check something...
I had T mobil in 2000
that has been how long ago? 11 years?????????????
Last time I did a credit check was report was 10/2/10....

Says here i have 2 remaining negative I can see other than the one above
Collection account. $108 past due as of Jul 2007.
Direct TV
This account is scheduled to continue on record until Oct 2012.
This item was verified and updated on Feb 2010.

I can pay that one for sure....
only $108 bucks.
Do I need to pay it to help me for this DEC or Jan 1 2012 when I try to get financing???

GE CAPITAL/DILLARDS
Date of Status:
08/2004
High Balance:
$1,960
Recent Balance:
$0
Creditor's Statement:
Purchased by another lender.
Account History:
Charge Off as of Feb 2007, Sep 2006, Feb 2006, Nov 2005, Feb 2005, Aug 2004 to Jan 2005
150 days past due as of Jul 2004
120 days past due as of Jun 2004
90 days past due as of May 2004
60 days past due as of Apr 2004
30 days past due as of Mar 2004
Status:
Transferred,closed. $582 written off.
Last Reported Date:
02/2007
So this one above charged off was 4 years ago...


Thats it folks...looks minor to me....

[1BADZL1]

bump

[IOMZL1]

Originally Posted by MY68RS

ouch...I know... They keep sending me letters in the mail wanting money..
lets see they are on my desk as we speak...or one is anyway...
Discounted offer... valid till 9/3/11
Says I owe $1,627.48
to T MOBIL.
Settlement offer $50??????????????????????
oh REALLY?
let me check something...
I had T mobil in 2000
that has been how long ago? 11 years?????????????
Last time I did a credit check was report was 10/2/10....

Says here i have 2 remaining negative I can see other than the one above
Collection account. $108 past due as of Jul 2007.
Direct TV
This account is scheduled to continue on record until Oct 2012.
This item was verified and updated on Feb 2010.

I can pay that one for sure....
only $108 bucks.
Do I need to pay it to help me for this DEC or Jan 1 2012 when I try to get financing???

GE CAPITAL/DILLARDS
Date of Status:
08/2004
High Balance:
$1,960
Recent Balance:
$0
Creditor's Statement:
Purchased by another lender.
Account History:
Charge Off as of Feb 2007, Sep 2006, Feb 2006, Nov 2005, Feb 2005, Aug 2004 to Jan 2005
150 days past due as of Jul 2004
120 days past due as of Jun 2004
90 days past due as of May 2004
60 days past due as of Apr 2004
30 days past due as of Mar 2004
Status:
Transferred,closed. $582 written off.
Last Reported Date:
02/2007
So this one above charged off was 4 years ago...


Thats it folks...looks minor to me....

I would just pay $7 or whatever to get my credit score. If it is too low to get the interest rate you want, work on the things you need to that will improve the score. Close any open cases / disputes listed above at a minimum and pay down credit card debts if you can. You still have time before the spring to make your credit score better if it isn't great. From there either pay down your debts so you have a lower debt / credit ratio and can be approved for a bigger loan (if you need to) or save the money for a down payment or a combination of both. Try not to open any other lines of credit or even apply for loans / credit cards until you get approved for the car loan. Look at your income / debt ratio to esitmate how much you might get approved for. Keep the remaining cash in hand to use as a down payment incase you can't get approved for the full amount.

[1BADZL1]

Originally Posted by IOMZL1

I would just pay $7 or whatever to get my credit score. If it is too low to get the interest rate you want, work on the things you need to that will improve the score. Close any open cases / disputes listed above at a minimum and pay down credit card debts if you can. You still have time before the spring to make your credit score better if it isn't great. From there either pay down your debts so you have a lower debt / credit ratio and can be approved for a bigger loan (if you need to) or save the money for a down payment or a combination of both. Try not to open any other lines of credit or even apply for loans / credit cards until you get approved for the car loan. Look at your income / debt ratio to esitmate how much you might get approved for. Keep the remaining cash in hand to use as a down payment incase you can't get approved for the full amount.

Awesome info. since I don't know my score I think I am gonna start there. it will be worth $7 bucks to find out, I need to know anyway...

[1BADZL1]

Ouch...That did not take long and was free by Experian.
As of 8/15/11*
My score is 643.....Medium risk...
I sure would like to see that up close to 700 by the time I order..
Think I should try to resolve those above three posted issues?

[NoeJeko]

Originally Posted by MY68RS

Ouch...That did not take long and was free by Experian.
As of 8/15/11*
My score is 643.....Medium risk...
I sure would like to see that up close to 700 by the time I order..
Think I should try to resolve those above three posted issues?

You'll likely qualify for a loan at 643 from Experian. Dealerships use an "auto loan" score which is different from the base FICO somehow. My Experian score is 680 and I had my credit pulled Saturday at a dealership showing a score of 702. I have three charge offs in 2005 that are scheduled to drop off my credit in early 2012 and I paid them off in 2008.

I'm no certified financial planner but I've increased my score from 527 in early 2008 to 680 now just by paying off old debt and paying everything since 2008 on time or early. The important things are keep a low debt/income ratio, keep a high cushion of credit (card with 10k line should have no more than 2500 balance), pay EVERYTHING on time all the time, and pay off those who you owe.

Because SLP owns the ZL1 naming rights until the end of this year, you have 5 months remaining in 2011 to help boost your credit and however long you wait until 2012 (or however long GM waits to begin production :P). The suggestions in this thread about not applying for new credit or opening new accounts is gold; I'd highly recommend following that.

If you owe on credit cards, I'd recommend paying those down too but focus on paying the bad debt first. A "paid eventually" looks much better than a "never bothered to pay."

With the T-mobile account, I recommend disputing this through the credit agencies (Experian, Equifax, AND Trans Union). The Fair Credit Reporting Act states that negative information (except certain judgments and bankruptcy) must come off your report in 7 years. A simple letter to the 3 agencies saying this is older than 7 years should get it removed =]

Actually, do that with anything that's more than 7 years old from the date of first delinquency (the first time you missed a payment). Worst that can happen, it stays there. Best that can happen, it comes off =] It's your right as a consumer to dispute this information if you feel it shouldn't be there. Looking at what you posted, your Dillard's card may be over 7 years and removed as well.

Good luck! It's hard and frustrating, but credit can be fixed! I know, I did it and without any of those scam "fix your credit now" gigs.

[Blue Menace]

^^ good post!