Okay, here is a rough draft of my credit score...would I qualify for financing a car if...?

Question

The car is 11,900 + Tax/Ttl/Lic = $12,730
Down Payment I have: $4,000.00

The credit report

Transunion:

Open Accounts:

Conns Credit Company -
-Balance $1,348.00
-$41.00 for 36 months - Term
-Never been late, pays on time
-Installment Account
-Individual, no co-signer
-Opened - 04/2007

Lacks Furniture

-Balance: $396.00
-$34.00 for 24 months - Term
-Been late once - 30 days - Feb, 2007
-Installment Account
-One Co-signer
-Opened - 07/2006

Security Service Federal Credit Union
- Charged off as Bad Debt -
- Charge off recovered - 03/2007
-Balance: $0.00
-$56.00 for 24 months - Term
-Charged off, then paid in full
-Installment Account
-Individual, no co-signer
-Opened - 10/2005

Collections:

Credit Management Control
-Balance - $0.00 - PAID
-High Balance - $494.00
-Creditor - Tmobile

More Collections - Paid

-Dish Network
-Balance - $0
-High Balance - 41.00

Bank Of America

-Balance - $0
-High Balance - $776.00
-Date Paid - 10/2007

AT&T Home Services
-Balance - $0.00
-High Balance - $374.00
-Date Paid - 09/2007

As you can see, I just paid all of my collection debts, and my payments on my furniture and appliances are all made on time with the exception of a 30 day late payment back in feb,2007

Where do I stand purchasing a vehicle? It doesn't have to be new, just not old.
I'm trying to stay under 12,000.

I've also heard it's easier to finance a brand new car rather than used? True?

PLEASE HELP!!!

By the way, this isn't just Transunion, it's all 3 credit reporting agencies.

Also, I'm 20, and I make 1,300 per month full time and I still live at home.

Answer 1

First that's not your score.
Your score is a simple number.
Second, for cars... its a different number.
Third, the dealer let you drive away in a Ferrari if you let him.

You are approaching this in all the wrong way.
This is how I ended up with a $32000 ford focus.

Find out the dealers price first.. Talk him down. Then see what he will finance you at. Walk away. Go to your bank and see if they will beat it.

There are new bankruptcy rules, Anything under $50000 , they are pretty much guaranteed you have to pay. Even if it takes you 1000 years and 10million dollars in interest to them.

You can get the car.
Make sure you want it.

Answer 2

You could qualify...and yes, you could very likely get qualified on a much more expensive set of wheels...but at what cost?

My concern (and you asked the question, so I am being brutally honest), is that it appears that you just came into some money, and may not be seeing the bigger picture...You just paid off a lot of debt, and now have $4000 left over, but still have more debt. It just doesn't make any sense to me to spend almost a year's salary on a car. On the other hand, I had to learn a similar lesson years ago by buying the car I wanted (but couldn't really afford), and dealing with the consequences...

Answer 3

Someone will probably finance you. DON'T DO IT. You are only 20 and will probably want to do something different in the near future. If you have a car loan you are stuck paying it and stuck in your job. Your income is pretty low for the size loan and payment you are looking to get.

Find a car that is around $4000. Pay cash for it. Plan to drive it for 2 years. Pay into savings like you had a car payment. If the car lasts longer, great, you are ahead of the game.

You are 20. You want to have maximum financial flexibility.

Answer 4

Try to pay off the Lacks Furniture balance in full with the money you have saved to use as a down payment for the car.

I was able to buy a brand new & reliable Saturn car for under $15,000 & minimum money down.