OT: Credit History Issue

[false_Aest]

Looks like I gotta apply for a loan.

I've got 3 negatives on my credit history (They all happened in my early 20s)

1 really isn't my fault and its getting disputed.
2 was really just me being boneheaded.
3 is a 30 day late payment 6 years and 9 months ago (Dec 2003)


From what I understand these negative things stick around for about 7 years.

Is there a way to get #3 removed from my report . . . now? I don't see how filing a dispute will help since I really was late on the payment.

Eff, I'm just learning this stuff so any info is good.

Thanks
T

[Len J]

Looks like I gotta apply for a loan.

I've got 3 negatives on my credit history (They all happened in my early 20s)

1 really isn't my fault and its getting disputed.
2 was really just me being boneheaded.
3 is a 30 day late payment 6 years and 9 months ago (Dec 2003)


From what I understand these negative things stick around for about 7 years.

Is there a way to get #3 removed from my report . . . now? I don't see how filing a dispute will help since I really was late on the payment.

Eff, I'm just learning this stuff so any info is good.

Thanks
T


First off, I'd go to the trouble to check all 3 credit bureaus.....if you are going to address it, you might as well do all 3.

Second, Call the credit bureau up and ask them what it will take....believe it or not, they will tell you and you can decide what if any option to choose.

Good luck & good for you taking the iniative.

len

[vqdriver]

i don't know the nature of #1 or 2, but i can't imagine a single late payment could be that big of a deal.

[FlashUNC]

As someone who recently had to go for the bank for credit (in this case a car loan) I had a similar situation to #3 on my credit report. Didn't affect my FICO much, and the bank didn't seem to mind, so I wouldn't necessarily worry about that one too much.

30 days late isn't the end of the world.

[rwsaunders]

Credit quote from Aristotle Onassis....."always borrow as much as you can, always pay it back on time and always have a tan."

[Ken Robb]

the older the problem the less it counts. If you have been good the past 6 years and haven't maxed your credit accounts your score should be good. OTOH there are some amazingly stupid factors used by credit rating companies. One of my credit cards reduced my limit by 75% because I had no current mortgage. Well, DUH: Since I couldn't get anything like a 5% guaranteed return on CDs or the like I paid off my 5% mortgage. According to USAA Bank that makes me a bigger risk! Of course had I borrowed more that would have had a negative effect too. Heck, I've only been doing business with USAA since 1967 so I can see why they'd be wary. :crap:

[Dekonick]

With a name like ROBB they were just being careful :p

[MattTuck]

First off.... I don't think you're in bad shape.

Think of how many people are out there that don't pay, or forget to pay, or always pay late, or CAN'T pay because of their circumstances.

[false_Aest]

My big whoops was about 5.5 years ago. That's the black mark I really deserve.

The minor one 6 3/4 years ago apparently can be taken care of . . . I just gotta call back Experian in Sept and they can take care of it.

Since this will be my first time getting a loan 1) for something other than school 2) w/out my parents to back me up (thanks so much for everything mom and dad) I'm kind've clueless about the whole thing.

My parents gave me the sex talk but not the talk about finances so I'm learning this as I go.

I really wish I didn't need to buy a freakin car. I wouldn't if I didn't just pick up a job with a 60 mile (round trip) commute.

[sean]

My parents own a small mortgage company that specialize in low income, first time buyers. They deal a lot with bad credit and getting families back on track.

One thing I've learned from them is that a letter, a physical letter, not an email, combined with phone calls, can go a long way. I've seen quite a few people pay off debits and follow up with this tactic and it works. In most of the cases I can remember, the negatives were waaaaaay worse than anything on your report and almost always involved having to pay something off first.

First thing I would do is what Len suggested. Run a report with all three reporting companies and see where you stand. Then, start making phone calls and letter writing.

Your three dings don't seem bad at all. The late payment is a no duh and if it's your only one, it's easy to make that go away.

Sounds like you are already on #1, good, be persistant.

As for #2, mistakes happen and the fact that actual people handle these reports is a good thing as they can relate to making mistakes while young. Be REALLY nice and if they vent on you or give you lecture, listen and agree. You should be fine.

[dsteady]

You should be fine.

I once financed a car with a special 1.9% "summer sale" rate. When the finance guy ran my credit there was some old thing that he said disqualified me from getting the 1.9%. He offered me a higher rate and I said, "I'm buying the car at 1.9% or I'm not buying it all." He went back to his desk, and said, "let me put in some different numbers." Voila! 1.9%.

Give yourself enough time to buy the car that you can threaten to walk out of the dealer showroom -- and actually mean it. If you're under pressure to buy that day, they'll own you. Own them.

Not sure if you're buying something new, but if you are, that can be to your advantage: at the end of summer they have 2011 inventory coming just around the corner, and they need to flip all the 2010 inventory as soon as they can. They're ready to deal.

[SEABREEZE]

You should be fine.

I once financed a car with a special 1.9% "summer sale" rate. When the finance guy ran my credit there was some old thing that he said disqualified me from getting the 1.9%. He offered me a higher rate and I said, "I'm buying the car at 1.9% or I'm not buying it all." He went back to his desk, and said, "let me put in some different numbers." Voila! 1.9%.

Give yourself enough time to buy the car that you can threaten to walk out of the dealer showroom -- and actually mean it. If you're under pressure to buy that day, they'll own you. Own them.

Not sure if you're buying something new, but if you are, that can be to your advantage: at the end of summer they have 2011 inventory coming just around the corner, and they need to flip all the 2010 inventory as soon as they can. They're ready to deal.

Most dealerships will try to get you for every penny they can,your just another mark,they try to work.As you can understand, they make money on the loan, as well as the car they are selling you. Perfect example, you qualified for the 1.9%, but they tried to bump you up.

Remember they are going to lie, bull****, etc with a smile while they are f_ _ _ ing you.Thats what they are and what they do and do it very well.

Every now and then you will find a dealership thats repuatible.Far and few between...

Another big scam dealers perpeteuate on customers is dealer fees.USUALLY BETWEEN $400 & $500 BUCKS

There are several dealerships owners that specifically advertise they dont charge dealer fees.They go on to say, it should be outlawed..

[Polyglot]

I really wish I didn't need to buy a freakin car. I wouldn't if I didn't just pick up a job with a 60 mile (round trip) commute.

Do you really need to take out credit to buy a car on credit? Let it be known among your friends and colleagues that you will be buying a car and you will be surprised at the number of great deals on used cars that you can come up with from reliable honest people, that may avoid you needing to take out credit. Just as an example, a neighbor of mine just sold a German-built Cadillac Catera with complete service history and less than 30K miles on the clock for under $2K...

[SoCalSteve]

Lots of great points being brought up...

A couple more.

Dont get attached to any one car, color, etc. Make it so you can walk away from ANY car. If "they" know that you want a particular car, they GOT YOU.

They are "stealerships". They have only one thing in mind, no matter what they tell you...and that is to make as much $$$ as possible from you. That is their SOLE purpose, no matter what they tell you to your face.

Come in armed with as much knowledge as you possibly can. Models, options, colors, financing, invoice pricing, etc. This is all SUPER easy as the net has every piece of information you will ever need.

Try Bank of America online for financing. If you dont think you can get the dealer incentive financing (that's usually reserved for top tier credit) then come armed with your own credit.

Bank of America makes it really, really easy. They approve you, sent you a letter electronically for a specific dealer and that letter is the same as cash. The F & I guy's all know this.

Remember, the stealership wants you to get financing, options, extras, warranty's, insurance, etc from them. Its a HUGE profit center for them. Do not, I repeat, do not buy ANYTHING extra from them but the car itself. Everything else they sell you can be bought cheaper elsewhere.

Try to deal as much with the sales manager and not salesperson. Test drive a few cars at a dealership where you do not plan on buying the car. Then call the dealership you want to do business with and ask for the sales manager. If you get a sales person involved in the sale, then it gets more complicated and then they get a bigger cut of the sale and it costs you more $$$.

Anyway, I could go on and on, but these are some of the BIGGER points of car buying.

Tommy, call me when you get close.

[false_Aest]

Thanks all!

Keep the advice comin!



Had my sex talk been this informed the world would be a much different place.

[Ken Robb]

With a name like ROBB they were just being careful :p


Years ago I was a new salesman in our NYC office and we also had a new assistant manager. The two of us went around one day introducing ourselves to our customers and got lots of funny looks that we didn't understand until about 4pm. "Hi, we're Ken ROBB and Jess CHEATHAM form Armstrong. DOH

[Ken Robb]

I thought I was going to buy a new car a week ago so I drove lots. One really good deal on a really nice car that seats four adults will swallow a bike or two with rear seats folded down is the Mazda3 hatchback. A really nicely equiped car that drives very well was offered at several dealers for 10% off list without any grinding on my part. $18,000 plus tax/license. If you're feeling frisky and want a stick shift the Speed3 is only a couple of grand more. It gets less mileage though and requires premium fuel too so it probably wouldn't be my choice for a 60 mile commute in LA traffic. The regular hatch with automatic is a good engine/tranny combo w/manumatic option that works well. I liked the VW GTI also but it was going to cost about $25,000 plus tax/license.

[rugbysecondrow]

Don't let your credit be pulled too many times. I thought. ( and still do think I was) being a good consumer a few year back while looking to refinance my mortgage. I shopped around and got quotes from a number of lenders, what I didn't know was that my score was lowered dramatically because or these credit inquiries. I was floored and luckily got an honest broker who told me the truth and also was smart enough to read past a "lending for dummies" number. Anyway, beware and good luck.

[nm87710]

do you really need to take out credit to buy a car on credit? Let it be known among your friends and colleagues that you will be buying a car and you will be surprised at the number of great deals on used cars that you can come up with from reliable honest people, that may avoid you needing to take out credit. Just as an example, a neighbor of mine just sold a german-built cadillac catera with complete service history and less than 30k miles on the clock for under $2k...

+1

[MadRocketSci]

do all your negotiating over the phone (or preferably fax) before setting foot in a dealership. Make sure to have them list every fee they will be tacking on to the sale....things like the "advertising fee" and the "dealer prep fee" are all added when you agree to the "invoice + destination charge" deal. They say these are non-negotiable, but that is bs - everything is negotiable. Again, get all that information listed, with a firm out the door price (which includes any and all fees), before going. If they tell you on the phone that is negotiated on-site, tell them you are calling the next dealership on your list and are not afraid of driving 100 miles to save yourself $$.

Having said that, we just bought a new car using the Triple-A service, which is free to members. They basically deal with the regional fleet managers and will most likely get the car you want for invoice + destination. No advertising or dealer prep fee. They'll also arrange financing for you if you want separately. Don't worry about the dealership, they will still make a few hundred from hold-backs and factory incentives.

[SoCalSteve]

do all your negotiating over the phone (or preferably fax) before setting foot in a dealership. Make sure to have them list every fee they will be tacking on to the sale....things like the "advertising fee" and the "dealer prep fee" are all added when you agree to the "invoice + destination charge" deal. They say these are non-negotiable, but that is bs - everything is negotiable. Again, get all that information listed, with a firm out the door price (which includes any and all fees), before going. If they tell you on the phone that is negotiated on-site, tell them you are calling the next dealership on your list and are not afraid of driving 100 miles to save yourself $$.

Having said that, we just bought a new car using the Triple-A service, which is free to members. They basically deal with the regional fleet managers and will most likely get the car you want for invoice + destination. No advertising or dealer prep fee. They'll also arrange financing for you if you want separately. Don't worry about the dealership, they will still make a few hundred from hold-backs and factory incentives.

Actually email is the VERY best way to negotiate on the price of a car.

Oh yeah, don't even think about worrying about the dealer, their profits, etc...Because, they certainly don't have your best interest in mind.

[lemondsteel]

Also, If you shop around on insurance they will all check you credit. Actually had to turn a loan down on a home because the lady had been out shoppong for a car and insurance. Had about 10 pulls on her credit in a month. Lowered the score just enough to keep her from qualifying.

[Bud_E]

I've heard from a few people that carsdirect.com works pretty well. It may not be the absolute best deal but it's a good deal and you don't have to go through punishing negotiations in a den of thieves. I think carsdirect.com also does financing but I haven't heard anything about that.

[SEABREEZE]

I should mention, for a breif period, I use to buy from dealers for a very large auto wholesaler.

Someone mentioned to call ahead, when you deal, Thats exactally what I did this week. Spoke directly with the manager, negotiated the deal for my son. He went after work yesterday and signed the paper work and came home with his car. No BS involved.

@ Ken Robb have you checked out the VW Golf TDI they get over 40 mpg .
All 2010 models have 0% interest for I beleive 60 months. Most service managers will tell you customers with that model , claim to get over 50 mpg.

Put a set of KW coilovers and chip, which will increase handling & power and better fuel mileage, and you will really enjoy those canyon roads.Group 5 Motorsports in Miramar can handle all this for you.

The hatch back should be able to handle a couple bikes.

Good luck with your search.