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Bronco4lyfe85

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Ya’ll pretty much summed up credit. 4 years ago I was a mid 500’s, never cared really. Had credit cards I never paid for, just let them get closed. Student loans I didn’t pay, just kept putting them on deferment. I was an apprentice electrician working 3 jobs and getting garnished on 2 of them for a solid 2 years. I tried to buy a house and they laughed at me, rightfully so. I knew I was being a dumbass but I had to pay my bills like rent so unfortunately things had to be pushed off. I deferred my student loans and would forget to do it on time but never thought they were reporting that. I ended up looking and realized I had something like 78 missed payments on my credit report. 6 missed payments X 13 accounts or something like that. The last ones still don’t go away until 2023.

I got a capital one card and had to actually pay them money for them to approve me, it was $300. I used it for a few months, they gave me $500. I applied for a discover about 8 months later and got $1,500. I bought a house 2 years ago when I was finally above a 640 or whatever.

I now have a 4K furniture row card, a 10K British Airways Chase card, 5K to Sweetwater and 4K to Home Depot. My scores around a 720-750 now even with the missed payments and as mentioned earlier Cap One approved me alone for 60K on Monday. I’ve worked very hard to fix it and being diligent is all that mattered. Pay on time and you’ll be good to go. I haven’t paid interest on a credit card in about 4 years, I pay the balance in full every month. I actually use my Chase card for all my bills and now have a free companion airline ticket to anywhere in the world and 190K flyer miles in less than 2 years. I use the other cards for 0% interest promos and than just pay them off.

It does feel good to have it under control but I still think it’s a sham lol.
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Thed

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If you have
$2000 of debt on a $5000 credit limit
That will be worse than having
$2000 of debt on a $20,000 Credit limit

They literally don't care how much debt you have, it's the difference between the debt and limit.
So you can work against yourself, by trying to be responsible and having credit cards with lower limits.
This absolutely is asinine. I was in CC debt troubles for years. After paying down a significant portion of it, I lowered the limits to nearly half what they were, just so I wouldn't get myself trouble again. I was living paycheck-to-paycheck with almost nothing in the bank come the day before payday. I knew it was going to kill my credit but you know what? I'm glad I did it. I already had my house and my car, what else did I *need* credit for? Credit was in the low 600's but I was saving money and working my way out of it month by month. Now I'm back with low balances on everything, putting stuff on cards that I can pay off now and nothing more. It's a great feeling, but I've still been reluctant to increase those limits again.
 

BlueBronco

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It does feel good to have it under control but I still think it’s a sham lol.
Oh, it's a sham alright. You just have to figure out how to work it in your favor and its sounds like you did just that. Getting approved for a vehicle loan 6+ months before needed is not the way to go.

I built a pool a year ago. Opened up a new travel rewards cc with 0% interest for 16months and charged the whole construction of the pool to the thing. Hammered down on the payments, paid the pool off and used those cc points to pay for a vacation. Will use the rest of them to pay for another one as soon as I can convince the wife it's safe to leave the country again.
 
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Austin26

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This absolutely is asinine. I was in CC debt troubles for years. After paying down a significant portion of it, I lowered the limits to nearly half what they were, just so I wouldn't get myself trouble again. I was living paycheck-to-paycheck with almost nothing in the bank come the day before payday. I knew it was going to kill my credit but you know what? I'm glad I did it. I already had my house and my car, what else did I *need* credit for? Credit was in the low 600's but I was saving money and working my way out of it month by month. Now I'm back with low balances on everything, putting stuff on cards that I can pay off now and nothing more. It's a great feeling, but I've still been reluctant to increase those limits again.
What if your car was totaled and your insurance didn't come through or you didn't have GAP insurance / was upside down on your car and didn't have cash to buy a replacement? I get where you're coming from but I think the only way it is totally fine and without risk to have no credit or bad credit is if you were very, very wealthy.
 

Bronco4lyfe85

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Oh, it's a sham alright. You just have to figure out how to work it in your favor and its sounds like you did just that. Getting approved for a vehicle loan 6+ months before needed is not the way to go.

I built a pool a year ago. Opened up a new travel rewards cc with 0% interest for 16months and charged the whole construction of the pool to the thing. Hammered down on the payments, paid the pool off and used those cc points to pay for a vacation. Will use the rest of them to pay for another one as soon as I can convince the wife it's safe to leave the country again.
yep! I figured out how to play the game! No vehicle loans here though lol. I just did a soft pull pre-authorization through capital one because I was curious what the rates looked like and what my overall credit looked like to a lender! I’m not applying for anything until the car is about to come.

Nice! Using credit cards for free stuff and paying no interest is the way to live life. Take advantage of the perks of the system.
 

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thesyncguru

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A lot to talk about here, but I'm about as much of a pro as anyone on this front. First things first a couch is not the same as a car, unless of course you are opting for the 2023 return of the Ford LTD Squire Wagon lol.

On a serious note though, it's two completely different lenders with entirely different collateral. I remember seeing 800+ credit scores get denied in 2008 for auto loans, fortunately this is not the same market. Structure on your car loan is equally as important as your credit score. What I mean by structure is the amount borrowed vs the value of the asset. For example if you are financing 75% of the value of the car, you are much lower risk than if you were financing 150%, if you default the bank is in a good position in the first scenario and tanked on the second. Credit score certainly helps because you are lower risk the higher your score because of your history with other loans and credit uses. A used couch for example as collateral is worth next to nothing if they had to repossess it, so even if you pay $4,000 for it today, it's worth $500 tomorrow and that's a scary spot for a finance company to be in with limited credit history and or score. Sure some take a leap of faith knowing that they make more on the interest than what they lose in lost product. Auto lenders do the same thing, it's a simple risk analysis, in general I would rather give up a couch than my only means of transportation, I think push come to show most would make the same decision.

In your case with $10k down I can't see any reason you wouldn't be approved and at a decent rate. As previously mentioned you wasted a credit inquiry as loan approvals are only valid for 30 days. If you want to improve your credit score before the arrival of your bronco, simply call your credit card company and ask for an increase in credit limit, then proceed to not use it more than a small purchase here or there and pay it off asap. Don't change jobs or move if you can avoid it as stability is another consideration from the lender. Sky take on any additional debt that you can't pay in full by the time it arrives. Finally don't pull your credit until it arrives. If you want an accurate idea of your credit use the free Fico on your credit card instead of credit karma, but utilize credit karma to ensure nothing weird appears on your credit and dispute and errors now, it takes time to clear.

You will be fine so no worries at all!
 

Thed

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What if your car was totaled and your insurance didn't come through or you didn't have GAP insurance / was upside down on your car and didn't have cash to buy a replacement? I get where you're coming from but I think the only way it is totally fine and without risk to have no credit or bad credit is if you were very, very wealthy.
I had GAP and two other cars. It was risky, but thanks to past poor financial decisions I always had a car that could take me to work and back.

At the end of the day, everything worked out.
 

WhiteMamba

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Discover it .com, you don't even need to have a card with them and they will provide you with free fico score, don't trust those sites that use scores you will never see on a actual pull.
 

maxburton

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Ya’ll pretty much summed up credit. 4 years ago I was a mid 500’s, never cared really. Had credit cards I never paid for, just let them get closed. Student loans I didn’t pay, just kept putting them on deferment. I was an apprentice electrician working 3 jobs and getting garnished on 2 of them for a solid 2 years. I tried to buy a house and they laughed at me, rightfully so. I knew I was being a dumbass but I had to pay my bills like rent so unfortunately things had to be pushed off. I deferred my student loans and would forget to do it on time but never thought they were reporting that. I ended up looking and realized I had something like 78 missed payments on my credit report. 6 missed payments X 13 accounts or something like that. The last ones still don’t go away until 2023.

I got a capital one card and had to actually pay them money for them to approve me, it was $300. I used it for a few months, they gave me $500. I applied for a discover about 8 months later and got $1,500. I bought a house 2 years ago when I was finally above a 640 or whatever.

I now have a 4K furniture row card, a 10K British Airways Chase card, 5K to Sweetwater and 4K to Home Depot. My scores around a 720-750 now even with the missed payments and as mentioned earlier Cap One approved me alone for 60K on Monday. I’ve worked very hard to fix it and being diligent is all that mattered. Pay on time if you use https://triceloans.com/loans-for-unemployed/ and you’ll be good to go. I haven’t paid interest on a credit card in about 4 years, I pay the balance in full every month. I actually use my Chase card for all my bills and now have a free companion airline ticket to anywhere in the world and 190K flyer miles in less than 2 years. I use the other cards for 0% interest promos and than just pay them off.

It does feel good to have it under control but I still think it’s a sham lol.
Thank you for sharing this information. This story shows that there are no hopeless situations. I'm glad you were able to improve your cross rating.
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