(Closed) Cannot get credit?

posted 4 years ago in Money
Post # 50
Member
3441 posts
Sugar bee

I think you need to adjust your expectations about what you believe is a decent car……

Post # 51
Member
2452 posts
Buzzing bee

A decent car does not cost $50,000, that’s a high-end car. You can find a reliable used car for under $10,000 that will last you a long time. Look at used Hondas, Toyotas, Subarus, etc., they last forever and are great cars. 

I spent $15,000 on my first new car out of college, it lasted me 10 years. I could have driven it longer but I wanted something bigger. 

  • This reply was modified 4 years, 2 months ago by  .
Post # 53
Member
309 posts
Helper bee

Every inquiry stays on your credit record for 2 years and that is what is harming you now.  I would have reccomended Capital One for your first credit card because if they deny a regular card they automatically offer you a prepaid card.  At this point I would hold off on trying anything for a bit though.  Before you apply for a store card check and see what bank it is actually though and see if it one of the ones that denied you and if so, don’t bother applying there again.

A good car costs $50k? Are you kidding? I paid $10k in 2008 for a brand new car and it has 160k miles on it now and I drive 110 miles to work on it every day now.

Post # 54
Member
3441 posts
Sugar bee

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clarissabee:  Then find a car for $5000. What do you want us to tell you.

Post # 55
Member
7506 posts
Bumble Beekeeper
  • Wedding: October 2014

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clarissabee:  

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you can list income from family, etc, but it’s up to the lender if they consider it or not. And they’ll view income from a job much differently to gifts/support from family, because when you’re working, you’re demonstrating that you’re rsponsible for yourself. When you’re just living off of family donations, you’re not showing a pattern of responsibility. It’s very different. Credit isn’t about how much money you have. It’s about how responsible you are. It’s hard to prove that you’re responsible when someone else is supporting you.

As for applying for a secured card, there’s not much difference between 5 hard inquiries on your credit and 6. Either one is a detrimental amount. But secured card lenders are much more likely to lend to people with marginal or no credit because #1 they have your money in case you default, so they’re not really risking anything and #2 they are going to charge you usury-level interest and the reward outweighs the risk.  Anyway they might still say No but it’s going to be 2 years before all those inquiries fall off anyway, the damage is already done.

FWIW wanting a $50k car when you turn your nose up at a $10k car, despite having $25k in the bank, is irresponsible. 

Post # 57
Member
1124 posts
Bumble bee

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clarissabee:  

Heres the thing: even if you were to get credit in the next few months (which I doubt, since you have a bunch of recent inquiries), it won’t be a long enough credit record to get a good deal on a car. I know you’re stuck on the idea that a decent car is way expensive, but millions of people in this country have used cars that get them from point A to point B safely. It seems like you’re looking for more than that. And that’s ok, except you can’t actually afford to do that..unless of course you use your savings, which you dont want to do. So your options are: a) get a loan anyway, with a high interest rate…and spend way more on interest paying off this “decent” car you buy for $30,000 [depending on APR, you could be paying an extra 5k for the car after your 3-4 years of paying for it] b) buy a car for $15,000 or $20,000 cash, and have little savings…but a nicer car, or c) spend $7-8000 on a used car, and hold on to $17-18,000 in savings…you’ll have a car that hopefully lasts years with care, and still have cash available. 

 

To me personally, this is an easy decision. 

Post # 59
Member
1124 posts
Bumble bee

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clarissabee:  

It doesn’t go negative. It’s from 300-850 (depending which model being used) and the higher the better, obviously. 700+ is good. You don’t have any credit right now, so I don’t think you have an actual score yet, but the inquiries do show up on your credit report…and that’s what companies look at when you try to get credit with them. 

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