(Closed) Cannot get credit?

posted 4 years ago in Money
Post # 61
Member
7511 posts
Bumble Beekeeper
  • Wedding: October 2014

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clarissabee:  most people want to keep their debt as low as possible and wouldn’t take out a $50k loan without having a high income and a decent amount of savings (I.e. 6 months wages). But most people also would pay cash in full for a lesser car and cut into their savings rather than incurring a ridiculous amount of debt. $50k is a luxury car and most people would pay cash for a modest car rather than taking on that kind of debt for a luxury item. It seems as if your boyfriend has given you a very incorrect impression of how consumer debt works in the US.

Post # 64
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2966 posts
Sugar bee
  • Wedding: May 2014

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Horseradish:  It seems as if your boyfriend has given you a very incorrect impression of how consumer debt works in the US.

Totally agree. 

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clarissabee:  I think your reason for wanting credit so badly is misguided. Transportation comes in different forms – which include walking, public transport, all the way to the fanciest car in the world. I think you need to line up your expectations with your current situation. And also, stop getting so caught up with what other people have in their savings, it’s irrelevant here. 

FYI I have friends who drive their old cars from the late 90s, early 2000s and they work just fine. I drove an old 98 chevy before I bought my current car. It cost $17K before taxes, so by your standards it’s a crap car, but I bought it new and that’s all i could afford at the time…with a steady income that was a few times more than the price of the car.

Post # 65
Member
1124 posts
Bumble bee

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clarissabee:  

I’m not sure…you’ll have to check with a bank.

Are you sure his car cost him 50k? If your boyfriend has a Nissan that cost him that much, it’s either a sports car or he paid way too much lol

Post # 66
Member
7511 posts
Bumble Beekeeper
  • Wedding: October 2014

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clarissabee:  that depends. 21-year-olds who come from modest backgrounds and have to work for a living don’t usually have $25k in savings. 21-year-olds whose families are generous enough to support them overseas might very well have $25k or more in the bank. Everyone ‘s finances are different. You shouldn’t concern yourself about everyone else, though, you should concern yourself with you. You have no income and a lot of savings, therefore it’s probably a good idea to pay cash for things and not to incur debt/use credit, because buying things on credit incurs interest which means things end up costing you more. 

Fwiw my fi and I make a good salary combined,  and have 6 months expenses in the bank and we still drive one 8-year-old jeep between us, because it’s paid off. We can make do with one car and while a new car would be shiny and fun, money is better, and $0 car payment is better than having less money and a shiny car.

Post # 67
Member
309 posts
Helper bee

How many applications have you put in? How soon do you need a car?

 

Post # 69
Member
3287 posts
Sugar bee

Have you name put on your power and water to build credit. Also google it. I am sure you can find some good advice on google. 

Post # 72
Member
3680 posts
Sugar bee
  • Wedding: August 2013

I have no idea what your banker was thinking. Chase Freedom is not a starter card, especially for someone with no income or credit history. 

You’ve gotten great advice here, and you really need to slow your roll and do some research on what credit is and how it works.

And in terms of cars – my car was $12000. It was two years old when I bought it used and it has been going strong for nine years now. A 50k car is not normal, especially for a first car. You don’t even know how to drive or have your license yet, per your previous posts, so I don’t know why you’re so fixated on buying an expensive car. 

Post # 73
Member
3287 posts
Sugar bee

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clarissabee:  Get your name on the water and the power. Google. Google. Google.  

Post # 74
Member
168 posts
Blushing bee
  • Wedding: August 2000

May I suggest you start reading the forums on http://www.creditboards.com? 

It’s an excellent resource for all things credit–from building to rebuilding. There is even a board related to auto financing and another for credit cards.

I think they will be able to help you a lot

Post # 75
Member
5083 posts
Bee Keeper
  • Wedding: December 2014

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clarissabee:  I would say that credit card companies and auto loan companies don’t give a crap about how much you have in savings. They care about your current income and your credit score. I got a car loan with zero savings and a $24k/year income at a crazy low rate, but that’s because I have great credit after years of building it up. It takes a lot of time to build up good credit. My student loans helped me in the beginning to establish a history, as well as being added as an authorized user on one of my mother’s older credit cards (though I never used it). I understand that this could be tricky for you since you are not from the US though. 

And yes, I agree with PPs, you can get a great car for much much less than $50k. Buy a Toyota or a Honda, they’re very reliable. You could get a great used one for a fraction of your savings.

I do still think that you should try for the secured card. What’s one more inquiry at this point? It’s likely that many of those inquiries haven’t even hit your credit report yet. 

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