Posts Tagged ‘rebuilding credit’

Buy a car. You’d be amazed by how many new car dealers are financing vehicles to folks with far less than perfect credit. As usual, the trade off is higher interest rates and often large down payments. I have to admit that I’m not really big on this one. The cost incurred from owning a brand new vehicle is high enough without throwing in an even higher interest rate. And unlike investing in a home or even rental property, cars lose value every time the sun goes up and down. Nevertheless, for those of you who feel you simply must own a new car, there are usually several new car dealers in every major city who are only too happy to accommodate. First you have to do that phone thing and literally call every single dealer in and out of your area. To save everyone a lot of time and trouble, be very honest and blunt about your credit report. Don’t waste time on an overly anxious sales man. Ask to speak directly to the credit department. Every major dealership has one. If they say they can finance you, your in like flint. Anyway think this one over carefully. Of all the techniques we’ve listed so far, this one has the biggest potential for problems.

And never, never, never finance from a used car dealer. I know I’ll get some flack over this but I have too many friends in the used car business. It’s hard enough to come out without too much collateral damage from a new car dealer, it’s impossible to come out on top from a used car dealer. Besides it won’t go on your credit file.

Hot Tip: Used car dealers get most of their cars from new car dealers. They usually have high mileage and the down payment the used car dealer is asking is what he paid the new car dealer for the vehicle. So if you need a high-mileage used car, bypass the middle man (used car dealer) go directly to the back lot of a new car dearler. The back lot is where they hide them, excuse me, I mean save them for the new car dealers and make your offer. 9 times out of 10 you can get the vehicle for what the used car dealer was asking for a down payment. But be aware that these cars are always sold as is and many need some kind of repairs. But so do the ones from most used car dealers. Actually, the best place to buy a used car is usually a relative. This way you at least know the history. Besides, your brother in law has to face you again at family get togethers.

After you have implemented any or all of these techniques, check your credit file every 6 months from all of the Big Three. If your new good credit information is not on there, first contact the creditor and ask them to report it to all of the Big Three. If they can’t or won’t, have them give you updated documentation of your credit status and send it yourself to all of the Big Three asking them to add it to your credit file.