A bit personal, but I feel you guys might be able to help.

I have set myself up to be able to buy an xB around NOW. I have a Z that is ready at this moment to sell and I was going to trade my truck and maybe the truck AND the Z in to get the xB if the money is right.

So I have a pretty decent downpayment (I'm guessing in the 5000 -6000 range). I completely overhauled some bad credit OVER a year ago when I bought my house and got a really good interest rate with it.

But now, when I went to check my credit with my bank and get pre-approved for the loan, they told me that a couple of things (things I paid off (I know for a fact)) are shown as NOT paid off. This is REALLY upsetting. As if I didn't have enough hatred for the slackness of the credit companies.

So, my interest rate is not AT ALL what I planned and is causing my payment to be more than what I and my wife planned. So she is not wanting me to go any further and truthfully I don't either.

I had to deal with the credit bureaus when I bought my house, so I know that they are next to impossible to get in touch with (and I've already tried this time too) other than writing and sending a letter, snail mail, and hoping they deal with it in a timely manner, which they don't.

So it could take MONTHS to get the credit thing completely cleared up and I really hate to wait that much longer than I already have.

Except I know as soon as the Z sells, something will come up and that money may not last long. Not burning a hole in my pocket, but every other time I have ever saved a decent amount of money SOMETHING happens and it dwindles away. Whether it's my wife needing it to fix her car (or buy clothes), or me subconsciously using it as a safety net til it's no longer enough to matter, or something breaks causing me to have to use it. SOMETHING ALWAYS HAPPENS.

Needless to say, I'm not sure if I want to wait anymore on getting the xB if I can help it. And if I could just get my interest rate down to my original planned maximum, I should be set. Then I can go through the long process of fixing my credit without being SO dependent on their response. So what I'm asking of you guys is:

Let me know of any experiences you have had with alternative loan companies. I've heard a couple of good things about Capital One Auto Finance, E-Loan, Lending Tree and other places like that with lower interest than banks and quick approval and sending of checks.

And... any other suggestions to boost my morale, cuz right now I'm in the dumps.

I worked so hard last year to fix the mistakes I made as a teenager and get things right for my wife and son to have a nice house, I've got a great job, she has a great job, things are going really well and then this happens.

 

Just my 2 cents worth (and that's probably all it is worth --
I would get the credit straightened out first and foremost. If you don't then it is going to hang on and dog you forever. Yes, the credit companies are a pain to work with, but the secret is to document everything. (certified mail is your friend!) Some great advice on how to dispute credit errors can be found here: http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm
According to the FTC, credit agencies MUST investige items in question, usually in 30 days, and respond to you. I can speak from experience that errors CAN be disputed and corrected. (The link even has sample letters you can use to send to the credit agencies).
I totally understand about having some extra dough and it dwindling away, it happens to me every time. I say avoid all temptation and sock it away where you can't touch it. For instance, drop it into a six month CD--that way it earns a little and you won't be (can't be) tempted to raid the piggybank. That also gives you a firm deadline to work against getting your credit straight, and usually everyone works better when they have a firm deadline when something HAS to be done. Plus, you know that in six months you will get your XB, and that really isn't too long to wait (and you'll have a little extra for down payment with the interest you earned).

 

great advice man.. thanks.

And your suggestion is probably 100% on point and probably the best one I'll get in the entire post.

I just hate the thought of waiting anymore. I liked 'em when they came out and fell in love when I started doing research on them, so I've been waiting a long time while paying off the truck I have now.

Besides, I've heard the 30 day rule, but when I was reading about it, it made it sound like the company in question has 30 days to get back in touch with the credit bureau, but the credit bureau didn't seem like it had a set time to get in touch with them and or me.

I dunno, but like I said... I'm sure you're right, I'm just curious about the alternative lending companies.

 

Fixing bad debt isn't always the way to go. It can actually hurt you to fix an old debt. If things are in collections then I would get those straight. Everything else I would just leave alone. The thing that happens is when you pay old debts it makes them current and from the day the collector reports them then it will be 7 years for them to fall off. Best thing you could do is keep your cash, keep your car and pay all your bills on time. This method over a couple months will raise your score. Another thing is not letting a lot of lenders run your credit. This counts against you also. If you can get your score to around 620 I'm sure toyota will finance you and as long as your income to debt ratio is ok then you should be fine. Remember though, pay those bills on time.

 

My credit score got screwed up when my wife became disabled and we had tons of medical bills. When I went for my xB I thought my score was above 630..it was 608! Toyota said they would finance it for 17.50%...yikes! I went straight to my banker with the credit report I swiped er borrowed from my salesman's desk. Me and the bank guy went over it and I had fourthings on it I had actually paid off, but only recently. I also had my wifes car that we were late 5 times on in 2005. He said go ahead and finance it with Toyota. He said the bad stuff will come off in 6 months and to come back and he would refinance it at a much lower rate..7-8.5% This week I paid off my wife's car as well. I sure as hell hope I can get it refinanced.
Matt

 

If you don't bother yourself with your moral obligation to pay your creditors if you can afford to.

Anyway, a good place to look for a decent rate is your company's credit union (if they have one). I got a 4.9% rate for 5 years. Toyota wanted me to pay 6.5% or something like that. Even though I put down $7000, the interest rate is so cheap, how can I not drag it out for 5 years?

 

yeah... I've been paying EVERYTHING on time for about 2 years straight, actually longer. Once I found out my son was going to be born I started getting everything together.

Anyway.. like I said... everything on time, called and paid EVERYTHING on my credit off (had to to get the house), and haven't made a mistake since.

My credit has gone up a total of a couple of points. If my score was 620 I would have no problem as my bank would give me a good rate. Unfortunately I'm outside of that realm, so they're talking 11.45%.

I really don't think that's a totally horrible rate (definitely not good, though), and with my downpayment and trade in the payments would only be 278 or 248 depending on how long I finance it for. So I can afford it, but my wife is being a stickler about it. And I don't want to pay 50-80 /mo. more than I should because of a credit mistake either.

I've thought about getting it, fixing my credit and then refinancing too, but again... I really don't want to hear my wife complain for the months it may take to do that. She's extremely good at complaining, and I'm not good at having patience with it, so it's just gonna start trouble.

This just sucks.... I feel like I'm never gonna get my xB.

 

and soylengGreen, if TOYOTA offered you 6.5%, then you obviously don't have the same problem as I do. I'm actually with a credit union.

Although, I have thought about going with my company's to see if they'll offer a better rate to get my business. All I need is a couple to a few % lower.

Maybe I need to follow through with that. If that doesn't work, I'll just leave it alone and stack my bills for a while. Oh... and fix my credit.

 

Capital One was really good for me and easy.

 

Are you upside down on your Z? If so then that could be a problem. Look around for some credit info and you might be surprised at what you find about bad debt.

 

suprised about what. That's part of the problem. The bad debt was taken care of over a year ago. I know it doesn't go completely away for years, but my score should have gone up for paying them off.

Not to mention, since then, I've paid off my truck, paid for a house perfectly for over a year and everything else has been kept up to date since then.

No.. it's a '91 Z and it's paid off. So is my truck. I have no debt anymore except for my house and other bills (cable, lights, phones, etc...)

 

I say get the xB now with your big down payment. Then after the credit stuff gets cleared up just refinance the car for a lower rate.
If you have the proof the stuff is taken care of it should work out later.
Good luck!

 

Exactly what I did! I am getting so much enjoyment out of the xB, I don't care if it's costing me an extra $100.00 a month for 6months to a year...
Matt

 

There are plenty of debt erasers on the net. You send them something like 2-300 bucks, your credit report and copies of your social security card and driver's licenses. They then send letters with their law office stationary, and then just like magic, all that stuff disappears. This will send your FICO score up at least 100 points. Spend 300 and save 1000's in interest.

I'm talking about the stuff you've paid and the stuff you have no clue what it is. It is is up to the reporting creditors to prove that the debt is yours, and that it hasn't been paid. Otherwise, they MUST remove it w/in 30 days.

 

Good to know scionofPCFL 33/M

 

I wouldn't give anyone my money or personal info. You might try the dealer and have them run the credit. Toyota does a tiered system and you might be higher than you think. I went from a 8 percent to a 6.5 by financing for a year less. They wanted to do 6 years but I opted for 5.

 

You're doing the right thing. I'm totally in support of you trying to straighten things out. I was commenting mainly on some of the questionable advice you're being given here. Best of luck to you!

 

Kind of a different question, sorry to hijack.

Did anyone build their car online and use the paymnet calculater? Did the dealer use those same numbers or were they higher? I know my credit score and with my down payment I can afford an xb, but I am wondering if I go to the dealer will they come up with different numbers? Possibly unaffordable numbers?

Matt

 

Pure Price holds true to financing as well. There is a clearly marked rate schedule with all of the tiers based off your FICO score. Goto where your score is, and scan accross for your rate. However, Toyotas rates are higher than the crown of a giraffe on top of a fariswheel. Just goto your local bank/C.U. and get a PAL (preapproved autoloan). It's like shopping with a check. Make sure it's for enough dough to get the extras you might want, and make sure it's enough to cover taxes. It will read something like: "Not to exceed $xxxxx.xx" or something like "not to exceed 115% of MSRP" When you find the car, the business office will write it out for the exact amount of the purchase, and that's all you will be liable for.

 

I used a local credit repair guy , ( came with good, strong reccomendations from MANY co workers. ) This guy is legit and he helps customers all over the u.s and some military bases around the big blue ball. I spent 195.00 and the cost of each credit report request the first time. I can say that it works. What happens is this: They pull your credit report from equifax, trans union, and experian as though they were you , then they start disputing everything negative on your report. All responses are mailed to your address and then you take them to the credit repair guys office. then they send they next letter on the same dispute. They keep this up until the credit reporters remove the negative info. It sounds kind of strange , I know. But I was told from this owner of the credit repair co. ( he used to work for equifax ) that there are dispute laws written and that have to be followed, the only problem is most people give up when searching the law books because of the big words and confusing text the laws are written in. Then there is the constant mailing of letters, disputes work on timelines, 30 days to respond , 15 days for you to counter argue and 10 days for their rebuttal , and so on . If you or they don't respond within the timeline, the whole thing starts over again. Most people give up before they figure it all out. The credit bureas and lenders count on the fact you will give up. -- there by hurting your credit. not to mention passing on higher interest rates to other customers due to so many people being a high credit risk. there are things that can be done. If you want the number to the guy I used send me a p.m. I have no regrets , money well spent and it all happened in about 7-8 months. My score went from a 434 to 648 in no time. I bought a house last november at 5.75 % interest. I was turned down one year before. ( also did you know a high credit score affects your insurance rates for your car. )