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TeamSelig
01-29-2008, 06:01 PM
I've seen a few threads on here before for buying a new car. It's been a while, so I thought it would be fine to make another.

I'm thinking about trading in our piece of junk and buying a new vehicle. I think I want a nice truck, under these conditions:

* Needs to sit 3 at least (baby on the way) but I'd rather seat 4 mini.
* Decent gas mileage (15+)
* 4WD (prefer)
* Not very costly (under 20k)
* New, relatively new

However, I don't have a dire need to pull or haul anything (aside from furniture,etc.)

I've done a little research so far, but I was wondering if someone here had any suggestions.

Highlifeman21
01-29-2008, 08:17 PM
I've seen a few threads on here before for buying a new car. It's been a while, so I thought it would be fine to make another.

I'm thinking about trading in our piece of junk and buying a new vehicle. I think I want a nice truck, under these conditions:

* Needs to sit 3 at least (baby on the way) but I'd rather seat 4 mini.
* Decent gas mileage (15+)
* 4WD (prefer)
* Not very costly (under 20k)
* New, relatively new

However, I don't have a dire need to pull or haul anything (aside from furniture,etc.)

I've done a little research so far, but I was wondering if someone here had any suggestions.


New Trucks

Make Model Trim MSRP MPG 4WD
GMC Canyon SLE-2 $20,640 19 Yes
Chevy Colorado LT2 $20,510 19 Yes



New Cars

Make Model Trim MSRP MPG AWD
Dodge Caliber R/T $20,495 22 Yes
Nissan Rogue S $20,450 23 Yes


New Vehicles

Make Model Trim MSRP MPG Drive
Kia Sorento Base $20.995 18 2WD
Hyundai Tucson SE $20,995 22 2WD
Honda CR-V LX $20,700 23 2WD
Chevy Malibu Maxx LT $20,575 23 2WD
VW Beetle SE $20,440 23 2WD
GMC Canyon SLT $20,390 20 2WD
Saturn AURA XE $20,345 24 2WD
Ford Escape XLS $20,120 24 FWD
Toyota Camry CE $19,620 25 FWD
Honda Accord VP $19,425 28 FWD
Saturn VUE 2.2L $19,250 24 FWD
Chrysler PT Cruiser Touring $18,930 21 FWD
Chrylser Sebring LX $18,690 24 FWD

Lemme know if any of those help your search.

TeamSelig
01-29-2008, 09:21 PM
Actually I've looked at a Chevy Colorado, and I really - really like it. With the extra seats (crew cab) & 4WD, it pushes the price up to about 26k, which is alot.

Just checked out the GMC Canyon, looks like the same deal. Hmm..

Highlifeman21
01-29-2008, 09:40 PM
I looks to me that the Colorado and the Canyon are the same truck, just different GM families.

They look to get decent MPG for 4WD trucks.

BoydsOfSummer
01-29-2008, 11:26 PM
cars.com

You can do some decent research there.

Buy the Chrysler 300 Touring Edition so I can envy you. I like the Jeep Liberty for some reason also. And I'm not a fan of the SUV types.

WVRedsFan
01-30-2008, 02:12 AM
I've seen a few threads on here before for buying a new car. It's been a while, so I thought it would be fine to make another.

I'm thinking about trading in our piece of junk and buying a new vehicle. I think I want a nice truck, under these conditions:

* Needs to sit 3 at least (baby on the way) but I'd rather seat 4 mini.
* Decent gas mileage (15+)
* 4WD (prefer)
* Not very costly (under 20k)
* New, relatively new

However, I don't have a dire need to pull or haul anything (aside from furniture,etc.)

I've done a little research so far, but I was wondering if someone here had any suggestions.

Andy:

Look at the new Nissan Rogue. Just what you need. plenty of room and AWD. $21, 315 nicely loaded. The Kia Sportage. You ahve to start small and move up.

Ltlabner
01-30-2008, 06:47 AM
Toyota's Rav4 is pretty nice. It's a smaller SUV, but with the seats folded forward the cargo capacity is enourmus. Should be able to haul most furniture execpt couches and big dressers, etc.

I have the 6cyc and average 25-26mpg on the highway and 21-24mpg around town. It's also 4x4. The sticker was $25kish. With trade and a little cash you can get closer to your target price.

They also have 4cyclinder 4x4's so you'll likely get better MPG and lower cost.

Other than that, read the other threads about buying cars and you'll get tons of good advice.

LoganBuck
01-30-2008, 07:13 AM
Check out the Buick Rendezvous. They can be very reasonably priced used. AWD not 4WD.

nate
01-30-2008, 07:43 AM
I spent a morning reading the info at carbuyingtips.com (http://www.carbuyingtips.com/) and found it infinitely helpful on the haggling / where to shop aspect.

Cyclone792
01-30-2008, 09:44 AM
I bought a new vehicle last October and had pretty good success getting a good deal from the dealer. Granted, I was buying a 2007 end of model year so that helped quite a bit, but one thing that did work against me was low supply; there were only three vehicles remaining in the region with the exact make/model/trim that I wanted.

Anyhow, I split up the new car search into two main categories, 1) determining exactly what I want first without discussing price whatsoever with any dealer, and then 2) haggling the price only after I determined exactly what I wanted.

I went with the strategy of not telling the dealer what my price range was while I was still researching different make/model vehicles. I knew all along what my price range was, I can read all the MSRPs, read all the available options, pinpoint additional options that I'd want, and then determine myself the likely cost and if it was in my range. Of course, I had financing lined up at a bank and didn't have to deal with dealer financing so that did work in my favor too.

If a dealer was trying to talk up a car out of my price range, I simply told him I wasn't interested in that specific model and moved on to something else without offering up a reason. If he asks why you don't like that model, just say you're not fond of the body style or something along those lines. Dealers will try to get you to talk in terms of payments and how much of a monthly payment you can afford; you don't want any of this. If you tell them you're not sure if you can afford a specific vehicle, they're liable to tell you they can help make you afford it. You don't want any of this either; only you know about your finances, not the dealer.

Once I determined exactly what vehicle I wanted - make/model/trim - it's important to do some research and determine what a good/fair price was for that car. This is where's it important to research invoice pricing, ad fees, etc. You then want to figure out the absolute highest price you will pay for the car. If nobody beats the price, walk away ... and you have to be willing to walk away.

Finally, it was time to start making the dealers work against each other. I called up every dealer in the area, including a few out of town dealers, and asked what available vehicles in the make/model/trim they had and what was their bottom line price. No screwing around ... I will be buying a car, this is what I'm buying, what's your best price. In my experience, the dealers on the phone knew I was pretty serious with how I presented that info to them, especially since I immediately told them the exact vehicle I wanted. Even if dealers do not have your specific car, they can oftentimes trade with other dealers and acquire the car. Still find out their best price even if they have to acquire the car in a trade. And while I really didn't want to drive out of town for a car, I told myself I was willing to do it if an out of town dealer blew me away with an offer. More importantly, I got more price offers from those dealers too. The price offer is the ammo to take to a local dealer to get them to drop their price.

After round one, see what the best price offered was and call them all back up again. Tell them another dealer is offering the car at x price, and ask if they can beat that. Some will beat it, some won't beat it.

My goal was to get $3,500 off the sticker price, and after three rounds of haggling I eventually got around $4,200 or so off the sticker price. What is a bit funny is the dealer I ultimately bought the car from only wanted to take around $1,500 off the sticker during round one of haggling. Round two of haggling got another $700 off sticker ($2,200 total). Round three took off another $2,000 (for $4,200 total), and then they told me that's as far as they can go. But fortunately they crossed the $3,500 threshold I was seeking, and they did beat every other dealer's offer. That night I went down and bought the car.

Now the above is just a rough guide of what I did - there were a few more specifics. It's also what only worked for me; that strategy may or may work for yourself and others. But in the end I got the car I wanted for around $700 less than I was willing to pay so it worked out well for me.

LoganBuck
01-30-2008, 01:44 PM
Strategy that ALWAYS works. Pick a nasty cold day, dress very warmly, underarmor, polartec etc. Pull into the lot with a price in mind. Salesman comes out, with jacket he just grabbed to talk to you. Make him stand there in the lot, and haggle with him there, pretend to be really interested in looking at the car at the same time. They will break after 10 minutes. If he needs to talk to someone inside, tell him you will wait for him outside.

This also works with traveling salesmen on dairy farms.

TeamSelig
01-30-2008, 05:46 PM
I was dead set on getting crew cab (back seat in the truck), but I went to check out some today... there really isn't that much more room than extended cab, and I could use the extra money off.

Anyone know of a good site for truck "reviews"? Maybe comparing costs, durability, etc.? Can't seem to find it anywhere.

terminator
01-30-2008, 06:36 PM
Just keep in mind that you'll need to get a child seat in your vehicle and they are supposed to go in the back seat . . . and *must* be rear-facing for the first year. I think Ohio requires the use of child seats for kids under four years or under 40 pounds. You'll need to be sure they'll fit in the vehicle.

Also keep in mind what it would be like trying to fit two car seats in your vehicle . . . and what it will be like to reach in and put a 10-35 pound kid in the seat. IOW, trucks aren't the best kid vehicles IMHO, although those extended cabs might not be so bad. but it still seems like it would be a pain to lift them up and into the truck.

TeamSelig
01-30-2008, 06:53 PM
What do you guys think of the 2004 Nissan Titan? The dealership here has one for about $20k with 45k miles on it. Not sure if I want a used one, but it looks nice.

paintmered
01-30-2008, 10:48 PM
How long can you wait before you buy your new vehicle? Interest rates will continue to nosedive for at least the next quarter or two.

Lower interest rate = lower monthly payment.

TeamSelig
01-30-2008, 10:59 PM
Good idea. I could probably wait a little while

LoganBuck
01-31-2008, 07:06 AM
Be careful of those smaller trucks with kids. Some of them have jump seats or smaller seats and you can not legally/safely secure a child in a car seat. Take a car seat along to try out before you buy, and make sure you check the owners manual.

danken12
01-31-2008, 07:46 AM
What do you guys think of the 2004 Nissan Titan? The dealership here has one for about $20k with 45k miles on it. Not sure if I want a used one, but it looks nice.

I've heard nothing but good things about the Titan. A lot of reviews indicate that it's the best full size pickup on the market.

hebroncougar
01-31-2008, 10:41 AM
I've got a 2004 F-150 Heritage with less than 25,000 miles I'll sell you. It's the supercrew cab, so it seats 4, I've got the V-6, so better gas mileage. It is not 4wd however. It can all be yours for $15,000.

Here's a link to a picture of one.

http://images.google.com/imgres?imgurl=http://www.virginiausedcardealers.com/superior/5970A.jpg&imgrefurl=http://www.superiormotorsinc.com/inventory.php&h=480&w=640&sz=49&hl=en&start=1&um=1&tbnid=HZTyjuMZJ_4q_M:&tbnh=103&tbnw=137&prev=/images%3Fq%3D2004%2Bf150%2Bheritage%26um%3D1%26hl% 3Den%26rls%3Dcom.microsoft:en-us:IE-SearchBox%26sa%3DN

Roy Tucker
01-31-2008, 11:11 AM
I had a crew cab pickup truck back when we had our first child. It lasted about 6 months. Getting small children in and out of it was a royal pain and it just didn't work. Traded it in for a mini-van (the last vestige of my single life was gone).

So, we've had a mini-van for the last 20 years through 3 kids. Say what you will about the strereotype, but they are very good to have when you have children of all ages to cart about.

Your time will come, TeamSelig. :)

LoganBuck
01-31-2008, 12:47 PM
Be careful of those smaller trucks with kids. Some of them have jump seats or smaller seats and you can not legally/safely secure a child in a car seat. Take a car seat along to try out before you buy, and make sure you check the owners manual.

To expand on this and what Roy said, make sure you AND MrsTeamSelig can get the car seat in and out of the vehicle, and how easily can she get the kid into the seat if it is in the back. MrsLoganbuck can not get kids into the backseat of my truck very easily, because she is not tall enough (5'3"). She drives a Buick Rendezvous and has no issues there. Also consider that some of these trucks open up so that it is nearly impossible to jockey a baby into the back seat when parked in tight quarters like at Walmart.

OldRightHander
02-01-2008, 10:54 AM
As to the mileage, I would suggest going with a diesel. Ford and Dodge both have models with a Cummins diesel in them and the mileage is more than you'll get from a comparable gas engine. I talked to someone the other day who says he's getting over 20 mpg and he's hauling RVs. I have a Mercedes diesel in my Sprinter van and I've gotten way better mileage than I did when I drove a gas powered van. I get 20 or better with a light load and still over 18 with a heavy load.

Deepred05
02-01-2008, 02:00 PM
I had a crew cab pickup truck back when we had our first child. It lasted about 6 months. Getting small children in and out of it was a royal pain and it just didn't work. Traded it in for a mini-van (the last vestige of my single life was gone).

So, we've had a mini-van for the last 20 years through 3 kids. Say what you will about the strereotype, but they are very good to have when you have children of all ages to cart about.

Your time will come, TeamSelig. :)

Nice call:cool:

IslandRed
02-01-2008, 03:17 PM
Be careful of those smaller trucks with kids. Some of them have jump seats or smaller seats and you can not legally/safely secure a child in a car seat. Take a car seat along to try out before you buy, and make sure you check the owners manual.

Yeah, this is a key point. But assuming it can handle a car seat properly, there's another key question -- does this vehicle just need to be able to carry a kid in a pinch, or is it going to be the primary everyday kid-hauler? Just my opinion, but a pickup is a poor choice for the primary babymakesthreemobile. Other classes of vehicles are better suited to the role, and pickups tend to do poorly on crash-test ratings and all that other safety stuff moms go goo-goo over. So if this is the vehicle you're buying because there's a baby on the way, consider long and hard just how essential that open pickup bed is. You can always rent a truck if you need to move.

TeamSelig
02-08-2008, 01:51 PM
Dealership and bank denied.

My wife and I both come from pretty poor families. Everyone has bad credit or just not willing to do it for us so I can't find a co-signer.

It's kind of ironic though. They won't loan me money because I don't have a history of making any type of payments...... Okay bankers, to all things in life - there has to be a beginning. Let me give you money.

:(

BRM
02-08-2008, 02:04 PM
I had a crew cab pickup truck back when we had our first child. It lasted about 6 months. Getting small children in and out of it was a royal pain and it just didn't work. Traded it in for a mini-van (the last vestige of my single life was gone).

So, we've had a mini-van for the last 20 years through 3 kids. Say what you will about the strereotype, but they are very good to have when you have children of all ages to cart about.

Your time will come, TeamSelig. :)

I didn't think so at all. We've had crew cab trucks for years and I never thought it was tough to get kids in and out of. We had a minivan for a long time too. Thank goodness those days are gone. We now own 2 trucks - a crew cab Ford diesel and a small Toyota extended cab.

BRM
02-08-2008, 02:05 PM
As to the mileage, I would suggest going with a diesel. Ford and Dodge both have models with a Cummins diesel in them and the mileage is more than you'll get from a comparable gas engine. I talked to someone the other day who says he's getting over 20 mpg and he's hauling RVs. I have a Mercedes diesel in my Sprinter van and I've gotten way better mileage than I did when I drove a gas powered van. I get 20 or better with a light load and still over 18 with a heavy load.

Ford has the Powerstroke. Dodge has the Cummins. ;)

Diesel's do get better fuel mileage but the cost is close 50 cents more per gallon. At least out here it's close to 50.

Roy Tucker
02-08-2008, 02:22 PM
Dealership and bank denied.

My wife and I both come from pretty poor families. Everyone has bad credit or just not willing to do it for us so I can't find a co-signer.

It's kind of ironic though. They won't loan me money because I don't have a history of making any type of payments...... Okay bankers, to all things in life - there has to be a beginning. Let me give you money.

:(

Google "building credit" and there is lots of good advice as to how to do this.

Good luck, TS. :thumbup:

klw
02-08-2008, 02:48 PM
Not a truck but I have has a Subaru Forester for 7 years now. I has been very reliable (200K on it), gets 25 to 27 mpg, and can get through any snow that has been thrown at it. Good space for car seat or for trips to Home Depot. Good price, still can get for less than 20 k

TeamSelig
02-08-2008, 02:48 PM
I have a really good score, just no history of making payments. It's not like I can't make the payments, that won't be hard at all. I've already made a budget and worked out every cost down to paying for haircuts.

TeamSelig
02-08-2008, 03:19 PM
Ugh, I have tried everyone. Looks like I am walking to work next week.

LoganBuck
02-08-2008, 03:25 PM
I have a really good score, just no history of making payments. It's not like I can't make the payments, that won't be hard at all. I've already made a budget and worked out every cost down to paying for haircuts.

Do you have a credit card? If not get one and use it appropriately. Pay it off every month. You build a history that way.

GAC
02-08-2008, 03:41 PM
I know some people aren't keen on leasing; but you may want to look into a Honda lease in your particular circumstance. They are quite different from other industry leases. But it keeps your monthly payments down while you build your credit (making payments). And they have some excellent deals right now on all of their vehicles. You are building equity in the car via the monthly payments, so at the end of the lease you can use that to either purchase the car or, if you want, go into another lease with no additional fee/charges. They don't hit you up with various charges that other leases do (like drop offs, fees, etc) and allow you up to $1500 damage to the vehicle.

And you just can't go wrong with a Honda either. ;)

I bought our Honda Odyssey last year, which we love. And we've owned both a Dodge Caravan and Plymouth Voyager in the past. There's no comparison. But I really couldn't afford two huge car payments, so I just leased a 2008 Honda Civic for 36 months. I put $2000 down, and my payments are $200/month. At the end of the lease I have the option to buy it and finance the balance ($11,000), which I most likely will do.

Honda is also offering some very low interest rate deal on selected models too.

Cyclone792
02-08-2008, 04:01 PM
I have a really good score, just no history of making payments. It's not like I can't make the payments, that won't be hard at all. I've already made a budget and worked out every cost down to paying for haircuts.

What's your credit card situation? How many cards do you have, what's your typical monthly balance, and do you pay it on time in full every month?

If you have no credit (i.e. no credit cards), then one thing you'll want to do is get one credit card and, as LoganBuck pointed out, use it appropriately. If you have a $1,000 limit, put anywhere from $100-200 on it every month and pay it off in full every single month. You'll start building credit by doing that. If you have bad credit (i.e. credit card debt), then you're going to have to start paying it off.

When I was young and first got a credit card, the bulk of what I put on my credit card was gasoline. It was something I had to buy one way or the other so I put that expense on the credit card. Then I made sure I wouldn't be spending anymore cash than I otherwise would if I paid for my gas with cash.

There's a bit more than just your credit score that could be holding you back, though. A couple of the other key components involved are how much money you're financing and your current income level. If you're trying to finance $20k for a vehicle and your monthly income is less than $2k, then you may have some trouble even with a decent credit score.

Cyclone792
02-08-2008, 04:06 PM
I know some people aren't keen on leasing; but you may want to look into a Honda lease in your particular circumstance. They are quite different from other industry leases. But it keeps your monthly payments down while you build your credit (making payments). And they have some excellent deals right now on all of their vehicles. You are building equity in the car via the monthly payments, so at the end of the lease you can use that to either purchase the car or, if you want, go into another lease with no additional fee/charges. They don't hit you up with various charges that other leases do (like drop offs, fees, etc) and allow you up to $1500 damage to the vehicle.

And you just can't go wrong with a Honda either. ;)

I bought our Honda Odyssey last year, which we love. And we've owned both a Dodge Caravan and Plymouth Voyager in the past. There's no comparison. But I really couldn't afford two huge car payments, so I just leased a 2008 Honda Civic for 36 months. I put $2000 down, and my payments are $200/month. At the end of the lease I have the option to buy it and finance the balance ($11,000), which I most likely will do.

Honda is also offering some very low interest rate deal on selected models too.

I'll vouch for Honda. Damn fine vehicles that GAC and his boys build. They'll last forever if you treat them right. Heck, most of them will last forever even if you beat the hell out of them.

Signed,
Owner of a 2007 Accord Coupe

Handofdeath
02-08-2008, 04:19 PM
If you have been paying your utilities on time, you might talk to some of these places and see if they'll use that as proof of your ability to make timely payments. It's not an unheard of thing to do.

TeamSelig
02-08-2008, 05:23 PM
I guess I will have to get a credit card.

Also, I'm lowering my price and changing to a car.

4 door, good gas mileage, about $10k, not a whole bunch of miles on it

klw
02-08-2008, 05:39 PM
Only two doors but quite the looker

http://images.forbes.com/images/2002/10/18/pacer.jpg

RBA
02-08-2008, 07:58 PM
See if you can join a credit union from work or via family member association.

GAC
02-09-2008, 05:47 AM
I guess I will have to get a credit card.

Also, I'm lowering my price and changing to a car.

4 door, good gas mileage, about $10k, not a whole bunch of miles on it

Before I decided to lease my Honda I was looking at some certified used cars in the 10-12 grand price range. They're all over the place. If you do so, then go for a one owner and ask to talk to that owner. The dealer has to give you that info.

But I was looking at some 2004-05 Mercury Sables and Fusions (this seems to be a popular car) that fell into that price range.

TeamSelig
02-09-2008, 07:48 PM
So does anyone recommend a credit card? I was thinking of choosing one with no interest for 12 months, and then cut it up after those months are over. Not really sure other than that though, and there are so many options. ????

paintmered
02-09-2008, 08:27 PM
So does anyone recommend a credit card? I was thinking of choosing one with no interest for 12 months, and then cut it up after those months are over. Not really sure other than that though, and there are so many options. ????

The goal with credit cards is to pay off the entire balance each month. The interest rate is irrelevant if there is no balance.

TeamSelig
02-09-2008, 08:37 PM
Hmm... I was told that if you pay it off each month then it doesn't give you any credit?

I am not familiar with credit cards,so I'm pretty well ignorant to how they work.

LoganBuck
02-09-2008, 11:25 PM
No you need to establish a history of paying them off responsibly. Don't fall into the revolving cycle of having to pay off interest and fees. My wife and I have been paying extra fees for the last three months, due to some unforeseen expenses, and I hate it. (New well pump, expensive car repairs, a couple odd uncovered medical expenses, plus Christmas). If you do run a balance a few months, work to get it paid off don't add anything unnecessary to it.

You are trying to establish a track record of dependable responsibility in regards to use and repayment. Do not run balances.

Cyclone792
02-09-2008, 11:57 PM
Hmm... I was told that if you pay it off each month then it doesn't give you any credit?

I am not familiar with credit cards,so I'm pretty well ignorant to how they work.

You will want to ignore whoever gave you that advice.

The way to build credit is to pay off your entire balance in full every month. If your monthly credit card bill is $50, pay it off in full every month. If your monthly credit card bill is $500, pay it off in full every month. The absolute worst thing to do is to not pay it off in full every month. If you do not pay it off in full every month, you will be charged a very high interest rate and you will not be establishing a very good credit history.

To be completely honest with you, I don't even have any idea what my credit card's interest rate is. The interest rate is a non-issue to me. Every credit card bill I ever receive is paid off in full every month. I have never paid one cent of interest charges in the entire time I have ever had any credit cards. The secret to building good credit is very simple; pay off your bills in full every single month. Always ... zero exceptions.

Get a credit card that does not charge you a monthly fee just for having the card itself. The last thing you want to do is to have a card that charges you a fee just for having the card. If I don't use the credit card that I have in any given month, then I have no bill for that month.

GAC
02-10-2008, 06:18 AM
Do what my in-laws, and many others do - use the credit card to make a few (and I emphasis few) monthly purchases that you would normally come from your weekly check. Maybe your groceries one week. Then, put that money back which would normally come from your check and pay the entire amount off when the bill comes.

You're trying to establish credit, so use strict discipline.

I'd stay away from Master Card and American Express in your particular instance, and go with a VISA card.

TeamSelig
02-10-2008, 11:30 AM
Thanks guys.

Buckeye33
02-10-2008, 11:39 AM
Do what my in-laws, and many others do - use the credit card to make a few (and I emphasis few) monthly purchases that you would normally come from your weekly check. Maybe your groceries one week. Then, put that money back which would normally come from your check and pay the entire amount off when the bill comes.

You're trying to establish credit, so use strict discipline.

I'd stay away from Master Card and American Express in your particular instance, and go with a VISA card.

I can say that this works well when first trying to establish credit. I was lucky enough to have a mother in the banking business and when I turned 18 she helped me get a Visa card and put a $200 limit on it. She told me to buy my gas with it and only gas unless an emergency occurred and pay it off every month. I did that for 3 years straight and it established good credit for me when most of my friends were 2-5k in debt from high limit credit cards.

Just pay it off every month and the established credit will come.

oneupper
02-10-2008, 11:45 AM
Believe it or not, I understand you. TS.
When I arrived in the US five years ago. I had no credit (report).
Couldn't even rent a house. Lots of money in the bank, but no debts.
Tried to finance part of a car (25% of it) to build credit...denied.

I got around all that (unfortunately my experience is not a help to you).
But I learned a lot about the credit report (score) thing.

1) Paying your bills doesn't help your credit report. NOT paying them hurts you...since it will probably go to collection. But your phone, cable and water guys do not report to the agencies, so you can't build credit that way.

2) You NEED a credit card. My daughter is soon to go to college and once she's 18 she's getting a card of her own. They love to give cards to college students (to try to get them on the financing wheel). Get one but pay it off every month. NEVER FINANCE. NEVER. NEVER. EVER.

3) Get a free credit report at www.annualcreditreport.com and not any of the other sites that say its FREE. It's not. You can get one a year, so get Equifax, four months later get Trasunion, and four months later Experian (or whatever). If your credit card or some other credit-building thing (store credit) isn't showing up (it happened to me)...start writing letters to your card company (or the store)to get them to report it. If they don't report your credit...its just as if you didn't have it.

4) To everyone who finances anything, these credit reports (and the scores) are sacred and they are the end of all. It's dumb. It's unfair. It's short-sighted. But that's how it is. The system is designed to reward those who know how to keep their credit current...not necesarily those who are credit-worthy. A lot of people have great credit until...they don't. The credit process is now completely automated, data is input and you get approved or not based on some criteria. They don't care who you are, what kind of person you are or if you are a good credit risk or not. What the computer says...goes.

Good luck, kiddo.

TeamSelig
02-10-2008, 05:34 PM
I'm still not sure which card to pick... all the options and I really don't understand most of it.

So as long as you pay off your bill each month then the interest rate doesn't kick in (thus making it not matter)?

paintmered
02-10-2008, 05:44 PM
I'm still not sure which card to pick... all the options and I really don't understand most of it.

So as long as you pay off your bill each month then the interest rate doesn't kick in (thus making it not matter)?

Think of it this way... At the end of every month's billing cycle, the amount you owe that you don't pay is subject to interest. So let's say your balance is $1000 and you pay only $500 of that. The next month's statement would be the remaining $500 plus the interest (say another $20) plus any additional purchases you make during the billing cycle. This repeats every successive month until you pay off the card in full. So you can see that not paying off the entire balance of your card can be a severe and abrupt slope.

On the other hand, if you pay the entire $1000 the first month, then there is no balance at the end of the billing cycle. It doesn't matter if the interest rate is 3.9% or 10,372,293% because any interest rate multiplied by zero (if you pay off the card) is still zero.

TeamSelig
02-10-2008, 05:47 PM
Okay, great. From what I've seen so far, the high interest rates have the best rewards. There is a GM one that puts it towards a new vehicle, but it says 1% of earnings... what would earnings be?

paintmered
02-10-2008, 05:52 PM
Okay, great. From what I've seen so far, the high interest rates have the best rewards. There is a GM one that puts it towards a new vehicle, but it says 1% of earnings... what would earnings be?


I have a GM card. It's 3% towards the purchase of a new GM vehicle (only 1% towards a Saturn or Saab). I think you can elect to have 1% cash back instead.

Your earnings is the dollar amount you charge to the card. So for every $1000 you charge to it, GM gives you $30 towards a new car.