We got new credit in a second!! Unsecured! Wow

[LSUTiger32]

It wasn't meant to be kind, nor an attack. Do you go back and read before you post? I have only read a few of your posts, and it seams like you have to slip in some snide remark about someone applying for a credit card or financing a car. I'm going to go out on a limb here and assume you are very anti credit, is that correct? If that is the case, that is fine. If it works great for you, I totally support that. It just seams that you are throwing that in people's faces with out even considering that, hey, maybe they have no choice but to finance a car, or a house, or likes the benefits of a credit card.

Now, if I totally read a few of your previous posts wrong, I totally apologize, seriously. It is just that I get into reading these posts, and I know the excitement the OP feels when they got approved for a credit card. To them, it is probably not about the credit card, but about the small accomplishment made after going through the BK.

Yeah, for the most part people read it wrong. Without ruffling more feathers, I think people deep down inside are sick about going back to the same people that put them on this board. In return I think they take it out on me. Go back and read all my posts if you want to and you will find that I have told several people congrats on their card or whatever. I may say.....hey, I wouldn't have done it......but I am sorry that's just the truth. I am not going to change who I am.

[ccsjoe]

B2S....I agree!! A rate of under 5% is excellent and if you are going to finance a car, that's the only way. I always financed new cars and got the 1.9% for 60 or many times the 0% for 60. Yes, it's sounds like a good deal. However, when the asset you are driving goes down 70% in the first 4 years, they would have to be paying you interest to make it worth your while. By paying 5% interest, it just goes down 75% in value instead. This is how people (like me) got to the point where I think I seriously was financing more negative equity at the end that I was actually on the car! If you pay it down hard and then keep it for a long time, I have no problem with that. I will be doing it a different way but I worry that people are falling back into the same trap I did.

I agree with both. Let me share some of my story. Let's do some math shall we. In 9 years I have financed 5 cars out of the lot, each replacing the other, and each with 60 month financing plans, so that they were upside down when I traded in....oh, and always $0 down. Big part of what got us in this mess. My personal lesson...stretch out our current car, keep it at least until end of term, best if longer, then use that plus some down to replace with either used or new-so long as financing on new is extremely attractive. No more 60 month ball and chains either. Do it in 36 or don't do it.

[backtoschool]

B2S....I agree!! A rate of under 5% is excellent and if you are going to finance a car, that's the only way. I always financed new cars and got the 1.9% for 60 or many times the 0% for 60. Yes, it's sounds like a good deal. However, when the asset you are driving goes down 70% in the first 4 years, they would have to be paying you interest to make it worth your while. By paying 5% interest, it just goes down 75% in value instead. This is how people (like me) got to the point where I think I seriously was financing more negative equity at the end that I was actually on the car! If you pay it down hard and then keep it for a long time, I have no problem with that. (Of course, who cares what I think.) I will be doing it a different way but I worry that people are falling back into the same trap I did.

OMG you and I agreed on something on the credit repair thread LSU. Get me a paramedic, I can't take the shock!!!!

I always pay my cars in full, pay them off early, and keep them for a couple of years after I pay them off. I only traded in my Hyundai because it was a death trap in the Midwest winter. Usually I have had 0% interest deals too, (pre bk) but I have 4.42% on my Nissan Rogue that I just got, so that is good for this stage of my credit repair, considering I always pay cars off early.

I totally agree with you that rolling negative equity into new loans is a recipe for financial disaster down the road. I never roll in negative equity.

[LSUTiger32]

OMG you and I agreed on something on the credit repair thread LSU. Get me a paramedic, I can't take the shock!!!!

I always pay my cars in full, pay them off early, and keep them for a couple of years after I pay them off. I only traded in my Hyundai because it was a death trap in the Midwest winter. Usually I have had 0% interest deals too, (pre bk) but I have 4.42% on my Nissan Rogue that I just got, so that is good for this stage of my credit repair, considering I always pay cars off early.

I totally agree with you that rolling negative equity into new loans is a recipe for financial disaster down the road. I never roll in negative equity.

LOL! Good stuff!!!!! I just took a long hard look at it and realized that I went 12 years straight with a car payment of $400 at first, $600 towards the end and have NOTHING to show for it. Had I stuck that money over the 12 years in a mutual fund and drove a paid for car like I am doing now I would have invested $72,000 and be a millionaire at age 55......just from car payments. That's doing nothing else, just the car payments. That woke me up.

How is the Rogue? Looking to upgrade our SUV soon......and yes, it will be done with CASH and it won't be brand new! We have a Mariner right now and it's awesome just a touch small at times when we need the room (vacations, road trips, etc.)

[backtoschool]

LOL! Good stuff!!!!! I just took a long hard look at it and realized that I went 12 years straight with a car payment of $400 at first, $600 towards the end and have NOTHING to show for it. Had I stuck that money over the 12 years in a mutual fund and drove a paid for car like I am doing now I would have invested $72,000 and be a millionaire at age 55......just from car payments. That's doing nothing else, just the car payments. That woke me up.

How is the Rogue? Looking to upgrade our SUV soon......and yes, it will be done with CASH and it won't be brand new! We have a Mariner right now and it's awesome just a touch small at times when we need the room (vacations, road trips, etc.)

I love my new Rogue. I test drove all the cross over SUV's and the Rogue handled the best in my opinion. (I drive everyone crazy because I always over-research everything ) What I really like about it is that it handles like a car, not a truck. I am a petite woman, and driving some of those SUV's felt like driving a bus, and they were supposed to be crossovers.

The fuel economy is great and I really like the look of the car too. My guess however is that the rogue won't be macho enough for you LSU. You will be able to get a better price too, since in New Orleans, you will not need AWD and could go for the FWD version.

[Logan]

Yeah, that would be horrible too. People would have to change their ways and learn how to pay for things. I know I learned the hard way. Even worse, people would have to sacrifice......oh, the horror! I think this is getting lost on people.....do whatever you want. If you want to finance yourself back into BK, I don't care one bit. Just offering an alternative to the advice that is passing around here which is that credit is the ONLY way.

LSU, you keep saying that credit cards = BK and auto loans = BK. If you believe that you must also believe that I'm an alcoholic since I just had a beer and will drink a glass of wine for dinner.

I have an auto loan and I use a credit card. In fact I have 7K charged on my CC. I am the furthest from BK right now at any time in my entire adult life!

Logan

Logan

[CCsAreEvil]

I have purchased both new and used cars in the past. I cannot see if buying a new car ever makes sense (cash paid in full -or- financed). Even if you are financing at 0%, you are still immediately in debt for the amount of the vehicle you just purchased.

Going back to buying a new car with 100% cash down... I'm going to go to the extreme and pretend to purchase a $50k vehicle. Was it really worth $25k to ride that thing new for 2 years? Because those expensive vehicles lose a ton of value only after a couple of years (in general).

I bought a used Hyundai commuter this year for around $4k. Even though I don't have a car payment (which I'm thankful for), and even though it's only about 5 years old, I dread the day it breaks down and I have to pay to have it fixed. But that's one of those unforeseen circumstances that falls under the category "STUFF BREAKS". But, we all should have an emergency fund which we've slowly started building. One can argue that this is a reason to buy a new car (for the warranty), but you are basically paying that "new car" price and the auto warranty for whatever time is given.

I know some (yet very few) manufacturers are providing longer bumper-to-bumper warranties so that is a minor plus i guess.

In the end, if you have all the money in the world and could care less, then buying new cars probably works... but I would think it's not the case for the vast majority of us.

I hate buying used cars because I'm always afraid of getting a clunker.. but do your research to "minimize" that chance.

[WhoDat]

Yeah, for the most part people read it wrong. Without ruffling more feathers, I think people deep down inside are sick about going back to the same people that put them on this board. In return I think they take it out on me. Go back and read all my posts if you want to and you will find that I have told several people congrats on their card or whatever. I may say.....hey, I wouldn't have done it......but I am sorry that's just the truth. I am not going to change who I am.

I will not go back and read all your posts because I know you are not an a$$hole, and that you are trying to help others. Maybe it seamed that I was attacking you, but in all honesty, that was not my intention. I just do not agree with the generalization that everyone that bk'd is because of credit cards, or financing, etc. I do not disagree with your view about paying cash for everything. If you can and it works for your situation, great, roll with it, but understand that some folks here plan on buying a house in the future, or will have to finance a car, and to suggest that the only way to avoid another bk is to pay cash for everything, no credit cards, no financing, etc, well, I don't think that isn't the best advice IMHO. I am also not saying that everyone should get a credit card, or get financing. Now, if that is not what you were saying, please correct me. Maybe I am misunderstanding you.

That being said, I apologize to you LSU, if I came off as a weener. Please understand that I was not attacking you, and I apologize to the OP for derailing his/her thread.........and congrats with the approval!

[WhoDat]

I understand were you are coming from. That is why I tend to go for a CPO (Certified Pre Owned) vehicle. I purchased a CPO Acura that pretty much had the same warranty as a new car. For work I drive quite a bit between Detroit, Kalamazoo and Holland (Michigan). I also drive to Florida twice a year. I just feel a little more secured with the warranty, roadside assistance and loaner car. I get great service from the Acura dealership. Yes, I had a car payment for 3 years, but it was well worth the money on a car that has zero issues, not so much as a blown bulb, and the insurance on that is surprisingly low.

I don't foresee you having too many issues with your Hyundai.

I have purchased both new and used cars in the past. I cannot see if buying a new car ever makes sense (cash paid in full -or- financed). Even if you are financing at 0%, you are still immediately in debt for the amount of the vehicle you just purchased.

Going back to buying a new car with 100% cash down... I'm going to go to the extreme and pretend to purchase a $50k vehicle. Was it really worth $25k to ride that thing new for 2 years? Because those expensive vehicles lose a ton of value only after a couple of years (in general).

I bought a used Hyundai commuter this year for around $4k. Even though I don't have a car payment (which I'm thankful for), and even though it's only about 5 years old, I dread the day it breaks down and I have to pay to have it fixed. But that's one of those unforeseen circumstances that falls under the category "STUFF BREAKS". But, we all should have an emergency fund which we've slowly started building. One can argue that this is a reason to buy a new car (for the warranty), but you are basically paying that "new car" price and the auto warranty for whatever time is given.

I know some (yet very few) manufacturers are providing longer bumper-to-bumper warranties so that is a minor plus i guess.

In the end, if you have all the money in the world and could care less, then buying new cars probably works... but I would think it's not the case for the vast majority of us.

I hate buying used cars because I'm always afraid of getting a clunker.. but do your research to "minimize" that chance.

[backtoschool]

I have purchased both new and used cars in the past. I cannot see if buying a new car ever makes sense (cash paid in full -or- financed). Even if you are financing at 0%, you are still immediately in debt for the amount of the vehicle you just purchased.

Going back to buying a new car with 100% cash down... I'm going to go to the extreme and pretend to purchase a $50k vehicle. Was it really worth $25k to ride that thing new for 2 years? Because those expensive vehicles lose a ton of value only after a couple of years (in general).

I bought a used Hyundai commuter this year for around $4k. Even though I don't have a car payment (which I'm thankful for), and even though it's only about 5 years old, I dread the day it breaks down and I have to pay to have it fixed. But that's one of those unforeseen circumstances that falls under the category "STUFF BREAKS". But, we all should have an emergency fund which we've slowly started building. One can argue that this is a reason to buy a new car (for the warranty), but you are basically paying that "new car" price and the auto warranty for whatever time is given.

I know some (yet very few) manufacturers are providing longer bumper-to-bumper warranties so that is a minor plus i guess.

In the end, if you have all the money in the world and could care less, then buying new cars probably works... but I would think it's not the case for the vast majority of us.

I hate buying used cars because I'm always afraid of getting a clunker.. but do your research to "minimize" that chance.

I see where you are coming from. But all cars cost money, and that money has to be either saved up, or you can pay for the car over time. If you are paying interest under 5%, and buying a relatively reasonable car, the cost of paying the the car off over time is not that much. (several hundred dollars a year). If you make extra payments, then the cost is even lower. This only holds true of course if you pay off the loan in full, and/or hold onto the car a couple of years after paying it off. Trading in a car that is underwater is usually a big mistake.

It's a personal choice, I agree. I prefer new cars because I just do not want to inherit someone else's problems which is why I will never buy used cars. There is always a reason people get rid of a used car.

[LSUTiger32]

In the end, if you have all the money in the world and could care less, then buying new cars probably works....but I would think it's not the case for the vast majority of us.

Could not agree more if I tried. This is why the only way I will do it is with cash and a long time from now when I can afford to take the hit.

WhoDat.....no problems man. I can understand wanting to buy a house, but too many people use that as their excuse to get a insane car loan and credit cards from anyone that will give you one. A small car loan of say $5,000 and one $300 secured credit card build your credit up just as much as a $2,000 unsecured card and a $34,000 car loan at 19.9% interest (freaking retarded.) The ones that really drive me nuts are the people looking to do these things 4 days after their discharge.

By the way, why WhoDat. I see you are in Michigan. Obviously you noticed that I live and freaking die with the black and gold!

[backtoschool]

I understand were you are coming from. That is why I tend to go for a CPO (Certified Pre Owned) vehicle. I purchased a CPO Acura that pretty much had the same warranty as a new car. For work I drive quite a bit between Detroit, Kalamazoo and Holland (Michigan). I also drive to Florida twice a year. I just feel a little more secured with the warranty, roadside assistance and loaner car. I get great service from the Acura dealership. Yes, I had a car payment for 3 years, but it was well worth the money on a car that has zero issues, not so much as a blown bulb, and the insurance on that is surprisingly low.

I don't foresee you having too many issues with your Hyundai.

I actually think certified pre owned vehicles are a good buy because the depreciation has already been taken out of the vehicle. If you want a "luxury" car but don't want to pay the overblown prices for a new one, certified pre owned cars are a great idea.

[Logan]

I see where you are coming from. But all cars cost money, and that money has to be either saved up, or you can pay for the car over time. If you are paying interest under 5%, and buying a relatively reasonable car, the cost of paying the the car off over time is not that much. (several hundred dollars a year). If you make extra payments, then the cost is even lower. This only holds true of course if you pay off the loan in full, and/or hold onto the car a couple of years after paying it off. Trading in a car that is underwater is usually a big mistake.

It's a personal choice, I agree. I prefer new cars because I just do not want to inherit someone else's problems which is why I will never buy used cars. There is always a reason people get rid of a used car.

I'm with you Backtoschool. IMO when buying a new car you should put enough down so when you drive off the lot you are not upside down and you should be able to easily make your monthly payments plus some. My current car loan allows me to put money into a ROTH IRA rather than payoff the loan and I'm up well over the 4.5% I'm paying in interest for my car.

Logan

[LSUTiger32]

I'm with you Backtoschool. IMO when buying a new car you should put enough down so when you drive off the lot you are not upside down and you should be able to easily make your monthly payments plus some. My current car loan allows me to put money into a ROTH IRA rather than payoff the loan and I'm up well over the 4.5% I'm paying in interest for my car.

Logan

How does a car loan allow you to put money into a ROTH? If you have $800 a month to work with and you are spending $400 on a car note and $400 on the ROTH then you are investing $400 at 10% and paying 4.5% to the bank for the use of the money that generates the $400 car note. If you had no car note, you could be putting in $800 a month in at 10%. Am I missing something?

[Logan]

How does a car loan allow you to put money into a ROTH? If you have $800 a month to work with and you are spending $400 on a car note and $400 on the ROTH then you are investing $400 at 10% and paying 4.5% to the bank for the use of the money that generates the $400 car note. If you had no car note, you could be putting in $800 a month in at 10%. Am I missing something?

Since I bought my car I have contributed 8K to my ROTH. I owe 11.5K on my car. I could have put that 8K against the car or into the ROTH and I chose the ROTH which is outperforming the 4.5% for the car loan.

I could have a car loan with 3.5K remaining but then I would have a ROTH IRA with a 0 balance.

Logan

PS..My loan on the car was 22K last November