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Best Option for Building Credit


xJohnDoe001x
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Friends,

     For building credit which is better for increasing my score, a personal loan that is paid off in a year or two sequential loans paid off in a six months each?

 

I have a 766 score, I have $33K worth of revolving credit that stays around 3% of utilization, I never have had a late payments but until recently I didn't have any installment credit.

 

I opened an account with a credit union and borrowed $1K, added $170 and set up auto pay to pay the loan off in a year but my cerebral synaptic jungle goo fired off the opening question into my pituitary output mass.

 

So friends, please help mm with answers  to sooth the building pressure on my hypothalamus mmembran.

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5 minutes ago, xJohnDoe001x said:

I am under the impression that having a mix of different types of credit, revolving, installment, auto loans and mortgage, make for a higher score? 

this is true at the margins but ultimately not a major driver of FICO scores. I would never pay interest just for a few FICO points.

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Thank you for your response. I will consider paying it off soon to minimize the interest.

 

Anyway, my main problem is my low income, $1,060 a month. Not a problem for my score because it was once up to 826 but my income is barrier to getting a car loan.

 

I understand lengers thinking but I know that I can afford to buy a new EV and save $100 a month.

 

I even have an A, B, C and D plan if an obstacle to paying the loan arises.

 

The credit union offered me a $12K loan on a $22K car so if I keep saving $500 to $600 a month eventually I'll either get a loan or pay cash.

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20 minutes ago, xJohnDoe001x said:

Thank you for your response. I will consider paying it off soon to minimize the interest.

 

Anyway, my main problem is my low income, $1,060 a month. Not a problem for my score because it was once up to 826 but my income is barrier to getting a car loan.

 

I understand lengers thinking but I know that I can afford to buy a new EV and save $100 a month.

 

I even have an A, B, C and D plan if an obstacle to paying the loan arises.

 

The credit union offered me a $12K loan on a $22K car so if I keep saving $500 to $600 a month eventually I'll either get a loan or pay cash.

when it comes to secured loans such as an auto loan, as you've discovered approval is about a lot more than merely FICO scores. good luck :)

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On 10/16/2022 at 6:30 AM, xJohnDoe001x said:

I am under the impression that having a mix of different types of credit, revolving, installment, auto loans and mortgage, make for a higher score? 

 

Higher as in a few measly points.  

 

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On 10/16/2022 at 7:01 AM, xJohnDoe001x said:

Thank you for your response. I will consider paying it off soon to minimize the interest.

 

Anyway, my main problem is my low income, $1,060 a month. Not a problem for my score because it was once up to 826 but my income is barrier to getting a car loan.

 

I understand lengers thinking but I know that I can afford to buy a new EV and save $100 a month.

 

I even have an A, B, C and D plan if an obstacle to paying the loan arises.

 

The credit union offered me a $12K loan on a $22K car so if I keep saving $500 to $600 a month eventually I'll either get a loan or pay cash.

 

A potential lender would be absurdly stupid to NOT consider income when deciding a credit application.  

 

If your income is only $1,060 per month, you must be working part-time or have the suckiest job in the USA.  I'd say you are extremely lucky your CU even approved $12k.  

 

If you can save $500 a month you should be ok along as car prices do not rise.  By the way, have you thought of a bicycle or electric scooter.  I hear there are cheap Chinese bikes that are affordable.

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2 hours ago, PotO said:

I am retired but I am determined to get an EV even if I have to save up and pay cash.

 

I understand that lenders have a $2K or $1.5K minimal income rules, however, I asked to speak with their Credit Analyst to bypass the normal automated algorithm process to get the $1K loan. 

I am hoping that I can develop a relationship with her and prove to her that by my having a very large down payment and show her my strict money culture that I can fulfill my commitment. I want a '24 Chevy Equinox which gives me time to impress upon her my worthiness. 

2 hours ago, PotO said:

 

I already have a bicycle for backup transportation but the roads are getting too 'MadMax' for four wheels let alone two. 

 

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1 hour ago, xJohnDoe001x said:

I am hoping that I can develop a relationship with her and prove to her that by my having a very large down payment and show her my strict money culture that I can fulfill my commitment. I want a '24 Chevy Equinox which gives me time to impress upon her my worthiness. 

 

 

I seriously doubt they would be foolish enough to let a relationship or PR gimmicks influence their decision.  The law -- and banking regulators -- require them to lend according to your income.  It impossible they will risk a mega-million $ fine just because they believe you have a strict money culture.  

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On 10/15/2022 at 6:01 PM, xJohnDoe001x said:

Thank you for your response. I will consider paying it off soon to minimize the interest.

 

Anyway, my main problem is my low income, $1,060 a month. Not a problem for my score because it was once up to 826 but my income is barrier to getting a car loan.

 

I understand lengers thinking but I know that I can afford to buy a new EV and save $100 a month.

 

I even have an A, B, C and D plan if an obstacle to paying the loan arises.

 

The credit union offered me a $12K loan on a $22K car so if I keep saving $500 to $600 a month eventually I'll either get a loan or pay cash.

1) you claim to have a 766, although it is not indicated on what model of Fair Isaac scoring. 

2) If you have a legitimate Fair Isaac 766, then you would likely be in the preferred tier for most lenders IF other criteria are satisfied.

3) A grand a month doesn't get you much of a vehicle loan.  THAT is the problem you need to overcome, not score.

4) I am curious about the calculus that tells you that there is a savings of $100/mo on a new EV when balanced against increased insurance and the monthly loan nut when contrasted with either something paid off or is a very low monthly nut hooptie. 

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On 10/17/2022 at 7:55 AM, centex said:

1) you claim to have a 766, although it is not indicated on what model of Fair Isaac scoring. 

2) If you have a legitimate Fair Isaac 766, then you would likely be in the preferred tier for most lenders IF other criteria are satisfied.

3) A grand a month doesn't get you much of a vehicle loan.  THAT is the problem you need to overcome, not score.

4) I am curious about the calculus that tells you that there is a savings of $100/mo on a new EV

In my BofA app it gives me my Transunion's FICO which as 771, the NerdWallet app gives me a 766.


$177       Rent

$126        Donation

$150        Incidentals

$0            Food

+$0          Utilities =

$453

$1060-                   

$607       Current Savings ~


When I enter my credit score and the $7K that I have for a down payment into some lenders pre-qualified calculators I get a potential monthly payment of $350 to $450 a month and I also got insurance quotes of about $120 a month for the car that I wanted so

$450    Car Note

$120     Insurance

-$607    Sub Total

$37

+$70                   

=$100~    Monthly Savings


With some Quantum Calculations on a Chronometric Particle Number Cruncher I would save more than $100 being that I wwillbe ggetting  a COLA increase of about $770 in Januaryb, before a car purchase will happen.


FYI - if you pay less than $300 to $500 a month for rent some lenders will automatically put your rent to their minimum of $300 to $500 a month unless you tell them that you have documentation for the low rent.


That is how I live, I am a miserable person hating life with all my chronic pain and other maladys so I don't do anything. I am strict with money so can afford the car easily if I can get a loan.


I will not break myself with the down payment, I will have a few months of bill money and a few grand of credit for emergencies if I get a car.


Sometimes Life takes a squat on us from above. . . B A M and so we should be prepared with some toilet paper to clean up the mess that it blessed us with. 

 

I have an A, B, C, and D plan in case I realized that days are coming that I will not be able to pay the car note.

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14 minutes ago, xJohnDoe001x said:

In my BofA app it gives me my Transunion's FICO which as 771, the NerdWallet app gives me a 766.


$177       Rent

$126        Donation

$150        Incidentals

$0            Food

+$0          Utilities =

$453

$1060-                   

$607       Current Savings ~


When I enter my credit score and the $7K that I have for a down payment into some lenders pre-qualified calculators I get a potential monthly payment of $350 to $450 a month and I also got insurance quotes of about $120 a month for the car that I wanted so

$450    Car Note

$120     Insurance

-$607    Sub Total

$37

+$70                   

=$100~    Monthly Savings


With some Quantum Calculations on a Chronometric Particle Number Cruncher I would save more than $100 being that I wwillbe ggetting  a COLA increase of about $770 in Januaryb, before a car purchase will happen.


FYI - if you pay less than $300 to $500 a month for rent some lenders will automatically put your rent to their minimum of $300 to $500 a month unless you tell them that you have documentation for the low rent.


That is how I live, I am a miserable person hating life with all my chronic pain and other maladys so I don't do anything. I am strict with money so can afford the car easily if I can get a loan.


I will not break myself with the down payment, I will have a few months of bill money and a few grand of credit for emergencies if I get a car.


Sometimes Life takes a squat on us from above. . . B A M and so we should be prepared with some toilet paper to clean up the mess that it blessed us with. 

 

I have an A, B, C, and D plan in case I realized that days are coming that I will not be able to pay the car note.

 

A couple of observations.

 

NerdWallet does not provide a FICO Score.  They provide a Vantage Score which is pure 1,000% 💩.

 

Even if you plug a FICO Score into your pre-qual app, it is useless.  Unless you are going for a home mortgage, there isn't one single bank, credit card company or other reputable lender which uses your credit score to decide whether or not to approve your credit application.  The only data they consider is the information you provide on your application (Hello, income!), the raw data from your credit report(s) and any internal data they already have on you.  

 

Once they decide to approve your application, only then will your credit score come into play, if even then.  If they use your credit score, it is to determine certain terms of your account such as APR and, in very rare instances, your credit limit.

 

It's also important to note that FICO has multiple versions of their credit scores and each creditor may use a different one.  Assuming they use your score and it is roughly 771, you should get a very good APR and that will keep your payments a bit lower.  

 

You are totally correct in that life can be a biatch.  I applaud your efforts to take things in stride and to be totally prepared for multiple scenarios.  I hope things go very well for you.

 

 

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I am developing a keloid on my forehead where I keep pumping it against this low income financing wall.

 

I am looking for a pin hole or something to get in.

 

I am not mad at them, I see how people today use money badly.

 

They associate 'Living From Check to Check' with low income but it is really because buying stupid stuff and of not living in their means.

 

Not willing to be stingy for a couple of months to save up a month or two of bill money and guarding it hard from stupid desires to buy stupid stuff.

 

I arranged all of my bills to be paid in the first week of the month but I usually pay them in the last week of the previous month and I don't use auto pay, I must be consciously aware of my finances.

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2 hours ago, xJohnDoe001x said:

This thread is dead

 

It correlates with your IQ.

 

No reasonable person will ever consider income of $1,060 per month sufficient to justify a new car loan without a huge downpayment.  And maybe even then.

 

Housing expenses of $177 with no utilities and no food expenses signifies to a reasonable person that you live under a bridge abutment and live off food stamps.  A car payment of $450 per month is about 45% of your monthly income.  Given those facts, if any bank were to lend you what you wanted and you ultimately defaulted, banking regulators would have a field day.  And with a mere $100 cousin, your chances of default are astronomically high.

 

 

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PotO, questioning my IQ and suggesting that I live under a bridge is not something that a reasonable person would do, they would though wonder about your compassion, empathy and understanding about people who live under the poverty level.


Yes, I do get EBT, formally known as 'Food Stamps'. I also have Obama phone service, on a Galaxy S21. FYI, it is actually a Bush that gave the free phone service. I also get free 100 Mbs internet through the ACP program and my utilities paid by the C.S.E.T. Program.


I live in a one bedroom apartment in a subsidized senior community with a Big Fat Cat named Duke E. Zillah, he is laaaazy. And four kittens named, Punanie, coochie, Numbskull and Glitch. OK, so I am borderline cat horder.


Yes, a $450 car payment is large chunk of my income but had you check my math without the preconceived notions and marginalized me you would have realized that retired senior citizens are financially stable, and our income is secure.


A reasonable person would think that someone who has a secure income and a stable financial culture, is able to save $100 a month after paying their bills, including a car note, insurance and donating $126 to charity, has over $2K in savings and $23K of unutilized credit WOULD NOT DEFAULT ON THEIR CAR PAYMENT.


If my income stopped I would simply sell the car and pay off the balance.


Did I mention that I have $7K for a down payment now and am saving five to six hundred a month so by the time that the '24 Chevy Equinox is released I will have over half of the MSRP?


And Oh! I applied for a Electric Vehicle Incentives program that will give up to $9K towards the down payment and up to $4K rebates after the purchase of an EV.


I am going to to get an EV one way or another.

 

Edited by xJohnDoe001x
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14 minutes ago, xJohnDoe001x said:

PotO, questioning my IQ and suggesting that I live under a bridge is not something that a reasonable person would do, they would though wonder about your compassion, empathy and understanding about people who live under the poverty level.


Yes, I do get EBT, formally known as 'Food Stamps'. I also have Obama phone service, on a Galaxy S21. FYI, it is actually a Bush that gave the free phone service. I also get free 100 Mbs internet through the ACP program and my utilities paid by the C.S.E.T. Program.


I live in a one bedroom apartment in a subsidized senior community with a Big Fat Cat named Duke E. Zillah, he is laaaazy. And four kittens named, Punanie, coochie, Numbskull and Glitch. OK, so I am borderline cat horder.


Yes, a $450 car payment is large chunk of my income but had you check my math without the preconceived notions and marginalized me you would have realized that retired senior citizens are financially stable, and our income is secure.


A reasonable person would think that someone who has a secure income and a stable financial culture, is able to save $100 a month after paying their bills, including a car note, insurance and donating $126 to charity, has over $2K in savings and $23K of unutilized credit WOULD NOT DEFAULT ON THEIR CAR PAYMENT.


If my income stopped I would simply sell the car and pay off the balance.


Did I mention that I have $7K for a down payment now and am saving five to six hundred a month so by the time that the '24 Chevy Equinox is released I will have over half of the MSRP?


And Oh! I applied for a Electric Vehicle Incentives program that will give up to $9K towards the down payment and up to $4K rebates after the purchase of an EV.


I am going to to get an EV one way or another.

 

 

Compassion and empathy for those who live under the poverty level is not a problem.  Where it gets tricky is when you add an IQ < 4 to the mix.

 

While you can live and do so probably enter that some people who earn ten times what you do, you have serious issues understanding third grade math and banking regulations.  Banks like to lend money to people who don't need it.  The law mandates they look at your whole financial picture and failure to do so can result in multi-million dollar fines.  Any banker who wants to keep their job is going to look and say that after all your expenses you will have a cushion of $100.  What happens when, heaven forbid, you total the car and have to pay your insurance deductible of $500 or, with the quote they gave you, likely far more?  What happens if there's a medical emergency?  A fire?  Or any one of a hundred other catastrophic events?  

 

With the FICO you quoted, it seems you have good credit.  That helps you a lot.  But banks are mandated by law to lend according to your income or resources known to the bank.  

 

The 2024 Equinox will have a startling MSRP of, according to Chevy, around $30k.  If you have 1/2 that saved and get the incentives you mentioned, maybe you only have to borrow $10k and have monthly payments of around $200.  Banks would go for that.  I seriously doubt they will go for $20k or $25k. 

 

That your income is steady and you have mastered excellent financial habits goes towards getting your loan application approved.  Then the trick is how much they approve you for.  Again, the law mandates they use your income to decide how much to lend you.  You tell them your income and how much your housing costs are and they plug in their own values to determine expendable income and determine how much they will lend.  

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People, consider the. People in the world are poor primarily due to the activities of the rich. Poor people are the prime commodity for the rich.

 

If everyone had the same education and skills there would still be poor people because there are only so many middle class jobs.

 

Western economic requires poor people, there wouldn't be jobs that pay poverty incomes otherwise

 

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14 minutes ago, xJohnDoe001x said:

People, consider the. People in the world are poor primarily due to the activities of the rich. Poor people are the prime commodity for the rich.

 

If everyone had the same education and skills there would still be poor people because there are only so many middle class jobs.

 

Western economic requires poor people, there wouldn't be jobs that pay poverty incomes otherwise

 

 

Now it appears that one significant reason why you live in poverty is because you have the IQ of a dyslexic gerbil.  Congratulations!

 

People are poor because either they have made stupid choices in life or they were unlucky enough to be born in the wrong place at the wrong time.  Of course, spending 1/2 your adult life in prison isn't a huge help.

Edited by PotO
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You keep bringing up my IQ but someone with a normal IQ will not estimate my IQ with the information in this thread.

 

What they would have noticed and you did not is that I dispite having a poverty income I am not in want.

 

I pay my bills early, I have something to distribute to others in need and I have a few grands in savings and am talking about buying a new car.

 

Others might might say that it is a sign of a measure of some kind of cerebral activity. How did your high iq miss that?

 

I got out of the Consumer Matrix without the help of Morpheus. My eyes have been opened to the 'Buy' programming that permeates every aspect of our society.

 

All the products that actually does nothing or worse, does harm. I don't buy these things.

Edited by xJohnDoe001x
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You mentioned going to prison, consequently I went to prison for a crime that I didn't do many decades ago because a well off guy mistook me for some other drugy guy who had a long record of doing the same crime in the same way.

 

They offered me a deal that would have let me go on probation with no time but I couldn't confess to something that I did do.

 

We both went to prison for the same crime. I am still angry about it decades later. This the place where you say, "well you probably got away with a crime before so you probably deserved it"

 

I did not assume the Excon attitude, I am a man of honor, grungy raggedy ole coot but honorable and loveable.

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PotO, the is a forum where we share information on how to DO something you have been here telling me what I can not do.

 

You implied that you are good with math so tell me the answer to this problem.

 

Somewhere in this forum is someone who may need help that you can give so add up how many minutes that you have squandered flatulating hate calling me dumb and poor and not elsewhere helping someone?

Mic Drop

Edited by xJohnDoe001x
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