Check Credit No Qualification Refinancing
Q: I'm looking for some advice concerning my current financial situation. If there is a better place to find information or ask these questions, please point me in that way. Thank you in advance for any help you can give!
Here's my current situation: - I have $13000 in credit card debt. I'm currently in a credit management program, and am making $317/month in total payments to my four credit cards. The average interest of the four cards is around 12.5%. My credit score (Experian) is around 600, and is getting better slowly but surely. - I have about $25000 in student loans. The total monthly payment is around $150. - I have a new car that cost $31000. I got it with the 0 down, 0 interest, and 0 payments until February of 2003. I will refinance it in January of 2003, and have been putting money into savings to put down on the car. Note that I had to have a cosigner to get this (current) loan. - I am newly married and am renting an apartment. I am paying everything in cash now. I can afford everything (and a bit of savings), but it's tight. Here's what I'd like to do: - Pay off my debt (duh!). A credit score simulator I used at CreditExpert.com didn't seem to increase my score too much if my debts were lower (but my limits stayed the same). That may be caused by other factors on my report, though. - Keep my car, and refinance the loan (with a good down payment) such that the monthly payments aren't too much. I realize that selling the car is an option. However, my wife and I love this car, and by selling it I would take a loss on it, as the used value of these cars is currently low because of the 0-0-0 plan. - Get a house soon ?- perhaps by middle of next year if possible. I'd much rather build up equity instead of paying rent, and I can afford an acceptable house for the same amount I'm paying for rent. I've talked to a mortgage broker, and he noted that with the car loan, I wouldn't be able to qualify for very much at all. Note that my wife is still a student, so her income is not considered in the qualification. The broker suggested that if the car loan weren't in my name, I would qualify for a lot more (a price range that's acceptable). It would be possible for me to do this, but I don't know if I want to. However, real estate should be a good investment, so it might be to my benefit to swallow my pride and do this, at least until I can afford to have it all in my name. The broker also suggested that an FHA (I think that's what it was ?- no credit check and low down payment) loan would be best. - Be able to take my wife out to eat once in a while. :) I'm trying to figure out how to divide the money up from now until I have to start paying on the car. I could pay a lot off my credit or save more for the down payment on my car. Or perhaps I should divide my payments to include saving for a house now. This is a complex issue, which is why I'm asking for advice. What would help me most in the future (getting a house, or in general)?
if you want any more details/numbers, or if I've left out anything, just let me know! Any advice, guidance, anecdotes, warnings
A: First learn to live within your means. It's ridiculous to buy a $30k car when you have that much debt. Get rid of the car, buy a good used reliable no frills auto, cut up the credit cards, and don't take out any more loans until you pay off what you owe. Shop around for a lower interest rate on the credit card and consolidate all the loans to that one. Pay the credit cards off first. I don't know if it's wise to pay off the student loan early, but I personally would double the payment and pay it off, after the credit cards are paid off. When you get credit back, buy a house and quit renting. Only after you get a house and all your payments are under control should you consider a new car, but you are always better off buying used. .
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