Bad credit/getting approved for lease

[bmwM5_x]

Ok here is the situation.
I have pretty bad credit (haven't been paying bills on time for about a year) and I just recently been brushing up my credit (pay bill on time etc for 3 months now)

I am hoping to buy a G35 or an IS350 would they approve me for a finace?

what would be a good way to go, get a bank loan and pay off the entire car or try to approve for a lease.

thanks alot

[Pee_Sack]

Once you have bad credit it is going to take more than 3 months to rebuild it.

[bmwM5_x]

Originally posted by Pee_Sack
Once you have bad credit it is going to take more than 3 months to rebuild it.

yeah which burn me in the arse but any suggestion how to clean it up in a year? planing to get it around xmas which is one year for my permanent job + one year since i started to rebuild my credit

help

[Mr. Burns]

I think it is around 7 years for bad credit to come off your file. I could be wrong.

[bmwM5_x]

Originally posted by Mr. Burns
I think it is around 7 years for bad credit to come off your file. I could be wrong.

not for this kind of bad credit
only if they contacted the collection agency and you still doesnt pay them

[Pee_Sack]

Originally posted by bmwM5_x


not for this kind of bad credit
only if they contacted the collection agency and you still doesnt pay them

I thought there was only one kind of bad credit?

You don't pay your bills on time you get bad credit

[94SSEi]

Sorry, I would look at other options than buying a new car so soon. It can take years to repair bad credit, but it really depends on just how bad it is.

[bmwM5_x]

Originally posted by 94SSEi
Sorry, I would look at other options than buying a new car so soon. It can take years to repair bad credit, but it really depends on just how bad it is.

so what would you guys prefer to me to do ater one year. will they approve me for a lease or would i get approved from the bank?

[EK 2.0]

Give Greg at CMS a call. He specializes on credit re-builds.

291-5646...Greg

[gp36912]

i thought it was 7 years once you declare bankruptcy

[theken]

i didnt pay bills on time and stuff, never missed payments or anything, i got appproved for a 35,000 truck and a house, so just depends on how much u make

[w3apon]

imo, forget buying a status symbol car, that will just get you in more debt.
Get a consolidation loan and pay off your debts completely.
Suck up your ego for a year or two and then you can think about getting a 35K+ car.

[silva27]

I have till 2008 then my credit is clear up. They told me it would take 6yrs to clear my credit, so here I am waiting till the time comes when I could get the things I want without money up front.

[90s_tuner]

Originally posted by theken
i didnt pay bills on time and stuff, never missed payments or anything, i got appproved for a 35,000 truck and a house, so just depends on how much u make

that makes no sense. If you didn't pay a bill on time, you missed a payment.

[theken]

no they eventually got paid, they were paid within the month, not like i didnt pay them

[max_boost]

It takes time to build credit. Consistency over years is the key. You'll probably get approved if you know someone that can work the system for you but the interest rate is going to be high. My buddy got approved for a $50k loan but because of his lack of credit history, the interest rate was going to be 17%. That's INSANE. :rofl: :eek: :nut:

[Sorath]

there are different levels of credit rating, i think theres 5

r1 being u never missed payments
r2 being u missed payments but paid them off within 30 days
r3 being u missed payments but paid them off within 60 days
r4 being u missed payments buy paid them off within 90 days
r5 being collection agency has been contacted

i think its something on the lines of that

[Curious]

Put down a, "BIG" down payment, prove you have consistant income to pay for the monthly payments and you'll have no problems getting a loan. One catch though, like stated above, expect a high interest rate.

[bmwM5_x]

thanks mod for the topic change

thanks guys

yeah I would be considered an R5 having collection agency contacted several time about half year ago. But i cleared up all my debt since then so I should be good if i show consistency in bill payment for another half year or so? Total of one year consistency for payment would get me approved for a 30K loan or get approved for a 50K lease payment car???

and I lost a video from block buster and they mailed me saying they will call the collection agency if nothing is done? would that be an R5 as well???

thanks in advance guys

[MIWYFSHOTTER]

Originally posted by bmwM5_x
thanks mod for the topic change

thanks guys

yeah I would be considered an R5 having collection agency contacted several time about half year ago. But i cleared up all my debt since then so I should be good if i show consistency in bill payment for another half year or so? Total of one year consistency for payment would get me approved for a 30K loan or get approved for a 50K lease payment car???

and I lost a video from block buster and they mailed me saying they will call the collection agency if nothing is done? would that be an R5 as well???

thanks in advance guys

it's going to take wayyy longer than a year.

You're credit score right now is probably like 200... my score goes up like 30-50 points a year and I have 5 credit cards always almost paid on time, I missed I think two payments by a couple of days but it won't show up on your report; its only temporary held on file by the CC company for a few months just so that you don't get an increased limit.

They go by your credit score/history. I suggest you pull your file up for 20 dollars and see what is on there because some companies don't give you bad credit.

to get a lease on a car, you are going to need a 700+ credit rating.

[benyl]

Your R5 status will not likely change for 7 years until the issues are removed from your record.

You have to be good for the next 7 years to clean up your credit... not 6 months.

[Oz-]

Originally posted by Sorath
there are different levels of credit rating, i think theres 5

r1 being u never missed payments
r2 being u missed payments but paid them off within 30 days
r3 being u missed payments but paid them off within 60 days
r4 being u missed payments buy paid them off within 90 days
r5 being collection agency has been contacted

i think its something on the lines of that

Pretty much spot on

Number Rating
R0 Too new to rate; approved but not used
R1 Pays within 30 days of billing, or pays as agreed
R2 Pays in more than 30 days but less than 60 or one payment past due
R3 Pays in more than 60 days but less than 90 or two payments past due
R4 Pays in more than 90 days but less than 120 or three or more payments past due
R5 Account is at least 120 days past due but is not yet rated R9
R6 No rating exists
R7 Paid through a consolidation order, consumer proposal or credit counselling debt management program
R8 Repossession
R9 Bad debt or placed for collection or bankruptcy

[90s_tuner]

You are pretty much screwed. Unless you get a co-signer, you have almost no chance in getting approved for a home or car loan/lease.

[Xtrema]

Originally posted by bmwM5_x
Ok here is the situation.
I have pretty bad credit ......

I am hoping to buy a G35 or an IS350.......

What's wrong with this picture?

It's not like you won't get a loan, you're just too risky for dealers or major finanical institutes. And with your rating, you wan't get any good deals borrowing for many years to come. You'll probably get it for a very high rate like the 17% Max mentioned.

Also, assuming that you got approved, this $40-$50K car will go on your file and wipe out basically your chance to get other loans. Unless your income can justify it.

[bmwM5_x]

so there is nothing i can do at this moment? my best bet to get an is350 is thru a bank loan?

[G]

Originally posted by bmwM5_x
so there is nothing i can do at this moment? my best bet to get an is350 is thru a bank loan?

Your best bet is driving what you can afford.

[Xtrema]

Originally posted by bmwM5_x
so there is nothing i can do at this moment? my best bet to get an is350 is thru a bank loan?

Get your FICO score from equifax.ca. If you score less than a 550, not many people will lend you the money. And from what you described, you're really living beyond your means, ie you can't afford it.

[yellowsnow]

yeah... unless you're willing to pay a crazy high interest on your loan, i doubt any place would be willing to loan u for a g35... unless you have some kind of collateral. you can get a home equity line of credit, which uses your home as collateral.

talk to your bank, and see if they can help you out

[bmwM5_x]

hey guys i know but i just recently grad from school and got a high paying job and I do have about 10000 on hand for down payments etc, will that help?

[benyl]

Why don't you talk to your bank? Pick up the phone and dial.

[94SSEi]

Originally posted by G


Your best bet is driving what you can afford.

:werd: The system thrives on people like yourself, constantly living outside of their means.

[D. Dub]

Originally posted by benyl
Why don't you talk to your bank? Pick up the phone and dial.

Thats the best advice in this thread..talk to your bank, go to a few dealers and try to make a deal.

Listening to all the "credit experts" on this site won't get you anywhere.

[D. Dub]

Originally posted by 94SSEi


:werd: The system thrives on people like yourself, constantly living outside of their means.

The OP said he has a high paying job..how do you know what he can or can't afford?

[94SSEi]

Because if he could honestly afford it, without racking up insane amounts of debt at interest rates a credit card company would balk at, we wouldn't be having this discussion, would we?

No, he'd be out cruising the streets in a new IS350 and we'd probably be arguing about ricers or something to that effect.

[bmwM5_x]

Originally posted by 94SSEi
Because if he could honestly afford it, without racking up insane amounts of debt at interest rates a credit card company would balk at, we wouldn't be having this discussion, would we?

No, he'd be out cruising the streets in a new IS350 and we'd probably be arguing about ricers or something to that effect.

well thats why I am here to listen to some advice show some respect I m not here to start a heated flame thread

well the thing was for the past year I was in alot of debt due to school expenses while I m struggling to make 1000 bucks/month well now it has finally paid off and I m into my career now but bc of my debts from before I ended up asking how to repair my credit.

once again I have 10K on hand saved up and do have a highpaying or relatively stable income

[bmwM5_x]

Originally posted by D. Dub


Thats the best advice in this thread..talk to your bank, go to a few dealers and try to make a deal.

Listening to all the "credit experts" on this site won't get you anywhere.

Thanks D.Dub and thats exactly what I am going to do, hopefully I can get a loan from the bank and buy the whole car out, paying a bit more for interest i can afford it just hope it works out

[94SSEi]

Originally posted by bmwM5_x


well thats why I am here to listen to some advice show some respect I m not here to start a heated flame thread

well the thing was for the past year I was in alot of debt due to school expenses while I m struggling to make 1000 bucks/month well now it has finally paid off and I m into my career now but bc of my debts from before I ended up asking how to repair my credit.

once again I have 10K on hand saved up and do have a highpaying or relatively stable income

You're right, I didn't have to be so callous. I apologise.

If you just got out of school, and are just getting into your career, then take some time and build up your credit (as you are trying to do). It will pay off for you when you want to mortgage a house, etc.

I guess my only bit of advice would be not to worry about jumping into such an expensive car so soon.

[bmwM5_x]

Originally posted by 94SSEi


You're right, I didn't have to be so callous. I apologise.

If you just got out of school, and are just getting into your career, then take some time and build up your credit (as you are trying to do). It will pay off for you when you want to mortgage a house, etc.

I guess my only bit of advice would be not to worry about jumping into such an expensive car so soon.

Yeah I am doing alot of research bc my actual target date is xmas or end of 2006 where i can shop for better deal on 2006 cars ie the 350. So basically came down to how i can repair my credit in 9 months

[HuMz]

Originally posted by bmwM5_x


well thats why I am here to listen to some advice show some respect I m not here to start a heated flame thread

well the thing was for the past year I was in alot of debt due to school expenses while I m struggling to make 1000 bucks/month well now it has finally paid off and I m into my career now but bc of my debts from before I ended up asking how to repair my credit.

once again I have 10K on hand saved up and do have a highpaying or relatively stable income

The only way your gonna know for sure if you shop around and make some calls, but having worked with a guy who was the last step before Bankrupty, it take's him 4 or 5 year's before he can get good credit back......Reality is, buying a luxury car is the last thing you should be thinking about, you wouldn't even be able to get a morgage right now never mind financing for a car......


How about take that 10 grand and buy something in that price range you can afford with your credit, then you will probably just have to rent until your credit inproves enough too buy a house 4 or 5 year's down the road (assuming you don't own your own home already)

[HuMz]

Originally posted by bmwM5_x


Yeah I am doing alot of research bc my actual target date is xmas or end of 2006 where i can shop for better deal on 2006 cars ie the 350. So basically came down to how i can repair my credit in 9 months

It's a harsh reality but the fact is your credit cannot be repaired that drastically in 9 month's

[nusneak]

I think its called credit 'history' because they like to see that month after month year after year you pay your bills ontime and how much is required of you. That is the point of 'history' to see how sketchy of a person you are to loan money, if you have trouble paying your bills wtf are you looking at a lexus for? You need a lada or a old rusty honda civic.

[asuth077]

Just go into your bank and speak to someone. It will do you a whole lot more good than just hearing the same thing over and over again on here. Talk to someone and explain that you had bad credit about a year ago while you were in Grad school but since then you have graduated and now have a "high-paying job."

They might tell you to take a while to re-build it, they might tell you they can loan it to you with a big down payment and high interest rates, or they may suggest you speak to someone else.

The point is just go in and talk to someone openly and hear what you need to do. That way you know forsure.

[bmwM5_x]

Originally posted by HuMz


It's a harsh reality but the fact is your credit cannot be repaired that drastically in 9 month's

yeah reality hurts.

but would it improve to a point where i can get a 20000 bank loan + my own saving and buy out entire lease payment for a lexus???

Thanks for all your advice guys at this point i really need it:cry:

[bmwM5_x]

Originally posted by nusneak
I think its called credit 'history' because they like to see that month after month year after year you pay your bills ontime and how much is required of you. That is the point of 'history' to see how sketchy of a person you are to loan money, if you have trouble paying your bills wtf are you looking at a lexus for? You need a lada or a old rusty honda civic.

I have a brand new honda thank you very much and its not rusty
keyword I use to have problem paying my bills due to my tuition and schooling fees. please read then post

[bmwM5_x]

Originally posted by asuth077
Just go into your bank and speak to someone. It will do you a whole lot more good than just hearing the same thing over and over again on here. Talk to someone and explain that you had bad credit about a year ago while you were in Grad school but since then you have graduated and now have a "high-paying job."

They might tell you to take a while to re-build it, they might tell you they can loan it to you with a big down payment and high interest rates, or they may suggest you speak to someone else.

The point is just go in and talk to someone openly and hear what you need to do. That way you know forsure.

:thumbsup: thanks appriciate your help
i just called my friend at TD canada trust, she said that at this moment i need a big down payment but didnt say how big of a downpayment. anyone here have exp in downpayment for a car?

[94SSEi]

My friend financed a 2005 Jeep TJ Rubicon. Cash price was around $25000 and he had little credit history (fairly young) and a maxxed Visa. They made him put down $5000 (20%) in cash (in other words nothing on a credit card or anything like that), in order for him to get the financing, and his interest rate is pretty bad.

Plus the dealer told the credit agency (or whatever) that he was "paying his Visa off next month," which was total BS.

How much is a IS350 worth? $55000?

[Xtrema]

Originally posted by bmwM5_x


:thumbsup: thanks appriciate your help
i just called my friend at TD canada trust, she said that at this moment i need a big down payment but didnt say how big of a downpayment. anyone here have exp in downpayment for a car?

Becareful of loans applications. Any rejected applications will also leave a bad mark on your credit report. Your friend @ TD should be able to give you a better picture what you can try for.

As for the downpayment you need is basically, total car cost minus what the creditor willing to lend. If the banks say willing to get you a unsecure line of credit of $20K @ 9%, you'll have to come up with the other $30K for your car.

[bmwM5_x]

is350 starts off around 48k

so I can't just get a loan and pay off the entire lease payment? I have to get a loan and pay off the entire car???

[Xtrema]

Originally posted by bmwM5_x
is350 starts off around 48k

so I can't just get a loan and pay off the entire lease payment? I have to get a loan and pay off the entire car???

Leasing is differnet than buying/financing.

You don't have to talk to the bank when you lease, just who you lease it from, be that the dealer or leasing company.

They will go over the term of the lease with you, such as how much is security deposit, monthly payment, length of term, allowed km, end of lease buy out and early termination.

With a lease, the bigger downpayment you have, the less monthly payment you have to pay and buy out price at the end of term would be lower.

A base IS350 with a 60month lease was quoted @ $836/month by Lexus.ca with 0 down.

[bmwM5_x]

Originally posted by Xtrema


Leasing is differnet than buying/financing.

You don't have to talk to the bank when you lease, just who you lease it from, be that the dealer or leasing company.

They will go over the term of the lease with you, such as how much is security deposit, monthly payment, length of term, allowed km, end of lease buy out and early termination.

With a lease, the bigger downpayment you have, the less monthly payment you have to pay and buy out price at the end of term would be lower.

A base IS350 with a 60month lease was quoted @ $836/month by Lexus.ca with 0 down.


so my chances would be higher for an lease approval? if not can I get the whole LEASE PAYMENT for example 36 months from the bank?

these advices are great thanks guys:thumbsup:

[dragonone]

maybe try equifax
the real determinant here is ur credit score
they have a real time updating of ur score
r u in debt at all?
only real way to boost it quickly is to pay off all ur debts

[bmwM5_x]

Originally posted by dragonone
maybe try equifax
the real determinant here is ur credit score
they have a real time updating of ur score
r u in debt at all?
only real way to boost it quickly is to pay off all ur debts

some how www.equifax.ca is not working for me bummer

yeah I paid off all my debt for 3 months now and my friend at TD said my account on there looks fine?:dunno:

[w3apon]

Try calling the Credit Counselling Services of Alberta.

Banks are NOT your friend and are NOT looking for your best interest and are NOT going to give you the best advise.

https://www.creditcounselling.com/
Calgary: (403) 265-2201 or
toll-free information line at 1-888-294-0076

[Xtrema]

Originally posted by bmwM5_x
so my chances would be higher for an lease approval? if not can I get the whole LEASE PAYMENT for example 36 months from the bank?

The whole point of the lease is so that you don't have to ask the bank for a loan. And there's some write off oppertunity if you own/operate a business. Lease ain't free, and Lexus lease rate is 8%. And if your going for a shorter lease, payment will adjust payment will go up because you have less time to pay for high depreciation cost.

For exmaple, say that you go with 0 down, 840/month, 60month with a buyout of $20K. After 5 years and you decided to own the car, you would've paid $70K for a $53K car.

Remember, lease is alway more expensive than finance but give you more flexibility.

But I agree with Weapon that you should get some credit counselling. It doesn't sound like you are very knowledge in these matters. You probably don't want to make a mistake in handling your credit and become living paycheck by paycheck which lots of people seems to get themselve into.

[bmwM5_x]

sorry one thing to clearify I am looking into a LEASE not finace I think one of the mod changed my title but he mistaken me wanting a finace.

[90s_tuner]

YOU CAN DO IT!!!!:thumbsup:

[Black_ZX2]

Getting a lease is not very difficult unless you have abolutley terrible credit. I used be a salesman at a Ford dealership (I know, there is a huge difference between Ford & a Lexus but the basic principle should be similar) and we could get virtually anyone into a lease. A lot of people went for a finance but the only way they could get the vehicle was through a lease. Lease payments are always less money becasue you aren't paying for the whole car and becasue you only pay tax on each payment rather than the whole car. If you go in to do a lease pre-approval, only do one. If for some reason you are declined, do NOT go to another dealership for about 6 months. All applications are kept on file and it does go into your national credit file as well as Lexus' main database so they will know how many times you've applied. If you want a lease, don't go to your bank to borrow the money and pay it back to them. Lease rates from the dealer don't change based on the person, bank rates do, so if the Lexus rate is 8% right now, thats still better than you will get from your bank especially if your credit isn't great. Also, try not to get a consolodation loan. The bank looks at you as person that got themselves into finnancial trouble and will probably do it again (and most do). Instead, apply for a personal line of credit. I hope some of this helps.
Chris

[90s_tuner]

I have awesome credit (700+) but still can't get approved because of my age :thumbsup:

I'll stick to buying everything cash. Up until now, I haven't had an issues.

[HillBilly]

Originally posted by 90s_tuner
I have awesome credit (700+) :thumbsup:


I guess mine is magnificent then. 790

my wifes is in the 820's right now

[D'z Nutz]

Originally posted by bmwM5_x
sorry one thing to clearify I am looking into a LEASE not finace I think one of the mod changed my title but he mistaken me wanting a finace.

Fixed. That's why people need to start naming their threads more appropriately ;)

[max_boost]

Originally posted by 90s_tuner
I have awesome credit (700+) but still can't get approved because of my age :thumbsup:

I'll stick to buying everything cash. Up until now, I haven't had an issues.

How old are you? Do you have a steady job? Or always switching?
When I got approved for my first car loan $30k my rating was only at 684. I've filled out the same employer in all my applications and that was probably the deciding factor.


Originally posted by HillBilly



I guess mine is magnificent then. 790

my wifes is in the 820's right now


How old are you? I'm turning 25 in fall and I've been stuck at 762 for the past 1.5 years. Everytime I pull my file it says the same thing, the time for which my credit has been established is relatively short.

[HillBilly]

Originally posted by max_boost
How old are you? I'm turning 25 in fall and I've been stuck at 762 for the past 1.5 years. Everytime I pull my file it says the same thing, the time for which my credit has been established is relatively short.

I am 25, and wife is 26.

I paid for our entire wedding on a credit card and payed it off on monday following. That helped. The BMW I have right now I bought on my master card, and paid it off on the monday following. That also helped.

Just give it time I guess......

[bmwM5_x]

i am 21 and its a very steady good paying job. (good old engineering construction field) and i got the equifax printed out but it didnt give me a score on it :confused: just had a list of my inquiries and bank, debt info like that.

Hopefully I can be successful in buying the is350 I will sure take pic and keep you guys updated once i got my ride:thumbsup:

[90s_tuner]

Originally posted by max_boost


How old are you? Do you have a steady job? Or always switching?
When I got approved for my first car loan $30k my rating was only at 684. I've filled out the same employer in all my applications and that was probably the deciding factor.


Nineteen and trust me, its the age thing.