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The other night I was looking at a 2001 black mustang convertable...V6...otherwise fully loaded...automajic though...I had a pretty decent deal on the table for it...they where gonna gve me almost 6 grand on my focus, which has been unheard of so far...I didnt go for it becuase I really dont like the idea of putting down thousands of dollers just to get my negative equity out the window, but I did see my credit score...it's not terrible, but it definantly should be higher than it is. I have four late payments on my car loan, unfortunatly, since i got it..things happen, ya know? Anyway, they where telling me that if I get a new car loan, and close out this one (pay it off, start a new loan) it will raise my credit score, and the four late payments will not really matter. Is this true? or typical dealer bs? Would I be better off just paying the focus off (of course not being late the rest of the loan) I need to fix my credit problems...what is the best way to do it?

Earl
 

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Your credit score is a number built by many factors that banks use to determine how much of a risk you are. I would not expect increasing my total debt to make me more attractive for banks to give loans to. I would working on decreasing toe total debt as well as making payments on time to improve your credit score.

On another note - try to arrange financing independently of the car dealer. They tend to develop sweetheart deals with banks that benefit them if you pay higher interest.
 

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Here is some general advice:
Your credit score is actually two parts from Experian and Equifax when you finance a car. You have FICO (Your general credit rating) and you have an Auto FICO (automotive credit rating). Most finance co's will look at both for an auto loan. On both these are good score guidelines: 600 or less (Bad); 601-625 (okay); 626-650 (better); 651-675 (good); 676-700 (great) 701 or more (usually qualify for the lowest rates).

Your debt-load is the amount of money you owe in both secured (auto, mortgage, general) and unsecured (credit cards, charge cards) loans. THe lower your debt load the better your score and the better banks feel about financing you.

Some automakers are offering rates to those with good credit better rates than a bank (or credit union) can offer but only if you have good credit.

As for the high offer on your Focus and the explination of the better credit this is true and a lie. THe high offer on the Focus was because they balloned the price on the Stang and they were taking and adding it on to the "worth" of your focus. Your credit will improve with a complete auto loan (the truth). If you pay-off the rest of the negative equity your score will go up. Your score will also go back down because you have increased your debt load(The half-lie they didn't tell you). In short, a neutral or negative change in your credit score overall. As for the 4 late payments they won't affect your score if they never got reported. Call your financing co and ask if they reported the late payments. They will tell you. If they did it isn't that big of a deal about 10-15 off your FICO and Auto FICO.

I hope that helped.
 

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Hey, join a Credit Union if you can and secure your financing BEFORE you even go into a dealership. Negotiate your price. Don't let them sell you a payment.
 

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I have bought my last two new vehicles with prior financing through my credit union. Its like buying with cash, I know my limit, and what my intrest rates and payments would be before I start. they start talking payments, and I tell them to stop and tell me totals. Then, after I settle on the absolute lowest ball price on the vehicle, This can take over a month with me, only THEN do I reveal that I have a trade they need to take care of. They hate that, but if they want to sell, they will deal with you. Worked for me.
 

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Whats wrong with the focus? Just keep driving it until it blows up. They are cheap disposable cars. (I own a 03 ZTS) I bought my car brand new for about $13,500 And it will never be worth trading it in or selling it because you will alway lose on it. So just have fun driving it into the ground and worry about a new car once its paid for.
 

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I agree, the focus takes a huge nosedive in resale value right away, they are good commuter cars just drive it until it stops.

If you try to trade it in, the dealer will give you basically nothing for it. And used foci have a very low resale value (as do most cars in that class).

I say keep the focus nice for yourself and drive it, and if you want something fast or whatever, then get something used and pay cash for it if you can.
 
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