Dear Rich, I have real bad credit - Financial Management

Carly22 · 08-06-2009, 01:23 AM

I have been through a divorce and that KILLED my credit and my husband isn't the brightest when it comes down to financial situations. Our credit is destroyed. Our current situation is really bad b/c since pcs'ing I can't find a job and we only have one car so I extremely limited to where I can work to begin with. Our pay was cut atleast 75% due to no BAH and me not working. SO, what we figured we could do is get another car so I could expand area of opportunity. Although it seems ridicules to add to the debt we already have I feel like this risk is our only option to try to get out of the hole we're in.

My question is, Is it smarter to attempt a personal loan to buy a cheap used car with liability insurance or attempt a miracle and finance a newer car?

Also how does one with EXTREMELY bad credit go about getting financed to begin with?

P.S. My husband is active duty, I didn't know if that would make a difference in loan availibilty.

Thanks for your help!

FishersWifey · 08-07-2009, 12:41 AM

Originally Posted by Carly22

I have been through a divorce and that KILLED my credit and my husband isn't the brightest when it comes down to financial situations. Our credit is destroyed. Our current situation is really bad b/c since pcs'ing I can't find a job and we only have one car so I extremely limited to where I can work to begin with. Our pay was cut atleast 75% due to no BAH and me not working. SO, what we figured we could do is get another car so I could expand area of opportunity. Although it seems ridicules to add to the debt we already have I feel like this risk is our only option to try to get out of the hole we're in.

My question is, Is it smarter to attempt a personal loan to buy a cheap used car with liability insurance or attempt a miracle and finance a newer car?

Also how does one with EXTREMELY bad credit go about getting financed to begin with?

P.S. My husband is active duty, I didn't know if that would make a difference in loan availibilty.

Thanks for your help!

It might be possible to finace a newer car. But, you will get a killer interest rate.
My good friend put half down on her hubbys car (20k was half) and he has decent credit, but their interest rate is 16.99%.

I would try and get a small personal loan and get a car that will just get you to and from work.

Also, if you dont mind me asking how do you have no BAH?

Carly22 · 08-07-2009, 10:29 AM

Because we live on post.

rosebud* · 08-07-2009, 10:49 AM

financially speaking try and buy a car out right. with the economy as it is you will be hard pressed to get a loan either way. Plus if you get a new car ( with a crappy rate) your payment will be high which could potentially harm you. Best bet is to try and save to buy a car ( used) out right.

As far as taking out a 'smaller loan' unless you are talking about say under 3K as a personal loan you will more than likely have to take out a vehicle loan if the price of the car is more than that.

itsalwaysme · 08-07-2009, 10:59 AM

Can your husband not carpool until you get a job, then buy a car once you have an income. Were you living with family before, and thats why moving onto post has taken a hit to your income? Otherwise I would just think not having to pay rent/utilities would equal out the BAH.

JustMrsJoann · 08-08-2009, 12:47 AM

We use to not have such great credit, but, we have been doing the Dave Ramsey and it's worked a lot!!

I wish you the best of luck!

08-06-2009, 01:23 AM	#1 (permalink)
Carly22 Member Join Date: Jul 2009 Location: Fort Knox Posts: 45 Classifieds: (0) Activity: 5% Longevity: 16%	Dear Rich, I have real bad credit I have been through a divorce and that KILLED my credit and my husband isn't the brightest when it comes down to financial situations. Our credit is destroyed. Our current situation is really bad b/c since pcs'ing I can't find a job and we only have one car so I extremely limited to where I can work to begin with. Our pay was cut atleast 75% due to no BAH and me not working. SO, what we figured we could do is get another car so I could expand area of opportunity. Although it seems ridicules to add to the debt we already have I feel like this risk is our only option to try to get out of the hole we're in. My question is, Is it smarter to attempt a personal loan to buy a cheap used car with liability insurance or attempt a miracle and finance a newer car? Also how does one with EXTREMELY bad credit go about getting financed to begin with? P.S. My husband is active duty, I didn't know if that would make a difference in loan availibilty. Thanks for your help! __________________ http://www.youdata.com/join/carly22

08-07-2009, 10:29 AM	#3 (permalink)
Carly22 Member Join Date: Jul 2009 Location: Fort Knox Posts: 45 Classifieds: (0) Activity: 5% Longevity: 16%	Because we live on post. __________________ http://www.youdata.com/join/carly22

08-07-2009, 10:49 AM	#4 (permalink)
rosebud* i didn't realize that the USSR was back. Join Date: Nov 2005 Location: [communist china] Posts: 32,708 Classifieds: (0) Activity: 7% Longevity: 71%	financially speaking try and buy a car out right. with the economy as it is you will be hard pressed to get a loan either way. Plus if you get a new car ( with a crappy rate) your payment will be high which could potentially harm you. Best bet is to try and save to buy a car ( used) out right. As far as taking out a 'smaller loan' unless you are talking about say under 3K as a personal loan you will more than likely have to take out a vehicle loan if the price of the car is more than that. __________________ I will miss you SOS... Please be wary of what you post remember OPSEC is not just another acronym.

08-08-2009, 12:47 AM	#6 (permalink)
JustMrsJoann is counting down the days.. Join Date: May 2008 Location: San Diego, CA Posts: 5,296 Blog Entries: 3 Classifieds: (2) Activity: 0% Longevity: 34%	We use to not have such great credit, but, we have been doing the Dave Ramsey and it's worked a lot!! I wish you the best of luck! __________________ Mommy to Gavin and Tristan Wife to Nick.

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08-07-2009, 10:59 AM	#5 (permalink)
itsalwaysme I'm lucky I'm in love with my best friend. Join Date: Mar 2008 Location: San Diego Posts: 4,939 Classifieds: (3) Activity: 0% Longevity: 37%	Can your husband not carpool until you get a job, then buy a car once you have an income. Were you living with family before, and thats why moving onto post has taken a hit to your income? Otherwise I would just think not having to pay rent/utilities would equal out the BAH.