Question for Sherbros who understand credit

[Dinotective]

So here's the deal. When I was a young man I got totally annihilated by identity theft. My credit and my history with the IRS were absolutely wrecked. Once I got that mess cleared up, I slowly started rebuilding with a credit card here and there and have managed to grind my score up into the mid 700s.

I'm currently in the market to get my first brand new car from a dealership. Truth is, it's totally within my ability to just buy a new car cash and be done with it then and there. However, I believe it would be in my best interest to finance just so that I can build on my credit history for the eventual date where I might want to someday buy my own home.

So here's my question; if I were to go with the finance option, how long would I have to go with the standard month-to-month payments in order to get some benefit out of it? Can I pay it off in a few months and have my credit history benefit? Should I drag it out for a year?

Like I said, I could pay it all off in a single check if I wanted to. But if I could drag it out for a bit to help my credit history, I would much rather do that.

Any advice and tips would be greatly appreciated.

Thanks,
~just a manchild trying to survive in this adult world

 

[Jack Reacheround]

Honestly, I don't know how long you would have to do it for your score to improve. But if your score is in the mid 700s, you're already good to go on buying a house.

 

[Cubo de Sangre]

Sounds like you're already good TS. Fuck paying interest if you don't have to.

 

[Dinotective]

Honestly, I don't know how long you would have to do it for your score to improve. But if your score is in the mid 700s, you're already good to go on buying a house.

See, what's the part that's confusing to me. My score is in a decent place, but I feel like if I tried to buy a house, they might look at my history and be like "wtf? you haven't even financed a CAR and you wanna get a house?!"

 

[weed]

my street cred game is pretty tight.

anyone want to fite me IRL?

 

[ToxicShocker]

just bought a car with 2.5 apr through a credit union. Go with the low APR and invest the cash where you can get a higher return. That way you come out ahead. If your credit is over 700 and you have a high income then you don't have to worry about being ready to buy a home. My credit is 830 but I don't have a high enough reported income to purchase now.

p.s. current mortgage rules hover around maximum mortgage being 30% of your income

 

[Dinotective]

Sounds like you're already good TS. Fuck paying interest if you don't have to.

Absolutely! Interest looks like a real bitch and I would of course rather NOT pay it. But I'm wondering if not at least having "bought this car and made all his payments on time" would be a factor, even if the credit score was in a decent place.

 

[Dinotective]

my street cred game is pretty tight.

anyone want to fite me IRL?

if i win, will you co-sign for me?

 

[Cid]

See, what's the part that's confusing to me. My score is in a decent place, but I feel like if I tried to buy a house, they might look at my history and be like "wtf? you haven't even financed a CAR and you wanna get a house?!"

Why would they do that? Not financing a car is a good thing. Why pay interest on something that depreciates...

 

[Dinotective]

Why would they do that? Not financing a car is a good thing. Why pay interest on something that depreciates...

No idea "why". This is all relatively new to me, so I'm just trying to wrap my head around it.

 

[Jack Reacheround]

See, what's the part that's confusing to me. My score is in a decent place, but I feel like if I tried to buy a house, they might look at my history and be like "wtf? you haven't even financed a CAR and you wanna get a house?!"

No, they will be fine with your score in the mid 700s. If you don't have any lines of credit though, they might no like that. But you'll still be fine.

 

[Cubo de Sangre]

Absolutely! Interest looks like a real bitch and I would of course rather NOT pay it. But I'm wondering if not at least having "bought this car and made all his payments on time" would be a factor, even if the credit score was in a decent place.

Can you see if you pre-qualify for a home loan and decide from there?

 

[Dinotective]

Can you see if you pre-qualify for a home loan and decide from there?

Yeah, I'm sure I could do that. I'm just trying to get ahead of it and understand how this whole thing works. As in: is it enough to have a good score; or is a good score only good enough if they can see you made X purchases and payments?

 

[weed]

if i win, will you co-sign for me?

 

[Dinotective]

p.s. current mortgage rules hover around maximum mortgage being 30% of your income

Not sure what this means. Does it mean a down payment of 30% Or monthly payment being 30% of your monthly gross?

 

[Dinotective]

Oh you

 

[Cid]

No idea "why". This is all relatively new to me, so I'm just trying to wrap my head around it.

Honestly I probably know less. I don't even know my credit score. Never had a credit card.

 

[ToxicShocker]

Not sure what this means. Does it mean a down payment of 30% Or monthly payment being 30% of your monthly gross?

they will only give you a mortgage that is equal to or less than 30% of your monthly take home (I think).

if you make 10k a month after taxes you qualify for a 3k a month mortgage.

 

[Cubo de Sangre]

Yeah, I'm sure I could do that. I'm just trying to get ahead of it and understand how this whole thing works. As in: is it enough to have a good score; or is a good score only good enough if they can see you made X purchases and payments?

Would like to think we had at least one banker here to help you out.

 

[Dinotective]

they will only give you a mortgage that is equal to or less than 30% of your monthly take home (I think).

if you make 10k a month after taxes you qualify for a 3k a month mortgage.

Gotcha. Sounds like I need to find a few more trans girls to rent out.