Financing need help finding financing with damage credit

[timswi]

In an earlier post a person talked about a study done of 780 vs 520. Information is 100% true - no guarantee on one vs the other - but studies have shown likelihoods and they are extremely high.

Also said normal shopping inquiries won't really harm your score vs 50 of them in a month will have some impact. Again 100% true. A while back many people believed every inquiry had impact - that has now been proven to be incorrect.

Also said Closing cards can lower your score. This is partially true. Closing a card is a good thing. But if you can't afford to pay the entire balance - you'll get the most bang for your buck if you pay it down to 50% or less of the credit available.

Also said keep them open and throw them in a drawer with a zero balance. I disagree - don't keep any credit cards in your drawer. A babysitter, maid and or friend of your children can borrow them... this plan is much too risky. If they are paid off I'd say shred them and close them if you don't intend to use them...

In any case, I'd recommend you and your significant other get together, discuss in great detail and then work towards the goal. Everyone has their own personal situation - the one for my household might differ from someone else. There are many ways to manage your credit - opinions will often differ.

Throwing the cards in a drawer was a metaphor, maybe I should have said throw them in a safe. My bad.

 

[ShannonCole888]

Will buying a Compact, or Utility tractor help build credit ? Does buying a Compact, or Utility tractor help your credit profile, or is it seen as a recreational, or leisure type item ? Does anyone know how lends judge seeing finacing a tractor on your credit profile ? Does anyone know if it is a plus, or a minus ?

 

[starkmojo]

My understanding is that any loan paid in full is good for your credit.

 

[crashz]

Will buying a Compact, or Utility tractor help build credit ? Does buying a Compact, or Utility tractor help your credit profile, or is it seen as a recreational, or leisure type item ? Does anyone know how lends judge seeing finacing a tractor on your credit profile ? Does anyone know if it is a plus, or a minus ?

Seems to me that it would help as long as you pay on time. I doubt credit agencies care what you buy as long as you pay on time. Could be a car, house, fancy dinner or tractor.

 

[starkmojo]

So my research into the financing a used tractor been interesting.

I have OK but not perfect credit (690 tri score), a fair amount of revolving debt related to the farm purchase and a good relationship with my credit union, albiet one that is in a major city. They do not do tractor loans.

My options are:

1) Put a used tractor on my existing line of credit. I dont want to because it would max out the line and it would be unsecured debt. Rebuilding credit this is a no-no. Interest rate would be 10%
2) Wait till January when my CD matures (8,000$) and buy a used tractor. This would still leave me with that existing credit from.
3) In Janaury, take the CD, pay off all my unsecured debt and finance a new tractor. Expensive! I sat on a new Mahindra and it was nice, but I dont see it justifying the addition thousands when I am probably going to be one of those people who pute 50-100 hours a year on a tractor.
4) Lease a tractor- it would be nice because I have plenty of groundwork to do now, that I am doing by beating an old JD lawnmower to death. I called a couple of these places and the payments are astronomical! one place wanted 700 for 36 months for a $7000 lease to own. If I could easily save $700 a month I would just wait ten months and buy the tractor! It seems like Usery to me, but because its a "lease" it probably isnt technically.

I was going back and forth between 2 and 3 when I called the local credit union in my rural area thats affiliated with my Urban CU- In a five minute phone call they told me that as soon as my revolving debt was below 33% available credit, they would do a loan at 7.8%. Higher than dealer financing, but with used tractors in my size range going for about 1/3 the cost of new, not terrible. Plus as the loan would be secured, it would not mean increasing my revolving debt.

From my research I would highly reccomend finding a local CU comfartable with these types of loans.

Hope this helps others.

 

[DavesTractor]

We finance used tractors via Mahindra Finance or Agri-Credit at 5.39%. It is generally limited to relatively modern tractors (and must be a common brand), and normally to a max of 48 months, but even that is flexible. You have to buy from a dealer to get that finance deal though, so it would not work for a private party purchase.

 

[ishiboo]

So my research into the financing a used tractor been interesting.

I have OK but not perfect credit (690 tri score), a fair amount of revolving debt related to the farm purchase and a good relationship with my credit union, albiet one that is in a major city. They do not do tractor loans.

My options are:

1) Put a used tractor on my existing line of credit. I dont want to because it would max out the line and it would be unsecured debt. Rebuilding credit this is a no-no. Interest rate would be 10%
2) Wait till January when my CD matures (8,000$) and buy a used tractor. This would still leave me with that existing credit from.
3) In Janaury, take the CD, pay off all my unsecured debt and finance a new tractor. Expensive! I sat on a new Mahindra and it was nice, but I dont see it justifying the addition thousands when I am probably going to be one of those people who pute 50-100 hours a year on a tractor.
4) Lease a tractor- it would be nice because I have plenty of groundwork to do now, that I am doing by beating an old JD lawnmower to death. I called a couple of these places and the payments are astronomical! one place wanted 700 for 36 months for a $7000 lease to own. If I could easily save $700 a month I would just wait ten months and buy the tractor! It seems like Usery to me, but because its a "lease" it probably isnt technically.

I was going back and forth between 2 and 3 when I called the local credit union in my rural area thats affiliated with my Urban CU- In a five minute phone call they told me that as soon as my revolving debt was below 33% available credit, they would do a loan at 7.8%. Higher than dealer financing, but with used tractors in my size range going for about 1/3 the cost of new, not terrible. Plus as the loan would be secured, it would not mean increasing my revolving debt.

From my research I would highly reccomend finding a local CU comfartable with these types of loans.

Hope this helps others.

I had a similar situation/score. I wanted a good rate and to not have to take money out of my investments when rates are so low. I sent the loan to Agri-Credit ahead of time with my credit to make sure it would be okay before they pulled their own and I went through the whole process, and they said it looked fine. Went to do it and they denied the loan.

Found a local bank that is familiar with Ag loans, which did a loan no problem at 5.6%. I have since financed my truck (2.9%) and boat through a local credit union.

So, I would look around. A lot of places only do title-based loans (boat/RV/car). You need to find someone that has no issue with doing a loan with only a UCC lien.

Positive credit history will improve your credit over time. A reasonable amount of loans paid on time will help it along much faster than nothing. It does not matter if it's for a tractor, car or boat.