Vroom!

[danalwyn]

Also, I now have a car, despite the Dealership's last ditch attempt not to sell it to me.

Everyone on the internet lined up on the side of the Corolla. Unfortunately, everyone in real life lined up on the side of the Civic, and liking the Civic's handling slightly better, I went with it. So now I have a silver Civic.

I did not, however, qualify for financing (credit history not long enough for the financing department), which means that I had to buy it outright which, when combined with my IRA payment, has decreased my financial reserves significantly. I've got to do something about that credit history problem.

This is causing me significant distress since A) I normally never spend money if I can avoid it, and B) a significant chunk of my net wealth is now caught up in a very vulnerable piece of machinery. I really should avoid all this buying things stuff in the future. It just makes me nervous, which is the state in which I've been spending the last day or so. Plus, I keep wondering if I could have gotten a better deal. Obviously, I need to get hit on the head and contract amnesia for a bit. It will probably make me happier.

Comments

[silverjackal.livejournal.com]

Congratulations on the car! May it serve you well for many years.

I've got to do something about that credit history problem.

Do you have a credit card? If you don't get one of the no annual fee ones, use it regularly for small purchases such as groceries, and pay it off every month so that you never carry a balance/incur fees. This was the way I built up my credit rating prior to buying a house, because I had no other financing in my history (having paid for things out of pocket, including my first (used) car).

I really should avoid all this buying things stuff in the future. It just makes me nervous

Heh. You're not alone in this, believe me. I think it took me a year or so to be accustomed to the debt when I took out my first mortgage. For someone who had no debt prior, suddenly being in for more than 100,000 was a purpetual source of anxiety until I became accustomed to it. Unfortunately unless one pursues a career with an astronomical pay scale, or comes from considerable money, there's no way around basic aquisitions. Personal vehicles are unfortunately *necessary* in much of North America (I literally couldn't get to work without mine -- no public transit to speak of). Likewise it doesn't make sense to pay rent if one can own one's own home (assuming moving isn't in the near future).

Try not to second guess yourself, because this wasn't a wrong choice even if you didn't get the "best" possible deal. You have insurance for if something unfortunate should occur, and the rest will take care of itself with time.

[tx-cronopio.livejournal.com]

Yep. Everything silverjackal said.

[danalwyn.livejournal.com]

I hope you don't mind that I'm still hiding in the hopes that nothing bad will happen. Besides, its comfortable under my desk.

[danalwyn.livejournal.com]

It's not that the credit score is bad, it's that there isn't enough history. I need to assume some debt and make it last. I wish I could still get a loan from a bank for nothing in particular and then slowly pay it back or something. Maybe it will get better when I start paying back my student loans.

In the meantime, I'm going to be hiding under my desk until it's time to go home and hide under my bed.

[silverjackal.livejournal.com]

Unless the system where you are is different from here (which may be possible, I don't know enough of the details to tell) this is the remedy for lack of history as well. Credit companies try to tell you that you need to carry debt (and pay them interest) to establish a good credit history, but that's not the case. They're still making money (off the merchant who pays fees to take credit), but at least they aren't making money off *you* while you're building up a borrowing and reliable repayment history off small things like groceries and gas.

Alternately a small personal loan (for something like buying furniture) isn't a bad idea provided you can get a decent rate. As much as I loathe paying interest or fees, it *is* a viable strategy.

I understand the desk-hiding. Mine is a substantial L desk, with a lovely amount of space. One can even take a novel under there... ;)

[danalwyn.livejournal.com]

I think my limit may not be high enough. I'll have to consider getting another credit card as well - that may add up in some strange way. It's possible that sheer number may help where other things fail. Also, it may be better for these kinds of loans if you have the ability to pay it all off with credit cards on the spot.

It's odd thinking about how irresponsible I have to be in order to be responsible. It makes my head hurt.

[silverjackal.livejournal.com]

that may add up in some strange way

It does, but you could also just ask them to raise the rate on your current card. I only have the one card, and it's a no-fee dividend card, so I get a tiny percentage (2%) of the value of my purchases back at the end of the year as well. At first the fact that it was "credit" bothered me, but in the mean time I've become accustomed to it (and don't feel too guilty, since it's always payed off in full).

It's also handy for tracking personal spending without having to sort and catalogue incidental receipts. I just sit down at the end of the month when I get my statement to make certain there's nothing on there that shouldn't be, and break down my expenses so I can see precisely what went where. These days it's not critical, but when money was tight it was a great way of keeping everything in line since I only allowed myself a very small amount of cash for incidentals, and reviewed everything else meticulously.

[peribothron.livejournal.com]

I know it's after the fact, but did you look at getting financing from a Credit union? If you're still in CA, you could probably get a CEFCU loan (they won't do out of state cars).
In the long run, you will save money by buying it outright.
Ditto silverjackal, but you can also get cashback on everything, which nets you money, as long as you don't carry a balance from month to month. just make sure you get a no-fee card, like discover, amex or citi. You may start with a low limit, but it will build as you pay it off month by month.

[danalwyn.livejournal.com]

Well, I already have the car, and they have the check, so it's a bit late there, but I've got to look into the credit card rate. I'm thinking about getting another credit card, and expanding the limit on the one I already have, just to see if that helps. The credit score I have seems to be fairly good, they just want more items on the list. I'll have to work on that.