Thanks SOO MUCH guys for all the input- Im gonna do a search for a lease vs purchase thread here- and maybe start a new one.

I was wondering how it sits on the credit because Im trying to get a new home loan in the next month or two- and am in the middle of paying off credit card debt. I was advised to sell my truck, pay off some older credit card debt, and open a new account with my car purhcase. This will increase my credit score- and help with my new home loan. Now, that being said- I found out about leasing, and am wondering if it looks like a $24k loan on my credit (such as a purchase would), or, if it sits on there differently. Reason being that if I payoff $17k of old debt, and turn around and put on $24k of NEW debt (even if it's a lease), then that doesn't really help me dig out of the hole any, ya know? BUT- if that $24k doesn't sit on there the same as a purchase does, then, it's not that big of a deal. The lease will give me more cashflow each month, as well as extra tax breaks. Which is why I wasleaning towards a lease.

I just checked out a Hertz rental car- they wanted $18,295 for a 2002 SE with 27k miles- 12/mo 12,000 warranty- $899 for a 4-yr warranty. 5-day money back guarantee. Not bad, but, the interiors looked a little warn (had some spills on the carpet- hell, we've all driven rental cars before and know how we treat them). Not a bad price, but there's pros/cons like everything else I guess.

Im gonna do a search on this forum for rentals, and also lease/purch and go from there.
YOU GUYS ARE AWESOME!!!
D

 

I will tell you right here and now, if you are looking at the next month or two, even if you do pay things off, they will very likely not show up on your credit for a couple of months afterward. It is not an 'immediate response' system.

 

So- do you mean when I pay the cards off, or, when I get the new purchase? I guess both, huh? So...

I could go ahead, get the new purchase, and payoff the cards (in any order) and not have it reflect on my credit for a couple months then... right?

 

Don't quote me on this, but in essence...yes. I am not completely certain how often certain financial institutions 'update' their entries on individual credit reports (remember, credit reports are administered by third parties, not the creditors). I would say your purchase will show up rather quickly, but the paydowns may take longer to show up.

What I would do is get my hands on your report, go through it quite thoroughly and contact any of the people that show up but have even slightly erroneous data. I have done this 6 months before each of the homw purchases I have made over the years and it cuts out any surprises.

Do you have a home loan company yet? If so, run some 'hypotheticals' by them to see what they would get spooked at and what would be a non-issue.

 

Yup- got a mortgage company already working with me. My credit is very good- not one late payment or bad mark, I just have a LOT out on credit- and that's the issue. I can payoff 3-4 cards with the 17k from my truck, which comes to about $369 a mo in minimum payments- which, if I buy a car that has smaller payments than this- obviously I have more cashflow each month (well, slightly).

I guess I just need to decide on a car, research the lease/purch option, and go from there...
THANKS A TON!!!
D

 

income to debt ratio and inquiries also affect your credit rating.

I have NEVER missed a payment in 10 years of loans and what not, but income to debt ratio is close to borderline, and I have more than average inquiries, so I BARELY got financed at 4.9% back in September when that was the best Nissan was offering.

But payment history and timeliness are the best things to concern yourself with, but not the only things.

Keep inquiries down...makes you look unstable...like me

-vq

 

I don't really think this is true. While income/debt is a major decision element for lenders, it is not a part of a credit rating. Unless a credit rating company kept track of my income tax filings, they would have no idea what my income is over the years.

 

right, debt to income ratio is just factored into it, and doesn't affect the actual score, but debt to income ratio does affect if you actually get approved for the loan/lease.

On the contrary, inquiries do in fact affect your beacon score.

-vq