ifsmithy

Hi
New to California (Irvine actually), is anyone out there who has experience in leasing a car. Obvioulsy I have no credit history so am expecting to pay over the odds but if someone could point me in the direction of a good dealership (online?), i would be appreciate it
any other advice would be helpful
cheers
Ian

Vicky88

My only advice would be to buy not lease. The main problem I see with leasing is you pay for a car that isn't yours at the end. You will still have all the costs associated with maintaining the car and if your go over the miles they will slug you plenty.

What we did the first time in California was buy a car for cash ($3500), get a secured credit card and get our credit rating up. This time around we were able to buy new and it wasn't such a big deal because we could get low financing and our insurance rating was so much better.

Englishmum

I agree with Vicky.

You can find about all the pros and cons of leasing vs buying here:

http://www.carbuyingtips.com

(And if you do decide to lease, it gives info on how to negotiate with the sales reps).

ifsmithy

yeh thats what I'm thinking to be honest, I've just come out from 6 years in Uni, degree then PhD, so im broke. Am slowly trying to figure out ways of paying of credit cards (which are maxed out) back home without getting screwed for wire transfers etc (i hear paypal is good), so the upshot is, i'll probably have to save up over the coming months and buy a hunk of junk in a couple of months, however Califonia is not the best place to be if you havent got a car. Oh yeh, i got a secured credit card the second week i was here, i need that credit history fast
thanks for your help

Vicky88

Public transport is a nightmare in California, so agree that you do need a car. BTW whereabouts are you?

ifsmithy

Irvine

scotch03

I have done more walking in the last three weeks than I ever did in London!
What do you need for a secure credit card?
G in Koreatown - 3 weeks - so far so good!

ifsmithy

Cash
you give the bank say 500 dollars and they let you spend....yep, you guessed it 500! this is whilst you build up your credit history
wonderful eh?

Taffyles

My advice- don't lease! You are tied to the lease agreement and have to buy your way out of it if you want to change your car before 3 years. The mileage is unrealistic and every mile over is going to cost you- this can be quite hefty- they also charge you for every little mark on the car- you can get the car assessed privately before handing it back in, so you are armed with some evidence before they try and screw you for more bucks. Leases are a pain, unless you have your own company and can write the lease payments off on tax. My husband once decided, years ago, that leasing was better- hmmmffff, worse thing we ever did.

The quickest way to build your credit- get a store card (easiest to get) buy something little every month and pay it off in full (ON TIME), never make a late payment. Do this with Target and within 6-8 months they'll send you a full visa credit card with a big limit (3-5 thou) because of the "exemplary way you've run your account" and you should have enough of a credit history to get approval for buying a car.

Pulaski

Not exactly, it may help you but not much. The people that typically need a secured credit card are those with a really dire credit history, as opposed to no credit history, so when a bank or business comes to check your credit record and sees "secured credit card" you are going to get lumped with all the losers who have a cr@ppy credit history.

You'll be better off going to a bank, opening a basic checking account and taking whatever credit card (with silly limit - maybe $200) they'll give you and working with that.

Vicky88

Pulaski

We found when we first arrived even though we were Wells Fargo customers and had hefty amounts being deposited for salary every month they would still not give us a non-secured credit card. Had to go the secured route. So for a new arrival, unless their employer has some clout with the bank, it is unlikely they have any option besides the secure route.

One of the easiest cards to get is Macy's. Will only be a small amount like $100 credit limit but like Taffyles says, buy something every month, pay it in full, then 6 months later try for a second card.

ifsmithy

Hi,
this is what I did with OCTFCU, however, they would only give me a secured credit card with a minimum 'down payment ' to secure the card of 500 dollars (this is the only option they gave me). I take it by building a credit history you simply buy on the credit card and pay it off. What if you dont pay it all off but you pay off the minimum amount required per month? Will this go against you?
I've had two brothers who have done the states thing so i've been prepared for a lot of things but still..... they certainly dont make it easy for foreigners to settle in over here, I get the feeling though that once you get a credit history you begin to exist in the 'system' and people begin to pay attention to you
thanks for your help
Ian

Vicky88

I would pay it off in full each month. Some people will tell you not to pay the entire amount because it is good for your credit rating but can't believe that would be right. I just looked over an old credit report and one thing they don't like to see is the charges on the card being a high proportion of the card limit. So if you can you should try not to max it out every month. What they are actually looking for is a pattern of behaviour, so if you charge $250 out of the $500 for 6 months you will probably score some brownie points with one of the credit card companies.

Also we found the traditional banks to be the worst to deal with on credit cards. Try First USA or BankOne as they seem to specialise in credit cards. Also not sure if Nextcard is still around as they were giving credit cards to everyone, regardless of credit rating.

Pulaski

Vicky, that is interesting about banks not giving their new-immigrant customers a regular credit card. I guess I was spolit when I moved over to New York as I had a job with a bank, and they gave me a card with a $2,000 limit straight away!

What most people don't realise is that 1st USA, BankOne, and MBNA are known, in the banking business, as "sub-prime" issuers - i.e. they'll take more of a risk issuing a card, but charge a higher percentage on the balance if it isn't paid off in full.

Taffyles

I agree with Vicky- pay it off in full each month. It will hurt your credit if you only make the minimum payment, and hurt it even more if you max out the cards- they like to see your balance well below your limit. Credit here is so complicated (like mostly everything else) and its surprising what affects your score, and I've been told that all the credit bureaus score differently too. To protect your credit, pay every bill you get on time, and don't apply for too many cards- even just applying for them brings your score down. Too many people accessing your credit report to check you out brings your score down, which brings new meaning to shopping around for quotes for mortgages etc.
Stay away from Nextcard and the like- yes they'll hand out cards, usually with a high interest rate, but my son got one and within a few months he was told that Merrick had taken over his credit...with an even higher interest rate...wait for it, 29% !!! He got rid immediately.