Wednesday, May 20, 2009
Clunker Credit Converted in Key West
I'm self-employed 20 year-old. I work hard and now I need a new truck. I've maxed out my credit cards, but can I get a loan for a new truck?
Clunker in Key West (CKW)
Dupaco Makeover Artists Erin Vize and Kevin Weber (pictured left) at Dupaco's Key West branch teamed up with CKW to review his options. This is the outcome:
We teamed up to get this Money Makeover complete. It was a long process, but I think we have a very happy member who will be with Dupaco forever.
Back in March, Kevin spoke with CKW about financing a truck through us. He was 20, had a short credit history and needed some guidance.
Together, we looked at CKW's credit. We discovered he had a motorcycle financed through a credit card. As a result, his credit was low because he was maxed out on his credit cards. Our first step was to move his motorcycle loan to Dupaco, which lowered his rate from 18% to 10%.
A month later, CKW came back to review his credit. His score went from 632 to 676. He was thrilled with this! Since his score had increased so much, we were able to save him money with a better rate on a truck loan, which he moved from another lender.
But we didn't stop there.
CKW is self employed, had nothing set up for retirement and really didn't keep much in savings. Knowing this, we asked him if he would be interested in setting up a Roth IRA for retirement. He was hesitant, but we were persistent.
We showed him how much he could benefit by starting it at a young age. The Roth calculator was a big help! Not only did he decide to open his IRA, he committed to putting $200 a month into it.
We said this was a long process, but it was worth every second of it! We are both very excited and think we have a very happy member.