Rebuilding Credit=first step

[liftalot79]

So me & my Fiancee live comfortable. We have no debt and she has one credit card.

We live in a home that her parents built for her inheritance so she will get $250,000 less that the other two siblings when her parents go.

So we have no house payments
I have a paid off 1995 chevy 1500 pickup that just took a crap.
She has a 2005 Bonneville paid off

So I took advantage of Bankruptcy 5yrs ago, i have not bought any since not even a walmart credit card, bank card,etc. i told myself if its not cash i'm not buying. So I went in to get a $5000 loan just to by something to last me a few years, I have $1500 in savings so if need be I would just need $3500.

They wouldn't give it to me she being the Branch loan manager said i'm lacking credit. She said you start off with a decent fica score when you file Banckruptcy but then people don't do anything and this hurts.

It used to be that you couldn't do anything as far as credit 5-7yrs after this has changed.

Should I get a Credit Card with $500.00 balance and use it for groceries?

My annual income is $33,200.

 

[BOOMSHAKER]

I'm not a credit expert. But don't be surprised if even the credit card company turns you down for a small $500 dollar limit card. They are not basing it on the amount of money you will owe as much as your ability to repay it. So to them $500 is still a risk. You may need to get a co-signer with good credit. To the bank now you will be spreading the liability two ways. Meaning if you dont pay the co-signer will. And the banks are more inclined to help you this way. I wouldn't try to sign for anything else and get turned down again and have that go on your credit report also. Get yourself a good co-signer THEN try for the small $500 C.C. However most lending institutions may consider this a good start but still not enough credit. Just be patient with it.

Some one else on the board with more experience then me will help you more in a few brother. Good luck

 

[ballennonstop]

Good topic. I am also trying to rebuild my credit after I let a checking account go deliquent 4 years ago. I recently paid off the $1000 debt from the account that had been sold to collections. I think getting a credit card through a co-signer sounds like a good idea.

 

[ou812cte]

Your best bet is to find a Bank that has a secured credit card. You deposit $500 and they give you a card for $500. You need to use 30% of that card$150. Use it and pay it off every month. Do not go over 30%, I know it is a pain in the ass, but this is the best way to start rebuilding your credit. Also you can look for a cell phone company that reports to the creit bureau's, I think cricket use to have a plan.

 

[tri-terror]

liftalot, I'm in your shoes too brother. I've improved my score by opening and paying on a department store card and a small bank card. You definately have to establish some kind of current payment history.

 

[Scott21]

The bank doesn't care how much money you have saved up, and really don't care how much you make, some people make tons of money but have shitty credit because they don't believe in paying people back. Or they make great money but can't hold on to a dime therefore their bills go on the back burner. We call these people H.I.P.P. (High Income Poor People). And example, I got a guy once financed for a Ferrari, the guy had nothing but $500 in his bank account, he he had to differ his down payment of a $1000 for two weeks, yet because he had EXCELLENT credit, over 800 score with a nice income, the bank approved him on a 140K loan, and his payments ended up close to 3K a month, but it was more than 33% of his monthly income so it was legit. Yet I have Dr.'s, Lawyers, etc. come in and we can't get them financed for a bicycle, why? They only paid off student loans, always bought everything cash. Had rich parents that put them in medical school and they bought them their house when they graduated. Even though they make 200K the bank sees them as a high risk for a loan, and will often require a 33% down payment for them. When it comes to credit it's not what you are doing, it's about what you have done.

 

[liftalot79]

So.....

So instead of just paying cash for a vehicle should I have a Co-signer for a Small loan. So it will show a Steady monthly payment.

I went to see Dave Ramsey he can't get shit for credit even though he is a Millionaire because he hasn't bought anything in decades.

 

[Scott21]

So instead of just paying cash for a vehicle should I have a Co-signer for a Small loan. So it will show a Steady monthly payment.

I went to see Dave Ramsey he can't get shit for credit even though he is a Millionaire because he hasn't bought anything in decades.

Yes, however with the economy situation it is getting hard to even co-sign for someone unless you live with them or are married to them. Some banks require both parties to qualify individually. Best bet is to check out credit unions or dealers that have a wide array of financing available. Make sure and get them to write it down, that they will report to the credit bureau. Some banks only report when you don't pay them. Last thing you want to do is pay something off, pay interest on it, and in five years you still have no credit from it. Other options may be putting a big down payment and getting a vehicle financed through a "Roach House".

 

[Mike09100]

So instead of just paying cash for a vehicle should I have a Co-signer for a Small loan. So it will show a Steady monthly payment.

I went to see Dave Ramsey he can't get shit for credit even though he is a Millionaire because he hasn't bought anything in decades.

rofl

 

[Steve123]

My credit has taken a dump and come back several times in the past 20 years.

You can rebuild it quick. What you need to do is get a loan and pay it off religously every month. You don't want to waste money on finance charges. O

#1) One thing you might try is taking a collateralized loan from a small bank. Basically, they keep the balance in escrow and you just make payments each month. There is still interest but not as bad. Not all banks will do this but some smaller ones, including credit unions will.

#2) if you do take out unsecured debt - e.g., credit/charge cards - make sure your balance never exceeds 50% of the maximum available credit and make your payments religously.

#3) Get a copy of your credit report. There is a process for disputing entries. Find negative entries and dispute them. It is your Right. If the creditor does not respond within a set time frame, the item is removed. In some, not all, cases, creditors do not wish to undertake the administrative burden of responding, particularly to old entries. This is tedious but it can help.

Final point. For any credit card or loan, set up a direct debit from your bank account. This way you will never be late.

Once you get about two years of behind you of being virtually debt free - i.e., debt:income of less than 20% or so - and you have a solid history of repayments and not overextending your credit lines, your FICO score will go up significantly.

Just my opinion. I'm not a credit expert.

 

[Pekkerwood]

You need to get two credit cards and let them age. Each six months ask for increases.

All the advice you would ever want/need is at:

CreditBoards.com - Credit Help, Credit Repair Tips, News, Forums

Read the stickys, become an expert.

 

[JUISEBOY]

Your best bet is to find a Bank that has a secured credit card. You deposit $500 and they give you a card for $500. You need to use 30% of that card$150. Use it and pay it off every month. Do not go over 30%, I know it is a pain in the ass, but this is the best way to start rebuilding your credit. Also you can look for a cell phone company that reports to the creit bureau's, I think cricket use to have a plan.

I'm late on chiming in on this but the old use only 30% of your available credit is no more, it's 10% in these times. Also don't try to get a co-sign on new credit, get it on old. Whoever you get to agree to co-sign (usually a spouse) have them call their account that has the oldest history and have them ask to add you as a co-signer. By doing this it actually establishes a history immediately on your credit report. If your looking for additional credit and want to do something on your own get a piece of crap credit card at target or some place where it is easy. Sure your limit might only be $200 but use it sparingly and listen to what your mom told you and never borrow more than you can pay back and pay your debt on time!
My background is in underwriting mortgages and I am working on my wife's credit as her family is a bunch of WT scumbags who took out loans in her name and didn't pay things back. :banghead::de:il-smi