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Anybody on the site that works in banking or in financial industry. Recently sold the house and looking at possible getting an personal loan against the equity in my car that has is paid off to help rebuild my credit that took a nasty hit after my wife and i divorced need some advice and direction.
I wouldn't go to a Banker. Id look for a financial planner. They would know the best ways to rebuild it. Credit cards worked for me. Pay some bills and pay in full every month.
Just my two cents worth. Names that I know you can learn from and would follow. Suze Orman, CLark Howard, Dave Ramsey. I feel like the more you read and do yourself the more you will retain for yourself. These are three of the best and Suze and Clark maybe more on point and Dave Ramsey on Financial Peace. Just trying to help.
http://www.clark.com/ and dive into the improve your number below
https://deals.clark.com/credit-score...429.1479930775
http://www.suzeorman.com/resource-center/managing-debt/
http://www.daveramsey.com/home/
+1 for credit card. Even if you have to get one with a high interest rate, you can pay it off each month and never pay a dime in interest (this is what I do). As your credit improves you can ask them to increase your limit (just don't do that more than once a year or so).Quote:
Originally Posted by Madeinhb
Citibank offers free credit score reporting with some of their cards. They report in each month and they pretty accurate +/- 20 pts.
I'll throw out the MyFICO forum. http://ficoforums.myfico.com They have all kinds of advice about boosting/repairing scores. Everybody's credit situation is different but from what I remember, credit cards used responsibly offer the greatest opportunity to build or repair your score (generally speaking).
I'd recommend going with a credit card that has that free monthly credit score feature so you don't have to pay to monitor your progress. In addition to Citibank, Discover also offers it on (AFAIK) all their cards.
I hired one once. Waste of $400. By the end of the second meeting the guy with the bachelor's in finance was taking notes and the guy with the masters degree was asking my advice.Quote:
Originally Posted by Madeinhb
There's better advice here from people you know.
Skywalker. Those are for managing debt. Not really good for building credit.
Ducky. I did what you're planning on when I had NO credit. Just get a credit card as above. Preferably two
I agree. Good financial planners are hard to find. You had a bad one. But my point was if the OP were to go somewhere - go there. Bankers, etc are out for their best interest, not the persons.Quote:
Originally Posted by Wulf202
heres the kicker, I found out about a credit card she opened with my name and then didnt pay on it, I just recently found out about it (save the comments lesson learned) and between that and another issue with the IRS (being handled) my shitty credit union said no to a personal loan against the equity on my paid off vehicle. I am a little stressed about this one I have until Jan and then have to move the hell out of my house. no credit or bad credit means no house or apartment. thought a win/win with taking the pereonal loan, paying down the credit card while paying on the car loan to help rebuild credit.
If that is the situation, then an option you'll seriously want to consider is selling your paid off vehicle, and buying a much, much, less expensive vehicle so you can have liquid funds to work with. I don't know anything about your vehicle, but assuming is newer, that's what I'd do. The longer you wait to sell it, the less you'll get for it.
Using credit cards to build credit is a great idea, but it won't work fast enough to help you by January. Getting a loan against a vehicle wasn't going to happen even with great credit, but it was worth a shot.
Without knowing the full story (understandably) of your current situation, my advice is as follows:
-If you have debt, sell everything you don't need to eliminate your debt. Debt is your worst nightmare and will ruin you faster and more completely than anything else. This includes the vehicle.
-Cancel any services that you can realistically live without. I'm talking about cable, expensive cell phone, gym memberships, etc.
-Once you make headway on your debt, if you have an established credit card, keep it open and follow the advice about putting small charges on it (gas, groceries) and paying it off. *I've found it easiest to form good financial habits by paying every bill you can, every time you get paid, FIRST, before you use that money for anything else. Not just once a month, every single time you get a pay check.
-Once you round the corner and can start seeing the light, start asking your credit card company/ies for a credit limit increase. I requested to double my limit every six months on each card until they started denying me increases by citing how much credit I had available on my other cards.
-Be extremely careful with playing with credit cards. They can be extremely effective, but if you slip up, you'll dig a hole you can't believe.
I realize that not all of this advice may be relevant, or wanted, right now, but it's a good start. There are more steps beyond this, but for right now focus on eliminating debt and building credit.
Agreed on all points.Quote:
Originally Posted by Madeinhb
What irving said.
Get the credit ball rolling. But it won't be done by jan. Start talking to friends and family and find someone to cosign if needed. Then start beating craigslist and look for small time landlords to rent from
I feel bad for you.Quote:
Originally Posted by 02ducky
I know this is personal (so you don't need to answer) but have you confirmed this is your liability? Was the account opened while you were married? Did she charge anything after the divorce? Was the card listed in the decree as a liability?
IANAL but you might want to see if this debt really belongs to you. And consider you might own some of it but not 100%.
yes its mine and i am talking with the CC reps to see if there is something that can be done. dammit i was hoping for some better news about this one. maybe seeing some more guns listed here in the next couple weeks. this blows ass on so many levels. fucking bank, fucking ex, fucking shit just piles up sometimes.
anybody need some part time work?
I never married, credit 800+. You have my sympathies.
Did you know about the credit card when she opened it or did you know at all during the marriage? Or did you find out in the divorce? If the later, I would talk to your divorce lawyer, that could be a fraudulent application and you might not be liable for it.Quote:
Originally Posted by 02ducky
we used a mediator for the divorce... I had an idea or should I say suspected she opened the card, but never found proof of it until yesterday eveing when i got a notice in the mail for a late payment. its been one thing after the other with her and got pretty nasty in the middle and towards the end of the marriage. I appreciate everyone feedback and suggestions on this one I need to figure somethings out obviously and if needed work another job to get shit handled. quit honestly trying to deal with her is next to impossible and the less stress i get from her the better it will be for me in the end.
2016 can kiss my ass can't wait for 2017 just to get this year behind me.
Irving's advice is pretty much spot on in my opinion. Good luck with getting your life back on track. Been there.
There is no short-term fix for rebuilding credit, especially not by January. Any action taken here has to be for the long-term, and will almost certainly conflict with actual, good financial advice. Getting a credit card and paying it off monthly can be a wise move from a financial standpoint, but it will not build credit as solidly as having a revolving balance that you make payments on. Reason? Credit scores are NOT just a reflection of your ability and willingness to repay a financial obligation. Another, somewhat hidden component to a credit score is your PROFITABILITY to a potential lender. This is a system that was designed for and by lenders, and their primary goal is to make as much profit as possible for the least amount of risk. Those two pieces go hand in hand. In my opinion, this is your least important consideration right now and I would recommend not even bothering with this for the next year or two.
Your most important consideration right now is short-term survival. If your current domestic situation does not involve kids, this is significantly easier. Consider renting a room instead of an apartment. Renting a room sucks, we all know that. Roommates suck. They just do. But this may be a necessary evil and will likely be significantly cheaper than the apartment option. Plus you are renting from a person, not a corporation, so credit check may not be as much of a factor (or more easily explainable). If you have kids, this is going to be a lot harder, but not impossible... For example, maybe you can rent a whole basement out from someone. A little more pricey, but look on craigslist you never know what you can run into.
Whatever you decide to do, get a piece of paper and write Pro and Con at the top. Draw a line down the middle dividing the two. Which ever side wins is the decision.
I can't say that I've heard of anyone ever getting a loan on equity in a car.. That seems like a pretty risky move to make for any bank unless it's some kind of collector car that never gets driven.
Sell the car, save the cash, buy something cheap off one of those lots that will give loans to high risk borrowers, make double payments on it if you can to mitigate the amount of interest that you will be paying, get a secured credit card from your bank and start using it. With the car loan and the card you should be able to build your credit back to reasonable levels within a year.
Don't do thisQuote:
Originally Posted by def90
Yeah, just buy a cheaper car with the cash.
Sounds like his credit is shot.. What's the alternative if he wants to build credit rating? Buying a car with cash does not build credit history even if it's the cheaper way to do it.Quote:
Originally Posted by Wulf202
I had to do this after getting into a similar situation after the housing crash.. Worked out fine for me. Bought a truck at the only place that would finance me, interest rate was crazy but I paid it off early in a year (3 years early) and together with a secured card I built my credit score back to where it was before. Once my rating was back up I dumped the secured card when I was approved for a card with a better interest rate.
Well, it depends on the overall situation. If his debt is a bigger deal than the credit, eliminating debt is the better move. I've actually done the same thing, and it worked out okay for me as well.
Credit matters less, if you have the freedom of reducing debt. In time, he'll rebuild all of this stuff though. We're rooting for you Ducky.
Do what irving has saidQuote:
Originally Posted by def90
selling the car is his choice. Given all the changes it may not be the right time for him to finish the country song.... there's mental health to consider when going thru all this.
A vehicle is a necessity to get to work to pay down the debt. While a depreciating money pit it has value. I have successfully financed a car I owned as I said already. It's a simple collateralized loan. There's also taking a loan against your 401k
The unpaid credit card is the only real credit damage that's been explained and it's correctable. Aside from that if he doesn't pay the card his credit is the same. If he doesn't pay for a car he gets it repod and doesn't go to work.
I know someone who went out and got a car from a shitbag dealership that finances anyone. They got a car that was worth 8k when purchased that is going to cost 14k when done and be worth 5k. Yea it runs fine and it's a reliable ride but they spent the 6k out of pocket to get a positive credit report. Better to do secured credit cards or the like.
Another option, depending on how bleak the situation is, would be to purchase a cheap RV and live in that. My neighbor is losing his house and he is retired and doesn't have much to his name. Someone let him finance an RV for a few grand and he's just going to stay in that at a buddy's property. An RV is a bit of a depreciating money pit on its own (understatement) but it provides a place to live, many places to live, without rent. The dealer up near Longmont just West of I-25 supposedly has a 2002 for $7,000. Again, we don't know the full scope of the situation, but if it's a matter of finding a place to live, or being homeless or something, an RV is another option.
banks do the vehicle equity loans as long as the vehicle is paid off, mine is so it helps a little. I am currently attempting to get a personal loan and then use the repayment of the personal loan as a way to rebuild my credit and also pay off the fucking credit card. I just want to keep this woman out of my life right now and I am will do just about anything to keep it that way. I have a place to stay if needed and will continue to figure this out. The CC fraud team has been contacted and will know a little more on Monday. basically I need about 10,000 from the equity loan which is a strong possiblity. I guess if worse comes to worse i will sell my car, buy a cheaper car and go from there. could be worse right?
Definitely could be worse.
This.Quote:
Originally Posted by Irving
I have given basically the same advice to several younger people in our church when asked, and it has worked wonders for their credit and financial status in life.
Also this.Quote:
Originally Posted by foxtrot
You didn't fill out the application. You didn't co-sign on the application.
Get out in front of this with the credit company, and get a lawyer involved if they won't do anything.
PM Sent about part time work.