Anybody here work in banking?

[Wulf202]

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 this

[Irving]

Yeah, just buy a cheaper car with the cash.

[def90]

Don't do this

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.

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.

[Irving]

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.

[Wulf202]

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.

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.

Do what irving has said

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.

[Irving]

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.

[02ducky]

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?

[Irving]

Definitely could be worse.

[Grant H.]

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.

This.

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.

If you haven't already you need to call them and tell them you never opened it. (card company). Also immediately file a letter of dispute with them, stating that you did not open any line of credit, as such there is no debt obligation and demanding verification of the debt including copies of the opening application.

Also this.

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.