Ask The Loan Officer - Page 3 - Tilted Forum Project Discussion Community

NoSoup · 08-23-2003, 09:45 PM

Quote:

Originally posted by dy156
I recently bought a three burueau report, and the same for my wife before getting a car. It turned out okay, but there was alot of wrong information on there. While my wife's employment information was on there, for me all of them listed no employment information. One Bureau even had my middle initial wrong.
Question 1)
I was under the impression that credit reports and your scores were based solely on your credit history, and not income, but would it help my scores to have some form of employment listed? I just finished school and have a very good job.
Question 2)
I have three "little" credit cards I used in college and have not used alot since, they have low limits, about $1200, but very low balances; my wife has a few Store credit cards(Neiman's, Banana Rep., Vict. Sec.etc...)-yes I know they're bad - with much higher limits and balances, though still less than half "full," which we are trying to pay off. Would it do us any good on our credit scores to add our spouse as a user of these credit cards, because we would have more credit available to us, or would it be bad to do so because she would add low credit line credit cards and I would add retail store credit cards to my history?
Question 3) is there any reason to correct all the false information and duplicated accounts if my credit is alright anyway?

Thank you so much in advance for helping me out, and I hope you realize the great service you've been to me and all the previous posters!

Well, in answer to your questions...

1) Your score isn't based on incomer, however, The score does rely on the length of your current employment to determine the score. I believe that after 5 years of continueous employment with the same company, it will have a tremendous positive impact on your score
2) I would suggest just leaving things how they are, and closing those retail cards as soon as you can. A lot of open credit isn't necessarily a good thing, granted, it shows that you are responsible enough not to max out everything, but future lendors also take a look at the amount of debt you can incur. If you have a lot of open credit, it may damage your score more than it helps it.
3) Tough call... Generally, the answer to your question would be yes, but there are certain situations where I would suggest to let sleeping dogs lie. If you have kept up on your payments and what not, and generally have a good, clean history, I would get the errors corrected. You can do so by contacting the credit bureaus and letting them know that you believe your credit report is incorrect. They are required to send you an investigation form, just fill it out and return it.

If there is anything else I can do to help, just let me know!

NoSoup · 08-23-2003, 09:49 PM

Quote:

Originally posted by Cynthetiq
NoSoup

..... as far as a friend is concerned, he thinks he's got bad credit for no reason or another. I see that you recommend a secured credit card. Does a secured loan give the same benefit? I thought I had bad credit too, and I got a secured loan, put that into another account and had them draw funds to repay the loan from that account. I didn't have to think about it at all, until near the end of the loan when I had to of course add for interest. Does that give the same benefit?

A secured credit card does in fact give the same benefit, as with most loans. Secured loans are actually considered "better" credit than unsecured ones, although many institutions report secured credit cards as normal unsecured ones.

As far as your secured loan goes, same story. It gives the same benefits, although it may depend on the institution as to how it is reported to the bureaus.

If I can be of anymore service, just post! Thanks for Posting!

NoSoup · 08-23-2003, 09:52 PM

Quote:

Originally posted by limited
Makes complete sense to me NS. I've got to thank you for taking time to answer everyone's question, a very noble offer. I've still got a remaining question, though. When processing a credit card application, would the issuing bank look differently upon a GapCard than a Visa? Put another way, is the type of card actually listed on the credit report?

As for your statement about the 500% markup- It truly is sad how much some clothes cost these days.

Yes, the institution certainly will. The Visa will generally report as a conventional credit card, but the Gap Card will report as a Retail Card, which I believe is one step higher than finance companies, which are not at all smiled upon.

I hope this helped! Thanks for Posting!

NoSoup · 08-23-2003, 10:00 PM

Quote:

Originally posted by daoist
I seem lots of commercials for various credit counciling services. Lots of them say they're non-profit.

well, even if they're non-profit, they have to pay their employees. If these services are really free, how do they get their operating budget?

Any tips on which types of credit counciling services are best / least likely to rip me off?

thanks again.

Ah, yes, the never-ending not for profit services....

Well, my advice on this subject is to make sure to inform you that these Services are NOT free. People are often misled with the whole "not for profit" thing, but these are companies, and like all companies, they are interested in one thing, and one thing only. Staying in business, and expanding... (er... I guess that is two things....) These so called non-profit organizations get a large tax break, and so that is why many of them decide to be "non-profit"

I used to work for a credit union, a non-profit financial institution, and they were far more aggresive and concerned about profit than any bank I have worked for. The main differences are basically that non-profit groups don't have any stock, and they get substantial tax breaks.

As for recommending specific companies, I am reluctant to say any specific names, soley based on the fact that I am not all to familiar with many companies and have heard both good and bad about the companies that I know of. I would suggest, though, to call around and check on prices, and to especially look for government funded agencies. Those may actually be free, or at least have greatly reduced costs.

If you need anything else, just let me know! Thanks for posting!

Shokan · 08-24-2003, 06:23 AM

Well, Im 22. Ive decided thats its about time I start getting my act together. I want to eventually get a nice car and a house. However, I have no credit whatsoever.

Does anyone know the methods of obtaining it? Im Canadian, if that makes any difference.

skysooner · 08-24-2003, 07:03 AM

Building credit is something that takes awhile. The first thing is to have some revolving credit lines (i.e. credit cards, finance line at a store) that you use and pay off. What is strange is that the more credit you have and don't use the better it seems (up to a point). Don't be late paying bills as any late payments will show up on your credit report. A very good start is just to get a credit card and use it for enough things to build up a small monthly balance and then pay it off each month to avoid finance charges. A fallacy of the credit system is the more credit you ask for the lower your credit score goes. One of the things they look at is how many "credit inquiries" are made in the last few months. Therefore it is best to only apply for a couple of credit cards and not to apply for many of them just due to the free gifts they give you. Also, it is better if you have things like phone lines in your name so that when they get paid off you get the benefit of paying it off. Building credit is kind of a long thing. There is no easy answer beyond just what I said above.

goobster · 08-24-2003, 07:20 AM

Building credit takes time, and will pay off later if done properly...

Bamrak · 08-24-2003, 08:49 AM

Actually, there's no real need to have credit. just save up for purchases such as the car and other items. Most real mortgage companies use your employment and your rent history. Had I known then what I know now, I would have done my credit much differently. As it stands I'm 25 making 21k a year, and I'm 40k in debt with a car and credit cards..
check out www.daveramsey.com. I've been listening to him for about 8 months, and my financial situation has done a 360.. it's worth a look if you're open minded.

Rodney · 08-24-2003, 01:57 PM

In general I've got to agree with Bamrak: save your money, keep a job, have a good rent history if possible.

I once was buying a house; it was inexpensive and I had the down, but the mortgage company called me in and said, "We have a problem with your credit history." I asked what problem? They said, "You don't _have_ a credit history!" I was totally off the radar at the credit bureau, since I never did credit, and the investors who wanted to fund the loan were nervous. But I had the money and a good employement record, so all I had to do was sign a form saying that I wasn't in the credit database because I didn't believe in credit. I guess they wanted me to go on record saying, "I'm no a crook." No problem.

That said, I do think credit is a good thing for emergencies when you don't have time or opportunity to stare down a loan officer, and I think it's good to have a card -- as long as you don't normally use it. My advice: get a card to buy things over the Internet with (at low prices, save money), pay it off in full every month, and don't use it for anything else. You'll build credit for emergencies.

cowlick · 08-24-2003, 04:47 PM

While credit is not necessary, even for things like buying a home, credit is important to some people and businesses. Home loan interest rates are lower for those with a good job, good rental history, and good credit. While you can get a loan at an X % interest rate without credit, you can often get a loan at X-2 with better credit.

One easy way to get credit is to INTELLIGENTLY use a credit card. I say intelligently since many college age Americans (and in your case Canadians) often get really finiancially screwed with credit cards.

Whatever you put on a credit card has to be paid off BEFORE any interest is due. And no payment can ever be late. Mess this up and you can get into the horrible debt people talk about.

One easy way to build credit is as follows:
* Get a checking/savings account at a good bank (or credit union) with online banking.
* Get a credit card (Visa or Mastercard) from a national bank that has a good online credit card payment system.
* Use your credit card for day to day purchases, like groceries or new shoes.
* No less frequently than weekly, completely pay off the credit card online via the bank account.
*

Ashton · 08-24-2003, 04:47 PM

In this day and age it's important to have credit..... You look like a fuck up if you don't have a credit card. Want to rent a car? No card no car...... Want to buy something online? No card = send us a check through snail mail, when it gets to us we will hold it until it clears..... the world revolves around plastic these days, I always carry cash..... I actually prefer paying in cash, but sometimes you need a card.....

I have no idea how it works in Canada...... here in the U.S. there are high interest credit card companies that will give anybody a card, you just use it for your day to day purchases and pay the balance off at the end of the month...... just never spend more than you can pay off and after awhile your credit rating will go up..... then other card companies will send you offers for their cards..... this goes on and on over the years until you have great credit with really low interest rates

Cedar · 08-24-2003, 06:39 PM

If you're in the market for a cell phone, that's another way to build credit. My coworker built hers through car payments and getting an unsecured credit card with a very low limit that she paid off every month. Try something with a $500 limit or so, something that will keep you in a realistic range. I can never pay my bills on time *cringes* but that definitely is the best way to build good credit.

nash · 08-26-2003, 10:25 AM

Hi NoSoup,
I've read through the entire thread and it looks like the info that you and others have posted will be of great help in the future.

But as for now, I am a student with no credit looking to establish credit so that I may be able to own a home and what not in the future. I am fortunate enough that my parents have a college fund for me (I go to a state school and commute from home so tuition isn't that expensive at all anyways) and have not had to take out student loans for school. From previous posts, I've learned that secured credit cards are a good place to start. What else can I do after that? And how long after getting the secured credit card should I wait before doing whatever you suggest next (if anything)? If I get a secured credit card, I will most likely not ever be using it anyways since currently I have a debit card and I like making sure I have enough money in the bank before making any purchases.

On a related side note, one professor I had was saying that: taking out a small loan, leaving it in your bank account (and not touching it) and paying it back on schedule, and then getting a bigger loan and doing the same, etc. will be worth paying the interest in the long run because the bank will "trust" you with larger sums of money after they've seen that you've had a good history. He said something like "start when you don't need the money, so that when you do need the money you'll be trusted with more." Any thoughts on that?

swmacneil · 08-26-2003, 11:30 AM

No Soup...
I am lookign for info on buying a house here in Massachusetts, or ability to get a morgage.

I am engaged, i have 1 consolodated student loan about 10K, 1 misc loan for 10K, and 2 credit cards with total debt of 4K, one now closed for about 2 years while a pay the balance.

My girl has considerably less debt, a few credit cards with Credit Guard of America, closed and in replayment, nearly paid off, and thats about it.

My payment history is less then stellar, i have been less then 30 days late on some payments recently as well as in the past, i havent had any real delinquent payments in at least a year.

I do have debt that had gone to a bureau and is now settled, about 2 years ago.

My fiance is a registered Nurse (6 months on the job same place), makes about 700/week take home, i am a net admin, bring in about 47,000/year or 2 k a month take home (same job nearly 3 years).

We share a 1 bedroom apt for 1340/month, both lease cars with about 260/month payments.

Do i have a chance in hell to get a morgage right now, should i not even apply? Can i apply jointly if im not even married yet.

Whats my best stragedy to get ready to apply for a morgage.

NoSoup · 08-27-2003, 04:21 AM

Quote:

Originally posted by nash
Hi NoSoup,
I've read through the entire thread and it looks like the info that you and others have posted will be of great help in the future.

But as for now, I am a student with no credit looking to establish credit so that I may be able to own a home and what not in the future. I am fortunate enough that my parents have a college fund for me (I go to a state school and commute from home so tuition isn't that expensive at all anyways) and have not had to take out student loans for school. From previous posts, I've learned that secured credit cards are a good place to start. What else can I do after that? And how long after getting the secured credit card should I wait before doing whatever you suggest next (if anything)? If I get a secured credit card, I will most likely not ever be using it anyways since currently I have a debit card and I like making sure I have enough money in the bank before making any purchases.

On a related side note, one professor I had was saying that: taking out a small loan, leaving it in your bank account (and not touching it) and paying it back on schedule, and then getting a bigger loan and doing the same, etc. will be worth paying the interest in the long run because the bank will "trust" you with larger sums of money after they've seen that you've had a good history. He said something like "start when you don't need the money, so that when you do need the money you'll be trusted with more." Any thoughts on that?

Nash- I the next step after obtaining secured credit via a secured credit card, would probably be to get an unsecured one. Talk with the financial institution that gave you the secured one and see if they will release it, but if they prefer to keep it secured, it's no big deal. Make sure you choose a "conventional" credit card, instead of falling into the retail card trap.

As far as your professor's advice, it is pretty sound, except you don't necessarily need to increase the loan amount. Credit history is exactly that, just a history of you making your payments on time. It may be difficult to keep making smaller payments when you know you are paying additional interest, but keep in mind that spending that extra bit now could potentially save you tens of thousands of dollars in the future. I really like the fact that he said to get the money now, when you don't need it, for when you do. Again, frustrating because you are paying interest, but definately true. Chances are, you will not be able to live your whole life without credit coming into play somewhere. I see far too many people that think they don't need credit have an emergency come up, and when they apply for a loan, just simply don't have any credit. These people are generally declined due to lack of credit history. Unfortunate, but a good example as to why it is important to start early.

If you do end up getting a secured credit card, make sure you use it. Even if you keep track of the balance vs. your checking account balance and don't spend more than you have, make sure that card is put to use. You always can pay it off each month and avoid interest charges, but make sure you keep the balance under 60% of the credit limit, even though you may pay it off each month.

I hope this answered your question! If not, Post again!

Thanks!

NoSoup · 08-27-2003, 04:34 AM

Quote:

Originally posted by swmacneil
No Soup...
I am lookign for info on buying a house here in Massachusetts, or ability to get a morgage.
I am engaged, i have 1 consolodated student loan about 10K, 1 misc loan for 10K, and 2 credit cards with total debt of 4K, one now closed for about 2 years while a pay the balance.
My girl has considerably less debt, a few credit cards with Credit Guard of America, closed and in replayment, nearly paid off, and thats about it.
My payment history is less then stellar, i have been less then 30 days late on some payments recently as well as in the past, i havent had any real delinquent payments in at least a year.
I do have debt that had gone to a bureau and is now settled, about 2 years ago.
My fiance is a registered Nurse (6 months on the job same place), makes about 700/week take home, i am a net admin, bring in about 47,000/year or 2 k a month take home (same job nearly 3 years).
We share a 1 bedroom apt for 1340/month, both lease cars with about 260/month payments.
Do i have a chance in hell to get a morgage right now, should i not even apply? Can i apply jointly if im not even married yet.
Whats my best stragedy to get ready to apply for a morgage.

swmacneil-
Well, I would say that the best strategy to apply would be to continue making your payments on time, (the less than 30 days late shouldn't show up on your bureau) as well as save as much money as possible for that downpayment.

I am not sure if you feel rushed to move into a house or not, but If you don't, try and pay off your debt first, or at least the credit cards. Those payments may not seem like a whole lot now, but if your house needs some maintenence, it will be nice to have that extra cash.

My next suggestion is to save up as much money for the down payment as possible. (after debts are paid) They higher the downpayment, the less the mortgage payments, the less interest you pay, and the better chance of being approved. If you save up enough, you probably won't have to worry about PMI insurance. I am not sure of the rules where you are, but in Wisconsin it is common for the institutuion to require it if you owe over 80% of your homes value. However, there are institutions that don't require it at all, no matter what % you owe on your mortgage.

As far as being approved, I am nearly positive that you could be. However, the terms of the loan and fees incorporated may be higher than they would be if you had a larger downpayment or better credit. Mortgage brokers are.... shall we say.... very flexible.... with their underwriting procedures, with a cost to you in interest rate and broker fees. Don't get me wrong, sometimes it is better to pay more fees for a lower interest rate, but in a lot of cases, I would check the disclosures to see the total amount you will be paying. Even though a Brokers rate might be .5% lower, if there are 3 points and tons of closing costs, it may be cheaper to go with a conventional mortgage.

If I can do anything else for you, let me know.

Thanks for Posting!

swmacneil · 08-27-2003, 05:34 AM

Thanks No Soup, i appreciate your insight.

maa2k · 08-27-2003, 12:05 PM

No Soup,

The info in the thread is great. I hope you can give me some advice about my situation:

I'm 24, single and have been with the same company for 6 years (4yrs part time while in school). I currently make 48k/yr before taxes. My debt has been piling up between school and family financial problems. I have a 40k school loan that was co-signed by my cousin, which I have been paying off on time. I also got a $21k car loan in 1999, which I am paying off on time as well and will be paid off next Nov. My main problem is credit card and some leftover tuition debt. I have about 5k in CC debt, 6k in tuition at a collection agency and 4k in CC debts that are also in collection agencies.

My credit scores are horrible and I have about 16 negatives on my credit reports.

Between rent, car payments, loan payments and other necessities I only have about $200/month to divide among the collection agencies.

Should I look into declaring bankruptcy? How will bankruptcy affect my cousin who co-signed the tuition loan?

I want to turn over the new leaf!

Thanks for the great help

nash · 08-30-2003, 05:30 PM

Thanks for the help, NoSoup!

One more question for now:
How can I get my credit union to "trust" me with a loan and how much should the loan be for? To remind you of my situation, I have no credit history right now, and I'm about to apply for a secured credit card with my credit union. I guess you can refer to my previous post for more info, four posts above this one. Thanks again for the help!

Hard8s · 08-31-2003, 07:39 PM

Hey No Soup,
I own a Manufactured Home that is in a Mobile Home Park. I am looking to refinance, but I am having problems finding anyone who deals in manufactered homes, that do not have outrageous rates.

I live in CA, and I really do not want to go to a manufactured home dealer to get financing like I did when I bought mine.
I currently have a rate of 8.75% is that good or avg?
Thanks for any help!

NoSoup · 09-08-2003, 04:43 PM

Quote:

Originally posted by maa2k
No Soup,

The info in the thread is great. I hope you can give me some advice about my situation:

I'm 24, single and have been with the same company for 6 years (4yrs part time while in school). I currently make 48k/yr before taxes. My debt has been piling up between school and family financial problems. I have a 40k school loan that was co-signed by my cousin, which I have been paying off on time. I also got a $21k car loan in 1999, which I am paying off on time as well and will be paid off next Nov. My main problem is credit card and some leftover tuition debt. I have about 5k in CC debt, 6k in tuition at a collection agency and 4k in CC debts that are also in collection agencies.
My credit scores are horrible and I have about 16 negatives on my credit reports.
Between rent, car payments, loan payments and other necessities I only have about $200/month to divide among the collection agencies.
Should I look into declaring bankruptcy? How will bankruptcy affect my cousin who co-signed the tuition loan?
I want to turn over the new leaf!
Thanks for the great help

First off, sorry for the length of time before the response! It has been a bit since I have had the time to log on.... TFP, how I missed you.

On to your questions....
First off, your car will be paid off soon... which means that the end of that dark, dark may be over sooner than you think. You are not used to having that extra money lying around, so you will be able to put it directly on any other debt you may carry.

First of all, I would continue to make any payments that you have on time. That is of the upmost importance.

After you have paid off your car, (only 2 more payments!) I would contact the collection agencies and offer to settle. Some may refuse-let them sweat. Take the agency that offers you the best reduction, and make your car payment and any additional moneys you can to them, get it paid off as soon as possible. Repeat the process with the other collection agencies... hopefully any that refused originally will now change thier mind. Those that did offer in the beginning may give you a higher reduction now. Make sure you continue to pay those other bills on time, but you want those collections closed as soon as possible.

After paying off the collections, start hammering on your other credit card debt. Chose one, preferable the one with the highest interest rate, take the money from the car payment and collection agency payments, and pay the beast off. Continue doing so until all of them are paid. I know, easier said than done, but this is the by-the-book (and also best, in my opinion) advice on becoming debt free. The school loan you don't want to pay off until last, because it is generally tax deductable. However, when everything else is paid, do the same to that.

As far as declaring bankruptcy, I am not sure if I would recomment that at this point. I know you may not agree with me, but you are not in that bad of a situation. You make 48k a year, and only 55k in debt. It would be much worse if you made 25k a year, or you were higher in debt. Also, it is possible for you to still have that school loan after bankruptcy. It doesn't always pay for money owed for educational purposes.

In response to the bankruptcy affecting your cousins credit, it will. It would affect yours in a much more negative manner, but his credit would show that he defaulted on a 40k loan. He is just as much responsible for repaying it as you are, and it will affect his credit in the exact same manner as defaulting on that account would affect yours.

If I can be of any more service, let me know!

NoSoup · 09-08-2003, 04:47 PM

Quote:

Originally posted by nash
Thanks for the help, NoSoup!

One more question for now:
How can I get my credit union to "trust" me with a loan and how much should the loan be for? To remind you of my situation, I have no credit history right now, and I'm about to apply for a secured credit card with my credit union. I guess you can refer to my previous post for more info, four posts above this one. Thanks again for the help!

You can get your credit union to trust you with a loan by having either some type of credit history, which you do not, having an established history with them, (deposit accounts), or by having a co-signer. The secured credit card will help you begin establishing credit history, as far as the amount goes, I would ask for a very small sum, depending on their minimum. $250-$500 should be enough to get you started, and they may not require a co-signer for that little. If they do, don't worry about it, it reports the same to your bureau whether it is just yours or if you have a cosigner.

Thanks for Posting!

NoSoup · 09-08-2003, 04:52 PM

Quote:

Originally posted by Hard8s
Hey No Soup,
I own a Manufactured Home that is in a Mobile Home Park. I am looking to refinance, but I am having problems finding anyone who deals in manufactered homes, that do not have outrageous rates. I live in CA, and I really do not want to go to a manufactured home dealer to get financing like I did when I bought mine.
I currently have a rate of 8.75% is that good or avg?
Thanks for any help!

Financial Institutions generally have issues with Manufactured homes because they are more likely to lose value (depreciate) and would be more difficult to sell if you defaulted than a conventional home. You may want to try contacting some more institutions, if you have some equity in your home, that may be used to your advantage. Generally, Banks will give you a lower rate if you owe under a certain percentage (ie 80%) of your homes value.

As far as 8.75%, It is difficult to say because you didn't state when the loan was taken out. 1 year ago, that would be high, now, that would be average, 5 years ago that would be a great rate. Of course, these are all generalizations, but they should be relatively accurate.

At the current institution I work at, we can only loan out 89% of a manufactured homes value, but you would get the same rate as any other home. I would assume that there are similar institutions out in CA.

Thanks for posting! If you need anything else, just let me know!

NoSoup · 09-08-2003, 04:55 PM

Oh, on a related note, a while back someone had asked if PMI was required from everyone. It is not, the current institution I work at doesn't even make you take it even if you are at 100% loan to value. (you owe exactly what the home is worth) Also, we also may not require a downpayment, depending on your credit history.

Just figured it might be a useful FYI when you are checking around for a mortgage loan.

Averett · 09-17-2003, 09:34 AM

Hey NoSoup!

A few general questions.

First, how can I obtain my credit report? Do you have to pay for this?

I have 3 credit cards, totaling about $13,000 in debt. I'm using a counsling agency. They were only able to make a deal with 2 of the cards, so the 3rd I still pay directly. Would it make sense to get out of the counsling agency and pay the cards myself? I am able to pay off the cards, at least the minimum each month.

Basically, I'm just not sure how much I benifit with this agency. It doesnt seem as if I'll pay off the cards any sooner through them. I have since cancled these cards. I was thinking of reopening the one card (its a Visa), woud this be wise? Now, I would not use it, but it seems it would be good for my credit rating to have it open.

I'm still living at home, but I am looking to move out in 6 months or so. At my current job I make around $24,000 a year. I have a car, those payments will be done in a little less than 2 years. How hard will it be to get into an apartment?

Money gives me a headache...

NoSoup · 09-18-2003, 08:03 PM

Quote:

Originally posted by Averett
Hey NoSoup!
A few general questions.
First, how can I obtain my credit report? Do you have to pay for this?
I have 3 credit cards, totaling about $13,000 in debt. I'm using a counsling agency. They were only able to make a deal with 2 of the cards, so the 3rd I still pay directly. Would it make sense to get out of the counsling agency and pay the cards myself? I am able to pay off the cards, at least the minimum each month.

Basically, I'm just not sure how much I benifit with this agency. It doesnt seem as if I'll pay off the cards any sooner through them. I have since cancled these cards. I was thinking of reopening the one card (its a Visa), woud this be wise? Now, I would not use it, but it seems it would be good for my credit rating to have it open.
I'm still living at home, but I am looking to move out in 6 months or so. At my current job I make around $24,000 a year. I have a car, those payments will be done in a little less than 2 years. How hard will it be to get into an apartment?
Money gives me a headache...

Well, to obtain your credit report you can either
A) Pay for it (recommended)
B) Get Declined for credit... The Institution is required to send you a notice allowing you to receive a free report, but this report won't have your scores or anything on it, simply a list of your accounts and balances.

As far as what you should do with the agency dealing with the credit cards, because I don't have all the necessary information, I would rather not comment at this point, simply so I don't point you in the wrong direction. You said that the agency worked a deal, but didn't mention the terms of the deal. If you would be able to do so, I would be more than happy to offer any advice I could.

If you pay just the minimum each month on the cards, your balance will take many years to be paid off. (if ever) Try making the minimum on the two cards that aren't too bad, and target the last one (with high interest rate, annual fee, ect.) Pay as much as you can on that card, and continue doing so until it is paid off. After it is paid, transfer that payment onto the next card, again choosing the one with the least friendly terms.

As far as "cancelling" your account, it isn't truly canceled. Granted, they may have revoked access to borrowing any more money with your request, but you account won't report closed on the bureau untill the accound is actually at a $0 balance and you request that the line of credit be closed. So, in answer to your next question, reactiviting it would not really help you build any additional credit.

Well, as you didn't state your payment history, it is difficult to deduce how hard it will be to qualify as a tenant. However, if your parents state that you have paid rent for X years, you will at least have some type of rental history as well.

To be honest, before you move out, try paying "rent," just to see if it is comfortable to you. Check around and find an apartment that is similar to one you would want to reside in, find out what the rent amount is, and pay that much more additional money on your credit cards. The reason I suggest this is due to you stating that you can pay the credit cards yourself, well.... at least the minimum. I can't think of too many more financially difficult situtations than signing a lease and having difficulty paying the rent. Make sure you stick with it, one month is a little different than 12, see if your new lifestyle is acceptable. And, you're doing nothing but helping yourself in the long run.
-Also, you may want to start stocking up on housewares, it is Expensive to move out! I know, you have probably heard it a million times, but people aren't lying. Furnature and a security deposit are a definate must, and it is always good to have a little nest egg in case something goes wrong.

Well, I hope that helps you out, sorry if I got a little long-winded, lol... it is late. If you want to repost the agency's "deal", go right ahead, I will do my best to help you out.

Thanks For Posting!

NoSoup · 10-05-2003, 06:08 PM

Hello everyone, I see that it has been quite some time since there has been a post on this thread, and before it falls off TFP into oblivion, just wanted to see any I can help anyone else with anything.

G'nite all!

NoSoup

NoSoup · 10-30-2003, 11:17 PM

One Final bump, If anyone needs anything, you are welcome to ask, if not, I am glad I was able to help in some way. I hope some of you got some useful info from this thread, it was a pleasure to write.

Thanks again, and G'nite everyone

NoSoup

Cynthetiq · 02-20-2004, 07:14 AM

because we have a new forum

*bump*

StormBerlin · 02-20-2004, 02:48 PM

So NoSoup, I'm lookin to buy a car. I'm eighteen, a full time student (with loans) and i work full time. So the car I want is roughly 13,000 after tax, licence, etc. They tell me I need a cosigner (perfect credit isn't perfect anymore if there isn't "car credit") so I had my mom cosign and they wouldn't give it to her because she is in credit counseling? That doesn't really click in my head, so some info on that would be nice. Also, I'm probably going to go with in-house financing with the dealership. People tell me to stay away from that because it wont build my credit, but the thing is, they will report every month to the credit bureau. So it will affect my credit, right? And another question about my credit card. I heard that a good idea is to pay the minimum balance every month on the card, then pay the full amount, close the account while it's in good standing and apply for another card with a higher limit Because it looks good to have many accounts closed while in good standing? Thanks for your help

bobw · 02-20-2004, 10:36 PM

If I am looking to start a small business (likely set up a LLC) and need to take a loan to do so (approx $200k), what does the lendor look at to assess whether he will write the loan ? Personal assets, or the prospects of the business venture ?

NoSoup · 02-21-2004, 12:56 AM

Quote:

Originally posted by StormBerlin
So NoSoup, I'm lookin to buy a car. I'm eighteen, a full time student (with loans) and i work full time. So the car I want is roughly 13,000 after tax, licence, etc. They tell me I need a cosigner (perfect credit isn't perfect anymore if there isn't "car credit") so I had my mom cosign and they wouldn't give it to her because she is in credit counseling? That doesn't really click in my head, so some info on that would be nice. Also, I'm probably going to go with in-house financing with the dealership. People tell me to stay away from that because it wont build my credit, but the thing is, they will report every month to the credit bureau. So it will affect my credit, right? And another question about my credit card. I heard that a good idea is to pay the minimum balance every month on the card, then pay the full amount, close the account while it's in good standing and apply for another card with a higher limit Because it looks good to have many accounts closed while in good standing? Thanks for your help

First off - Wow... this has been gone for a long time, glad it returned, always willing to help!

Alright, down to business-
They may not accept her as a cosigner because people in credit couseling generally have had either credit issues in the past or are having difficulty making their payments. They still should have checked her credit, and it may be delinquencies or the like that may have disqualified her.

As far as in-house financing, BE WARY! I cannot stress this enough. If the dealership will finance the car for you without the help of a financial institution, be very, very cautious with the paperwork you sign. I have never seen, although some may exists, a dealer that offers a decent deal when doing their own financing. Be on the lookout for "processing fees, application fees, dealer fees," and other bogus fees. Also, make sure that there isn't a prepayment penalty. I remember when I was purchasing my first vehicle, I wasn't worried at all about the type of financing I got, and it can come back and bite you in the ass. Make sure when you are going about purchasing a vehicle, you don't let your personal emotions get involved, and don't let the salepeople pressure you.

As far as closing credit cards to get new ones, that is poor advice. By having more inquiries than you need on your bureau, it will pull your score down far faster than any benefit you would see from closing an account while still in good standing simply to reopen another one. If you are worried about a higher limit, just as your current card holder to raise your limit, but heed the other advise in the previous posts when dealing with credit cards.

If I can help you any more, feel free to post again!

NoSoup · 02-21-2004, 01:00 AM

Quote:

Originally posted by bobw
If I am looking to start a small business (likely set up a LLC) and need to take a loan to do so (approx $200k), what does the lendor look at to assess whether he will write the loan ? Personal assets, or the prospects of the business venture ?

Well, to be honest, business financing is not my expertise, but I'll do the best I can with what I have picked up over the years....

The lender will definately take a look at everything of yours (personal) to decide whether or not to do the loan. Your credit history, score, assests, liabilities, child support payments, ect.

From my understanding, certain lenders will give you a "business" loan based solely on your personal information. It is doubtful that you will get a loan for 200k w/out something as collateral, such as an office building or equipment, depending on the type of business you are getting started.

If you would like to leave more specific details on how you are setting up the business, what the business is, and what you are potentially using for collateral, I could possibly give you more specific info. Until then, if anything else arises, feel free to post!

NoSoup · 02-21-2004, 02:20 AM

Oddly enough, I have gotten several PMs within the last day or two inquiring about my experience, knowlege, and age.

I figured I might as well slap it up here to avoid having to reply to all of them individually.

I have been working in financial institutions for approximately 4 years now. I am well educated in most aspects of both Credit Unions and Banks. I have done many different types of loans, including RV's, Campers, Vehicles, Signature, Unsecured, First Mortgages, Second Mortgages, Home Equity Lines of Credit, and I am sure there are more, lol, but I don't think I could remember them all if I tried. I have open/closed/maintained IRA accounts, dealt with depository accounts (checking, savings, money markets, ect.) In my current position, I handle nothing but mortgages.

Nope, I do not have a college degree, although I did attend a tech school for a short period of time before deciding that in my current position, it isn't for me

Finally, I am 20 Years old. Actually, just turned 20 not too long ago, when I originally started this thread I was 19, I believe.

Well, lol - I hope that answers everything, if you have any more questions, feel free to either post em or PM me!

denim · 02-24-2004, 07:32 PM

Quote:

Originally posted by NoSoup
Sorry for the delay, I have been pretty busy these last few days. I would suggest that you renew your lease and save money for a down payment. To enable you to save as much as you can, I would either buy the used vehicle, or depending on the condition of your current vehicle, see if you can hold on to that one awhile longer.

Here's something of an update.

The bonus came through such that the net amount was around US$14K. I bought a new computer and a new car, with a US$14K loan on the car.

Now I'm fed up with my landlord and I'm looking at buying a house. Okay, I'm in debt. I still have a good rating as far as I know (haven't checked since before the car purchase!) and I have enough cash in investments to pay off the car, but I've been keeping that as a cushion, and paying off the car at twice the rate contracted.

Now I've looked at a few houses. I've gotten pre-approved for US$150K, which seems in this area to not be enough. Meanwhile, it seems like too much to me. I expect I could get pre-approved for more, but the amount of monthly payment I'd be making, with PMI and taxes, would be in the range of US$1200+ at the current pre-approved amount. That's about a third of my monthly net income.

When adding in the increased utility expenses and the unknown costs of What Will Go Wrong, I'm beginning to think that some people were right to suggest to me to look at condos. That way, I'd at least start building up equity and tax advantages.

Less the retirement accounts, my net worth is a bit over $4000. This doesn't strike me as very high. Here's what I'm thinking: get a cheaper yet bigger apt. I'm moving no matter what 'cause this place is too small and I pay a premium for the location. I've queried a few apartment developments in this area, and they're all cheaper and have more sqft'age. Then use what's left after the cost of the move, plus whatever else I can save over the next year, to build some cash equity. Am I making any sense? Or would it make more sense to buy something and get equity w/o having to pay rent at the same time?

Also, what can you tell me about 80/10/10 loans? How do they compare with paying a minimum downpayment and paying PMI? I understand that the 80/10/10 loan has better tax credits.

NoSoup · 02-25-2004, 07:10 PM

Quote:

Originally posted by denim
Here's something of an update.

The bonus came through such that the net amount was around US$14K. I bought a new computer and a new car, with a US$14K loan on the car.

Now I'm fed up with my landlord and I'm looking at buying a house. Okay, I'm in debt. I still have a good rating as far as I know (haven't checked since before the car purchase!) and I have enough cash in investments to pay off the car, but I've been keeping that as a cushion, and paying off the car at twice the rate contracted.

Now I've looked at a few houses. I've gotten pre-approved for US$150K, which seems in this area to not be enough. Meanwhile, it seems like too much to me. I expect I could get pre-approved for more, but the amount of monthly payment I'd be making, with PMI and taxes, would be in the range of US$1200+ at the current pre-approved amount. That's about a third of my monthly net income.

When adding in the increased utility expenses and the unknown costs of What Will Go Wrong, I'm beginning to think that some people were right to suggest to me to look at condos. That way, I'd at least start building up equity and tax advantages.

Less the retirement accounts, my net worth is a bit over $4000. This doesn't strike me as very high. Here's what I'm thinking: get a cheaper yet bigger apt. I'm moving no matter what 'cause this place is too small and I pay a premium for the location. I've queried a few apartment developments in this area, and they're all cheaper and have more sqft'age. Then use what's left after the cost of the move, plus whatever else I can save over the next year, to build some cash equity. Am I making any sense? Or would it make more sense to buy something and get equity w/o having to pay rent at the same time?

Also, what can you tell me about 80/10/10 loans? How do they compare with paying a minimum downpayment and paying PMI? I understand that the 80/10/10 loan has better tax credits.

Thanks for the update!

Alright, before I answer, I'd like just a tad bit more info, if you wouldn't mind.

1) What type of Investments are they? Stocks, Bonds, Mutual funds, IRAs?

2)What is your Interest Rate on the vehicle loan? Term of the loan?

3) How much cheaper of an apt. are you looking for? Estimated moving costs?

Just want to make sure I am giving you good info - I'll get back to you if you wouldn't mind Responding, I'd be more than happy to help!

denim · 02-25-2004, 08:42 PM

Quote:

Originally posted by NoSoup
1) What type of Investments are they? Stocks, Bonds, Mutual funds, IRAs?

Yes, all of that. Most of it's in a mix of a 401k, a roll-over (regular) IRA, and an index fund. The rest, around US$5K, is in growth stocks.

Quote:

2)What is your Interest Rate on the vehicle loan? Term of the loan?

IIRC, it's 4.05%. Pretty damn low, no? 60 months, since I can always pay it off earlier if I want.

Quote:

3) How much cheaper of an apt. are you looking for? Estimated moving costs?

Prolly a couple hundred/month. Maybe $1K for moving, probably less. OTOH, I've been told to not give up so easily on a house. May take a while to find one.

NoSoup · 02-25-2004, 10:22 PM

Alright, a few more questions

As far as a downpayment is considered, are you able to put one down? How much? Is it cash that you have, or would you be cashing in your IRAs? Finally, when you purchased the new car, did you put the remains of your bonus on the car?

Thanks, I'll get back to you soon!

denim · 02-26-2004, 04:46 AM

I should be able to put down at least 3% for the house for a FHB loan, or PERHAPS more, depending. This would be from regular investments though I understand I could pull some from the 401k.

The car had a $9K downpayment from the bonus.

Averett · 02-27-2004, 09:25 AM

Jesus, you're only 20? Wow, you know your shit

I bet I'll have some more questions soon, my finances are a bit crazy at the moment.

08-24-2003, 06:23 AM	#85 (permalink)
Shokan Addict Location: Canada	building credit Well, Im 22. Ive decided thats its about time I start getting my act together. I want to eventually get a nice car and a house. However, I have no credit whatsoever. Does anyone know the methods of obtaining it? Im Canadian, if that makes any difference. __________________ Legalize it.

08-24-2003, 04:47 PM	#90 (permalink)
cowlick Insane Location: Seattle	While credit is not necessary, even for things like buying a home, credit is important to some people and businesses. Home loan interest rates are lower for those with a good job, good rental history, and good credit. While you can get a loan at an X % interest rate without credit, you can often get a loan at X-2 with better credit. One easy way to get credit is to INTELLIGENTLY use a credit card. I say intelligently since many college age Americans (and in your case Canadians) often get really finiancially screwed with credit cards. Whatever you put on a credit card has to be paid off BEFORE any interest is due. And no payment can ever be late. Mess this up and you can get into the horrible debt people talk about. One easy way to build credit is as follows: * Get a checking/savings account at a good bank (or credit union) with online banking. * Get a credit card (Visa or Mastercard) from a national bank that has a good online credit card payment system. * Use your credit card for day to day purchases, like groceries or new shoes. * No less frequently than weekly, completely pay off the credit card online via the bank account. * __________________ "It's a long story," says I, and let him up.

08-24-2003, 06:39 PM	#92 (permalink)
Cedar Crazy Location: Hogwarts School of Witchcraft and Wizardry	If you're in the market for a cell phone, that's another way to build credit. My coworker built hers through car payments and getting an unsecured credit card with a very low limit that she paid off every month. Try something with a $500 limit or so, something that will keep you in a realistic range. I can never pay my bills on time cringes but that definitely is the best way to build good credit. __________________ Do I contradict myself? Very well then I contradict myself, I am large. I contain multitudes. -Walt Whitman, Song of Myself

08-31-2003, 07:39 PM	#100 (permalink)
Hard8s Addict Location: Wherever I am!	Hey No Soup, I own a Manufactured Home that is in a Mobile Home Park. I am looking to refinance, but I am having problems finding anyone who deals in manufactered homes, that do not have outrageous rates. I live in CA, and I really do not want to go to a manufactured home dealer to get financing like I did when I bought mine. I currently have a rate of 8.75% is that good or avg? Thanks for any help! __________________ If ignorance is bliss, then wipe this smile off my face!

09-08-2003, 04:55 PM	#104 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Oh, on a related note, a while back someone had asked if PMI was required from everyone. It is not, the current institution I work at doesn't even make you take it even if you are at 100% loan to value. (you owe exactly what the home is worth) Also, we also may not require a downpayment, depending on your credit history. Just figured it might be a useful FYI when you are checking around for a mortgage loan. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

08-24-2003, 07:03 AM	#86 (permalink)
skysooner Registered User Location: Oklahoma	Building credit is something that takes awhile. The first thing is to have some revolving credit lines (i.e. credit cards, finance line at a store) that you use and pay off. What is strange is that the more credit you have and don't use the better it seems (up to a point). Don't be late paying bills as any late payments will show up on your credit report. A very good start is just to get a credit card and use it for enough things to build up a small monthly balance and then pay it off each month to avoid finance charges. A fallacy of the credit system is the more credit you ask for the lower your credit score goes. One of the things they look at is how many "credit inquiries" are made in the last few months. Therefore it is best to only apply for a couple of credit cards and not to apply for many of them just due to the free gifts they give you. Also, it is better if you have things like phone lines in your name so that when they get paid off you get the benefit of paying it off. Building credit is kind of a long thing. There is no easy answer beyond just what I said above.

08-24-2003, 07:20 AM	#87 (permalink)
goobster Insane	Building credit takes time, and will pay off later if done properly...

08-24-2003, 08:49 AM	#88 (permalink)
Bamrak Enter Title Here Location: Tennessee	Actually, there's no real need to have credit. just save up for purchases such as the car and other items. Most real mortgage companies use your employment and your rent history. Had I known then what I know now, I would have done my credit much differently. As it stands I'm 25 making 21k a year, and I'm 40k in debt with a car and credit cards.. check out www.daveramsey.com. I've been listening to him for about 8 months, and my financial situation has done a 360.. it's worth a look if you're open minded.

08-24-2003, 01:57 PM	#89 (permalink)
Rodney Observant Ruminant Location: Rich Wannabe Hippie Town	In general I've got to agree with Bamrak: save your money, keep a job, have a good rent history if possible. I once was buying a house; it was inexpensive and I had the down, but the mortgage company called me in and said, "We have a problem with your credit history." I asked what problem? They said, "You don't _have_ a credit history!" I was totally off the radar at the credit bureau, since I never did credit, and the investors who wanted to fund the loan were nervous. But I had the money and a good employement record, so all I had to do was sign a form saying that I wasn't in the credit database because I didn't believe in credit. I guess they wanted me to go on record saying, "I'm no a crook." No problem. That said, I do think credit is a good thing for emergencies when you don't have time or opportunity to stare down a loan officer, and I think it's good to have a card -- as long as you don't normally use it. My advice: get a card to buy things over the Internet with (at low prices, save money), pay it off in full every month, and don't use it for anything else. You'll build credit for emergencies.

08-24-2003, 04:47 PM	#91 (permalink)
Ashton PORNHOUND Location: California	In this day and age it's important to have credit..... You look like a fuck up if you don't have a credit card. Want to rent a car? No card no car...... Want to buy something online? No card = send us a check through snail mail, when it gets to us we will hold it until it clears..... the world revolves around plastic these days, I always carry cash..... I actually prefer paying in cash, but sometimes you need a card..... I have no idea how it works in Canada...... here in the U.S. there are high interest credit card companies that will give anybody a card, you just use it for your day to day purchases and pay the balance off at the end of the month...... just never spend more than you can pay off and after awhile your credit rating will go up..... then other card companies will send you offers for their cards..... this goes on and on over the years until you have great credit with really low interest rates

08-26-2003, 10:25 AM	#93 (permalink)
nash Psycho	Hi NoSoup, I've read through the entire thread and it looks like the info that you and others have posted will be of great help in the future. But as for now, I am a student with no credit looking to establish credit so that I may be able to own a home and what not in the future. I am fortunate enough that my parents have a college fund for me (I go to a state school and commute from home so tuition isn't that expensive at all anyways) and have not had to take out student loans for school. From previous posts, I've learned that secured credit cards are a good place to start. What else can I do after that? And how long after getting the secured credit card should I wait before doing whatever you suggest next (if anything)? If I get a secured credit card, I will most likely not ever be using it anyways since currently I have a debit card and I like making sure I have enough money in the bank before making any purchases. On a related side note, one professor I had was saying that: taking out a small loan, leaving it in your bank account (and not touching it) and paying it back on schedule, and then getting a bigger loan and doing the same, etc. will be worth paying the interest in the long run because the bank will "trust" you with larger sums of money after they've seen that you've had a good history. He said something like "start when you don't need the money, so that when you do need the money you'll be trusted with more." Any thoughts on that?

08-26-2003, 11:30 AM	#94 (permalink)
swmacneil Tilted	No Soup... I am lookign for info on buying a house here in Massachusetts, or ability to get a morgage. I am engaged, i have 1 consolodated student loan about 10K, 1 misc loan for 10K, and 2 credit cards with total debt of 4K, one now closed for about 2 years while a pay the balance. My girl has considerably less debt, a few credit cards with Credit Guard of America, closed and in replayment, nearly paid off, and thats about it. My payment history is less then stellar, i have been less then 30 days late on some payments recently as well as in the past, i havent had any real delinquent payments in at least a year. I do have debt that had gone to a bureau and is now settled, about 2 years ago. My fiance is a registered Nurse (6 months on the job same place), makes about 700/week take home, i am a net admin, bring in about 47,000/year or 2 k a month take home (same job nearly 3 years). We share a 1 bedroom apt for 1340/month, both lease cars with about 260/month payments. Do i have a chance in hell to get a morgage right now, should i not even apply? Can i apply jointly if im not even married yet. Whats my best stragedy to get ready to apply for a morgage.

08-27-2003, 05:34 AM	#97 (permalink)
swmacneil Tilted	Thanks No Soup, i appreciate your insight.

08-27-2003, 12:05 PM	#98 (permalink)
maa2k Upright	No Soup, The info in the thread is great. I hope you can give me some advice about my situation: I'm 24, single and have been with the same company for 6 years (4yrs part time while in school). I currently make 48k/yr before taxes. My debt has been piling up between school and family financial problems. I have a 40k school loan that was co-signed by my cousin, which I have been paying off on time. I also got a $21k car loan in 1999, which I am paying off on time as well and will be paid off next Nov. My main problem is credit card and some leftover tuition debt. I have about 5k in CC debt, 6k in tuition at a collection agency and 4k in CC debts that are also in collection agencies. My credit scores are horrible and I have about 16 negatives on my credit reports. Between rent, car payments, loan payments and other necessities I only have about $200/month to divide among the collection agencies. Should I look into declaring bankruptcy? How will bankruptcy affect my cousin who co-signed the tuition loan? I want to turn over the new leaf! Thanks for the great help

08-30-2003, 05:30 PM	#99 (permalink)
nash Psycho	Thanks for the help, NoSoup! One more question for now: How can I get my credit union to "trust" me with a loan and how much should the loan be for? To remind you of my situation, I have no credit history right now, and I'm about to apply for a secured credit card with my credit union. I guess you can refer to my previous post for more info, four posts above this one. Thanks again for the help!

09-17-2003, 09:34 AM	#105 (permalink)
Averett Is In Love Location: I'm workin' on it	Hey NoSoup! A few general questions. First, how can I obtain my credit report? Do you have to pay for this? I have 3 credit cards, totaling about $13,000 in debt. I'm using a counsling agency. They were only able to make a deal with 2 of the cards, so the 3rd I still pay directly. Would it make sense to get out of the counsling agency and pay the cards myself? I am able to pay off the cards, at least the minimum each month. Basically, I'm just not sure how much I benifit with this agency. It doesnt seem as if I'll pay off the cards any sooner through them. I have since cancled these cards. I was thinking of reopening the one card (its a Visa), woud this be wise? Now, I would not use it, but it seems it would be good for my credit rating to have it open. I'm still living at home, but I am looking to move out in 6 months or so. At my current job I make around $24,000 a year. I have a car, those payments will be done in a little less than 2 years. How hard will it be to get into an apartment? Money gives me a headache... __________________ Absence is to love what wind is to fire. It extinguishes the small, it enkindles the great.

10-05-2003, 06:08 PM	#107 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Hello everyone, I see that it has been quite some time since there has been a post on this thread, and before it falls off TFP into oblivion, just wanted to see any I can help anyone else with anything. G'nite all! NoSoup __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

10-30-2003, 11:17 PM	#108 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	One Final bump, If anyone needs anything, you are welcome to ask, if not, I am glad I was able to help in some way. I hope some of you got some useful info from this thread, it was a pleasure to write. Thanks again, and G'nite everyone NoSoup __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

02-20-2004, 07:14 AM	#109 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	because we have a new forum bump __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

02-20-2004, 02:48 PM	#110 (permalink)
StormBerlin Happy as a hippo Location: Southern California	So NoSoup, I'm lookin to buy a car. I'm eighteen, a full time student (with loans) and i work full time. So the car I want is roughly 13,000 after tax, licence, etc. They tell me I need a cosigner (perfect credit isn't perfect anymore if there isn't "car credit") so I had my mom cosign and they wouldn't give it to her because she is in credit counseling? That doesn't really click in my head, so some info on that would be nice. Also, I'm probably going to go with in-house financing with the dealership. People tell me to stay away from that because it wont build my credit, but the thing is, they will report every month to the credit bureau. So it will affect my credit, right? And another question about my credit card. I heard that a good idea is to pay the minimum balance every month on the card, then pay the full amount, close the account while it's in good standing and apply for another card with a higher limit Because it looks good to have many accounts closed while in good standing? Thanks for your help __________________ "if anal sex could get a girl pregnant i'd be tits deep in child support" Arcane

02-20-2004, 10:36 PM	#111 (permalink)
bobw Psycho Location: somewhere....	If I am looking to start a small business (likely set up a LLC) and need to take a loan to do so (approx $200k), what does the lendor look at to assess whether he will write the loan ? Personal assets, or the prospects of the business venture ?

02-21-2004, 02:20 AM	#114 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Oddly enough, I have gotten several PMs within the last day or two inquiring about my experience, knowlege, and age. I figured I might as well slap it up here to avoid having to reply to all of them individually. I have been working in financial institutions for approximately 4 years now. I am well educated in most aspects of both Credit Unions and Banks. I have done many different types of loans, including RV's, Campers, Vehicles, Signature, Unsecured, First Mortgages, Second Mortgages, Home Equity Lines of Credit, and I am sure there are more, lol, but I don't think I could remember them all if I tried. I have open/closed/maintained IRA accounts, dealt with depository accounts (checking, savings, money markets, ect.) In my current position, I handle nothing but mortgages. Nope, I do not have a college degree, although I did attend a tech school for a short period of time before deciding that in my current position, it isn't for me Finally, I am 20 Years old. Actually, just turned 20 not too long ago, when I originally started this thread I was 19, I believe. Well, lol - I hope that answers everything, if you have any more questions, feel free to either post em or PM me!

02-25-2004, 10:22 PM	#118 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Alright, a few more questions As far as a downpayment is considered, are you able to put one down? How much? Is it cash that you have, or would you be cashing in your IRAs? Finally, when you purchased the new car, did you put the remains of your bonus on the car? Thanks, I'll get back to you soon!

02-26-2004, 04:46 AM	#119 (permalink)
denim Banned Location: Massachusetts, USA	I should be able to put down at least 3% for the house for a FHB loan, or PERHAPS more, depending. This would be from regular investments though I understand I could pull some from the 401k. The car had a $9K downpayment from the bonus.

02-27-2004, 09:25 AM	#120 (permalink)
Averett Is In Love Location: I'm workin' on it	Jesus, you're only 20? Wow, you know your shit I bet I'll have some more questions soon, my finances are a bit crazy at the moment. __________________ Absence is to love what wind is to fire. It extinguishes the small, it enkindles the great.