Ask The Loan Officer - Page 2 - Tilted Forum Project Discussion Community

Jesus Pimp · 06-28-2003, 04:24 AM

I have 2 student loans, one private, one federal. There's no way for me to consolidate the private loan I just found out. As for the federal loan. Should I consolidate it?

nicion · 07-02-2003, 09:19 AM

This may be a bit late in the discussion, but I wanted to clear up some misinformation that came out about Roth IRAs earlier in the thread.

If you are filing single, you can contribute the maximum amount to a Roth IRA only until your AGI reaches $95,000. There is a gradual phase-out to the amount you can contribute, until your AGI reaches $110,000, at which point you are ineligible to contribute to a Roth IRA.

atomic mind · 07-02-2003, 07:41 PM

We just bought our house in February. Is there a certain amount of principal we have to pay down before we can get a home equity loan? We'd like to pay down some high interest debt, plus put a few home improvements on it, plus be able to deduct the interest...

boredjerk · 07-02-2003, 10:14 PM

On paper I make about $7,500 a year. My only assets are four junk cars (all paid for). My only expenses are rent and utilities. I live in a college town where property values and rents are outrageous. I'd like to buy a rental property in the $80-100k range which would consistently rent for $1500 a month. I don't have shit for income but I can put 20% down. Do I have a chance in hell without a better job? With existing leases on the property?

nicion · 07-03-2003, 01:19 AM

I would be very interested in a rental property in the $80-100k range which would consistently rent for $1500 / month. Rent (yearly) typically amounts to roughly 5% of the property value, so for an $80-100k place, don't expect the monthly rent to be much beyond $400. Note that this describes the situation in Australia, though I assume it would be very similar in the US.

What you describe is a return of between 18% and 22.5% - basically sounds too good to be true.

daoist · 07-03-2003, 02:50 AM

It seems that I'm an expert at financial calamities:

I've got a couple of credit cards maxed out, i run on a low - to - negative bank account balance, and i've got tons of other bills piling up.

Every couple of weeks whenever I think i can pay some of my debt down (most of my debt is in collections now) something new happens.

I've gone to the hospital from heart-attack symptoms (i'm a 23 year old college student...no insurance), i've had creditors try direct debits from my checking accounts at exactly the wrong times (case in point: my checking account is $-380 right now due to a direct debit). My car broke down and I had to pay about $500 to fix it, then the next day I got pulled over 200 miles from home and had my car impounded. due to my inability to get a ride to go pick it up it sat there for about a month racking up "storage fees", after it's all said and done i'll be out $800 or so on that little adventure. Oh, and since I didn't have a car for a month I lost one of my jobs...the higher paying one

anyhow, i'd estimate I've got about $10k of debt going on right now (not even counting my student loans)

what the hell should I do? I've seriously considered faking my own death. Seriously.

NoSoup · 07-03-2003, 03:16 PM

Quote:

Originally posted by Jesus Pimp
I have 2 student loans, one private, one federal. There's no way for me to consolidate the private loan I just found out. As for the federal loan. Should I consolidate it?

Sorry About the Delay! I have been pretty busy lately, and haven't had a whole lot of extra time on my hands... I just got a new job (same field-lending) and I just have a lot of things that I've had to do.

As to your question, Jesus Pimp, I would check it out. See what interest rate it would be if you consolidate it, as well as what the payments would be. If it would be advantagous, consolidate. If you want, you may want to wait to see if the rates go down anymore. I know a few people that have their loans locked in at 9.5%... a great rate at the time, but...

The moment you hear that the interest rate is on the rise (If they raise prime rate) I would consolidate and lock it in if it is lowering your rate.

Thanks for posting!

NoSoup · 07-03-2003, 03:19 PM

Quote:

Originally posted by nicion
This may be a bit late in the discussion, but I wanted to clear up some misinformation that came out about Roth IRAs earlier in the thread.

If you are filing single, you can contribute the maximum amount to a Roth IRA only until your AGI reaches $95,000. There is a gradual phase-out to the amount you can contribute, until your AGI reaches $110,000, at which point you are ineligible to contribute to a Roth IRA.

nicion- you are correct. I just gave the basic info, but thanks for elaborating on my comment. Just goes to show what a great community TFP really is, and what a wealth of knowledge we have if we pool it all together.

Thanks again!

dudemac · 07-03-2003, 03:22 PM

Does the number of credit cards effect you when you apply for a home loan? I have about 10 credit cards and my wife has about 12-15, only like 2k total debt not counting student loans.

NoSoup · 07-03-2003, 03:23 PM

Quote:

Originally posted by atomic mind
We just bought our house in February. Is there a certain amount of principal we have to pay down before we can get a home equity loan? We'd like to pay down some high interest debt, plus put a few home improvements on it, plus be able to deduct the interest...

Excellent Idea. There is no specific amount of principal that you must pay, it just depends on the institution. Most institutions will only go 100% of the equity, but some will go up to 110% - I've seen some as high as 125%

As far as the appraised value, if you can get some of those home improvements done w/out the loan, you should have more room to play with when consolidating your high interest debt. (Assuming, of course, that the value of the home increases) Something you may want to consider in the future is a home equity line of credit. There are both advantages and disadvantages, but overall it is not a bad product to have.

I hope this answered your question, if not, post again!

Thanks for posting!

NoSoup · 07-03-2003, 03:29 PM

Quote:

Originally posted by boredjerk
On paper I make about $7,500 a year. My only assets are four junk cars (all paid for). My only expenses are rent and utilities. I live in a college town where property values and rents are outrageous. I'd like to buy a rental property in the $80-100k range which would consistently rent for $1500 a month. I don't have shit for income but I can put 20% down. Do I have a chance in hell without a better job? With existing leases on the property?

Tough situation. Depending on what you mean by "rental property," some institutions may consider your future rent as part of your income. If you were to buy, say, a duplex, and live in one side while the rent you charge would cover the mortgage payment (as well as escrow tax) on paper, some institutions may allow that. I am sure it will be difficult to find an instituion to allow that, though, seeing as how rent is not guaranteed, but it may be possible.

Your best bet would probably be to either get a different/another job where your income on paper is higher, or find some way to show the actual amount of income you make. Granted, you'll pay more in taxes, but even if it only for the time period of buying the property, It'll probably be worth it.

If I can help with anything else, let me know.

Thanks for Posting!

NoSoup · 07-03-2003, 03:33 PM

Quote:

Originally posted by nicion
I would be very interested in a rental property in the $80-100k range which would consistently rent for $1500 / month. Rent (yearly) typically amounts to roughly 5% of the property value, so for an $80-100k place, don't expect the monthly rent to be much beyond $400. Note that this describes the situation in Australia, though I assume it would be very similar in the US.

What you describe is a return of between 18% and 22.5% - basically sounds too good to be true.

Nicion, you are correct for the most part, however, boredjerk did say that he lived in a college town with outrageous rental rates. The amount of rent you are able to collect varies widely based on your location. For instance, I live in Green Bay, and I am currently renting a 1200 square foot 2 bedroom apartment (vaulted ceilings, fireplace, attached garage) for right around $600.00/month. I was looking at several places in Chicago, and a similiar apartment there would cost me almost $1400/month. I would assume there are similar variations with duplexes or other rental properties.

NoSoup · 07-03-2003, 03:43 PM

Quote:

Originally posted by daoist
It seems that I'm an expert at financial calamities:

I've got a couple of credit cards maxed out, i run on a low - to - negative bank account balance, and i've got tons of other bills piling up.

Every couple of weeks whenever I think i can pay some of my debt down (most of my debt is in collections now) something new happens.

I've gone to the hospital from heart-attack symptoms (i'm a 23 year old college student...no insurance), i've had creditors try direct debits from my checking accounts at exactly the wrong times (case in point: my checking account is $-380 right now due to a direct debit). My car broke down and I had to pay about $500 to fix it, then the next day I got pulled over 200 miles from home and had my car impounded. due to my inability to get a ride to go pick it up it sat there for about a month racking up "storage fees", after it's all said and done i'll be out $800 or so on that little adventure. Oh, and since I didn't have a car for a month I lost one of my jobs...the higher paying one

anyhow, i'd estimate I've got about $10k of debt going on right now (not even counting my student loans)

what the hell should I do? I've seriously considered faking my own death. Seriously.

Ouch... I guess it is true when they say it rains, it pours.

Well, you do have several options. You didn't say how much you make, but I know that it is a terrible, terrible place to be in.

Your first option would probably to call the collection companies and see how low they will settle. Because they buy the debt at a discounted price, they are generally willing to settle for a good deal less than what you actually owe them.

Your second option would be to contact a debt-consolidation company. They generally will try to settle with the collection companies for you, speak with any creditors that you have to have late fees reversed and lower the interest rates, and you'll generally only have to make one payment per month for all of your debt.

Finally, your third option is to consider bankruptcy. Wipe out all your debt, (at the cost of your credit score) chalk it up to a learning experience, learn your lesson and start anew. Take note of what put you in that position in the first place, and don't make the same mistakes again. Your credit history is probably already not too great, seeing as how most of your debt is in collection accounts, and this will give you a fresh start.

I hope this helps, and if you have any more questions, feel free to post or to PM me. Keep me updated!

daoist · 07-03-2003, 06:52 PM

thanks for the quick reply.

after losing one of my jobs I pull in about $1000 per month. I'm asking my boss if I can go full-time since I don't have another job anymore. I'm currently renting, and I'm a student.

if i declare bankruptcy, will i ever be able to get student loans again?

As it is right now it's like pulling teeth to get a student loan; i need a parent to cosign for me, even then it's iffy.

I'm afraid that with a bankruptcy i'll have to put off school for 7 years.

and of course, i can't pay for school myself :-/

boredjerk · 07-03-2003, 08:00 PM

Thanks for the info. Good thread. I sobered up and remembered I asked. I've wrestled with the duplex idea before but I'm living cheaper now than the rent I could collect from the apartment. I need a better job anyway, but had a pipe dream I might be able to avoid it.

Nicion: it's true because renters are college kids and not families. A junky 5-bedroom rents to 6-7 students for $250-300 a piece. Some streets are zoned so no more than 3 unrelated people can live in the same house.

NoSoup · 07-03-2003, 10:00 PM

Quote:

Originally posted by dudemac
Does the number of credit cards effect you when you apply for a home loan? I have about 10 credit cards and my wife has about 12-15, only like 2k total debt not counting student loans.

Yes, it does. Financial Institutions don't just look at the debt that you have, but the debt that you could incur. It is best to have three to five credit cards. Any more than that could possibly damage your score. If you feel that you need the extra cards for emergencies, close them and ask for higher credit limits on the best cards that you currently have. (ie low interest rate, No annual fees, etc.) There isn't really any reason to have 25 open lines of credit.

NoSoup · 07-03-2003, 10:08 PM

Quote:

Originally posted by daoist
thanks for the quick reply.

after losing one of my jobs I pull in about $1000 per month. I'm asking my boss if I can go full-time since I don't have another job anymore. I'm currently renting, and I'm a student.
if i declare bankruptcy, will i ever be able to get student loans again?
As it is right now it's like pulling teeth to get a student loan; i need a parent to cosign for me, even then it's iffy.
I'm afraid that with a bankruptcy i'll have to put off school for 7 years.
and of course, i can't pay for school myself :-/

Hmm... It probably will be very difficult to obtain a student loan after bankruptcy, however, Bankruptcy does not necessarily eliminate all debt from student loans.

If you do declare bankruptcy, it doesn't mean that you won't qualify for any credit for the next 7 years, in fact, shortly after you declare it you will generally get a ton of offers for credit cards. (Of course, they'll probably have a 98% interest rate, a $12,000.00 annual fee, require you to sign in blood... you get the drift...) The reasoning behind this is because you can't declare it again for at least 7 years. For the credit card companies, that means at least 7 years of payments/and or 7 years of late fees, over the limit fees, etc that they will either collect on or write off as a deduction.

I have seen people that have declared bankruptcy a couple of years ago that have relatively high credit scores. The more time that passes between the present and a poor mark on the bureau, the less it hurts your score.

Anything else? Just ask... Thanks for posting!

Cynthetiq · 07-04-2003, 12:23 PM

The wife and I recently purchased a primary residence in NYC, I also have a rental property in Las Vegas, and a number of other assets.

I have a 2 mortgages, a home equity loan, car loan, student loan, and misc credit cards. I have a very good credit rating and so does my wife. We don't carry any real debt besides our mortgages, car loan, and student loans.

We are going to renovate our new purchase, we have the cash for it, but would like to keep it liquid because of the current job market. How can we determine if we will still qualify for yet another loan?

NoSoup · 07-04-2003, 02:04 PM

Quote:

Originally posted by Cynthetiq
The wife and I recently purchased a primary residence in NYC, I also have a rental property in Las Vegas, and a number of other assets.

I have a 2 mortgages, a home equity loan, car loan, student loan, and misc credit cards. I have a very good credit rating and so does my wife. We don't carry any real debt besides our mortgages, car loan, and student loans.

We are going to renovate our new purchase, we have the cash for it, but would like to keep it liquid because of the current job market. How can we determine if we will still qualify for yet another loan?

Without going very in depth with your finances, I would suggest that the simplest way to find out would be to apply.

As far as what type of loan you apply for, if you currently have the cash for it, you may want to consider a savings or cd secured loan. Generally, your interest rate will be much lower than nearly any other type of loan, and you still have the liquidity that you require. If you were to need those funds, you can pay off the loan and use the remaining balance in whatever way you choose. Hope this helps!

Thanks for posting!

nicion · 07-05-2003, 01:17 AM

Quote:

Originally posted by NoSoup
Nicion, you are correct for the most part, however, boredjerk did say that he lived in a college town with outrageous rental rates. The amount of rent you are able to collect varies widely based on your location. For instance, I live in Green Bay, and I am currently renting a 1200 square foot 2 bedroom apartment (vaulted ceilings, fireplace, attached garage) for right around $600.00/month. I was looking at several places in Chicago, and a similiar apartment there would cost me almost $1400/month. I would assume there are similar variations with duplexes or other rental properties.

While rental rates do vary greatly from place to place, in general, property values mirror this behaviour. High cost of real estate generally equates to higher rents, and vice versa. That being said, I will have to look into investment properties in college towns in the US - if a 20% return is realistic, it would be worthwhile to purchase four or five of such places.

Forgetting those issues for the moment, and considering this is an "ask the loan officer" thread... let us explore. Here's the situation. I am a US citizen, though I have worked as an expat for my entire career. I have never had a credit card, nor taken out a loan. I earn a good income, and my living expenses are generally fully paid by my clients. I am considerring investing in property in the US, and with interest rates as they are, it makes more sense to put 20-30% down, and take the balance as a mortgage... then sit back and let the tenant pay that off. I see two primary obstacles to this approach:

- I have no fixed address (usually live in hotels)
- I have no credit history

Given the above, how likely would I be to get approved for a mortgage on an investment property (or two or three...)? Is there anything that can be done to improve the view that a lender would have? Despite good income and virtually no expenses, I am certain the lack of credit history, and possibly moreso the lack of a fixed address, would prove to be problematic.

Looking forward to your thoughts.

-N

dudemac · 07-05-2003, 06:01 PM

Thanks Nosoup, this is really great you taking the time to answer these questions.

NoSoup · 07-05-2003, 09:23 PM

Quote:

Originally posted by nicion
Forgetting those issues for the moment, and considering this is an "ask the loan officer" thread... let us explore. Here's the situation. I am a US citizen, though I have worked as an expat for my entire career. I have never had a credit card, nor taken out a loan. I earn a good income, and my living expenses are generally fully paid by my clients. I am considerring investing in property in the US, and with interest rates as they are, it makes more sense to put 20-30% down, and take the balance as a mortgage... then sit back and let the tenant pay that off. I see two primary obstacles to this approach:

- I have no fixed address (usually live in hotels)
- I have no credit history

Given the above, how likely would I be to get approved for a mortgage on an investment property (or two or three...)? Is there anything that can be done to improve the view that a lender would have? Despite good income and virtually no expenses, I am certain the lack of credit history, and possibly moreso the lack of a fixed address, would prove to be problematic.

Looking forward to your thoughts.
-N

Hmm... I would guess that it wouldn't be too likely. This lack of a permanent address probably wouldn't be too big of a problem, but it may definately have an effect on whether or not you get the loan. The larger problem, however, would be the lack of credit history. I would suggest obtaining some credit history immediately, possibly even a secured credit card. After several months (which it would probably take to find property anyway) I would try to get a mortgage. Hopefully, the interest rates won't increase before you get the chance to take out a mortgage. The fact that it is an investment property may actually help the cause, just make sure you don't over extend yourself. Although it may seem like a good idea at the time, make sure that you can make the payments without any rental income.

Another factor that will help a lot will be your ability to put 20 - 30% down. Although interest rates are low, pay as much down as you fell comfortable with. It is better to earn 3% than pay 5...

Thanks for Posting! If I can be of any more assistance, let me know

NoSoup · 07-05-2003, 09:24 PM

Quote:

Originally posted by dudemac
Thanks Nosoup, this is really great you taking the time to answer these questions.

dudemac - Just glad I can help out the TFP community. I really appreciate the thanks, though. If there is anything else I can do, let me know.

NoSoup · 07-05-2003, 09:27 PM

Hello everyone...

Just to keep you guys updated, I won't be able to respond for the next couple of weeks. I just got a new job and I will be in Chicago for training. Feel free to post, though, as you can see your fellow TFPers are more than willing to help. As soon as I get back, I will respond to any unanswered questions out there. If someone needs immediate assistance, PM cheese-he can get a hold of me.

Talk to you soon!

Cynthetiq · 07-07-2003, 07:58 AM

NoSoup thanks very much for all your help and answers here. Look forward to your return.

daoist · 07-08-2003, 04:20 PM

hey, a tip for people who are deep in debt like me. if you get a call from Primerica, don't fall for it. They're a pyramid scheme and use their promises of free financial consultation, debt consolidation, insurance, etc. to lure people in.

sipsake · 08-05-2003, 11:44 AM

Quick question if you're still out there...

My fiance and I are purchasing our first home. Our bank has pushed back the closing date by 2 weeks. Our worry is with the mortgage rate we had locked in with the bank.

When we received confirmation of the loan from our bank, the form said the mortgage rate was locked for 30 days...no problem had we closed on the original date. Now we're scheduled to close 2 weeks after the date on the contract. Since mortgage rates have gone up a full percent since we signed, will our bank now turn around and charge us a higher rate even though they were responsible for pushing back the closing?

NoSoup · 08-10-2003, 03:20 AM

Quote:

Originally posted by sipsake
Quick question if you're still out there...

My fiance and I are purchasing our first home. Our bank has pushed back the closing date by 2 weeks. Our worry is with the mortgage rate we had locked in with the bank.

When we received confirmation of the loan from our bank, the form said the mortgage rate was locked for 30 days...no problem had we closed on the original date. Now we're scheduled to close 2 weeks after the date on the contract. Since mortgage rates have gone up a full percent since we signed, will our bank now turn around and charge us a higher rate even though they were responsible for pushing back the closing?

It is very possible that they may. I would contact them immediately and say that you are only comfortable with having the date pushed back if you are still going to be at the same rate. Even if they were planning on giving you the higher rate, they may make an exception. (They need your business) The only thing you can do is contact the person you were working with and make sure they aren't changing the rate. If they are, I would suggest taking your business elsewhere

limited · 08-10-2003, 07:57 PM

quick question-
in an earlier reply you said that credit given by a retail store is considered "bad" credit, because its a higher risk. could you go into a little more detail about that? Why isn't money lent by Visa the same as lent by Macy's or Filenes?

Recoil · 08-10-2003, 08:24 PM

Great Thread NoSoup

I'm 20 yrs old and the family moved about a year ago. Unfortunately I forgot to change the address for my Cell Phone company and soon enough realized the mistake, however it had been 40 days since the bill was due when I did pay it. Most of my bill are paid on the same day I receive them(online) and this was my first delinquent payment.

Its greater than the 30 days you mentioned but I never received any calls or letters so I dont know if it got in the hands of a collection agency. So my question is how much exactly does this put my credit in bad light? ....or....How many late payments do I need to get turned down for a mortgage?

Thanks

NoSoup · 08-13-2003, 09:25 PM

Quote:

Originally posted by limited
quick question-
in an earlier reply you said that credit given by a retail store is considered "bad" credit, because its a higher risk. could you go into a little more detail about that? Why isn't money lent by Visa the same as lent by Macy's or Filenes?

I don't believe it is considered the same because generally Department store credit cards have the ability to use less strict guidelines. (AKA they can approve more people for their cards)

I would imagine that it would have something to do with the "loss" if someone didn't repay them. A store buys their wares at a much discounted price, and if someone who had bought, say, $1000 worth of clothes defaulted, they probably would only be out $200. However, Visa is losing cash. If someone who owed them $1000 defaulted, the would be out the entire amount.

Hope this answers your question! If not, just post again

NoSoup · 08-13-2003, 09:29 PM

Quote:

Originally posted by Recoil
Great Thread NoSoup

I'm 20 yrs old and the family moved about a year ago. Unfortunately I forgot to change the address for my Cell Phone company and soon enough realized the mistake, however it had been 40 days since the bill was due when I did pay it. Most of my bill are paid on the same day I receive them(online) and this was my first delinquent payment.

Its greater than the 30 days you mentioned but I never received any calls or letters so I dont know if it got in the hands of a collection agency. So my question is how much exactly does this put my credit in bad light? ....or....How many late payments do I need to get turned down for a mortgage?

Thanks

Thanks!

Well, you may be in luck. It may be possible that your cell phone company doesn't report to the bureau unless you go to collections. Although you were late, generally you must be much later for it to go to collections. (read 90 days + as a general rule of thumb) As far as late payments affecting your mortgage, it depends on the institution. Hopefully it didn't even report, but I would doubt 1 late payment (properly explained) would result in you not being able to obtain one. However, you may suffer a higher interest rate due to a lower score.

After a little time has passed, I would get a copy of your report and check to see if it reported. If I had to guess, I would say that there is a 90% chance that it did not.

If you need any more help, don't be afraid to ask!

Thanks for Posting!

dy156 · 08-14-2003, 05:41 AM

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!

Cynthetiq · 08-14-2003, 10:43 AM

NoSoup

follow up.... I did apply and was preapproved, but due to the nature of us own in a co-op we need to stay at a 80% borrow level, we cannot get the Aztechs approved until we pay down some of the mortgage. Our accountant suggested we pay for the renovations in cash as the appreication of the property will outweigh the cash value in the future ( my eyes started to glaze over at this point.)

There was another loan that we could get without the approval of the board, but I will take the accountant's advice. Not to mention it will give us time to live in the apartment and use the kitchen and know hot to renovate better in the future.

---

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?

limited · 08-14-2003, 09:18 PM

Quote:

Originally posted by NoSoup
I would imagine that it would have something to do with the "loss" if someone didn't repay them. A store buys their wares at a much discounted price, and if someone who had bought, say, $1000 worth of clothes defaulted, they probably would only be out $200. However, Visa is losing cash. If someone who owed them $1000 defaulted, the would be out the entire amount.

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.

lemming · 08-18-2003, 11:26 AM

just a quick question, i did a credit report and found 2 old accounts that somehow got messed up and have been falsely in collection for the last 3 yrs (glad i finally did a credit check for myself) i talked to the companys and its all taked care and is being removed from my credit report, the only credit agency i delt with was transunion tho and i wanted to get the names of the other 2 companys eqifax? and another i thought and there is just 3 main companys right? just so i can contact them and make sure its been taken care of with them too. Thx=)

limited · 08-19-2003, 07:56 AM

The other two companies are Equifax and Experian. I'm pretty sure those are the 3 main credit bureaus that everyone uses.

lemming · 08-20-2003, 12:57 PM

thx alot=)

daoist · 08-21-2003, 07:57 PM

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.

NoSoup · 08-23-2003, 09:36 PM

Quote:

Originally posted by limited
quick question-
in an earlier reply you said that credit given by a retail store is considered "bad" credit, because its a higher risk. could you go into a little more detail about that? Why isn't money lent by Visa the same as lent by Macy's or Filenes?

It is considered "bad" credit because the underwriting (approving) guidelines are generally much more lax than your conventional credit cards. Most department stores (as noted above) have much less to lose if a customer defaults than credit card companies. Also, people will generally buy more products if they can finance it, and so it promotes business, therefore giving them the reason to approve as many people as possible.

Hopefully this answered your question, if not, post again!

06-28-2003, 04:24 AM	#41 (permalink)
Jesus Pimp The Original JizzSmacka	I have 2 student loans, one private, one federal. There's no way for me to consolidate the private loan I just found out. As for the federal loan. Should I consolidate it? __________________ Never date anyone who doesn't make your dick hard.

07-02-2003, 10:14 PM	#44 (permalink)
boredjerk Insane Location: Antarctica	On paper I make about $7,500 a year. My only assets are four junk cars (all paid for). My only expenses are rent and utilities. I live in a college town where property values and rents are outrageous. I'd like to buy a rental property in the $80-100k range which would consistently rent for $1500 a month. I don't have shit for income but I can put 20% down. Do I have a chance in hell without a better job? With existing leases on the property? __________________ Fuck 'em if they can't take a joke.

07-03-2003, 02:50 AM	#46 (permalink)
daoist Crazy	It seems that I'm an expert at financial calamities: I've got a couple of credit cards maxed out, i run on a low - to - negative bank account balance, and i've got tons of other bills piling up. Every couple of weeks whenever I think i can pay some of my debt down (most of my debt is in collections now) something new happens. I've gone to the hospital from heart-attack symptoms (i'm a 23 year old college student...no insurance), i've had creditors try direct debits from my checking accounts at exactly the wrong times (case in point: my checking account is $-380 right now due to a direct debit). My car broke down and I had to pay about $500 to fix it, then the next day I got pulled over 200 miles from home and had my car impounded. due to my inability to get a ride to go pick it up it sat there for about a month racking up "storage fees", after it's all said and done i'll be out $800 or so on that little adventure. Oh, and since I didn't have a car for a month I lost one of my jobs...the higher paying one anyhow, i'd estimate I've got about $10k of debt going on right now (not even counting my student loans) what the hell should I do? I've seriously considered faking my own death. Seriously. __________________ I:IV:XV

07-03-2003, 03:22 PM	#49 (permalink)
dudemac Tilted Location: College Station, TX	Does the number of credit cards effect you when you apply for a home loan? I have about 10 credit cards and my wife has about 12-15, only like 2k total debt not counting student loans. __________________ Dudemac Author Somewhere

07-03-2003, 06:52 PM	#54 (permalink)
daoist Crazy	thanks for the quick reply. after losing one of my jobs I pull in about $1000 per month. I'm asking my boss if I can go full-time since I don't have another job anymore. I'm currently renting, and I'm a student. if i declare bankruptcy, will i ever be able to get student loans again? As it is right now it's like pulling teeth to get a student loan; i need a parent to cosign for me, even then it's iffy. I'm afraid that with a bankruptcy i'll have to put off school for 7 years. and of course, i can't pay for school myself :-/ __________________ I:IV:XV

07-02-2003, 09:19 AM	#42 (permalink)
nicion Upright	This may be a bit late in the discussion, but I wanted to clear up some misinformation that came out about Roth IRAs earlier in the thread. If you are filing single, you can contribute the maximum amount to a Roth IRA only until your AGI reaches $95,000. There is a gradual phase-out to the amount you can contribute, until your AGI reaches $110,000, at which point you are ineligible to contribute to a Roth IRA.

07-02-2003, 07:41 PM	#43 (permalink)
atomic mind Tilted	We just bought our house in February. Is there a certain amount of principal we have to pay down before we can get a home equity loan? We'd like to pay down some high interest debt, plus put a few home improvements on it, plus be able to deduct the interest...

07-03-2003, 01:19 AM	#45 (permalink)
nicion Upright	I would be very interested in a rental property in the $80-100k range which would consistently rent for $1500 / month. Rent (yearly) typically amounts to roughly 5% of the property value, so for an $80-100k place, don't expect the monthly rent to be much beyond $400. Note that this describes the situation in Australia, though I assume it would be very similar in the US. What you describe is a return of between 18% and 22.5% - basically sounds too good to be true.

07-03-2003, 08:00 PM	#55 (permalink)
boredjerk Insane Location: Antarctica	Thanks for the info. Good thread. I sobered up and remembered I asked. I've wrestled with the duplex idea before but I'm living cheaper now than the rent I could collect from the apartment. I need a better job anyway, but had a pipe dream I might be able to avoid it. Nicion: it's true because renters are college kids and not families. A junky 5-bedroom rents to 6-7 students for $250-300 a piece. Some streets are zoned so no more than 3 unrelated people can live in the same house. __________________ Fuck 'em if they can't take a joke.

07-04-2003, 12:23 PM	#58 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	The wife and I recently purchased a primary residence in NYC, I also have a rental property in Las Vegas, and a number of other assets. I have a 2 mortgages, a home equity loan, car loan, student loan, and misc credit cards. I have a very good credit rating and so does my wife. We don't carry any real debt besides our mortgages, car loan, and student loans. We are going to renovate our new purchase, we have the cash for it, but would like to keep it liquid because of the current job market. How can we determine if we will still qualify for yet another loan? __________________ 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!

07-05-2003, 06:01 PM	#61 (permalink)
dudemac Tilted Location: College Station, TX	Thanks Nosoup, this is really great you taking the time to answer these questions. __________________ Dudemac Author Somewhere

07-05-2003, 09:27 PM	#64 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Hello everyone... Just to keep you guys updated, I won't be able to respond for the next couple of weeks. I just got a new job and I will be in Chicago for training. Feel free to post, though, as you can see your fellow TFPers are more than willing to help. As soon as I get back, I will respond to any unanswered questions out there. If someone needs immediate assistance, PM cheese-he can get a hold of me. Talk to you soon! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

07-07-2003, 07:58 AM	#65 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	NoSoup thanks very much for all your help and answers here. Look forward to your return. __________________ 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!

07-08-2003, 04:20 PM	#66 (permalink)
daoist Crazy	hey, a tip for people who are deep in debt like me. if you get a call from Primerica, don't fall for it. They're a pyramid scheme and use their promises of free financial consultation, debt consolidation, insurance, etc. to lure people in. __________________ I:IV:XV

08-05-2003, 11:44 AM	#67 (permalink)
sipsake Psycho Location: Memphis	Quick question if you're still out there... My fiance and I are purchasing our first home. Our bank has pushed back the closing date by 2 weeks. Our worry is with the mortgage rate we had locked in with the bank. When we received confirmation of the loan from our bank, the form said the mortgage rate was locked for 30 days...no problem had we closed on the original date. Now we're scheduled to close 2 weeks after the date on the contract. Since mortgage rates have gone up a full percent since we signed, will our bank now turn around and charge us a higher rate even though they were responsible for pushing back the closing? __________________ When life hands you a lemon, say "Oh yeah, I like lemons. What else you got?" Henry Rollins

08-10-2003, 07:57 PM	#69 (permalink)
limited Crazy Location: upstate, NY	quick question- in an earlier reply you said that credit given by a retail store is considered "bad" credit, because its a higher risk. could you go into a little more detail about that? Why isn't money lent by Visa the same as lent by Macy's or Filenes?

08-10-2003, 08:24 PM	#70 (permalink)
Recoil Tilted	Great Thread NoSoup I'm 20 yrs old and the family moved about a year ago. Unfortunately I forgot to change the address for my Cell Phone company and soon enough realized the mistake, however it had been 40 days since the bill was due when I did pay it. Most of my bill are paid on the same day I receive them(online) and this was my first delinquent payment. Its greater than the 30 days you mentioned but I never received any calls or letters so I dont know if it got in the hands of a collection agency. So my question is how much exactly does this put my credit in bad light? ....or....How many late payments do I need to get turned down for a mortgage? Thanks

08-14-2003, 05:41 AM	#73 (permalink)
dy156 cookie Location: in the backwoods	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! Last edited by dy156; 08-14-2003 at 05:47 AM..

08-14-2003, 10:43 AM	#74 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	NoSoup follow up.... I did apply and was preapproved, but due to the nature of us own in a co-op we need to stay at a 80% borrow level, we cannot get the Aztechs approved until we pay down some of the mortgage. Our accountant suggested we pay for the renovations in cash as the appreication of the property will outweigh the cash value in the future ( my eyes started to glaze over at this point.) There was another loan that we could get without the approval of the board, but I will take the accountant's advice. Not to mention it will give us time to live in the apartment and use the kitchen and know hot to renovate better in the future. --- 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? __________________ 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!

08-18-2003, 11:26 AM	#76 (permalink)
lemming Tilted	just a quick question, i did a credit report and found 2 old accounts that somehow got messed up and have been falsely in collection for the last 3 yrs (glad i finally did a credit check for myself) i talked to the companys and its all taked care and is being removed from my credit report, the only credit agency i delt with was transunion tho and i wanted to get the names of the other 2 companys eqifax? and another i thought and there is just 3 main companys right? just so i can contact them and make sure its been taken care of with them too. Thx=)

08-19-2003, 07:56 AM	#77 (permalink)
limited Crazy Location: upstate, NY	The other two companies are Equifax and Experian. I'm pretty sure those are the 3 main credit bureaus that everyone uses.

08-20-2003, 12:57 PM	#78 (permalink)
lemming Tilted	thx alot=)

08-21-2003, 07:57 PM	#79 (permalink)
daoist Crazy	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. __________________ I:IV:XV