Ask The Loan Officer - Tilted Forum Project Discussion Community

NoSoup · 05-21-2003, 08:10 PM

Feel free to post any questions you have about Your Credit Report, Empirica Score, Loans, Credit Myths, or anything else concerning Banking here and I'll do my best to answer them.

In addition to loans, I also handle a variety of other tasks, so if you have any questions about checking, savings, certificates of deposits, (ie what is the difference between the annual percentage rate and the annual percentage yield) or Individual Retirement accounts (IRA's) fire away.

Thanks for posting!

[Edit] This thread has gotten quite lengthy, to make it a bit easier to find information I created a couple more specific threads - feel free to continue posting on this one, but for those searching for information I'd imagine these links would be a bit faster than searching through here.

NoSoup's Guide to Buying a Property: The Basics
NoSoup's Guide to Obtaining and Maintaining Excellent Credit

tricks · 05-21-2003, 08:36 PM

Does my crappy credit ever really dissapear? Say I haven't paid my credic cards in, oh, 6 or 7 years, am in collection, is there any hope?

signed,

In hiding.

(I've actually paid most of the collection agents but some are still outstanding.)

NoSoup · 05-21-2003, 08:49 PM

Tricks:

The answer is fortunately, yes.

Depending on the type of collection accounts that they are, they will fall off your credit bureau in 7-10 years...

They sooner you pay them, though, the less they hurt your credit, and although strange, sometimes bad credit is better than no credit at all.

The more time that has passed between now and when the collection was opened, the less it will hurt your credit

Thanks for posting!

Slims · 05-22-2003, 09:26 AM

If I don't always pay my bills *exactly* on time, does that hurt my credit rating? And what about having a credit card that is maxed out, but is being paid off?

NoSoup · 05-22-2003, 03:11 PM

Greg700:

It depends on what exactly means. As long as your bill is paid within 29 days of it being due, the Credit Reporting Agencies (ie TransUnion) will never know you were behind. However, you will probably be charged late fees and your interest rate may be increased. On the 30 day, it will report to your bureau as a delinquent payment, damaging your empirica score as well as your credit history.

As for the second part of the question- Yes, it does hurt your score. Get that balance at least payed down as fast as possible. The Credit Reporting Agencies keep track of the highest balance you have ever owed on a line of credit. My advice is to apply for an increase on your limit as soon as you have paid it down considerably, and don't go over 60% of what the limit is. As strange as it may be, it is better to have two credit cards with balances at 50% of the limit than one card maxed out.

I hope that answered your questions!
Thanks for Posting!

cheerios · 05-22-2003, 03:58 PM

do you HAVE to have a credit card to establish credit? Will my student loans do this, instead? Every time i even THINK about picking up a card, for emergencies etc, my parents freak, so I've been living w/ a checking acct and an atm card for years.
Also, why do I need credit?

NoSoup · 05-22-2003, 06:37 PM

Cheerios:

No, you don't necessarily have to have a credit card to establish credit. The reason I would suggest starting with it is because credit cards are by far most abundant (although pricey) way to establish credit, and also the easiest to qualify for.

Unfortunately, there is no clear-cut answer as to whether or not student loans build your credit. They do report to your bureau, but lenders often look at them differently than they would another type of credit, escpecially if they are in deferment.

In response to "Do you need credit, the answer is not necessarily. However, if you plan on purchasing a house some day, or buying an automobile that you can't afford in cash, the answer is yes.

If your parents are uncomfortable with you have a credit card, try contacting a local Bank or Credit Union to see if they offer secured cards. Basically, a secured card is when you give the lending institution $X, and they give you a credit card with $X limit on it. You will receive a monthly bill just like any other card, and it will report to the bureau the same as well. This is a great (and sometimes the only) way to establish your credit. I am sure that you will find that most institutions will be reluctant to lend any money to anyone that doesn't have any credit out there. After you have established yourself, you can contact the institution to see if you qualify for a normal credit card, and get your money back.

The longer you have credit history, the better your credit will be, so it is best to start as early as possible.

Thanks for posting!

RyeZingSon · 05-24-2003, 05:43 PM

I have a question for you. Is it true if you pay off the balance of a credit card and you close it out it will fall off your credit report? How about if you had some late payments. I did a stupid thing. After I purchased my house (I qualified for a mortgage!!) I decided to do a debt consolidation company because I had about $25,000 in credit card debt. Well I got duped big time. They turned out to be "For Profit" and for the first month they held my payment and didn't pay my creditors. Well needless to say they were reported as delinquent on my credit report. I soon switched to a Credit Counseling Service which has been outstanding. However..now I want to refinance my home and get a Home Equity loan to pay off my credit card debt. (My house has appreciated $50,000 in the last two years). So I will revisit my question--if I am lucky enough to qualify for a refinane and Home Equity Loan and I pay off and cancel my credit cards..will they drop off my credit report? Or will it be subject to the 7-10 year rule?

NoSoup · 05-25-2003, 08:33 PM

RyeZingSon:

If you pay off your credit cards and close them, the Credit Reporting Agency will see exactly that. They are still subject to the 7-10 year rule. However, because they are closed, (and not charged off) they will impact your bureau less and less as time goes by.

Consolidating your debt either on a first or second mortage, by the way, is an excellent idea. First and foremost, you will almost certainly have a lower interst rate than the credit cards, and the interest you pay on a mortgage is generally tax deductible.

If you don't qualify to refinance your home at a normal institution, see if you can qualify at a more high risk institution. Even if your second mortgage rate is 10%, it is much better than the 20%-29% you are probably paying on your credit cards.

Good Luck! Let me know how it works out.

Thanks for posting.

popo · 05-26-2003, 11:18 AM

I'm 30 years old and will be finally joinig the workforce in about 3 years with ~400k of student loans (nope, not a typo). I can expect to earn ~$150 to start and going up to 250-300 within 5 years.

I have pretty good credit (a single 30-day past due about 3 years ago), 3 major credit cards (one with 11k balance of 17k limit, currently only paying the minimum). My credit history only goes back to 1998 though.

Anything I should be looking out for? Any advice at all or thoughts in general? I don't own a home now but will be looking in 3 years.

TIA.

tricks · 05-26-2003, 12:17 PM

Thanks for the previous reply.

Next question:

The 7-10 year rule. When does the clock start? From the first mark? From when they give up? Do bad marks continue to accrue if you've defaulted? For how long?

NoSoup · 05-26-2003, 12:48 PM

Popo:

First of all, for anyone else viewing this post, I PMed Popo for more information. I will copy that message here:

Before I respond to your question, I just wanted to get a little more info.

Do you currently have a source of income? Do you have any other credit cards? And, just out of curiosity, what will you be doing?

Also- do you mind if I post your response?

Thanks,
NoSoup
--------------------------------------------------------------------------------
Thanks for getting back to me.

My only source of income is current student loan and my wife who's a CPA. I have 3 credit cards in total, the other 2 with no balance (15k and 10k limits), plus one BestBuy card almost maxed at 2k but to be paid in full in a month. That's it.

I just applied for a new card that has 0% for 12 months on balance transfers then 8.9% fixed after that. If approved, I will close one card. Or should I close one right now before the application is processed?

I'm a dentist in a specialty program, and no problem with posting this response.

Thanks for the help.
--------------------------------------------------------------------------------

In response to your first post, I would pay down that Credit Card a little bit, you are currently sitting with a 64.7% balance to limit ratio, It is best to stay under 60%. If you pay it down to 10k, you would be under that 60% mark.

In response to the PM that you sent me, I would close out the Best Buy card. Because Best Buy is considered a retail store, any credit that it lends out is considered higher risk, or "bad" credit on you bureau. Another reason you should close it is because it is currently maxed out. Credit Reporting Agencies keep track of the highest balance that you have ever carried on a card. I know that Best Buy generally encourages the use of their cards by offering 0% interest on your purchase for a set amount of time, but it may be better to spend the couple extra bucks now and have better credit later.

Depending on how much money you have extra each month, you may want to start contributing to an IRA account. I would suggest a Roth IRA, simply because in my opinion it is the best deal out there. I understand that in a few years you will be making quite a large sum of money, but with the Roth, there are fixed contribution limits each year-your income has no impact on how much you are allowed to contribute.

My only other advice is to keep your finances in check. I'd imagine it would be very easy to run up those credit card balances knowing that in a couple of years you will be making such a large sum of money, but it will be worth the wait. When you enter the workforce, I would suggest paying off all of your outstanding balances (on any credit cards or auto loans) before moving into a house or making any drastic changes to your lifestyle. It would probably only take a couple months, and it will be much easier to pay them off with your current lifestyle than the one you adopt later.

Good Luck, and if you have any more questions, let me know.

Thanks for posting!

On a sidenote, popo's post is a great example as to how debt is relative. Speaking for myself, I would be in quite a pickle if I had $400,000.00 dollars worth of school loans, but then again, I am not making a quarter of a million dollars a year. Thanks again, popo.

NoSoup · 05-26-2003, 01:02 PM

Tricks:

You're welcome.

As for the 7-10 rule, it is ongoing as long as the accounts are open. If you were over 30 days delinquent on a credit card last month, that will continue reporting for 7-10 years from that date.

Collections, however, are a different story. The collections start the falling off process from the date they are opened. If you had an account go to collections 2 years ago, it should fall of in 5-8 years from now.

Bad marks don't continue after you have defaulted, but they do remain on your bureau, and will continue to hurt your score as long as they are there. Having a paid collection hurts your score much less than an open one, having you collections paid off may also make you eligible for a loan of some sort. If you do have several collections out there that you are thinking about paying, contact the collection companies and see if they will meet you halfway. Many time, you can call them up and say "I will give you $X to close the account, and often they will agree, or at least counteroffer.

I hope that answered your question

Thanks for posting!

popo · 05-26-2003, 01:15 PM

Thanks NoSoup.

Is there any fear in having such a large sum of debt, even with the income? Will I be making enough so that home/car loans will be possible?

NoSoup · 05-26-2003, 02:42 PM

Popo:

I can't answer your question universally, but from my experience you shouldn't have a problem. Generally, most lending institutions base the loan decision off of the person's debt to income ratio. (Total Monthy Payments divided by Total Monthly Income)

It basically depends on your payments. If you are making approximately $150,000 a year, you will be making approximately $9,375 net per month. Most instituion like to see the debt to income ratio below 50%, so as long as your payments (including whatever you are applying for) are less than $4,687.00 per month, you should be fine.

The above rule generally applies, but for people that make an exceptional amount of income, it is usually ok for the debt to income ration to be higher. The reasoning behind this is because it will be much easier for you to afford another $250.00 payment, even if your debt to income ratio is already at 60%, than someone who makes $1,000 net per month to make that extra payment.

FYI: Generally, any debts reporting to your credit bureau are considerded "debt" when calculating your debt to income ratio. Also, Rent/Mortage Payment is also included. If you have a mortgage, but your payments don't include escrow tax, the tax will usually also be included in the calculation. Insurance payments, utilities, and other day to day expenses are not, which is why it is important to leave enough for the person to live on. (Hence the 50%)

If you need anything else, just ask!

Thanks for posting

popo · 05-26-2003, 03:40 PM

Thanks again for the great info.

I was just wondering about that new credit card I applied for. If the application includes a balance transfer, should I go ahead and close the card with the current balance right now before the application is processed so that approval of the new card will not give me 4 cards? Or does it not make a difference?

NoSoup · 05-26-2003, 04:20 PM

It doesn't really matter if you close it now or shortly after you transfer the balance. Even if the Credit Reporting agency were to see that you had four open credit cards, the next month they would see that one of them was closed.

I hope that clarifies things- if you have any more questions, let me know

Thanks for Posting!

popo · 05-26-2003, 06:38 PM

thanks for the patience, but I mean will it make a difference in terms of how it will look for the new card application?

NoSoup · 05-27-2003, 02:54 PM

Popo:

Sorry, I misunderstood the question.

It is possible that it will make a difference, however, it really depends on how soon you want that card. Because the Credit Card Companies only report once per month, If you were to close it in May, you would have to wait until mid-July until you can be sure that it has reported closed. I hope that is what you were looking for, if not, let me know.

Thanks For Posting!

Jesus Pimp · 05-28-2003, 04:12 AM

I have over 35k in student loans with 3 different lenders. Should I consolidate?

Grimlok · 05-28-2003, 08:03 AM

Hey Jesus Pimp... I'll handle this one for No Soup...

The Generic Answer is yes... You should consolidate... UNLESS... you plan on Taking out more student loans. The Reason being is you can only Consolidate your Student Loans once... I think they're working on a law now where you can consolidate a new loan with a consolidated student loan but I'm sure NoSoup can clarify that for ya.

About 2 months ago some places were offering Student Loan Consolidation as low as 2.4% but I think it's averaging about 3% now. If the Economy turns around... look for those interest rates to go back up. I would do it now while the gettings good.

------------------------------------
Now... for my own Question to No Soup.

My wife had a credit card before we were married and quickly charged it up to the $750 limit. She didn't take into account the finance charges so of course.. it went over the limit, resulting in an over the limit fee... which raised the APR... Blah blah blah.

She called the company and they told her what she needed to pay... and she did... taking it back below the limit but... at the higher APR it exceeded the credit limit again and all the charges that went with it. We were having Financial problems at the time so we missed a payment. Over the course of 1 month thanks to all of these bunk ass charges... the Card was about $110 over the credit limit.

We've made payments on it but we could never get it below the Credit Limit. My wife kept making payments on it but they were/are unwilling to stop the excessive charges, mostly because she keeps making payments.

The Bill is now $1600 (Despite paying about $900 last year to the damn card) and there seems to be no end in site.

My question is two fold. Since the company is unwilling to settle (because my wife has an established payment history) should we let it go into collections so the charges will stop. Collection Agencies are more willing to cut a deal (I've heard).

Or should we keep paying essentially putting us further and further into debt. The reason my wife kept paying is because the company doesn't report her as being late as long as she pays by the due date (which I believe is untrue.)

She doesn't want to stop paying because she doesn't want to show late payments on her credit... but I figure being over 100% over the credit limit hurts us more than being late.

Any Thoughts

Jesus Pimp · 05-28-2003, 09:55 AM

Thanks Grimlock for the info. I was thinking of going with this company http://www.glsloans.com/ . What do you think?

Grimlok · 05-28-2003, 10:25 AM

My Advice would be to go to Sallie Mae or Direct Student Loans (Gov't). I don't know anything about glsloans and doing a google search doesn't bring up too much useful info on the company.

The two I mentioned are pretty darn good about working with you... at least that's been my experience. Another thing they do is lower your percentage rate if you sign up for automatic withdrawl from your bank account. It's only like a half or quarter % but if you have a lot of loans... over time 1/2 or 1/4 percent reduction can add up to thousands.

All I can say is get a paper Application and explanation of policies from gsloans and read over it thoroughly. Do the same with Salliemae and DirectLoans...

Also... I would wait until after July 1st because I think the interest rate may be dropping for loans and will allow you to lock in a lower rate.

Also... I would wait for SOUP to give his 58cents.. as he's a loan expert and me... I'm just a working stiff kicking myself in the butt but locking in that 7.25% Loan eight years ago.

candyman · 05-28-2003, 11:21 AM

NoSoup *Yelling* You have come to my rescue!

We have recently sold our house and want to build in the spring. We are currently renting at half the cost of our previous mortgage to save for the down payment costs of a construction loan. I also plan to purchase property now, hopefully Land Contract, to lower the land cost when rolling it all into a construction loan.

Any pointers? Suggestions?

Are VA loans any good for building? My previous realtor and mortgage officer stated there is a moutain of paperwork to go through and it ends-up not being very beneficial (interest is higher). Is that true?

Is there any way around having 15-20% down to start construction?

I am sure there is more, but I deeply THANK YOU for sharing your knowledge. If there is anything I can do for you, please let me know!

candyman

NoSoup · 05-28-2003, 02:49 PM

Quote:

projkt4
i owe like 800 on my electricity bill, how bad will that be in terms of my record, and how will it effect me in terms of getting credcitcards and loans?

Prjkt4:
It depends. Depending on the company, it may report to your credit bureau. It definately could play a role in credit cards or loans, but the most important thing is that you keep making payments, and it doesn't fall delinquent. If it already has, try to pay it off as quickly as possible, if you must, contact the company and see if they will set up a payment plan for you so that it doesn't keep reporting as delinquent to your Credit Bureau.

Thanks for Posting!

NoSoup · 05-28-2003, 03:00 PM

Quote:

Jesus Pimp- I have over 35k in student loans with 3 different lenders. Should I consolidate?

Actually, Grimlok hit it right on the head. I would check to see A) Whether or not the interests rates drop in July, and B) How beneficial it would be. (How much would it lower your payment & how much the rate would drop)

Watch those interest rates though! I highly doubt that they will skyrocket anytime soon, (though I am no expert) but if they start to climb, I would consolidate them before the rates go any higher.

As for the law that Grimlok mentioned, the last I heard they were working on it, but I wouldn't recommend depending on it, seeing as how we are in America, and although the laws are usually beneficial, they take forever to pass.

Thanks for Posting!

NoSoup · 05-28-2003, 03:23 PM

Quote:

Grimlok- My wife had a credit card before we were married and quickly charged it up to the $750 limit. She didn't take into account the finance charges so of course.. it went over the limit, resulting in an over the limit fee... which raised the APR......

Well, Grimlok, as you probably know, that is a tough situation. I know what a pain it can be once you have "angered" one of your credit cards.

First off, your wife is correct (I'm sure she'll thank me for this), as long as those payments are made on time it will not report to the Bureau as late.

In regards to being over the limit, paying late is actually the most damaging mark on your Bureau. Granted, it isn't exactly good to be over your limit, but as long as you keep making those payments, your score won't be irreversably damaged.

As far as you collection idea, I would not recommend that. It is true, collection companies generally are willing to cut a deal with consumers because they buy the debt at a discount, but it generally has to be over 120 days delinquent to go to a collection agency.

I have several suggestions.
1) Maybe you could apply for a different credit card, and transfer the balance over. You will probably have a lower interest rate, you will no longer be over the limit, and you may even qualify for a card that offers 0% on balance transfers.

2) You could try to move that debt onto something else, possibly a signature loan. If you have a vehicle that is free and clear, or possibly even a vehicle with some equity in it, you may be able to secure that loan. By doing that, you will probably get at least a fairly low interest rate and finally be able to close that card out.

3) Another choice may be to contact a debt consolidation center. Generally, credit card companies are a lot more apt to listen to a debt consolidation center than you, the consumer. By having a DCC call, it is basically telling them that they are in serious trouble of possibly having you default on that balance. (Regardless of whether or not you really are.) It wouldn't surprise me at all if they lowered your interest rate and backed off all the over the limit charges...(They're thinking, "Hey, some money is better than none."

4) Finally, if none of the above options are feasible/available to you, I would suggest that you just hammer on that card. Make that your numero uno priority to pay it off. Every dime that you can spare, save it until that bill comes, and send it to those greedy bastards. Hack up that card and send it with one of your payments. That will accomplish both not allowing that card to be used by you or your wife, and will probably give you a little self satisfaction. I know it may seem like a heck of a long tunnel, but I promise there is a light on the other end.

I hope this helped!

Thanks for posting!

NoSoup · 05-28-2003, 03:44 PM

Quote:

candyman-
We have recently sold our house and want to build in the spring. We are currently renting at half the cost of our previous mortgage to save for the down payment costs of a construction loan. I also plan to purchase property now, hopefully Land Contract, to lower the land cost when rolling it all into a construction loan.

Any pointers? Suggestions?

Are VA loans any good for building? My previous realtor and mortgage officer stated there is a moutain of paperwork to go through and it ends-up not being very beneficial (interest is higher). Is that true?

Is there any way around having 15-20% down to start construction?

I am sure there is more, but I deeply THANK YOU for sharing your knowledge. If there is anything I can do for you, please let me know!

I would suggest the obvious... Save... Save your butt off.

I am not sure if I would suggest purchasing land now. If you already have a plot picked out and want that specific one, maybe you should, but If you don't, I wouldn't actively look for one.
Instead of making that extra payment each month, I would suggest putting in in some type of savings vehicle until you are ready to start the construction. Better to earn interest than pay interest, no? As long as you save that payment each month, you will actually have less debt at the start of construction than purchasing that land now.

As far as VA Loans go, I am not too familiar with them, but I think you said the answer yourself. "My previous realtor and mortgage officer stated there is a moutain of paperwork to go through and it ends-up not being very beneficial" Your realtor and mortgage officer make commisions if you work through them, the only way to find out for sure is to check. Although there may in fact be "a mountain of paperwork," it'll be worth it if it'll save you thousands of dollars. And besides, aren't first mortgages always a mountain of paperwork?

As far as the 15-20% down, I believe that it depends on the instituion that you go through. It is probably a very wide-spread practice, but you may be able to find that "odd" institution that doesn't require it.

As with all construction, I don't know how handy you are, but if you can do it yourself, do it, it'll generally save you a ton of money. Even if you are not to handy, it will probably be a lot cheaper to hire your brother-in-law or a friend to do some of the work than contractors.

One of my co-workers recently built a home, (doing much of the work using with her husband and brother,) and although the loan was only $114,000 dollars, by the time they were finished the appraisal came back at just under $250,000. Not bad for a little old fashioned elbow grease.

Finally, as far as doing something for me, a simple "thanks" will suffice, unless of course you feel like joining my army in "The Other Revolution" If so, I would be greatful, and all you have to do is click this link -----> Join the Other Revolution and the directions are there.

If you have any more questions, let me know.

Thanks for posting!

candyman · 05-29-2003, 04:32 AM

Thanks for the help NoSoup!

denim · 05-29-2003, 09:19 AM

Simple question: I'm recently out of debt.

I've been thinking about getting a new car, using an up-coming bonus as either a downpayment or as the whole thing, depending on how much it turns out to be, but now I'm thinking it'd be better to get a used car and make a start on a cushion for buying a house.

I'm about to start a new lease at just over $800/month on my apartment, which is what gets me thinking this way. A coworker suggested I could go for a no-money-down mortgage, as a first-time buyer, but I don't feel I have enough cash in the bank just in case my job goes away or some other kind of nasty thing happens.

So far, I have a few grand in investments, a few grand in the bank, and some retirement investments, which I refuse to touch if I can avoid it. It makes more sense to me to go for the new lease renewal and just save like crazy this coming year. What say you? And thanks!

308 holez · 05-29-2003, 05:42 PM

just an amazingly productive, responsive, group effort thread. wow.

I've always thought of candyman as the sweet hookup with the passes. I now know him as a guy looking to buy property and married. Thanks for sharing so much, guys.

NoSoup · 05-29-2003, 06:10 PM

Quote:

denim-
Simple question: I'm recently out of debt.

I've been thinking about getting a new car, using an up-coming bonus as either a downpayment or as the whole thing, depending on how much it turns out to be, but now I'm thinking it'd be better to get a used car and make a start on a cushion for buying a house.

I'm about to start a new lease at just over $800/month on my apartment, which is what gets me thinking this way. A coworker suggested I could go for a no-money-down mortgage, as a first-time buyer, but I don't feel I have enough cash in the bank just in case my job goes away or some other kind of nasty thing happens.

So far, I have a few grand in investments, a few grand in the bank, and some retirement investments, which I refuse to touch if I can avoid it. It makes more sense to me to go for the new lease renewal and just save like crazy this coming year. What say you? And thanks!

denim:

First of all, let me congratulate you on being debt-free. (Wow... I think I am sounding more and more like infomercials everday now...)

Secondly, you are very wise to not touch those retirement investments. You didn't say where they are or what they offer, but you hit the nail on the head by leaving them alone.

As to your question, it is difficult to answer without knowing the amount of the bonus, the payments that your are willing to make on a mortgage, and if your rent is only yours or if you are married, or have roomates, etc.

If you would be able to post a response, I would be able to answer you much more accurately. Sorry for the delay, but I want to do my best to not post any bad information. I would be horrified if someone took my advice and I was completely wrong due to lack of info.

Thanks for Posting

denim · 05-30-2003, 06:15 AM

Quote:

Originally posted by NoSoup
First of all, let me congratulate you on being debt-free.

Thanks! Now that I'm there, I get more spam telling me how to do it.

Quote:

Secondly, you are very wise to not touch those retirement investments. You didn't say where they are or what they offer, but you hit the nail on the head by leaving them alone.

I've got a RO (roll-over, not Roth) IRA and an active 401(k), with maximum matching. A buddy of mine is planning on tapping his in a year or so to act as a downpayment for his first house. I think he's crazy, but it's his life.

Quote:

As to your question, it is difficult to answer without knowing the amount of the bonus, the payments that your are willing to make on a mortgage, and if your rent is only yours or if you are married, or have roomates, etc.

No other people are involved. Well, there's a cat.

The bonus should be noticable, but I don't think it'll be much more than a good fraction of a 20% down-payment.

OTOH, my mom suggests that adding 5% for mortgage insurance effectively adds to the rate of the mortgage. This strikes me as true.

Washington · 05-30-2003, 02:43 PM

Okay, I have a question..

I am 19 and have never had a credit card or any credit.

I dont have bad credit but dont have good credit either.

I aplied for a bunch of credit cards and was denied by all on the basis of having no credit.

then i applied for a student credit card and was denied because I had so many recent inquiries for credit cards.

How long do I have to wait untill i should reapply for a student card?

Thanks
Allen

PS....Im trying to get an American Express Blue for Students card

NoSoup · 06-02-2003, 04:51 PM

Quote:

Originally posted by denim
Thanks! Now that I'm there, I get more spam telling me how to do it.

I've got a RO (roll-over, not Roth) IRA and an active 401(k), with maximum matching. A buddy of mine is planning on tapping his in a year or so to act as a downpayment for his first house. I think he's crazy, but it's his life.

No other people are involved. Well, there's a cat.

The bonus should be noticable, but I don't think it'll be much more than a good fraction of a 20% down-payment.

OTOH, my mom suggests that adding 5% for mortgage insurance effectively adds to the rate of the mortgage. This strikes me as true.

Denim-

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.

If your bonus is enough to pay for the used vehicle outright but you are uncomfortable not having a "just in case" fund, consider a cd secured loan. Generally, you will have a very low interest rate and that way when you are finished paying it off, you will still have that money (plus interest) for that down payment.

As to the 5% for mortgage insurance, I am not really sure. I would check with your local financial institution. As far as I know, it varies from state to state or institution to instituion.

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

Thanks for posting!

NoSoup · 06-02-2003, 04:57 PM

Quote:

Originally posted by Washington
Okay, I have a question..

I am 19 and have never had a credit card or any credit.
I dont have bad credit but dont have good credit either.
I applied for a bunch of credit cards and was denied by all on the basis of having no credit.
then i applied for a student credit card and was denied because I had so many recent inquiries for credit cards.
How long do I have to wait untill i should reapply for a student card?

Thanks
Allen

PS....Im trying to get an American Express Blue for Students card

Unfortunately Allen, there is no clear cut answer. It depends on who you are working though. A pretty generic time frame would be three to six months.

I see you have delved into the credit paradox. "You need credit to get credit." Your best bet is to try and save up a couple hundred bucks and apply for a secured credit card. Check with a local instituion to see if the offer them. Most instituions will put your money in a certificate that you cannot withdraw from (even with a penalty) until you have established your credit, some have the ability to freeze the funds in a savings account. Be careful with your new credit card, though. Try and keep the balance under 60% of the limit.

If you need anything else, just ask.

Thanks for posting!

LutherMac · 06-02-2003, 07:11 PM

Hi NoSoup, great thread!

I'm in a bit of a pickle here. Basically, I've been unemployed now for over a year, and I've got pretty massive debt that I've been unable to pay off (barely surviving with enough to take care of the month to month necessities.) Most of my credit cards and loans have all defaulted and been passed onto collections.

Most of these agencies are offering me deals to pay off the debt for 50% or less of what I actually owe them. Personally, just from what I've read in the past, I've come to the conclusion that that is a bad idea, and that I should try to pay the debt off for the complete amount owed. Is this correct in thinking?

Personally, I'm hoping that my next "opportunity" is around the corner, however I've considered declaring bankruptcy, or once I get a job that pays a little more, perhaps using the services of a Consumer Credit Councellor. I'm REALLY hoping to be able to build/buy a house within a year or so of getting back on my feet, and feel that once I get a real job, I could probably pay everything off within 6 months.

What advice could you give me in my current situation?

Thanks in advance!

NoSoup · 06-05-2003, 07:13 PM

LutherMac:

In regards to your question about settling the collection debt, go ahead. The longer they remain open, the more they will hurt your credit. As far as I know it reports the same whether you pay the full amount or pay a percentage.

Pay the collections as soon as possible- close them as soon as you can. That way, when you get back on your feet some time will have passed so that your credit may have a chance to improve.

As far as bankruptcy is concerned, it is difficult to say. It will remain on your bureau for 7 - 10 years, but then you will probably be debt free. If you are going to declare bankrupcy, do it as soon as possible to get the clock ticking. It is difficult to recommend a course of action because I don't know the amount of "massive" debt that you have, nor the amount of income you will be expecting.

I suspect though, that if you are going to be able to pay all the debt off within 6 months, it may not be worth declaring bankrupcy. I hope everything works out for you. Good Luck!

If you need anything else, let me know

Thanks for posting!

NoSoup · 06-08-2003, 09:33 AM

Forks:

Fortunately, there is a way to get that mix up taken off your credit bureau. There is a document that you are required to mail in to the Credit Reporting Agency that I can forward to you if you like. It would probably be best to send a copy of the letter stating that the information was incorrect that you had recieved from the governemnt with the document. If you want, you can PM me your name and address and I will mail you one from work. If you prefer not to give your name out to total strangers, I will look around online to see if I can find the document.

As to why you are being charged high interest rates, the only way to find out is to check. I would recommend going to TransUnion and purchasing your credit bureau with score. The link above directs you to that product, it is $12.95 I believe, but it is worth it. It tells you your current balances, your FICO score, what is hurting your credit, how to fix your credit, and how lendors see you. If there is anything else I can do for you, let me know.

Thanks for Posting!

NoSoup · 06-27-2003, 05:50 PM

Hello everyone, it's been awhile since anyone has posted...

Does anyone else out there have any questions?

05-21-2003, 08:10 PM	#1 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Ask The Loan Officer Feel free to post any questions you have about Your Credit Report, Empirica Score, Loans, Credit Myths, or anything else concerning Banking here and I'll do my best to answer them. In addition to loans, I also handle a variety of other tasks, so if you have any questions about checking, savings, certificates of deposits, (ie what is the difference between the annual percentage rate and the annual percentage yield) or Individual Retirement accounts (IRA's) fire away. Thanks for posting! [Edit] This thread has gotten quite lengthy, to make it a bit easier to find information I created a couple more specific threads - feel free to continue posting on this one, but for those searching for information I'd imagine these links would be a bit faster than searching through here. NoSoup's Guide to Buying a Property: The Basics NoSoup's Guide to Obtaining and Maintaining Excellent Credit __________________ I have an aura of reliability and good judgement. Just in case you were wondering... Last edited by NoSoup; 09-02-2004 at 04:29 PM..

05-21-2003, 08:36 PM	#2 (permalink)
tricks Crazy	Does my crappy credit ever really dissapear? Say I haven't paid my credic cards in, oh, 6 or 7 years, am in collection, is there any hope? signed, In hiding. (I've actually paid most of the collection agents but some are still outstanding.) __________________ People Are Stupid. People can be made to believe any lie, either because they want it to be true or because they fear that it is.

05-21-2003, 08:49 PM	#3 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Tricks: The answer is fortunately, yes. Depending on the type of collection accounts that they are, they will fall off your credit bureau in 7-10 years... They sooner you pay them, though, the less they hurt your credit, and although strange, sometimes bad credit is better than no credit at all. The more time that has passed between now and when the collection was opened, the less it will hurt your credit Thanks for posting! Last edited by NoSoup; 05-21-2003 at 08:52 PM..

05-22-2003, 09:26 AM	#4 (permalink)
Slims Eccentric insomniac Location: North Carolina	If I don't always pay my bills exactly on time, does that hurt my credit rating? And what about having a credit card that is maxed out, but is being paid off? __________________ "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." - Winston Churchill "All men dream: but not equally. Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity: but the dreamers of the day are dangerous men, for they may act out their dream with open eyes, to make it possible." Seven Pillars of Wisdom, T.E. Lawrence

05-22-2003, 03:11 PM	#5 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Greg700: It depends on what exactly means. As long as your bill is paid within 29 days of it being due, the Credit Reporting Agencies (ie TransUnion) will never know you were behind. However, you will probably be charged late fees and your interest rate may be increased. On the 30 day, it will report to your bureau as a delinquent payment, damaging your empirica score as well as your credit history. As for the second part of the question- Yes, it does hurt your score. Get that balance at least payed down as fast as possible. The Credit Reporting Agencies keep track of the highest balance you have ever owed on a line of credit. My advice is to apply for an increase on your limit as soon as you have paid it down considerably, and don't go over 60% of what the limit is. As strange as it may be, it is better to have two credit cards with balances at 50% of the limit than one card maxed out. I hope that answered your questions! Thanks for Posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering... Last edited by NoSoup; 05-22-2003 at 06:38 PM..

05-22-2003, 03:58 PM	#6 (permalink)
cheerios Banned Location: 'bout 2 feet from my iMac	do you HAVE to have a credit card to establish credit? Will my student loans do this, instead? Every time i even THINK about picking up a card, for emergencies etc, my parents freak, so I've been living w/ a checking acct and an atm card for years. Also, why do I need credit?

05-22-2003, 06:37 PM	#7 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Cheerios: No, you don't necessarily have to have a credit card to establish credit. The reason I would suggest starting with it is because credit cards are by far most abundant (although pricey) way to establish credit, and also the easiest to qualify for. Unfortunately, there is no clear-cut answer as to whether or not student loans build your credit. They do report to your bureau, but lenders often look at them differently than they would another type of credit, escpecially if they are in deferment. In response to "Do you need credit, the answer is not necessarily. However, if you plan on purchasing a house some day, or buying an automobile that you can't afford in cash, the answer is yes. If your parents are uncomfortable with you have a credit card, try contacting a local Bank or Credit Union to see if they offer secured cards. Basically, a secured card is when you give the lending institution $X, and they give you a credit card with $X limit on it. You will receive a monthly bill just like any other card, and it will report to the bureau the same as well. This is a great (and sometimes the only) way to establish your credit. I am sure that you will find that most institutions will be reluctant to lend any money to anyone that doesn't have any credit out there. After you have established yourself, you can contact the institution to see if you qualify for a normal credit card, and get your money back. The longer you have credit history, the better your credit will be, so it is best to start as early as possible. Thanks for posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering... Last edited by NoSoup; 05-26-2003 at 12:49 PM..

05-24-2003, 05:43 PM	#8 (permalink)
RyeZingSon Upright Location: Davenport, Iowa	I have a question for you. Is it true if you pay off the balance of a credit card and you close it out it will fall off your credit report? How about if you had some late payments. I did a stupid thing. After I purchased my house (I qualified for a mortgage!!) I decided to do a debt consolidation company because I had about $25,000 in credit card debt. Well I got duped big time. They turned out to be "For Profit" and for the first month they held my payment and didn't pay my creditors. Well needless to say they were reported as delinquent on my credit report. I soon switched to a Credit Counseling Service which has been outstanding. However..now I want to refinance my home and get a Home Equity loan to pay off my credit card debt. (My house has appreciated $50,000 in the last two years). So I will revisit my question--if I am lucky enough to qualify for a refinane and Home Equity Loan and I pay off and cancel my credit cards..will they drop off my credit report? Or will it be subject to the 7-10 year rule? __________________ Everyone should have beliefs. I believe I will have another beer!!

05-25-2003, 08:33 PM	#9 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	RyeZingSon: If you pay off your credit cards and close them, the Credit Reporting Agency will see exactly that. They are still subject to the 7-10 year rule. However, because they are closed, (and not charged off) they will impact your bureau less and less as time goes by. Consolidating your debt either on a first or second mortage, by the way, is an excellent idea. First and foremost, you will almost certainly have a lower interst rate than the credit cards, and the interest you pay on a mortgage is generally tax deductible. If you don't qualify to refinance your home at a normal institution, see if you can qualify at a more high risk institution. Even if your second mortgage rate is 10%, it is much better than the 20%-29% you are probably paying on your credit cards. Good Luck! Let me know how it works out. Thanks for posting. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-26-2003, 11:18 AM	#10 (permalink)
popo Psycho	I'm 30 years old and will be finally joinig the workforce in about 3 years with ~400k of student loans (nope, not a typo). I can expect to earn ~$150 to start and going up to 250-300 within 5 years. I have pretty good credit (a single 30-day past due about 3 years ago), 3 major credit cards (one with 11k balance of 17k limit, currently only paying the minimum). My credit history only goes back to 1998 though. Anything I should be looking out for? Any advice at all or thoughts in general? I don't own a home now but will be looking in 3 years. TIA. Last edited by popo; 05-26-2003 at 11:21 AM..

05-26-2003, 12:17 PM	#11 (permalink)
tricks Crazy	Thanks for the previous reply. Next question: The 7-10 year rule. When does the clock start? From the first mark? From when they give up? Do bad marks continue to accrue if you've defaulted? For how long? __________________ People Are Stupid. People can be made to believe any lie, either because they want it to be true or because they fear that it is.

05-26-2003, 12:48 PM	#12 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Popo: First of all, for anyone else viewing this post, I PMed Popo for more information. I will copy that message here: Before I respond to your question, I just wanted to get a little more info. Do you currently have a source of income? Do you have any other credit cards? And, just out of curiosity, what will you be doing? Also- do you mind if I post your response? Thanks, NoSoup -------------------------------------------------------------------------------- Thanks for getting back to me. My only source of income is current student loan and my wife who's a CPA. I have 3 credit cards in total, the other 2 with no balance (15k and 10k limits), plus one BestBuy card almost maxed at 2k but to be paid in full in a month. That's it. I just applied for a new card that has 0% for 12 months on balance transfers then 8.9% fixed after that. If approved, I will close one card. Or should I close one right now before the application is processed? I'm a dentist in a specialty program, and no problem with posting this response. Thanks for the help. -------------------------------------------------------------------------------- In response to your first post, I would pay down that Credit Card a little bit, you are currently sitting with a 64.7% balance to limit ratio, It is best to stay under 60%. If you pay it down to 10k, you would be under that 60% mark. In response to the PM that you sent me, I would close out the Best Buy card. Because Best Buy is considered a retail store, any credit that it lends out is considered higher risk, or "bad" credit on you bureau. Another reason you should close it is because it is currently maxed out. Credit Reporting Agencies keep track of the highest balance that you have ever carried on a card. I know that Best Buy generally encourages the use of their cards by offering 0% interest on your purchase for a set amount of time, but it may be better to spend the couple extra bucks now and have better credit later. Depending on how much money you have extra each month, you may want to start contributing to an IRA account. I would suggest a Roth IRA, simply because in my opinion it is the best deal out there. I understand that in a few years you will be making quite a large sum of money, but with the Roth, there are fixed contribution limits each year-your income has no impact on how much you are allowed to contribute. My only other advice is to keep your finances in check. I'd imagine it would be very easy to run up those credit card balances knowing that in a couple of years you will be making such a large sum of money, but it will be worth the wait. When you enter the workforce, I would suggest paying off all of your outstanding balances (on any credit cards or auto loans) before moving into a house or making any drastic changes to your lifestyle. It would probably only take a couple months, and it will be much easier to pay them off with your current lifestyle than the one you adopt later. Good Luck, and if you have any more questions, let me know. Thanks for posting! On a sidenote, popo's post is a great example as to how debt is relative. Speaking for myself, I would be in quite a pickle if I had $400,000.00 dollars worth of school loans, but then again, I am not making a quarter of a million dollars a year. Thanks again, popo. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-26-2003, 01:02 PM	#13 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Tricks: You're welcome. As for the 7-10 rule, it is ongoing as long as the accounts are open. If you were over 30 days delinquent on a credit card last month, that will continue reporting for 7-10 years from that date. Collections, however, are a different story. The collections start the falling off process from the date they are opened. If you had an account go to collections 2 years ago, it should fall of in 5-8 years from now. Bad marks don't continue after you have defaulted, but they do remain on your bureau, and will continue to hurt your score as long as they are there. Having a paid collection hurts your score much less than an open one, having you collections paid off may also make you eligible for a loan of some sort. If you do have several collections out there that you are thinking about paying, contact the collection companies and see if they will meet you halfway. Many time, you can call them up and say "I will give you $X to close the account, and often they will agree, or at least counteroffer. I hope that answered your question Thanks for posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-26-2003, 01:15 PM	#14 (permalink)
popo Psycho	Thanks NoSoup. Is there any fear in having such a large sum of debt, even with the income? Will I be making enough so that home/car loans will be possible?

05-26-2003, 02:42 PM	#15 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Popo: I can't answer your question universally, but from my experience you shouldn't have a problem. Generally, most lending institutions base the loan decision off of the person's debt to income ratio. (Total Monthy Payments divided by Total Monthly Income) It basically depends on your payments. If you are making approximately $150,000 a year, you will be making approximately $9,375 net per month. Most instituion like to see the debt to income ratio below 50%, so as long as your payments (including whatever you are applying for) are less than $4,687.00 per month, you should be fine. The above rule generally applies, but for people that make an exceptional amount of income, it is usually ok for the debt to income ration to be higher. The reasoning behind this is because it will be much easier for you to afford another $250.00 payment, even if your debt to income ratio is already at 60%, than someone who makes $1,000 net per month to make that extra payment. FYI: Generally, any debts reporting to your credit bureau are considerded "debt" when calculating your debt to income ratio. Also, Rent/Mortage Payment is also included. If you have a mortgage, but your payments don't include escrow tax, the tax will usually also be included in the calculation. Insurance payments, utilities, and other day to day expenses are not, which is why it is important to leave enough for the person to live on. (Hence the 50%) If you need anything else, just ask! Thanks for posting __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-26-2003, 03:40 PM	#16 (permalink)
popo Psycho	Thanks again for the great info. I was just wondering about that new credit card I applied for. If the application includes a balance transfer, should I go ahead and close the card with the current balance right now before the application is processed so that approval of the new card will not give me 4 cards? Or does it not make a difference?

05-26-2003, 04:20 PM	#17 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	It doesn't really matter if you close it now or shortly after you transfer the balance. Even if the Credit Reporting agency were to see that you had four open credit cards, the next month they would see that one of them was closed. I hope that clarifies things- if you have any more questions, let me know Thanks for Posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-26-2003, 06:38 PM	#18 (permalink)
popo Psycho	thanks for the patience, but I mean will it make a difference in terms of how it will look for the new card application?

05-27-2003, 02:54 PM	#19 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Popo: Sorry, I misunderstood the question. It is possible that it will make a difference, however, it really depends on how soon you want that card. Because the Credit Card Companies only report once per month, If you were to close it in May, you would have to wait until mid-July until you can be sure that it has reported closed. I hope that is what you were looking for, if not, let me know. Thanks For Posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

05-28-2003, 04:12 AM	#20 (permalink)
Jesus Pimp The Original JizzSmacka	I have over 35k in student loans with 3 different lenders. Should I consolidate? __________________ Never date anyone who doesn't make your dick hard.

05-28-2003, 08:03 AM	#21 (permalink)
Grimlok Tilted Location: Central Illinois	Hey Jesus Pimp... I'll handle this one for No Soup... The Generic Answer is yes... You should consolidate... UNLESS... you plan on Taking out more student loans. The Reason being is you can only Consolidate your Student Loans once... I think they're working on a law now where you can consolidate a new loan with a consolidated student loan but I'm sure NoSoup can clarify that for ya. About 2 months ago some places were offering Student Loan Consolidation as low as 2.4% but I think it's averaging about 3% now. If the Economy turns around... look for those interest rates to go back up. I would do it now while the gettings good. ------------------------------------ Now... for my own Question to No Soup. My wife had a credit card before we were married and quickly charged it up to the $750 limit. She didn't take into account the finance charges so of course.. it went over the limit, resulting in an over the limit fee... which raised the APR... Blah blah blah. She called the company and they told her what she needed to pay... and she did... taking it back below the limit but... at the higher APR it exceeded the credit limit again and all the charges that went with it. We were having Financial problems at the time so we missed a payment. Over the course of 1 month thanks to all of these bunk ass charges... the Card was about $110 over the credit limit. We've made payments on it but we could never get it below the Credit Limit. My wife kept making payments on it but they were/are unwilling to stop the excessive charges, mostly because she keeps making payments. The Bill is now $1600 (Despite paying about $900 last year to the damn card) and there seems to be no end in site. My question is two fold. Since the company is unwilling to settle (because my wife has an established payment history) should we let it go into collections so the charges will stop. Collection Agencies are more willing to cut a deal (I've heard). Or should we keep paying essentially putting us further and further into debt. The reason my wife kept paying is because the company doesn't report her as being late as long as she pays by the due date (which I believe is untrue.) She doesn't want to stop paying because she doesn't want to show late payments on her credit... but I figure being over 100% over the credit limit hurts us more than being late. Any Thoughts __________________ Your future looks very very grim!

05-28-2003, 09:55 AM	#22 (permalink)
Jesus Pimp The Original JizzSmacka	Thanks Grimlock for the info. I was thinking of going with this company http://www.glsloans.com/ . What do you think? __________________ Never date anyone who doesn't make your dick hard.

05-28-2003, 10:25 AM	#23 (permalink)
Grimlok Tilted Location: Central Illinois	My Advice would be to go to Sallie Mae or Direct Student Loans (Gov't). I don't know anything about glsloans and doing a google search doesn't bring up too much useful info on the company. The two I mentioned are pretty darn good about working with you... at least that's been my experience. Another thing they do is lower your percentage rate if you sign up for automatic withdrawl from your bank account. It's only like a half or quarter % but if you have a lot of loans... over time 1/2 or 1/4 percent reduction can add up to thousands. All I can say is get a paper Application and explanation of policies from gsloans and read over it thoroughly. Do the same with Salliemae and DirectLoans... Also... I would wait until after July 1st because I think the interest rate may be dropping for loans and will allow you to lock in a lower rate. Also... I would wait for SOUP to give his 58cents.. as he's a loan expert and me... I'm just a working stiff kicking myself in the butt but locking in that 7.25% Loan eight years ago. __________________ Your future looks very very grim!

05-28-2003, 11:21 AM	#24 (permalink)
candyman Addict Location: Just look over your shoulder!	NoSoup Yelling You have come to my rescue! We have recently sold our house and want to build in the spring. We are currently renting at half the cost of our previous mortgage to save for the down payment costs of a construction loan. I also plan to purchase property now, hopefully Land Contract, to lower the land cost when rolling it all into a construction loan. Any pointers? Suggestions? Are VA loans any good for building? My previous realtor and mortgage officer stated there is a moutain of paperwork to go through and it ends-up not being very beneficial (interest is higher). Is that true? Is there any way around having 15-20% down to start construction? I am sure there is more, but I deeply THANK YOU for sharing your knowledge. If there is anything I can do for you, please let me know! candyman __________________ "I am the writing on the wall, the whisper in the classroom. Without these things, I am nothing."

05-29-2003, 04:32 AM	#29 (permalink)
candyman Addict Location: Just look over your shoulder!	Thanks for the help NoSoup! __________________ "I am the writing on the wall, the whisper in the classroom. Without these things, I am nothing."

05-29-2003, 09:19 AM	#30 (permalink)
denim Banned Location: Massachusetts, USA	Simple question: I'm recently out of debt. I've been thinking about getting a new car, using an up-coming bonus as either a downpayment or as the whole thing, depending on how much it turns out to be, but now I'm thinking it'd be better to get a used car and make a start on a cushion for buying a house. I'm about to start a new lease at just over $800/month on my apartment, which is what gets me thinking this way. A coworker suggested I could go for a no-money-down mortgage, as a first-time buyer, but I don't feel I have enough cash in the bank just in case my job goes away or some other kind of nasty thing happens. So far, I have a few grand in investments, a few grand in the bank, and some retirement investments, which I refuse to touch if I can avoid it. It makes more sense to me to go for the new lease renewal and just save like crazy this coming year. What say you? And thanks!

05-29-2003, 05:42 PM	#31 (permalink)
308 holez Crazy Location: nowhere near good food	just an amazingly productive, responsive, group effort thread. wow. I've always thought of candyman as the sweet hookup with the passes. I now know him as a guy looking to buy property and married. Thanks for sharing so much, guys. __________________ Fark headline: "Kobe's lawyers gain access to text messages sent by accuser soon after the alleged attack. Omg koby frkd me nda assnowi m gona b richlolol1.111.~.11"

05-30-2003, 02:43 PM	#34 (permalink)
Washington Insane Location: somewhere cool	Okay, I have a question.. I am 19 and have never had a credit card or any credit. I dont have bad credit but dont have good credit either. I aplied for a bunch of credit cards and was denied by all on the basis of having no credit. then i applied for a student credit card and was denied because I had so many recent inquiries for credit cards. How long do I have to wait untill i should reapply for a student card? Thanks Allen PS....Im trying to get an American Express Blue for Students card __________________ there is no absolute, only the moment.

06-02-2003, 07:11 PM	#37 (permalink)
LutherMac Crazy Location: St. Louis, MO	Hi NoSoup, great thread! I'm in a bit of a pickle here. Basically, I've been unemployed now for over a year, and I've got pretty massive debt that I've been unable to pay off (barely surviving with enough to take care of the month to month necessities.) Most of my credit cards and loans have all defaulted and been passed onto collections. Most of these agencies are offering me deals to pay off the debt for 50% or less of what I actually owe them. Personally, just from what I've read in the past, I've come to the conclusion that that is a bad idea, and that I should try to pay the debt off for the complete amount owed. Is this correct in thinking? Personally, I'm hoping that my next "opportunity" is around the corner, however I've considered declaring bankruptcy, or once I get a job that pays a little more, perhaps using the services of a Consumer Credit Councellor. I'm REALLY hoping to be able to build/buy a house within a year or so of getting back on my feet, and feel that once I get a real job, I could probably pay everything off within 6 months. What advice could you give me in my current situation? Thanks in advance!

06-05-2003, 07:13 PM	#38 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	LutherMac: In regards to your question about settling the collection debt, go ahead. The longer they remain open, the more they will hurt your credit. As far as I know it reports the same whether you pay the full amount or pay a percentage. Pay the collections as soon as possible- close them as soon as you can. That way, when you get back on your feet some time will have passed so that your credit may have a chance to improve. As far as bankruptcy is concerned, it is difficult to say. It will remain on your bureau for 7 - 10 years, but then you will probably be debt free. If you are going to declare bankrupcy, do it as soon as possible to get the clock ticking. It is difficult to recommend a course of action because I don't know the amount of "massive" debt that you have, nor the amount of income you will be expecting. I suspect though, that if you are going to be able to pay all the debt off within 6 months, it may not be worth declaring bankrupcy. I hope everything works out for you. Good Luck! If you need anything else, let me know Thanks for posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering...

06-08-2003, 09:33 AM	#39 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Forks: Fortunately, there is a way to get that mix up taken off your credit bureau. There is a document that you are required to mail in to the Credit Reporting Agency that I can forward to you if you like. It would probably be best to send a copy of the letter stating that the information was incorrect that you had recieved from the governemnt with the document. If you want, you can PM me your name and address and I will mail you one from work. If you prefer not to give your name out to total strangers, I will look around online to see if I can find the document. As to why you are being charged high interest rates, the only way to find out is to check. I would recommend going to TransUnion and purchasing your credit bureau with score. The link above directs you to that product, it is $12.95 I believe, but it is worth it. It tells you your current balances, your FICO score, what is hurting your credit, how to fix your credit, and how lendors see you. If there is anything else I can do for you, let me know. Thanks for Posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering... Last edited by NoSoup; 06-08-2003 at 09:36 AM..

06-27-2003, 05:50 PM	#40 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Hello everyone, it's been awhile since anyone has posted... Does anyone else out there have any questions? __________________ I have an aura of reliability and good judgement. Just in case you were wondering...