Hi...I'm 18 and I need some help building up my credit. My dad co-signed on a loan for my car last year, and we have never been late or missed a payment. I have a derogatory item which is a collection account from a video rental place. I have been round and round with them, because they say I never returned two movies, but I did. I sent in a dispute letter yesterday so we'll see how that goes. My problem is that in about a month maybe two I will need to get a loan for a car on my own without my dad as co-signer. I went car shopping yesterday and I was denied the loan, and my credit score was only 585. My question is, what can I do to improve my score? Would it make sense to get like a Target card, Visa, and a Gas Card? That's what I read in another post. Also I read something about getting a personal loan with an IRA as collateral and then doing that several more times at seperate banks. Would any OR ALL of this be feasible? Thanks for any help it's much appreciated.
Have you ordered your credit reports? That will tell you what is and isn't on your credit. Plus you can dispute your derog and see if you can't get rid of it that way. As far as new credit, a secured loan might be possible and sometimes Student CCs are easier to get. Good luck!
The best way to boost your score is to get rid of that CA. I see two loopholes. If the movie in question was rented before you were 18, you cannot be held liable because you were a minor and minor's cannot enter into contracts. The second loophole is to send an ITS letter to the store or coroportate headquarters. Tell them you have a witness(es) that were present and can testify in court to the fact that the movies were actually returned and if the collection account is not removed immediatly you will file suit. After getting rid of the pesky CA, ask your father if you could be made an authorized user on one of your dads old never late credit cards. I assume he wouldn't mind since he co-signed for your vehicle. Tell him it would boost your score tremendously, and that he could retian possesion of the card that is issued to you so there will be no laibility to him.
Thank you for your replies. I'd like to build my credit on my own if possible (getting away from home..probably joining the military in the near future)...so unless I have to use him I don't want to. Thanks again. Jeff
