Hello to All! I'm new, but have been reading posts for the past week. I'd like to encourage those who are where I've been, and I welcome suggestions from those who are where I strive to be. If I'm missing anything in my arsenal, let me know. I don't want to be a victim of the CRAs any longer. Here's my story... After getting 3 loan denials in May (to pay off 17% prvt Educ loan), I checked my credit reports for the first time in 5 years. The 636 FICO score discouraged me enough to not purchase other 2 CRA scores. Instead, I attacked the debts: 6.5K private education loan @ 17%, 6.8K Sallie Mae student loan @ 7%, 3.2K car loan @ 9.25% & 1.9K @ 9.9% on Chase Visa, 5.6K @ 15%/12% on Direct Merchants Bank Gold MC & 1.2K @ 0% ER physician bill. I tired of begging, "Please Mr. Banker, lend me your money, I'll be a good girl & repay as promised." Instead I tightened my belt & pummeled the Prvt Education Loan with $400-500 biweekly payments, the last of which was made 2 weeks ago. I attacked the other debts with similar gusto, and repaid $14K + interest in the last 8 months. Today I have better news. The remaining $13K will be history by next May or June. I feared rechecking my scores so soon, but after reading this site I couldn't put it off. Trans Union: 725, Experian 685. YEAH!!! Equifax/FICO couldn't process my order & said to call customer svc on Monday. In the meantime, I'm disputing all negatives: the INQs that just turned 2 years old as of November but still appear; incorrect day of birth; multiple address entries due to incorrect spelling; incorrect report of over limit because Chase affiliate billed me for unsolicited "Membership Rewards", etc. What more should I do? Rina -- Conquering through Christ
What does Christ have to do with this? Why are you bringing a holy name into something so materialistic as your credit rating.
Way to go with your success, Rina! Looks like you're well on your way with TU and Experian. I'll bet when you call Equifax on Monday they'll go ahead and send your report, but keep us posted. The fact that you're disputing "housekeeping" stuff like incorrect birthdate and multiple variations of the same address will (imho) lend credence to other credit-specific disputes you send -- you end up looking like a stickler for accuracy rather than someone who's simply trying to "clean" her credit. Anyway, that's just my editorial opinion, lol. Congratulations again, and give us an update re Equifax at some point soon. Doc
Rina, First of all, congratulations and welcome aboard! May I ask a few questions? What was your debt to credit limit ratio prior to the debt paydown and, what is it today? Also, did you have any cards with a high debt to credit limit ratio? Not trying to be nosey, but just seeking some validation about a FICO theory of mine. TIA!
Breeze & PsychDoc, thanks for the welcome! mosdef, Did you ever hear that "The borrower is servant to the lender"? I'm just trying to back up my faith with real action: to be a "good steward" with the resources God gave me, and like PsychDoc said, I am a stickler for accuracy. I think it's important to be as debt-free as possible, and manage my $$ the best I can. Unlike some people, I am not trying to to have a high score so I can get more cards. Although credit reports can contain errors, & I may disagree on the score calculation method, the reports show me where I've mismanaged money. My purpose is peace in all areas of my life & to live below my means. Despite the economic downturn, I just got an unscheduled raise, & my boss is already talking about my scheduled raise in 2 months & add'l responsibility for next year. Even if that went up in smoke & I had to take a job making 1/2 what I do now, I could because of the financial principles I've learned from the Bible, & sources like creditnet, stretcher.com , fool.com, Larry Burket, Suze Orman, etc. I realize I don't know everything, & that's why I'm here. Rina -- Conquering through Christ
Rina, have you read Dave Ramsey's book "Financial Peace"? He is just terrific and espouses much of what you believe. In fact, he has a great radio show (accessible on the web at DaveRamsey.com via RealPlayer anytime) where he fields all kinds of consumer credit and personal finance questions. Link: http://www.daveramsey.com Doc
Rina, that's terrific! I'm sure you will have much to contribute! And with credit, even when we finally know everything, they'll change it
Great post, Rina! It gives debt-ridden individuals like myself hope for the future. I totally agree with your reasons for sprucing up your credit. It's all too easy to get caught up in seeing which new card you'll be approved for, whether you really need it or not. Like you, my #1 goal is to never be this indebted to anyone again in my life (with the exception of a future mortgage). Welcome to the board! )
Doc, I skimmed through Dave's book @ Barnes & Nobles a few days ago & I have visited his site briefly in the past. I found www.stretcher.com's debt section to be among the most useful resources on the net. It kept me motivated to make the enormous biweekly payments to my student loans. I'm 28 & married, but I keep in close touch w/ my sisters & brother (19-25). I frequently pass along resources (like creditnet) that I come across to motivate them to be responsible with credit usage. My husband & I are considering paying an AMEX financial advisor a $600/yr fee to advise us. She has a BS in accounting, an MBA in finance & is studying for her CFP. Don't know if it's worth it, given my financial background & how meticulous I am about our finances, but if we don't, my husband may remain kinda passive about making financial plans. We make a lot of money but parting with 600 bucks for something we might be able to do ourselves bothers the hell out of me! Of the 3 advisors we met, we like her the best, and I feel she's trying to earn our business. Should I do it? Rina -- Conquering through Christ
What? No JD? (just kidding) Is there any kind of contract specifying what you get for your money? How does your state regulate or license fee-based financial planners? Are you limited to certain products, or can you choose your own? If you make a lot of money, it can be worth it in tax savings alone, assuming you don't have the training in those areas - but there are some things to avoid.
