I am looking for some guidance in a couple of financial areas. I have managed to get my scores all in the upper 600's. I do have a Chapter 7 that is 5 yrs old now. I have a few puny credit cards: Orchard 300 (plan to close before annual fee arrives) HSBC Visa 700 Futuretrust MC 1500 Natl Parks Visa (CL TBD) I have a Care credit at 5000 CL I have some store cards, Target, Old Navy, Walmart, Valero. All have 0 balance except the Carecredit which I'll explain in a bit. I pay full every month. I have a mortgage on my house I got in 5/07. I am interested in knowing what good rewards cards I may be able to get in the furture. I would like my PIF every month cards to work for me. Are thier any good ones that I may be able to try for in the future? I am going to set up a 529 (is that correct?) college fund to have my Futuretrust rewards go into. Would it be feasible to make my mortgage payment every month with this then pay it off every month to get the rewards? My other issue is the carecredit, we have cruddy dental insurance and my hubby needed 3K in work done. There was no waiting for this, he has been in agony we found the best rate we could get and had it done. I will have the option of interest free for 12 months but am unable to make the necessary payments to pay it off within that amount of time. I anticipate being able to pay 2000 of it before the interest kicks in. What would be a good option to handle this? Should I consider a a bank loan when the interest free period ends to pay it off at a cheaper interest rate? Looking for some good ideas and strategies. I would like for my credit to grow and work for me instead of me working for them. Do I make any sense? Thanks! Tegleg
There are many "rewards" cards out there, with a reward for almost anything you can think of. What would be your goal for a "reward"? Travel, cash back, perhaps Disney for the kids? You should decide first what rewards are best. Your scores are getting to the point that you will qualify for many. Try looking through this site: http://www.creditorweb.com/best-credit-cards.html http://www.consumer.org.nz/topic.as...title=Introduction&contenttype=summary&bhcp=1 Yes a 529 savings plan is correct for college expenses. You would have to see if your mortgage servicer accepts credit card payments. If they do, most likely you could set it up to make the payments automatically. But..be aware that many mortgages do NOT accept CC payments due to the processing fee (cuts into their profit margin). But, you could use the card to make most of your "everyday" purchases, i.e groceries, gas, clothes, etc. Every little bit helps! A couple of questions, is this Care credit use any "pretax" dollars from a fund you contribute to? You need to be careful if it is. If it is straight "credit", is the interest rate acceptable? Since you have 12 months to pay interest free, use that time to pay as much as you can. When the 12 months is nearing, explore a Home Equity Line Of Credit (HELOC). This is basically a "credit card" against the equity in your home. The interest rates are lower than a CC, and most times the interest is tax deductible. Also, keep track of ALL the medical expenses for this year, my guess is you are nearing the point of being able to deduct some medical expenses, and at least save some tax. Medical expenses OVER 7% of your AGI income are deductible on Schedule A. You make perfect sense! Feel free to PM me with any specific questions, if that is easier.
Biz - You are one amazing person. It is unreal to me to see the vast knowledge you have it all areas and willing to help other like you do. Teg- Congrats on several areas. Many people come out of BK and go right back into financial issues. I see that you have done well with your financials, your credit lines and now a home owner ! Great job! Seeing the need to not only be financially smart but also wanting to be investment smart is fantastic. Reward cards are awesome, we use them to pay for about everything, our mortgage company does charge us 1.5% to use it but we get far more then the 1.5% back in return. We actually paid for the majority of our last vacation with one. I like the travel rewards cards myself. Chase and Citi have some good ones as well as Juniper. Might want to look into a credit union as well as many of them want to compete with the CC companies and offer you something. I work with an awesome credit union, one of the best I feel in the country if you interested let me know and I can PM you the info. They also have great BT rates, rewards and other loans at super rates ( 2006 Truck for 6.5% ). I cannot even compare to Bizs wealth of knowledge but I can tell you from someone who started two years ago with below 400 scores and now breaking into the high 600's, it can be done with the right mindset, knowledge and willingness to understand where you were and where you are going. Congrats on your " total" success!
Wow! Thank you all so much for the information. I am so eager to work on these! BizWiz, Thank you so much, you are a walking encyclopedia, I swear! The card selector link is awesome and just what I was looking for. It appears Discover & Amex Blue are what I need to concentrate on. I am scared too death of these two, I have heard they are hard to get and at times hard to keep. I am never dishonest on credit apps so the "financial reviews I have heard of don't really scare me. What scares me is getting approved for either of those. With a 5 year old BK I fear I won't have a chance. I will look at the other site but it wants a subscription so I am still pondering that one. Do you know if there are any that may be bk friendly and have rewards? I am interested in, at this time cash rewards that I can put back into into kids college funds and IRA contributions. I would take whatever rewards I could get but those are my primary goals. The care credit I mentioned is a GEMB card, it's a card designed for medical/dental fees and allows a period of interest free return pay. I fear though I will not be able to pay it off completley in a year so I was considering other options to pay the remainder off at a lower interest rate. Since I have only had my mortgage for 3 monthes I am doubtful I have any type of equity yet. Credit1, thank you for the kudos and information! I greatly appreciate it! I will send you a pm about the CU because that may be an option I might need to consider for the balance on the Carecredit card after the interest free period ends. Plus I will have to look at another vehicle next year, I will have a good portion saved to put down but will likely need to finance a part of it. I am not looking foreward to a car payment at all but I commute 60 miles round trip for three 12 hour shifts a week so I have to have a reliable car. I plan to get a good deal on a decnt one and finance as little as I can. I hope to heck I get a good raise this year (evaluations are coming up) I am hoping to use my extra income to help pay for a vehicle payment. I hope I sound coherent, I just got off work and am wiped. I have more questions (as usual, lol) but will ask those after I get some sleep. Thanks again, all advice is appreciated! Tegleg
A few other ideas...... Teg, I don't know if you use a "debit" card with your checkng account, but shop around, as many debit cards now offer reward points. A call to your bank may be well worth it. Also, are you offered any "flexible spending accounts" at your work for medical expenses? The benefit of these is that you pay with "pre-tax" dollars, so usually the income tax rate is much greater than the interest rate. Another item to ask your HR deparmtent about. I strongly recommend visitng your HR department and looking at all the benefits your employer offers. There are many benefits which save a lot of money that most people do not take advantage of, (i.e. flexible spending accounts, dependent care accounts, insurance, etc.) Another option for paying the dental bill balance of $1,200, if you have a 401K, you may consider "borrowing" the amount from your 401K account. I usually do not recommend this, but you seem very disciplined in managing your finances now so I feel you could handle this option. Generally a 401K loan gives you three years to pay back, and the "interest rate" is around 10%, but.. you are paying the interest to "yourself", it gets added to your 401K balance. Just be careful, make sure you can pay it, and have it deducted from your paycheck to be certain! As for the rewards cards, AmEx and Discover may be good options for you. You are getting very close on your scores. I would just call and ask what the approval criteria are for the cards, i.e. credit scores, houselhold income, negatives on yor credit report, etc. Don't let them "go ahead" and do a "hard pull" for an inquiry, the CSRs are paid on opening accounts, so be careful! You may want to explore speaking with "Future Trust" regarding the credit limit, if you explain that you want to use this for higher amounts, and pay in full each month, they may increase your limit to accomodate what you spend monthly....you never know until you ask! Taking you to the "next level", start looking now at your income taxes for 2007, start filling in the forms to get an idea of how you will look in January. You may be suprised this year with a good size refund! Remember you will be deducting home mortgage interest, any points paid on your new mortgage, and perhaps medical expenses. You may want to start planning "donations" to Goodwill, Salvation Army, etc. as these add up significantly! (I do not let my wife throw anything away! It all must be donated now!) Also, look at all of your current credit cards and their fees, I don't know if you pay any annual fees, but it takes a lot of "rewards purchases" to offset a $50 annual fee! The advice about exploring your local credit union is very good advice, these usually offer better rates on all products, and are easier to work with. Check out your local offices and see what they have to offer. Lastly, I know you will not feel comfortable with this advice but....I would go back and look at your credit reports with "fresh eyes". You probably should try disputing the BKs on your reports. I know your moral stand on this issue, but look for inaccuracies, and dispute accordingly. I commend your ethics in this matter, but think about what is best for you and your family... So, congratulations again on all your successes, and kudos for the new "mentality" you've gained, that is the most important thing!!! It doesn't get easier, and in some ways it gets harder when you start improving financially!
Hey there! Concerning debit cards: I called my bank after reading your response but they have no other debit cards besides the one I have. Small town & small bank chain. Concerning 401K's & tax deferred savings: I wish I had those type of benefits but I do not. I am a "part time" that works full time hours. I get paid more per hour this way but I lose out on PTO and benefits. I inquired awhile back about going full time & found that I would have to take a significant cut in pay to do it. I have battled with this and have even explored other possible job options. Problem is my employer pays well for the area & unless I want to commute 1 & 1/2 hours each way there is not much else better. I am currently campaigning to my employer that they could attract more seasoned nurses if they would offer part timers partial benefits. Ditto with a 401K. I have IRA's for myself and one for each of my kids. I am hopeful to increase my contributions next year. Concerning uber CC's: That is an excellant idea to call & see what Amex & Discover require for approvals so I know more what I need to do. Concerning CLI's on remaining accounts: I also called Juniper about my Futuretrust, they say they can't increase the CL because it is a new account. I plan to open my 529 with Futuretrust when I receive the card. Maybye after 6 months of careful usage they will increase it then. Concerning the Taxman: Income tax...omg...I have done mine online the last few years, I wonder if I can compare the different ways to file that way? Then go with the one that offers more back. Ugggh another issue to work on lol. Concerning CU's: I have been thinking about a CU very seriously. I think maybye I will open a savings account with one after my next check, (thanks Credit1!) savings is an area I have difficulty with, my current method is too accessible and easy to get into, as a result it doesn't build up like I want. So if I put that in a CU acct it will be harder to get to. They also have a MC/VISA that offers CURewards, this may be something to get to use along with my Futuretrust in the near future to earn some points until I can qualify for something better. Edit: Just found another, Penfed, this decision is gonna be tough! Concerning credit repair: I think I will see what I am up againest to get qualified for a prime card (Discover & Amex with the awesome cash back features) and measure the pros and cons then of what direction my credit repair may need to take. In other news: Ugggh...the Carecredit statement arrived today with the 3200 balance. It says I can remain interest free for 12 monthes as long as at least the mimimum payment is made. I am considering this: Make the most payments above the miminum I can for the next 12 months. Prior to 9/08 either: Apply for a loan with the CU at a lower rate or Transfer the balance to a low rate credit card to miminize the amount of interest that will have to be paid. I am hopeful to be able to have all but 800 - 1000 paid off before 9/08. It would be easier if I thought my car could hold out for an additional year but I am already stretching it to keep it till 5/08 which is when I have planned to get another one. Acck! I have wrote a novel! Thanks for reading! Tegleg
Teg, You're doing all the right things, just keep on the path. Soon you'll be in a position to pick and choose your credit options, beleive me! For example, this afternoon I just got an offer from my bank for a CC with a 6.99% fixed for life! They're making me an offer that I can't refuse! So, rest assured, it will come, just do the right things with what you have now. The only thing I comment on from your post, you need to look at, and plan for savings now. Adopt the "pay yourself first" mentality and start off trying to target saving for an emergency fund equal to 3-6 months of living expenses.
Congarats!!!!!! That is awesome! I would be all over that, no doubt! You deserve it so enjoy it! Fixed for life? Wowza! I'd faint if I got offered that! I went ahead and applied for the Penfed credit union. They have a Visa that offers 5% gas rewards & I think 1.25% cash rewards on other purchases. The interest is 10.9 although I don't plan to carry a balance unless it's a 0% BT for 12 monthes for the Carecredit balance. It pulls Equifax which is my best CRA. However I think I will wait a bit to apply. I don't want to raise flags up. I'll use the Futuretrust in the meantime. After all some rewards is better than none! I plan to use the savings as my Emergency fund. I currently have a Regular & Emergency savings but as I said have not been as disciplined with them as I should. Time to change that! I have a new plan....one that I am not as comfortable with as what I have been doing but I think it will work better. Put everything I can on credit and pay it off every month so I can take advantage of all the rewards I can. Just kinda goes againest my grain, I swear everytime I use credit now I cringe, I guess thats normal for peeps like me. I so appreciate your advice & you know I listen to it. Thanks for taking the time to evalluate my situation and give recommendations. It is much appreciated. Again Big GRATZ!!!! on the CC offer! Tegleg
A major component of being "wealthy" is using credit wisely....congrats as you are there! It's smart to make it work for you!
More Hurtles to jump I have been questing to do a couple of things... 1. Get a cash reward card. 2. Establish a CU relationship as I have plans to need to finance: a: the Carecredit balance when the 12 month interest free expires b: a car loan around next May. So this is what I have been doing and have hit alot of hurdles. I opened a savings with Penfed Credit Union. I'll make that my emergency fund since I have had problems saving that. This way it will be harder to get into. Plus I will be a member when next year rolls around. I app'd for thier cashback card and got veto'd for the following: BK Past delinquincies Pyramiding debt (I didn't know I built pyramids!) Recon'd and shot down again. I plan to open an IRA with Patelco next month. That way I'll have a relationship with them when next year rolls around. I app'd for thier cashback card and was shot down too. I called to recon and shot down again but I did learn some interesting things: They pulled Exp which is my worst report with a TXU CO I can't get rid of & two med ca's that are incorrect but won't be removed. Exp says my Chap 7 is "filed" instead of Discharged. So I have disputed my BK reporting with Exp. Since I have been hit with the inquiries I did more research then tried a few others. Here are the results: Sams discover: declined for discover but approved for 1200 in store credit Cap 1 cash No Hassle cash back: declined, not sure of the reasons yet Citi Cash Back: 30 day message, so prob declined. I am now on app hiatus for at least 6 months. I am working on a plan of what to reapply for in 6 monthes and what exactly in causing my mass denials. I've thought about another CU but none of the others cards are as good for cash back and I didn't want to blow another inquiry. I would appreciate a honest opinion of what is hurting my credit the most? The 2002 Chapter 7 no assest BK that is now over 5 yrs old? The Verizon Wireless acct from 2002 that is reporting as a CO, it was IIB and I have sent in a copy of my BK papers to thier BK dept a month ago but no updates yet. This is on all 3 CRA's. Exp carries 2 old med CA's that were supposed to be paid by insurance and not reporting correctly & a TXU CO from 2004 that won't die. But they are on Exp only and only Patelco pulled Exp to my knowledge. Not enough accts over 6 monthes old? Too many new accts? I started in 1/07 with a Orchard MC & Target 5/07 I got Carecredit & my mortgage In 7/07 I got HSBC Plat Visa, Old Navy, WalMart & Valero 9/07 got Sams instore credit, Futuretrust MC Too many inquiries? My income is decent so I don't think thats the reason. I have seen peeps with bk's get cash rewards cards so I am confused as to why I can't qualify for one. Any ideas as to what I can do? Sorry so long...I'm good at that. And as always I appreciate all advice! Tegleg
Teg, First you need to retreat and regroup, you got a bit ahead of yourself on this round of applications. The most likely reason you were denied on these apps was your overall credit score, and perhaps a debt ratio. Understand that you have a potential for seven inquiries on your credit reports now. These stay on for two years, and count against your FICO for one year. So, you may have to wait more than the six months you originally planned on. The overall negative history is hurting you, even with its age. The BK will be the most impacting, a CO is always an impact, and if the medical accounts are listed as COs, then these will hurt significantly as well. The debt utilizations also probably hurt, as you noted that you had run up $3K on the CareCredit. So, retreat and back to basics: You need to move to the next level of disputing and attacking the items on your credit report. If you've pulled your FICO scores recently, they will show the impact of negative items in descending order as they impact your score. Prioritize your goals and actions in line with the "negative items" descriptions in your FICO scores review. You are now at a point where you are looking to "draw the foul", as we say in basketball. You want to run these data furnishers through the legal reporting process, and wait for them to make a mistake. They often do, and then you have to leverage that error for a deletion of the account. Work on the BK and the CO from TXU first. Get a mindset where you will not give up until they're gone. Lastly, don't beat yourself up over these non approvals, just move on and learn from them. Remember you also have had a lot of recent credit which needs to age for a while. Let time do its thing, and use it to work on the negatives.
You are absolutley right. I did jump ahead & I should'nt have. I guess I just got frustrated and I should have just stepped back. Lessons learned & damage is already done. I checked my Equifax FICO and it's 668 at this time. My TU will prob be about the same and I imagine Exp is lower. I sent a letter & copy of BK to Verizon nearly a month ago asking them to update the acct as IIB. No response yet so I may have to call soon. The TXU CO refuses to budge. The OC states in correspondence that the balance is owed, I say I paid it & Exp refuses to reinvestigate it. I am wondering at this point if I should ask for a PFD just to get rid of it. The suppossed balance is 120.00. If it is just updated to paid will it make any diffrence on my scores? The two med ca's will be out of SOL in 5/08. I can't get the insurance company to send me proof that they paid it. I have tried the HIPPA approach and it was ignored. Exp refuses to reinvestigate it. I plan to send a SOL letter on these in 5/08. I think I can prob get them off then. My bk on Exp is reporting incorrectly as "filed" I have disputed that & they will prob just update it to "discharged". My current accounts will age and show good history. The Carecredit balance will slowly decrease. Will this increase my score? I am hesitant that I can get any of the baddies off now except for Verizon. The TXU & med CA's are only on Exp so I guess I could just avoid Exp pulls in the future. Should I plan to reapp in 6 monthes with Penfed only? It pulls Equifax & is the best card. Maybye with Verizon gone, and the accounts aged more maybye I'll have a better chance. The others I will just leave alone. Patelco pulls Exp, the others pull Equifax or TU. If I could land one good cash reward card I'll leave them all alone, forever! At least till my credit is much better. Or should I just leave a Cash reward card alone altogether? I have to get an auto loan around 5/08 - 6/08 ugggh wonder how much that will hurt? Good thing is that I don't have to have new credit. I'm ok financially, was just hoping to make money I normally spend on bills work for me a little. If I can't get a CU loan for the Carecredit balance when the 0% expires then I am sure my local bank would. The interest rate will bound to be lower than the Carecredit rate. As always thank you for the insight, it really helps to have an opinion other than my own. Tegleg
i have gotten behind on my credit cards even if was able to stop the interest and charges. I would not be able to paid all my bills. I have around $20,000 in credit card debt and i am ovrer 300,000 debt in morgatges. i am about 1000 behind each month. what should you do.
Without knowing some details of your full financial picture, the short answer is you have to find the $1000/month somewhere. The other drastic measures are: 1) consider selling your house (if you bought too much house). It's better to sell it on your terms, rather than the lender's. 2) Talk to your creditors, Explain your situation and ask for some relief. But do your homework, and look at all of your incomes and expenses. 3) Look at selling some of the stuff you may have purchased to create the CC debt. 4) Consider working a part time job, or doing something for extra income. 5) If none of the above work, then you will have to consider bankruptcy. THough you will be forced to do the financial review prior to filing.
Oh wow..... I will complain no more! Gilbert, I hope a solution works out for you. In the meantime I am headed to Tegleg's credit cave will I will impose a much needed credit exile on myself. I will only emerge to fight baddies! Lol, off to research more in my downtime =D Much luck wished your way. Tegleg
