Discussion in 'Credit Talk' started by Missy b, Sep 19, 2000.

  1. Missy b

    Missy b Guest

    I just, finally, ordered a copy of my credit report with transunion. I put it off because I was scared that I would have a heart attack from the frustration of it all.

    It wasn't AS bad as I thought. none of my accounts have been charged off, supposedly, I have 3 in collections and one past due (which i paid off!) I have 4 30 days, 3 60 days, and 1 90 days listed

    No credit card comapany will give me credit, which is FINE by me right now. The transunion only has 6 inquiries.

    I plan on ordering copies of all 3 credit reports and begin the process of disputing and settling, hopefully with a good attourney.

    I don't have enough money to pay off all the debt, otherwise, I would have a long time ago :(

    What should I do RIGHT NOW to build credit? I read an article that suggested getting a secured loan through a 500 dollar savings account at the bank. Can I do this? I have a savings and checking with pretty good history (i.e. I bounced 2 checks this year and they paid them) If I did this, would it be wise to THEN take that loan money, and go with a secured credit card? I would then have 2 revolving lines of credit that I would be able to PAY.

    I am trying to get my credit rating good by April 2001. My boyfriend has perfect credit, and mine is shabby. We currently live in a basement apartment of a friend's house, but would like to get our own apartment by then. I don't want to be a burden by forcing him to get the lease in his name. :(

    Actually, the saddest part is, we would probably get married next year if my credit wasn't so bad. :-(

    I don't want my negative credit affecting anybody else, because I was simply young and irresponsible.

    Anyway, advice would be appreciated!
  2. lextalioni

    lextalioni Guest

    Get a secured card from a reputable bank and pay on time. May try to get two. Stay away from Cross Country
  3. roni

    roni Well-Known Member

    I'm not sure if you read my post today, but I received a unsecured credit card today from my bank. I bank at Chase. I opened a checking and savings in 2/99. I took out a $1,000 secured loan using my savings account as collateral in 4/00. I repaid it in 3 payments. I kept about $7k in my accounts for 6 months. I received the card today with a $2,000 limit. I also received a capital one unsecured this month for $2,000. I started with a secured account with them (cap1) in 11/99. So it has worked both ways for me. I personally think that your primary bank is the best way to go with a secured card. At least when you prove yourself to them they can issue you a prime unsecured card. It was alot easier than I thought. I have a long way before I start getting platinum offers, but tonight I am satisfied.
  4. missy b

    missy b Guest

    thank you both for your help; I am probably going to start small, and take out a loan from my bank (suntrust) by mid-november. I'm looking at orchard bank for a secure credit card. Has anybody ever been denied for a secure card?
  5. Michael

    Michael Guest

    I hate to be the bearer of bad news but with your tremendious amount of late accounts you may find it hard to even get a secured loan.

    Remember something you may think that putting $500.00 in an account will guarantee the bank repayment.

    But a banker is going to also consider 2 things. First off how much trouble is this account going to be, and chasing you for payments on a $500.00 or $1,000.00 account isn't worth his time. Second even though the principle is secured the interest payments are not.

    You are probably going to have to secure it with a bit more than the principal, and perhaps come to some creative way to guarantee the payments for the interest each month.

    I would sugest you do it with your boyfriend as a co-signer on the account, if he will do it for you. This way you could get it secured only with the principal.
  6. RichGuy

    RichGuy Guest

    Interest payments (and annual fees, late fees, overlimit fees, etc.) are unsecured only if the card is maxed out or close to it. Otherwise, the lender has recourse to the deposit for any amounts that are owed, for whatever reason.
  7. Michael

    Michael Guest

    to rich guy.

    she was asking about a secured loan,

    that's not going to have an annual fee, but I stand by my post that a banker will look at a applicant with damaged credit and ponder if the work involved is worth the few bucks the bank will make on the loan!

    I hope she can get something, that's why I told her what to expect and hopefully she can work around this possible problem!
  8. roni

    roni Well-Known Member

    RE: to rich guy.

    When I went into Chase Manhattan Bank in April to get the secured loan, the banker did not look at my credit report. A few days later, I noticed a inquiry on my credit file. My credit score had to be below 600 back then. I had many, many recent lates due to my student loans problems. He approved the loan solely on the savings deposit as collateral. I had kept about 7K in savings for a few months to establish history. He was also impressed with my career and income. But I dont think that made too much of a difference in him approving my loan. They froze the $1,000 on the spot and set up automatic repayments out of my account. It was so easy I was really shocked. I think, it depends on your lending institution. It is worth a try and the inquiry.
  9. Michael

    Michael Guest

    RE: to rich guy.

    Totally different situation. You had derogitory due to past student loans and now had a good job which means some time had passed (as I stated she will need some time to pass possibly). You also said you had 7K in the bank, showing present financial stability.

    This girl has probably not had that much time passed since these problems, and who knows how her financial stability is, I assume about the same as when she got into this mess.

    I again stand by my warning and this goes for everyone. Bankers will look at all loans as potential problems, and will only approve ones that seem a low risk for both the repayment and the MAINTANACE of the loan.

    Put your self behind the desk would you loan joe sixpack $500.00 if you see in the last year 7 late payments 60 days or more? Even if he secures it do you want to write the letter to him (or Call him) every month to chase a $6.00 interest payment??

    Also if the loan goes bad even with $18.00 of interest owing you would look bad as it's your loan portfolio!
  10. roni

    roni Well-Known Member

    Ok, I agree

    Ok, I see your point Michael. I was just trying to add some optimium to the post. I was very scared before entering the bank. But everything worked out despite my student loan problems. I agree with you. If a person is in financial problems at present, a loan is the last thing they should obtain. The collateral used should be expendable cash, not cash that should be used to catch up on debts. I assumed Missy b was over her hump and was trying to bounce back. I would also like to add, a loan of less than $1,000 is pretty much pointless. And if you dont have $1,000 extra dollars laying around, dont try this quick credit builder yet. The temptation is too great to spend the loan money which you should be using to repay the collateral loan.
  11. Michael

    Michael Guest

    RE: Ok, I agree

    I agree about the loan amount, however if I was to do this loan I would set it up that the funds are placed in a one yr.
    Term Deposit, interest only is paid on the loan each month and at maturity the term deposit is cashed out against the loan.

    This way you only have to wory about the interest payment each month. Which I also would set up to be debited each month from a savings or chequing account, so not to miss any payments.
  12. RichGuy

    RichGuy Guest

    Secured Card

    Her words were:

    "Has anybody ever been denied for a secured card?"

    Glad I could be of assistance.
  13. roni

    roni Well-Known Member

    not exactly

    In her first post she asked about a secured loan and using the money to obtain secured credit cards. That is what I was responding too. You scared me. I almost thought I forgot how to read. As for the secured credit card part missy b, yes you can be turned down for a secured credit card. Especially if you are doing all of this at the same bank. However, the banker who approved my secured loan, offered a secured credit card instead. I told him I had enough credit cards. He left me with the impression that I could have none either to build credit. Keep in mind with checking my credit report initially. One more point Missy b, I was concerned about what to tell the bank as my reason for wanting the loan. When he asked, I decided to be honest and say that I was interested in building my credit and relationship with the bank. He smiled. I think being honest is a good idea. Just remember with all this credit building keep the inquiries low. Good Luck!
  14. Michael

    Michael Guest

    RE: not exactly

    Great advise Roni!

    Always be direct & honest with the banker.
    Generally they will work to help you meet your goals, if they understand what your goal is!
  15. Sorin

    Sorin Well-Known Member

    RE: not exactly

    Yep, I can confirm that.
    I did the same thing with my loan.
    $3000 personal loan with a deposit of $3000.
    And when I told my banker what i want it for
    she agreed with me. She was very helpfull in
    setting everything up.
    I think every banker would agree to such
    a deal, actually it's a win win situation,
    they get the interest, I get the good credit.
    She actually suggested that I keep the loan
    for at least 6 months, looks better than
    repaying it immediately.
    And after closing the deal she mentioned that
    she will look forward to offer me a mortgage
    when I need a house... probably they like
    to see people that take care of their credit
    and plan in advance...

    So if you have the cash available, you can
    put it to some good use in building your

    Oh, and by the way, if you put your deposit
    in a CD you won't have to pay that much for
    the interest, I got the loan with 8.5% APR
    and the deposit has a 6% APY. So basically
    I'm paying 2.5%...

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