Improving Credit

[TheeGoatPig]

Around a decade ago I had two credit cards. One was just a gass card, the other was a Visa. The gas card got canceled because I paid them late too many times. The Visa I canceled because the limit on it never went up from $200 a month.

I also had a car loan that I paid off in full, a little bit ahead of schedule. However, there was a smudge on my record here because I made some of those payments very late (I was dead broke a few times while paying off that car).

There were also student loans in my name, but my parents paid them off for me (that was so sweet of them ).

Now, I was just trying to buy a car, but I can't get a loan. I got declined from GMAC because they can't verify my employment over a cellphone (my boss only uses a cellphone ), and my own bank won't approve me because of the smudge on my old car loan, and I have no recent credit history. I can't get a cosigner because I don't have any close friends that are willing, and my parents have enough loan obligations as it is. I am probably going to have to call the dealer tomorrow and tell him to sell the car to someone else.

I still want a new car though. I need to improve my credit to do this though. So, I need to sign up for a credit card, and actually get it approved an in my pocket. Right? Is it better to pay everything off right away, or only pay the minimum a few times to show that I can be a source of more money for lenders?

What is the best use for improving my credit rating.

 

[The_Fool]

When my 19 YO son decided he had to have that 100 YO house, he was rudely awakened by the fact that he had no credit. Some of the areas that they said would have made the process easier would be to have a cell phone bill and those bills associated with having an apartment such as history of rent and utilities. A credit card can hurt or help.

Two things to consider. One is proof of employment. Would a letter on letterhead from your employer suffice? Also, you can put stuff on your credit report as well. If there is extenuation circumstances, add a letter to your file listing those circumstances.

 

[bflagsst]

Defaulting on anything a couple times for any period of time will eat your credit soul up. Obviously we can't judge how bad off your credit is, even if you were to tell us more info. Credit is a mystery once you start sliding. You should have pay stubs to show when going for a loan as proof that you do make regular money.

If you have a current credit card you shouldn't just get another one to show that you can access credit this month. If you don't have a credit card it will take a few years of using it regularly for it to matter on your credit score. Monthly bill stubs also help in showing you make regular payments. You rent an apartment? You should get a receipt for each month, keep that kind of thing around for when it's time to get a loan. If you pay taxes each year that's also something good to have on hand, to show your yearly income. Loan officers don't just go by your credit score, you can make a solid argument if you can back it up with the sort of proof of income and payments I mention above.

I put almost 50% cash down on my first house, they wouldn't give me any decent size loan. I was a soldier out of school, I never made payments, had loans, or owned anything until I got out.

 

[Katyusha]

What about your W-2? That should suffice for proof of employment. As far as credit history goes, black marks stay there for 3-10 years depending on what it is. A credit card could help, but it will take time. You can't improve your credit history overnight. If you're going to use a credit card for this purpose, the best thing you can do with it, I think, make more than the minimum payment, but don't quite pay it off each month. What lenders want to see is that you can carry a balance and make your payments on time every month.

 

[YoursSINSerely]

That car dealer wants to sell you that car. He will get you a loan. You might not like the interest rate, but you will have your car. If that dealer won't work with you, go to another one. You have no obligation to that salesperson. I would also suggest that you have automatic deductions from your checking account. That way, you will never be late and you will be very conscience of having enough money in there on that date. It works for me! Good luck. Vroom, vroom!

 

[TheeGoatPig]

When my 19 YO son decided he had to have that 100 YO house, he was rudely awakened by the fact that he had no credit. Some of the areas that they said would have made the process easier would be to have a cell phone bill and those bills associated with having an apartment such as history of rent and utilities. A credit card can hurt or help.

Two things to consider. One is proof of employment. Would a letter on letterhead from your employer suffice? Also, you can put stuff on your credit report as well. If there is extenuation circumstances, add a letter to your file listing those circumstances.

I spoke directly to the lender. He wants to be able to call my boss at a business location, not a cell phone. He will not accept any substitutes.

Defaulting on anything a couple times for any period of time will eat your credit soul up. Obviously we can't judge how bad off your credit is, even if you were to tell us more info. Credit is a mystery once you start sliding. You should have pay stubs to show when going for a loan as proof that you do make regular money.

If you have a current credit card you shouldn't just get another one to show that you can access credit this month. If you don't have a credit card it will take a few years of using it regularly for it to matter on your credit score. Monthly bill stubs also help in showing you make regular payments. You rent an apartment? You should get a receipt for each month, keep that kind of thing around for when it's time to get a loan. If you pay taxes each year that's also something good to have on hand, to show your yearly income. Loan officers don't just go by your credit score, you can make a solid argument if you can back it up with the sort of proof of income and payments I mention above.

I put almost 50% cash down on my first house, they wouldn't give me any decent size loan. I was a soldier out of school, I never made payments, had loans, or owned anything until I got out.

It is one smudge from almost eight years ago.

I live at home. I don't pay any bills by my car insurance.

What about your W-2? That should suffice for proof of employment. As far as credit history goes, black marks stay there for 3-10 years depending on what it is. A credit card could help, but it will take time. You can't improve your credit history overnight. If you're going to use a credit card for this purpose, the best thing you can do with it, I think, make more than the minimum payment, but don't quite pay it off each month. What lenders want to see is that you can carry a balance and make your payments on time every month.

I sent in payment stubs, my most recent tax forms, as much information as I have that I could give them. They wouldn't accept that.

That car dealer wants to sell you that car. He will get you a loan. You might not like the interest rate, but you will have your car. If that dealer won't work with you, go to another one. You have no obligation to that salesperson. I would also suggest that you have automatic deductions from your checking account. That way, you will never be late and you will be very conscience of having enough money in there on that date. It works for me! Good luck. Vroom, vroom!

The loan officer from the dealership told me to try my own bank because he couldn't get me one without my boss being able to be called at a business location instead of a cell phone.

__


I am not trying to get this car at this time anymore. I know that fixing my credit doesn't' happen overnight. I am trying to get my credit up for next year so that I can order a new car next year and try this all over again.

 

[YoursSINSerely]

Go to a different dealer. And, this is the big time of year to be buying a car. Its President's Day. Don't be silly. Get the car. A bigger down payment will help, too. Work a better deal for your trade in.

 

[TheeGoatPig]

Go to a different dealer. And, this is the big time of year to be buying a car. Its President's Day. Don't be silly. Get the car. A bigger down payment will help, too. Work a better deal for your trade in.

It's a Camaro. Other dealers in the area are selling them for over retail price. I was lucky to be getting this one at retail price.

And I can't swing a bigger down payment for another couple of months. I was pushing the limit on that part of the deal already

 

[YoursSINSerely]

It's a Camaro. Other dealers in the area are selling them for over retail price. I was lucky to be getting this one at retail price.

And I can't swing a bigger down payment for another couple of months. I was pushing the limit on that part of the deal already

I forgot. New Jersey doesn't do any haggling over car prices. I had a friend move there to sell cars and he called his mother and said, "Ma, they just pay the sticker price, no questions asked." He was making money hand over fist. Connecticut and New York are right over the border. Check em out. You can still use your local guys to service. Take a ride Presidents weekend and see what you can find out.

 

[TheeGoatPig]

I forgot. New Jersey doesn't do any haggling over car prices. I had a friend move there to sell cars and he called his mother and said, "Ma, they just pay the sticker price, no questions asked." He was making money hand over fist. Connecticut and New York are right over the border. Check em out. You can still use your local guys to service. Take a ride Presidents weekend and see what you can find out.

I'm dealing with New York

 

[JAMESBJOHNSON]

THEE

Let me share something said to me by a banker friend many years ago, and its true.

She said banks make their money loaning money, and they have to pay interest on the money they loan or dont loan....the meter keeps running for them. The worse your credit is the more money the bank makes.

When a bank wont loan you money it means one of 2 things: either the loan officer is burned from too many bad loans and is on probation (which scares her) or the bank is loaning all its money someplace else...like the government.

My guess is the bank gets its money from the Feds for 0% and loans it back to them for 3.9% . For now they have it made in the shade and dont need you.

 

[YoursSINSerely]

I'm dealing with New York

Then, go to Connecticut. Mama Rell will be glad to have your sales tax money.

 

[virtualmachine]

I've heard of places charging sticker. Now I know where they are. Around here we start at "invoice" and beat the tar out of them from there.

You have a couple things working against you to say the least. First off, believe it or not, is the car. Guy buying sports car for full price with crappy credit... NEXT.

The cell phone thing is BS in itself. But, it does raise a red flag if there isn't a "real" company behind him. I get the whole cell phone thing, but from their standpoint it doesn't fly. I have the same problem with some state filings I have to do. They don't accept cell phones as valid contact numbers unless that number is listed in the phone book as the business. Yes, you have to send in a copy of the page in the phone book. Honestly, it's just too easy to fudge everything otherwise. I could create a phony shell company in seconds and they aren't playing stupid about that anymore.

Banks want to see proof of ability to repay first and foremost. Your history is part of it, but they want to first make sure you have a stable income to pay them back with. All your history just complicates matters.

I assume you don't have a house? There are obvious openings there.

The bottom line is that you probably can't get this car. You might not be able to get any car except something you can pay cash for or you are willing to pay some outrageous interest rate on. I saw one poor girl come through my friend's shop and she was paying $299/month for 5 years on a $2500 car. When we pointed it out, she started crying. Talk about feeling like a heel. She was trying to prove to her parents that she could take care of herself. Luckily, she talked to them and they immediately paid off the car and she paid them $299/mo for 1 year in return. We got cookies out of the deal.

But, I've gotten off track.

Me thinks you don't really need this car. And in a way, you might not quite deserve it yet either. Not trying to foul that new car smell, but reality sometimes has to win.

 

[colddiesel]

I still want a new car though. I need to improve my credit to do this though.

You want it sure, but do you need it, I wonder. Maybe you should try working a little harder and saving a little harder and getting rid of your 'entitlement complex'.

I've noticed from your past posts that you like poker and gambling, In the US you have to travel to particular places to do that. My guess is that the Credit agencies have noticed that and have tagged you as a poor money manager. Buying a Camarro instead of a Corolla also marks you out as more likely to default.

Sorry if that sounds brutal Thee but maybe you are a poor credit risk and the (non) lenders are doing you a favour. Becoming a good credit risk ultimately depends on your own conduct rather than fiddling the rules.

 

[Zeb_Carter]

Smudges on your credit history can only linger for seven years from the date of the obligation. Not whatever date they choose. After seven years they cannot list it at any of the big three CB's so go to annualcreditreport.com and check what's on your report (it's free once a year).

Proof of employment can be accomplished with a check stub, w2 or letter from the company. Also there must be someone in the office that handles things like that, it doesn't have to be your boss, unless he's a one man show.

So check your credit report and anything that is older than seven years dispute it with that agency(there will be a link on your report for disputes).

Once you have cleaned up your credit reports then go hunting for that new car.

Also any debt you may still have hanging around, in most states they can only come after you for up to five to seven years. In some states its ten, some three. There is a website that you can look up the length of the statutes for things like that but it's on my computer that's in storage.

 

[jomar]

I smell bullshit. They in no way need to call your boss to verify employment - a letter will do, as someone said, if they even need that. But hell, give them your your parents number and tell them to give put on a dong and pony show.

You tell them you want your payments to be $150 a month and you'll drive a way with a car. You'll pay 27% for seven years, but hey, you got a new Camero!

 

[Katyusha]

Smudges on your credit history can only linger for seven years from the date of the obligation. Not whatever date they choose. After seven years they cannot list it at any of the big three CB's so go to annualcreditreport.com and check what's on your report (it's free once a year).

Other items will remain for about seven years from the date of the last activity. The seven year period starts all over again whenever you generate any activity on a non-delinquent account, including making a payment.

http://www.smartcreditinfo.com/howlong.html

Also any debt you may still have hanging around, in most states they can only come after you for up to five to seven years. In some states its ten, some three. There is a website that you can look up the length of the statutes for things like that but it's on my computer that's in storage.

http://www.fair-debt-collection.com/SOL-by-State.html

This is what it says for New Jersey:

Conversion of an instrument for money: 3 years, (N.J.S.A.12A: 3-118(g)).

Sale of goods under the UCC: 4-years, (N.J.S.A. 12A; 2-725).

Real or personal property damage, recovery and contracts not under seal: 6 years (N.J.S.A. 2A: 14-1).

Demand Notes when no demand is made: 10 years. If demand made: 6 years from date of demand, (12A: 3-118(b)).

Obligations under seal for the payment of money only, except bank, merchant, finance company or other financial institution: 16 years, (N.J.S.A. 2A: 14-4) actions for unpaid rent if lease agreement is under seal, (N.J.S.A. 2A: 14-4).

Real estate: 20 years, (N.J.S.A. 2A: 14-7); Judgments: 20 years, renewable, (2A: 14-5); Foreign judgments: 20 years (unless period in originating jurisdiction is less), (2A: 14- 5).

Unaccepted drafts: 3 years from date of dishonor or 10 years from date of draft, whichever expires first, (12A: 3- 118(c)).

 

[TheeGoatPig]

I am not a high risk. My credit puts me at medium risk.

I don't owe anyone anything. I have zero debts.

I don't feel entitled to own the car.

But my old car is getting to the point where repairs are costing more than a new car will.

I can afford to pay back the loan. The payments on my last car, for a five year loan, were $418.75 a month. I had some trouble with payments the first two years because I was dead broke. But after a couple of raises it got to the point where it was really easy to pay off early that last year.

Now, the 5 year loan that they wanted to give me would be around $460 a month. I can easily afford that since I make quite a bit more than I did when I finished paying off the last car. Even when I calculate my increased car insurance, I can still afford the loan. And I will be due a raise or two over the five years that I am paying it off, which will make payments easier.

Plus, shopping around for a new dealer doesn't make any sense to me. The car is already ordered and sitting at a dealership ten miles from my house, waiting for me. Going to another state and ordering one a little cheaper, even by a couple grand, isn't going to reduce the price enough to make a loan easier to get.

The dream is dead in the water. I just want to improve my credit at this point, so that I can try again, on my own in a year or two.

 

[bflagsst]

A new camaro is what 25-30k? Not to be a dick, but if you still live at home maybe you want to consider getting your own place and maybe a significantly cheaper new car. It doesn't make much sense, but loan officers would prefer seeing you make 500-800 dollar a month payments for housing before they give you a few hundred dollar a month loan for a car.

 

[OnlyByMoonlight]

My economics teacher once told us to get a small loan from the bank that you know you can pay off (even if you don't really need it), in order to help your rating. Or my mom has a friend that only has one credit card and she puts every purchase on it, but writes them down in her bank book, then at the end of the month she writes one big check and pays off the card.

If you get a card, may I suggest the Capitol One rewards card with Continental. The interest is kinda high, but they give you miles, so after a year or two you can go on a vacation (I know I have one, and I used my points to by my latest ticket to Paris (and I don't mean Paris Texas)).

Good luck

 

[cloudy]

Another option is to buy a CD, and then take out a loan using that CD as your collateral. A bank shouldn't be hesitant to do that, since they already have the money to pay the loan off if you fail to make the payments.

In effect, you're borrowing money from yourself, but it will affect your credit rating.

I sorta have to agree with bflagsst: it would make so much more sense to get your own place than it would to buy a brand new car. Bonus: I bet you'd find more women wanting to go out with you if you weren't living at home.

 

[OnlyByMoonlight]

I sorta have to agree with bflagsst: it would make so much more sense to get your own place than it would to buy a brand new car. Bonus: I bet you'd find more women wanting to go out with you if you weren't living at home.

I agree very much.

 

[TheeGoatPig]

A new camaro is what 25-30k? Not to be a dick, but if you still live at home maybe you want to consider getting your own place and maybe a significantly cheaper new car. It doesn't make much sense, but loan officers would prefer seeing you make 500-800 dollar a month payments for housing before they give you a few hundred dollar a month loan for a car.

Another option is to buy a CD, and then take out a loan using that CD as your collateral. A bank shouldn't be hesitant to do that, since they already have the money to pay the loan off if you fail to make the payments.

In effect, you're borrowing money from yourself, but it will affect your credit rating.

I sorta have to agree with bflagsst: it would make so much more sense to get your own place than it would to buy a brand new car. Bonus: I bet you'd find more women wanting to go out with you if you weren't living at home.

Here is the problem with moving out. This area is so expensive, if I move out I can't afford any car, or gas, or martial arts lessons, or the gym, or any kind of entertainment, or food...

 

[Credito22]

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