Comments | liltrouble222: Loan and Credit Help

liltrouble222

Loan and Credit Help

Mar 31, 2005 19:55

Hey does anyone know the best way to build or repair credit?

Joe had some issues with his credit when he was 20, now 7 years ago. He has been slowly trying to repair it and just recently got two small credit cards. But was denied for a used car loan from the credit union.

Thoughts? Help? Advise?

Comments 10

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liltrouble222 April 1 2005, 15:00:38 UTC

Thanks!

Bad Credit jonayla April 1 2005, 01:39:34 UTC

I don't think there's any quick fix. All I've read says that time, and timely payments/repayments, are the only way to repair credit.

Side note: are you sure it's wise to have something like a car loan for him in your name? You don't want his problems to become your problems too...

Re: Bad Credit liltrouble222 April 1 2005, 14:56:51 UTC

oh i dont want take out a loan for him. i am just trying to figure out what the best way for him to build HIS credit.

thanks :)

never2thin April 1 2005, 01:42:25 UTC

1. use credit cards to make everyday purchases ie-gas, groceries...pay the bill in full each month

2. if you pay off credit cards, do not close the account, just stop using the card this is why: say you have 5 credit cards with a $2,000 credit limit that equals $10,000 in credit. if you pay off 3 of those cards and close them but the other 2 are still maxed out, that means you still have a maxed out credit limit at $4,000. if you still have those 2 cards maxed out totaling $4,000, you still actually have $6,000 of available credit on the other cards you are no longer using...does that make sense?

3. read suze orman books...she can be soo annoying but she knows what she's talking about

liltrouble222 April 1 2005, 15:00:28 UTC

Thanks i will check into the books. He has started to use the credit cards and such.

I hate that!! aliwonder April 1 2005, 07:58:28 UTC

I really hate things like that ( ... )

Re: I hate that!! liltrouble222 April 1 2005, 14:59:38 UTC

yeah the whole system is just lame.

aboutpru April 1 2005, 13:28:31 UTC

The only way to rebuild a credit rating is to use credit responsibly. This doesn't mean getting himself deeply in debt - that will only make things worse. It means charging a small amount on credit cards, and paying it off in full every month before the due dates. Any kind of credit will do - even having utilities or cell phones in his name that he pays before the due date will help rebuild the credit rating.

If there are old outstanding bills, if they are paid now they will help show a trend to try to repair credit. But there is no easy way out - I don't know what the law is there, but here any credit info about unpaid bills sent for collection stays in your history for seven years. But if he can build a recent record of responsible use of credit, some lenders will evaluate the trend and be more lenient despite the older bad use of credit.

He should also get a copy of his credit report from whoever your credit agency is, so that he can evaluate what's on there and make sure it is all accurate.

liltrouble222 April 1 2005, 14:59:22 UTC

Thanks. And he has been slowly building it back up. So that is good. And he is not trying to take out a loan for a new car or anything...just 3000. he has 3000 saved and the jeep he wants is 6000. he is sooo responsible with his money, just was dumb when he was younger.

we just got his credit report and will look into paying stuff off :)

thanks.