Building credit is an m f'er

[Kaneman]

I hate this credit scam stuff man. Been trying for 2 years to get my wife some credit, and despite making good money its just nearly impossible. When we first got together she was moving from her old apartment. She's got one $300 blemish from getting screwed on her old apartments, so initially I figured no big deal.

I've since secured two credit cards for her, which she uses regularly and pays off every month. Never been late, doesn't carry a high balance...and I still can't get her out of the low 600's. WTF? What else do you have to do?

We're suddenly in need of a new vehicle, no problem, plenty of money to put down, make the payments, and all that. But of course we can't get a car loan. So we can go to a tote the note dealer, put a big down payment down, get raped on the price and financing....but it doesn't report to her credit so we're in the same boat. On top of that the cars they sell are beat to shit.

I'm to the point where I'm going to offer a family member something like $5k cash to co-sign a loan for her....which is what I had to initially do to establish mine way back when too. Which brings up another good point, don't ever get your identity stolen.

[Dave]

Buying a house took me from zero to around 700 in about a year

[Kaneman]

Originally Posted by Dave

Buying a house took me from zero to around 700 in about a year

So how do you buy a house with no credit?

[CrazyKell]

House is "easier" to get because it's a secured loan whereas the car is not.

I'm in the same situation now. Was out of the country for 2 years and it basically effed my credit royally.

[shmike]

Originally Posted by CrazyKell

House is "easier" to get because it's a secured loan whereas the car is not.

I'm in the same situation now. Was out of the country for 2 years and it basically effed my credit royally.

A car loan is secured by the car, making it a secured loan.

An unsecured loan is where the bank has nothing to "take back" if you default.

Think credit cards, student loans, signature loans, etc.

Kaneman,

My best advice is to work your way up.

If you have an extra $5k, instead of paying a family member to co-sign, deposit it in a bank and then take a secured loan against it.

After establishing a history of installment payments her score should jump more than it would with a bunch of revolving accounts.

[Kaneman]

Originally Posted by shmike

A car loan is secured by the car, making it a secured loan.

An unsecured loan is where the bank has nothing to "take back" if you default.

Think credit cards, student loans, signature loans, etc.

Kaneman,

My best advice is to work your way up.

If you have an extra $5k, instead of paying a family member to co-sign, deposit it in a bank and then take a secured loan against it.

After establishing a history of installment payments her score should jump more than it would with a bunch of revolving accounts.

Need a car now though bro. I'm taking care of my step-son and need something much more reliable than I have now. Mine broke down the other day in 105 degree weather, and he's in the back wearing a body brace...so yea, an actual, reliable automobile is the main priority.

I don't care about having to pay more, but like I said with the tote the note places...their vehicles are shit. Two of the Tahoes I looked at yesterday didn't even have radios...just wires.

[shmike]

Originally Posted by Kaneman

Need a car now though bro. I'm taking care of my step-son and need something much more reliable than I have now. Mine broke down the other day in 105 degree weather, and he's in the back wearing a body brace...so yea, an actual, reliable automobile is the main priority.

I don't care about having to pay more, but like I said with the tote the note places...their vehicles are shit. Two of the Tahoes I looked at yesterday didn't even have radios...just wires.

I hear ya.

$5k is a lot of money. Maybe you can deposit that into an escrow account and give the co-signer a $500 thank you and any interest the account accrues.

Hell, for $5k I might even co-sign for you.

[derf]

install radios then!

Seriously, dont pay your credit cards off, leave a small balance on the cards, like $50-100 then pay off every month after that leaving the original $50-100 on it. Also what is your debt risk? if you have 10k worth of zero balance credit cards that is bad, because then you are a risk of charging 10k worth of debt overnight

[shmike]

How many kids to do you have in total (yours, mine and ours)?

It won't help build credit but you should be able to buy a decent reliable car for cash with $5k.

Toyota Corolla, Camry, Honda Civic, Accord, Ford Exploder, etc

[Kaneman]

Originally Posted by derf

install radios then!

Seriously, dont pay your credit cards off, leave a small balance on the cards, like $50-100 then pay off every month after that leaving the original $50-100 on it. Also what is your debt risk? if you have 10k worth of zero balance credit cards that is bad, because then you are a risk of charging 10k worth of debt overnight

Not at all man, I think her total limit is like $1,500, nothing big at all. We've tried leaving small balances on there as well. The only thing we haven't done is pay the minimum payment, or be late.

I think its because she's Mexican.

Originally Posted by shmike

How many kids to do you have in total (yours, mine and ours)?

It won't help build credit but you should be able to buy a decent reliable car for cash with $5k.

Toyota Corolla, Camry, Honda Civic, Accord, Ford Exploder, etc

2 Kids and three big ass dogs won't fit in a Corolla. And I'm reluctant to put money toward anything refereed to as the "Exploder." No man, if I'm putting $5k into something I'm getting what I want.