Rebuilding credit, need some help

[Ghettodsm91]

hi im rebuilding my credit, im 24 yrs old, i only owe about 1500. Im wondering if anyone knows of any good credit cards to help rebuilt credit that i can get accepted for. The only really bad thing is a car that was repo, the loan was with a credit union though. If anyone could help on this matter that would be great. I currently have no car payment,or any credit cards. I pay rent and my cell phone thats about it .

 

[timm98gst]

the worst thing you could do would be to get credit cards - get a checking account with a debit card and use it for absolutely everything - the more good transactions you do, the better your credit will get - takes time though

 

[americanjebus]

yea like he said , stay away from credit cards, infact if you want to build credit ditch them for a while and stop spending money you dont have,

asside from that yea debit, pay off you 1500 as soon as you can and dont miss a payment.

then save up 1k in cash and put it in savings and DONT TOUCH IT. go to your bank and get approved for a 1k loan, you know that 1k that you already have, take out that loan make the minimum payment on it a couple of times so they can say (hey this douche makes minimum payments we can make some money off of him lets give him a little points on his score) once you have made a few minimum payments pay it off. then find a different bank, repeat the process, and you will have some reputation points coming from different banks. yes you lose some money to interest but hell you want you credit back,

and most important of all if you want good credit dont be a dumb$hit when it comes to money dicipline yourself. asside from that take your time.

 

[98spydert]

Actually, there are credit card companies who report your status every month instead of every quarter just so you can't get feedback faster. Unfortunately, they like to charge ridiculous yearly fees and activation fees. You'll probably have to search for a while before finding a decent company. The easiest thing you can do is take out a personal loan for like $1500 using your vehicle as collateral, make the payments on time for 1-2 quarters, then pay it off. That will give you a bump in your score.

 

[dirk3]

A relativly quick and safe way is to get a secured credit card. Basicly you put up the money and they extend you credit against your deposit. Say 300.00. As time passes and you prove yourself credit worthy they'll increase your credit and not ask for an additional deposit. Eventually you'll get other offers from legit creditors and you can move on from there.

All in all your looking at one plus years to get a solid foundation again.. Good luck, start slow and before you know it you'll get more offers than you want. Just don't get over extended and you'll be just fine...

 

[DGajre777]

Providian reports their card status to at least 1 credit bureau every month. They also give you your credit score free on their website. I keep this card just so I could keep my free credit score every month (too lazy to pay $10 every month!). But to build up your score, you can do everything that people said in here, getting a secured credit card, paying off your cards, etc BUT getting creditcards is one of the SLOWEST ways to build credit. Having a checking account with a debit card is even slower than building credits with a credit card cause banks don't always report your activity to credit bureaus.

I've had 8 credit cards in the last 6 years, and I cancelled 4 of them last year after I paid them off, but my credit score jumped when I traded in my old car and the dealership paid off the car in full. Pay off that $1500 card, in one payment if you can. If you do, they'll probably extend your credit. Then save up $500 for groceries every month, and use the creditcard for groceries, BUT pay it before the billing cycle, so you don't incure any finance charges.

 

[2fast2furious]

Yes, a couple unsecured cards will help you boost your limit. Don't pay more then you can afford and any installment loans should be paid off as soon as you can.

 

[yunior]

the worst thing you could do would be to get credit cards - get a checking account with a debit card and use it for absolutely everything - the more good transactions you do, the better your credit will get - takes time though

thats not true I ve had my cherking visa card or what ever you want to call it for 4 years and buying everithing credit hwere they take it from my account and it has not build any credit at all I actually had to take out a visa credit card from my credit union to start building my credit

 

[timmAy]

http://www.club3g.com/forum/showthread.php?t=19784

Lots of good advice and info there.

 

[timmAy]

whoops. double post.

 

[BISHILVR]

Go with the secured credit card thing, providian works well but it will take 6 months plus to work enough to get other legit offers coming in, and it will cost some money for their services.

 

[AW4G63]

thats not true I ve had my cherking visa card or what ever you want to call it for 4 years and buying everithing credit hwere they take it from my account and it has not build any credit at all I actually had to take out a visa credit card from my credit union to start building my credit

I'm with you. A check card is directly dialing your account for every transaction. There is no credit involved.



Here is what I did. I'm 23, buying a house and had light debt such as yourself.

1. Clean debts. Pay off anything and everything you owe. You can even try to bargin with collection companies if you have any chasing you. I owed $800 from a cellphone from when I was 18, well I told them I'd give them $300 right now over the phone if they call it even. They agreed.

2. Find a light credit card and BE CAREFUL

3. Stay away from titty bars.

 

[boostedinaz]

wow alot of wrong and bad info. I work at a credit union and the best thing you can do is get a secured loan. Everytime you apply for a CreditCard or any other loan it will drop your score. If you already have bad credit you are more likely to get denied, and when denied you will most likely just go the next card and apply again. All of this can hurt more than help. If you go in and ask for a secured CreditCard they wont even pull your credit. All you do is put an amount in a saving account, say 500.00, and they give you a card with a limit of 500.00. If you do well on it most places will either up your limit a bit or let you have your money back after a year or so.

As far as banks looking at things and deciding to give you more points or no that doesn't happen. All we do is report if you have paid on time, or late and of late was it past 30, 60, or 90 or more. Then the credit bureau calculates your score.

Paying things off quickly helps but if you are looking to really drive up your score just keep paying on time. Credit is just a reflection of your payment history, so if you pay off a little 500.00 dollar loan in a few months you haven't accomplished much. However, if you make 12 or 14 on time payments it looks like you are being responsible with your payments and that should help your score move up.

 

[Ghettodsm91]

WOW!!! im screwed i just did a credit check, HOLY CRAP!! Firstly i have several charge offs from companys varying from a car loan to 2 different credit unions(YAY GO ME).I checked all of this before hand, i thought that charged off meant exactly that charged off . I currently owe right around 15k!!!!! Im wondering if i should just file bankruptcy, bad credit for 2 years but i start clean right? Thank god i dont plan on buying a house anytime soon i guess?

 

[timm98gst]

2 years? who told you that? try 7 to 10

 

[boostedinaz]

WOW!!! im screwed i just did a credit check, HOLY CRAP!! Firstly i have several charge offs from companys varying from a car loan to 2 different credit unions(YAY GO ME).I checked all of this before hand, i thought that charged off meant exactly that charged off . I currently owe right around 15k!!!!! Im wondering if i should just file bankruptcy, bad credit for 2 years but i start clean right? Thank god i dont plan on buying a house anytime soon i guess?

Since your not my customer and I don't have standards to worry about Ill say this, why file so that the rest of us have to pay off your debt? I really hate the bankruptcy is such an easy process for anyone who has to much debt. i think it should depend on the reasons for all your debt and not just because you are in over your head.

Either way you will be screwed. Like it has been said it isn't all a cake walk after it is discharged. You credit is still going to be crap, plus you have a bankruptcy, so for at least two years you will be sent walking on most loan apps, and after that you will have ski high rates until you rebuild it. I would just cut back on all extra expenses and use all your extar money to try and get rid of all this debt. Like Tom said if you call the companies most will work with you to resolve the problem and your 15k debt may get talked down to 10 or less. Give that a shot first before placing your mistakes on the rest of us.

 

[Ghettodsm91]

well why am i thinking of filing chapter 7? Im 24 broke and i dont even have alot of bills, mainly no car payment or house payment just rent and cell bill,grocery bill etc. Im going to school soon and i wont be able to work full time. I have no parental help or anything just me. I make about 1400 a month if im lucky(i know i need a new job ) I pay rent which is 1000 and then i have jack to pay to my debts. The reason my debt is so high, when i was 20 i was a moron and let my dad borrow my truck. He is basically a deadbeat loser. I tell he can borrow it for 2 weeks while im on vacation. I come back and he tells me he is going to keep it take over payments and he'll give me his car. I agree as his car is paid for(gti vr6). I never get the gti he moves to florida and basically screws me. I never called the bank or anything blah blah blah 15k later im in the hole, 24 and thinkning of bankruptcy. My friends mom said i should probably file since it would give me a fresh slate, so to speak of. My logic is get of bad debt and start over. Ill have 1 or 2 credit cards max take care of those and maybe later ill be able to afford a newer car that i can make reasonable payments on.

 

[boostedinaz]

well why am i thinking of filing chapter 7? Im 24 broke and i dont even have alot of bills, mainly no car payment or house payment just rent and cell bill,grocery bill etc. Im going to school soon and i wont be able to work full time. I have no parental help or anything just me. I make about 1400 a month if im lucky(i know i need a new job ) I pay rent which is 1000 and then i have jack to pay to my debts. The reason my debt is so high, when i was 20 i was a moron and let my dad borrow my truck. He is basically a deadbeat loser. I tell he can borrow it for 2 weeks while im on vacation. I come back and he tells me he is going to keep it take over payments and he'll give me his car. I agree as his car is paid for(gti vr6). I never get the gti he moves to florida and basically screws me. I never called the bank or anything blah blah blah 15k later im in the hole, 24 and thinkning of bankruptcy. My friends mom said i should probably file since it would give me a fresh slate, so to speak of. My logic is get of bad debt and start over. Ill have 1 or 2 credit cards max take care of those and maybe later ill be able to afford a newer car that i can make reasonable payments on.

Sometimes shit happens. Good luck either way and I hope it works out for you.

 

[DROOPY209]

Well, Im 20, i tried to get a credit card and noone would approve me........

turns out someone across the country was using my social security number and purchased some stuff. They wanted to send me to collections. I fought it, I won.

After that, every major credit card was sending me approval applications.

I only have 1 credit card and I pay for everything with it.

tip.........dont pay so much rent!!!

 

[DGajre777]

$1000 in rent? Try this:
1) Move in with a roomate or find a girlfriend to live with and share expenses (this should reduce the titty bar expenses too )
2) Pay off your credit cards
3) Get a secured loan

I'll tell you something my father told me - if you can't increase your paycheck, decrease your expenses. If you can't decrease your expenses, get another job to increase your paycheck. I understand that you cannot go to school and work, but most employers will now do a credit check, so if you want a good job, you have to have decent credit. I don't recommend going the bankrupsy route. If you make $150 every month towards your debt, in 8 years you'll have $15,000 paid off. It's all about using your money wisely.

 

[Ken]

Does your dad still have the tuck? If you still have the title with the lean on it, (which you should if you still have the debt) go get your truck. At least then you'd have something to sell to help the debt. If you can't get it explain to your creditors what happened and take him to court. Hopefully you've learned not to trust financial matters to others now. Good luck!

 

[Ghettodsm91]

no the title was given to my father when he said he would take over payments. I believe it was repo'd from my father before he fell off the face of planet . I really dont want to pay 150 for 8 years either . If i file for banruptcy i have 2yrs of bad credit not 7, i believe? Does it look worse if i file for bankruptcy or try and take care of this myself over a span of like 8yrs or so?

 

[DGajre777]

I don't get it. If there is a bank loan on the vehicle, how to do you have the title to give it to him? Banks hold the title and don't release it until the vehicle is paid off. If the bank gave him the title for some reason, then how is it on your credit report? Were you the co-signer? Did you just give him the title or had a verbal agreement or did you get anything in writing? If you have something in writing, it will help you in court if you sue him.

"I really dont want to pay 150 for 8 years either . If i file for banruptcy i have 2yrs of bad credit not 7, i believe? Does it look worse if i file for bankruptcy or try and take care of this myself over a span of like 8yrs or so?"
You might want to seek professional advise on this.

 

[Ghettodsm91]

he never had the title the bank did as stated before you dont get the title till its payed off. Theres nothing in writing just verbal but i really dont want to take this to court i mean its my dad for christ sake. Im thinking bankruptcy is the easiest way out for me right now. Everyone ive talked to said to just start over im still young enought that if i file now by the time im looking to buy a house i should ok credit, hopefully.

 

[fasteclipse1992]

2. Find a light credit card and BE CAREFUL

3. Stay away from titty bars.

where exactly would you swipe a credit card at a titty bar?