Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




What are some steps I can take to increase my credit?

Reply to topic
Money Talk > Credit & Loans

Author Thread
Billlovesfishing
New Poster


Cash: $ 0.45

Posts: 2
Joined: 18 Aug 2011
Location: New York State
What are some steps I can take to increase my credit?  Reply with quote  

Okay so here it goes. I completed a semester of college two years ago, and decided I wasn't "ready" to finish it. At 20 years old I went to live with my Mother and younger brother who were struggling financially. Quickly I got a job, but unfortunately it was not enough. The majority of what I made went into the household, leaving me screwed on my student loans.

Eventually as I got raises, and a second job... I was able to start paying the loans off. Shortly thereafter my car started having problems, and I feared for it's reliability. I shopped around a bit and got another used car, under a loan of course.. I was desperate for transportation(can't work if I can't get to work).

So I settled with a local credit union. My rate with them is incredibly high, but I couldn't get a loan from any other major financial institution. My current rate is 16.940, which is a bit higher than I would like it to be. The amount I owe on the loan is lower than the value of the car, which is good. It also has a used warranty that I haggled for. Unfortunately the credit union does NOT report....

I'm still paying off the student loans, so LITTLE BY LITTLE I know my score is going back up... But at this point, I'm about ready to get into school again. So I need to cut some costs... What are my options(down the road) for refinancing? I've thought about trying to take out a credit card to pay the auto loan too, or at least part of it. But I'm having trouble getting one.


Sorry for the long post, just wanted to sprinkle the details on there! Thank you in advance for your time and help.
Post Thu Aug 18, 2011 2:06 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

The credit card isn't a good idea. It's surprising a credit union would have a rate that high. That's as bad as a credit card and worse than dealer financing. You sure you didn't leave out some relevant detail? I'm scratching my head...... Confused

~Tim~
Post Thu Aug 18, 2011 5:23 am
 View user's profile Send private message
littleroc02us
Moderator


Cash: $ 383.50

Posts: 1887
Joined: 09 Feb 2009

 Reply with quote  

Sounds like your off to a life of borrowing when you need something, IMO not a good idea. Stop and get a job for a while until you can pay down the car loan and then save up some money for school and finish school with no debt. The path to success doesn't start with going heavily into debt. Very Happy

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Aug 18, 2011 1:20 pm
 View user's profile Send private message
eastmn
Senior Member


Cash: $ 85.80

Posts: 414
Joined: 04 Apr 2010

 Reply with quote  

Welcome to the Jungle. That rate sounds like an older used car loan to me. Shop around next time, http://www.bankrate.com .

Make damn sure you are saving/investing at least 10% of your income, or you'll never be able to keep your head above water. MANDATORY... ABOVE ALL ELSE...

...
Post Thu Aug 18, 2011 2:17 pm
 View user's profile Send private message
Billlovesfishing
New Poster


Cash: $ 0.45

Posts: 2
Joined: 18 Aug 2011
Location: New York State
 Reply with quote  

Thanks for the replies guys. I'm about to switch jobs so that I will be able to work & earn even more... Very frustrating - the amount of money I could have saved if I wasn't supporting my parent.. I love my car, but I guess it was a very bad decision. You live you lean, I guess. Thanks again..
Post Thu Aug 18, 2011 9:36 pm
 View user's profile Send private message
eastmn
Senior Member


Cash: $ 85.80

Posts: 414
Joined: 04 Apr 2010

 Reply with quote  

Ever thought of refinancing the car? Just be careful as the rule 78 loans are a rip-off...

...
Post Thu Aug 18, 2011 10:58 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016