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Joined: Nov 2000
Posts: 2,625
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Nov 2000
Posts: 2,625 |
CreditBoards.com is the end-all be-all of credit websites. There is so much useful information there, it'll make your head spin. Start off in the newbie forum and move on to the rest.
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Joined: May 2000
Posts: 1,228
Hard-core CEG\'er
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OP
Hard-core CEG\'er
Joined: May 2000
Posts: 1,228 |
Originally posted by svtcarboy:
Well... if he declared bankruptcy, does he have debt remaining that needs consolidation? I really don't believe in these consolidation services, as they are a big black mark when obtaining credit.
What he probably needs most right now is to establish credit. A store credit card and a major credit card are the best way to begin establishing credit, assuming he needs no major purchases at this time (car...). Responsible use of a credit card and a revolving charge will begin to build a positive credit history.
well, to be honest - it's some personal debt, not really 'creditor debt' - but of course with a bankruptcy you have to re-establish credit... i'm thinking of having him get a personal loan from a good bank and paying off the personal loan, then paying off the creditor's loan early...
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Joined: Mar 2002
Posts: 631
Veteran CEG\'er
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Veteran CEG\'er
Joined: Mar 2002
Posts: 631 |
Quote:
well, to be honest - it's some personal debt, not really 'creditor debt' - but of course with a bankruptcy you have to re-establish credit... i'm thinking of having him get a personal loan from a good bank and paying off the personal loan, then paying off the creditor's loan early...
Coming from a banking background I agree completely with you. If they can get a strong cosigner on the loan it will help also. Most banks won't touch someone with such a recent blemish on their credit without some big help. Those consolidation places are a little shady. There are plenty of small time places that handle alternative lending. Most banks have a contact that they send customer to if they can't help.
05 Legacy GT Turbo 5speed
99 SVT GRN/TAN (sold)
06 Ford Explorer EBv8
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Joined: Sep 2002
Posts: 2,445
Hard-core CEG\'er
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Hard-core CEG\'er
Joined: Sep 2002
Posts: 2,445 |
Paying all current debts on time will contribute greatly to "fixing" bad credit. After a horrendous start on my credit life, I am finally getting back into credit's good graces by paying my bills.
7 years of steadily increasing paychecks from a stable job have worked wonders.
There is no overnight fix, however.
2000 Contour SE Sport
Originator of the Beowulf Headlight Mod and the Beowulf CAI
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Joined: Nov 2002
Posts: 247
CEG\'er
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CEG\'er
Joined: Nov 2002
Posts: 247 |
Consumer Credit Counseling Services helped me and my family out a while back and they really did seem to want to help,id try them. Also paying off loans early is not always good because creditors want to see someone pay the term of the loan ,otherwise they dont get all their interest.
EO 98 CSVT, black, gunmetal exel 18s, H&R springs ,custom grilles, 35% tint,Hightower headlights,resonator removed,Magnaflow installed,FMS 9mm wires,K&N,Redline MTL
2000 Impala silver 2 inch drop 17 inch Exels
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Joined: Mar 2002
Posts: 631
Veteran CEG\'er
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Veteran CEG\'er
Joined: Mar 2002
Posts: 631 |
Paying off your loan early is great but when it comes to building credit... its not so much about crediter getting their interest, if you pay off a loan immediately it doesn't really show steady paying ability. Having a track record is key for credit history.
I tell young people with no credit to grab a credit card and a small loan. Payoff the credit card every month and pay at least a year on the installment loan. (most people have a small car loan anyhow) Just make sure you have a job! Thats how I built my credit.
05 Legacy GT Turbo 5speed
99 SVT GRN/TAN (sold)
06 Ford Explorer EBv8
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