Credit advice... **UPDATE** GOT THE LOAN

[Mr Josh Zombie]

Yay for not being spam!

Alright... so I need some advice from some of the more experienced 2ndgeners here...

I've been trying to get a mobile home loan for the past couple of weeks here. I've gone through three different banks now, and all have said I need a co-signer. That was some-what expected.

My 'rents were going to sign for me, but they've been re-modeling there house... and have been filling up there credit cards and what not, so they got denied. They have to much on there credit report. So now I have no one to co-sign for me.

I really need to get this trailer so I have somewhere to live. I'm stilling contacting banks, trying to find someone to approve me...

I checked my credit score last night... and it's 700!! YET I STILL CAN'T GET APPROVED..... Given, I don't have a very long credit history... and that's probably why I keep getting denied. On my report, the only thing listed is my Neon... and I've only had that loan for about 7 months now.

What's everyones advice on what to do?

I'm considering getting a credit card... to help a little... but I fear impulse buying and what-not. What kind of cards does everyone have on here? Trying to find a card so far is becomming more difficult than trying to find a car... just so freaking many. 0_0

Thanks everyone... I really need the help right now.

[03sxt]

I was so ready to ban.

[bige1030]

I checked my credit score last night... and it's 700!! YET I STILL CAN'T GET APPROVED..... Given, I don't have a very long credit history... and that's probably why I keep getting denied. On my report, the only thing listed is my Neon... and I've only had that loan for about 7 months now.

What's everyones advice on what to do?

IMHO, you need a few numbers here:
(1) The monthly payment on the trailer you want to buy.
(2) The monthly payment on your Neon. (For future reference, include the rest of your debts here, too.)
(3) Your gross monthly income.
(4) The down payment that you plan to put on the trailer.

(4) should be as high as comfortably possible, but at least 5% for an FHA loan is recommended (higher for other loans). Also, add (1) and (2) and divide the result by (3). That number, your debt-to-income ratio, traditionally is expected to be no greater than some number between .28 and .44 (the one in particular depends on the lender), according to Nolo's Qualifying for a Mortgage guide.

I'm considering getting a credit card... to help a little... but I fear impulse buying and what-not. What kind of cards does everyone have on here? Trying to find a card so far is becomming more difficult than trying to find a car... just so freaking many. 0_0

Don't get a credit card now. Just the act of applying will temporarily lower your credit score slightly, since it'll generate an inquiry on your credit report (only inquiries for new credit count against you). Then, if you charge stuff on it, your debt-to-income ratio increases, which will lower your credit score slightly and lower the amount of house you can afford.

You should also see if your local credit counseling agency does housing counseling, as well. I know that the one in my area (Housing and Credit Counseling, Inc.) does housing and credit counseling. If your income is low enough, you could even qualify for down payment and other assistance, and they can assist you in becoming creditworthy enough to buy a home.

[dblsg]

find a hispanic broker/realtor... that seems to work around here

[FTWNeon]

Well I can't help too much here and would probably follow Big's advise and not get a card right away, but in realtion to what Credit card I have I recently got a Dodge Rewards card.



I just plan on using it for everyday purchases: gas, food, etc, things where I should spend the money anyways. That and large purschases such as my recent body shop bill. The main thing I'm doing is keeping track of how much I spend and making sure I don't spend what I don't have. Plus I'm getting points for every dollar I spend that I can use towards parts at the dealership. Hmm...wonder if I could use those with BBR...

[NiteHawk]

yeah, credit cards are evil...

i have...

Select Comfort...$2000limit
Sears...$1500limit
Sears Mastercard...$1800limit
Newegg...$2000limit
Discount Tire Direct...$500limit (the first card i EVER got)
Sams Club...$4000 limit

the select comfort is nearly paid off after a $1300 purchase, the sears card is paid off as i only spent $25 on it, the sears mastercard constantly has a high balance, which is killing my credit score(i went from 712 to 651), newegg i just started paying on, close to maxed, dtd has about $300 on it as i'm paying off the last set of tires i bought, and tha sams club is a joint account with my mom, she pays it regularly for her purchases, and i NEVER use it, but it still helps build up my credit

all in all, stay as far away from credit cards as possible, but if you have to, the best thing to do is to use it once every quarter and immediatly pay it off...my cousin started out with 1 credit card with a $1000 limit, 13 years later has around 7 that he almost never uses, none less than 20k limit..... he has a near perfect credit score and makes 6figures a year...

[grambo]

If you don't have cash for it, don't buy it. Well, unless its real-estate.

Opi - What about Gramma and Grampa, Uncle, family friend ,etc. ?You need a cosigner to get your credit moving with a little bump.

[sphipps70]

Take it from an "old-man". Credit cards are good it you use them correclty and wisely.

We are currently working ourselves out of debt. At the current rate, we should be debt free in 4 years. That is a good thing because I'm about to retire from the military in 5 years.

Remember this...credit cards are not free money. You have to pay it back.

[Mr Josh Zombie]

If you don't have cash for it, don't buy it. Well, unless its real-estate.

Opi - What about Gramma and Grampa, Uncle, family friend ,etc. ?You need a cosigner to get your credit moving with a little bump.

Not to sound -too- harsh, but gramma and grampa don't exist, and i'm not close with ANY of my family outside of my immediate.... no family friends, at all.

Bascially, in this case, my 'rents were my only hope.

I know how to manage money. I'm a freaking jew when it comes to to my cash flow. In terms of credit card... I'm not 100% sure of getting one or not. I have the credit score, just not the history. Credit card adds to the history.

As of right now, I'm just going bank to bank, seeing what my options are.

[Chibits12]

Credit cards become bad if they're abused a lot; Usually if we only use about 1/3 of the credit, it wouldn't look bad on the creditors and shouldn't lower down the credit rating. Plus, some of their interest rates are just crazy sometimes. I think revolving accounts make up a lot of credit scoring.

In my own situation, I currently have two credit cards and just started to have school loans. My own credit score's not so hot either due to its short history.

You'll find a lender willing to lend you some money but the interest rates might be high.

[Neonix]

If used properly and not abused, credit cards are good for your credit. Since your history isn't long, you'd probably qualify for one with a very low balance, which is what you want. Put gas on it, the little things here and there, and keep paying on it monthly. Don't just pay it off, yeah it's a nice feeling, but credit scores go off of how long you've been making payments, and if you're on time.

Or there is the option of getting one of those prepaid credit cards if you're worried about going crazy with a regular one. That way you don't spend more then you should. And they still report to the three major credit bureaus.

There has to be programs that you can get involved in that help with you getting approved for a loan. I know there's a ton up here.

Have you thought about maybe opening an account with a credit union? Some of the credit unions up here have amazing first time home buyers/bad or no credit home loan programs.

Good luck and I hope you come across something that works out for you!

[Mr Josh Zombie]

Currently my car loan is through a credit union... biggest mistake of my life. They wont do ANYTHING to help me out now, and when I tried to refinance my loan in my own name... without my co-signer... it wouldn't of dropped at ALL.

Now my friend did the same thing I did. Bought an almost new car, total of the loan was about $14,000, got a co-signer, waited about 7 months, and he got his re-financed with about half of the interest it was before.

He doesn't have any other credit outside of his car loans either.

*sigh*

I hate banks. >_<

[Mr Josh Zombie]

**UPDATE**

So, i just got approved for the loan finally. I guess I found the right bank.

The only bad thing, it was supposed to be a loan of 10% for 10 years
Well, it's 10% for 5 years... double the monthly payment...

I have no idea if I can afford this now...

Any advice?!

[TeckNeon]

How much are you financing? That might be the problem. Mobile homes don't have the same equity that regular houses do. Try to find a fixer upper that you can fix as you live there for a similar price.

[Mr Josh Zombie]

How much are you financing? That might be the problem. Mobile homes don't have the same equity that regular houses do. Try to find a fixer upper that you can fix as you live there for a similar price.

Well, in total I'm financing about $9,000... already got a decent amount down.

The reason why i don't want to find anywhere else is becuase this trailer is in a REALLY nice community, with LOW lot rent, and was just re-done.

Last year I was going to do just what you suggested, except for I couldn't get accepted into the trailer park community becuase i had no credit....

This year I found a place i want, with REALLY low lot rent, and a great area.

[03sxt]

I'll sell you my mobile home for $4000.

[CA180]

Currently my car loan is through a credit union... biggest mistake of my life. They wont do ANYTHING to help me out now, and when I tried to refinance my loan in my own name... without my co-signer... it wouldn't of dropped at ALL.

Now my friend did the same thing I did. Bought an almost new car, total of the loan was about $14,000, got a co-signer, waited about 7 months, and he got his re-financed with about half of the interest it was before.

He doesn't have any other credit outside of his car loans either.

*sigh*

I hate banks. >_<

Thats crazy! I got a loan for my 2005 neon @ 3% apr for 7 years... no co-signer. Then I got a loan for a 2004 chevy cavalier with 30000miles for 5% apr for seven years... again without a cosigner.

Have you done anything to build yer credit since you turned 18? I started like a week after I turned 18, got a few credit cards, maxxed them out, then werked my ass of to pay fer them... then learned not to do it again...

I dont know dude, its tough being young. Having no credit is worse than bad credit. Its like your always lookin for that one company that will give you a break...Just one chance. You know that you'll do good, but people dont take you at yer werd. I hated that.

Good luck dude... Not to sound gay or anything like that, but have faith in yourself and you'll do fine.

[bige1030]

**UPDATE**

So, i just got approved for the loan finally. I guess I found the right bank.

The only bad thing, it was supposed to be a loan of 10% for 10 years
Well, it's 10% for 5 years... double the monthly payment...

I have no idea if I can afford this now...

Any advice?!

Try finding another bank. Look in the sub-prime market. The interest will be higher than normal, but perhaps you can find a loan that you can actually handle.