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please advise need advice on credit repair [Archive] - DVD Talk Forum


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10-25-07, 06:09 AM
Ok Bargain Buddies, I really need to increase my "bargainabiliness" by becoming more credit worthy. I have very little credit history and virtually no credit rating. I have a few $100 or $200 blemishes that show up on my current report and need to be addressed. I'm hoping some of my fellow bargain buddies can help me achieve the next level of bargaining power by getting my creditworthiness improved.

Does anybody know of a source of refinance to lower my 19% interest car loan from FoMoCo. refinance could help me significantly impact other issues on my report.

What's my best lowest shot at a high interest credit card that will put positives on my report for on time payments. If you think it's my best route towards my goal.

I'm renting and am 40 yrs old and have got to do something to improve things or am going to die old, alone, and BROKE!. Help!! I know you guys are the guys that will know the best advise to ultimately getting the BEST BARGAINS I can get. I'd love to be able to pay it forward to you guys one day.

Pistol Pete
10-25-07, 01:40 PM
1) If the credit blemishes are less than 5 or so years old pay them off. Make sure the lender will indicate the the account was closed and "paid as agreed". If they are close to 6-7 don't worry about them. They will fall off your report at 7 years.

2) How much is your car loan and for how long? When will you have it paid off? If you are not upside-down, sell it and get a reliable used car.

3) The best way to get good credit is to pay your bills on time. Do it.

4) For a credit card, go here (http://www.bankrate.com/brm/rate/cc_ratehome.asp?web=brm&state=US&prodtype=cc&R1=1&card_type=Secured&card_class=All&max_recs=50) and open a secured card. Pay it off every month for 6-9 months and they will extend to you an low-limit unsecured card. Don't get behind.

If you follow these steps in a 1-2 years your credit rating will be quite a bit higher.

10-25-07, 09:22 PM

10-25-07, 09:26 PM
4 years since joining, and still "New Member" status?

Just noticing....back to topic.

10-25-07, 10:12 PM
don't do stupid stuff.

don't spend more than you have.

don't get married.

10-26-07, 08:44 AM
don't do stupid stuff.

don't get married.

Kind of redundant :D

DVD Josh
10-26-07, 08:52 AM
1) If the credit blemishes are less than 5 or so years old pay them off. Make sure the lender will indicate the the account was closed and "paid as agreed". If they are close to 6-7 don't worry about them. They will fall off your report at 7 years.

I really disagree with this. Very much so. Companies aren't going to do you any favors. If you are inclined to pay them off, contact them and request a pay off in exchange for removal from your credit report of the derogatory. Get this in writing, certified mail. If you have any issues with removal, provide the credit bureau with the proof and they will remove it.

Also, the 7 year drop-off is not always automatic and usually never timely. So keep up with that.

Your best bet for a refi is with a local credit union that has more lax lending requirement and usually better rates.

But for the future, remember, don't spend what you don't have, don't spend more than you make, and don't spend more than you can.

10-26-07, 09:29 AM
Try disputing your blemishes w/ the credit reporting agencies. They might actually get deleted if the creditor doesn't respond. Check those creditboards.com and they have actually templates for dispute letters to the CRAs.

As stated above, a credit union is a good source for a refi on a car loan.

10-26-07, 08:02 PM
Man, you guys rock!! I really can appreciate this advice from peeps that I like to think of as true peers. DVD's been one of my favorites for bargains and it's kind of a guilty pleasure for me since it usually leads to more spending, hence the new member since 2003 status. My cars only 2 yrs old and I'm still upside down on it and wouldn't be if I'd been able to refi a year or so ago. I'm fired up to take care of this and I'll take care of the little stuff directly as most of it is minimal compared to what it's costing me now on my credit. I don't believe in the 7 yr credit drop off either, might as well take care of it instead of being nieve and hoping 7 yrs will do something for me. The links to the creditboard is exactly what i was looking for as was every bit of advice you guys gave. I can take a kick in the ass but it's sure nice to get the benefit of the doubt sometimes, That's why I like this place, no b.s. just business

10-26-07, 10:44 PM
Well... basically you need to spend a lot less than you bring in.

a. Credit cards - you really need a credit card, but no more than, say, two. You have your cards all paid off, right? If not, that's job #1. Cancel any cards you have with an annual fee, don't really worry about the interest rates of the cards since you won't ever carry a balance. Right? Get in the habit of paying cash for pretty much everything, only use your credit card for online purchase or for maybe gas (so you can pay at the pump). When you do use your credit card, keep a log of how much you have spent on a paper somewhere so you don't have any suprises.

b. Your car. You've got to get that interest rate down - get a second job to bring in extra cash - put that money towards the car. As soon as you aren't upside down anymore, refinance. In the meantime join a credit union, then check their rates on used car loans (which is what you would be getting when you refinance). Once the car is paid off, keep making your car payments to yourself - open up a good no-load mutual fund, preferably a balanced mutual fund. $300 or $400 a month really adds up quick, especially if it's getting 10% or so gains. And plan on keeping your car for a long, long time... And learn how to do basic maintenance yourself if you don't already do so, you can save quite a bit in mechanic fees.

c. Read through this list: http://freewebs.com/savingslist/ There are things you can cut out of your life to free up some $$$. Even basic things like dropping cable / satellite, cell phone, etc.

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