credit problems

[huncowboy]

Have you ever heard of the term "manual underwriting."

If you have ever had to pay rent then you have a credit history. If you have ever paid untilities you have a credit history.

So what if you haven't paid utilities or rent. It was the case with me since I am from abroad. Not as rare as you would think!

Furthermore people in the business of loaning money are not going to turn people away just because they dont have a long estblished credit history. They make money by lending money for Pete's sake. Why woud they turn perfectly good clients away just becuase they dont have 10 different credit cards and 2 car payments?

Yes, and those will charge you 20% interest. Fact is if you have no history, not even a rent, you will be treated as a high credit risk.

However, if you were trying to buy a new car the best favor in the world they could have done for you was refuse financing. A new car is the biggest rip off in the world but that is another story.

Tell this to my neighbor who paid about $2000 for his a/c then 6 months later he was quoted $3000 for his transmission at which point he decided to lease a new car. His 6-7 years old Golf was sold for $1000 as junk. It had a load of miles like 200k but still the car was worth about $5000. He lost on that deal.

One advantage of a new car is that you have a reliable transportation to get to work. If it breaks, you don't need to fork over a sum that may be worth as much as you would pay for a new one in a year. Not to say that there isn't such a thing as a reliable used car, but the risk is always there. Now if you have enough money in the bank, I agree, buying a 2-3 years old car is not a bad deal. However at the moment I like to know how much my car will cost me exactly. Unfortunately surprise payments would stretch my capabilities. You can buy a very cheap, yet still new car if money is tight. It is all about budgeting. Some people can some can’t.

I agree 100%. So why even take the chance. Why not just pay in cash or use a debit card?.

There is not much risk involved if you have some common sense and self-restraint. This is my whole point. Credit helped me out in many ways. I was able to turn it to a useful tool.

Could you please repeat this sentence in English that I can understand?

I am trying my best with English. Sure I will repeat it if it was not proper English. You have made comments about others in this thread. Here is one:

Tell me Crizz why are you so eager to build credit? To borrow more money and go deeper into debt?

You have based this comment on what? After a comment like this, you will not get much respect from the other party. You have set the tone and you keep being arrogant! Hence I made a comment about you missing a payment. I knew it was going to blow up.

Why dont you go back and reread that link you posted? A higher line of credit does NOT help you credit score. It hurts it. Doesn't matter if you have debt on it or not.?

Why don't you go back instead, and read my comment and the site again. It says "beyond a point" or something similar!!! Large unsecured credit line is not good since the borrower could use it anytime thus significantly changing his rating in a moment. However, a very small line is just as bad.

Once again could you please type in English that most of us could understand? I guess you are trying to make some sort of correlation with my flight time and the argument at hand but I am not sure.

It is called sarcasm. But before you start beating my English, and I agree my English is still a work in progress, how about you check your spelling once in the blue... that way I could actually learn something from your posts. <--- more sarcasm...

Maybe you should have a few more cocktails this time before you post.

I’ll do that. But would that not be bad for my judgment? Because I could just get drunk and by mistake apply for 10 credit cards and then I will have to seek your advice how to clean up the mess... on a second thought... I think I will be alright...

Since you have given me plenty, here is one advice from me:

If you getting into an argument on a forum like this, chances are someone will reply with a post that you'll disagree with. If you can’t keep your cool or don’t have a little sense of humor, or sarcasm then posting on the net is not for you.

 

[Dangerkitty]

So what if you haven't paid utilities or rent. It was the case with me since I am from abroad. Not as rare as you would think!

So you are telling me that you came to the U.S. and have never paid any utility bills whatsoever? Then, you go to the bank and apply for a loan?

Yes, and those will charge you 20% interest. Fact is if you have no history, not even a rent, you will be treated as a high credit risk.

WRONG!! You need to go and read into some of the Fair Lending Laws out there. If a bank was to charge someone 20% interest on a loan when rates are hovering in the mid 5's that could very well get them put out of business.
Dude, you are so clueless it is becoming laughable.

I have told you over and over and over again that you dont need a beacon score to get a loan. Why dont you go to www.churchillmortgage.com and find out for yourself.

Tell this to my neighbor who paid about $2000 for his a/c then 6 months later he was quoted $3000 for his transmission at which point he decided to lease a new car. His 6-7 years old Golf was sold for $1000 as junk. It had a load of miles like 200k but still the car was worth about $5000. He lost on that deal.

Well first of all I would have told your neighbor to have AT LEAST 3-6 months of living expenses in a liquid cash emergency fund. That way paying $5000 wouldn't have been all that big of a deal.

HOWEVER, your neighbor really screwed the pooch by getting rid of a car and then getting into a lease. Leases are the most expensive way to operate a car. PERIOD. If you dont believe me then why dont you go to Consumer Reports and find out for yourself. They are the one's that sponsored the study.

I am however beginning to understand where you get all this insane financial BS that you like to spout. Anyone that sells a car only to get into a lease isn't the sharpest knife in the drawer. That is similar to keeping a mortgage instead of paying it off just for the tax "benefits."

One advantage of a new car is that you have a reliable transportation to get to work. If it breaks, you don't need to fork over a sum that may be worth as much as you would pay for a new one in a year. Not to say that there isn't such a thing as a reliable used car, but the risk is always there.

Yeah, OK. So you are telling me that in your neighbors case it was wise to sell a car that had $5000 worth of problems so that hey could lease (ie RENT) a $25,000 car? What sense does that make?

I used to go to a mechanic in Texas that told me that when you are driving the typical Honda or other foreign made car that you are just breaking them in around 500K miles. He knew what he was talking about. I just think your neighbor needed an excuse to blow his money on a new car.

Now if you have enough money in the bank, I agree, buying a 2-3 years old car is not a bad deal. However at the moment I like to know how much my car will cost me exactly.

If you want to know how much your car is worth just go to www.kbb.com or www.edmunds.com. It aint all that difficult to find out what a car is worth.
Actually it is quite easy.

Unfortunately surprise payments would stretch my capabilities. You can buy a very cheap, yet still new car if money is tight. It is all about budgeting. Some people can some can’t.

Again we are back to the emergency fund. If you really want to be financially repsonsible you should have 3-6 months worth of take home pay in an emergency fund for this very purpose you mention above.

I am trying my best with English. Sure I will repeat it if it was not proper English. You have made comments about others in this thread.

Sometimes I have no clue what you are trying to say.

Since you have given me plenty, here is one advice from me:

If you getting into an argument on a forum like this, chances are someone will reply with a post that you'll disagree with. If you can’t keep your cool or don’t have a little sense of humor, or sarcasm then posting on the net is not for you.

I can keep my cool fine, but when people like you start calling me a moron and the like I start to have problems with that. Especially when you have no f**king clue what you are talking about.

You are a banker's, car salesman's, and loan officer's wet dream. You have absolutely no clue what you are talking about but because they deam you as financially intelligent you think that it is such. Tell me sir where have you obtained this financial education that you speak so highly of. It took me over 2 years to become a Certified Financial Advisor. How long was your education?