Credit Cards Point » credit score

Went to the dealer today.pretty shady. [credit score] [sales rep]

admin — Tue, 17 Jan 2012 00:30:00 +0000

I'm confused here. I went to the Pontic dealership today for a new look GTO. The cost of the car is 34K. I filled out an application, and the sales rep told me my credit score was 560th For the record, I had a BK, who was released in May this year. He said that since the car will take 3-4 months to get, he would take 5k deposit for the car. Ok . this is not the problem, I expected before I went there. The seller asked me how much I could put on the car. Now I wanted on the implementation of 10k on the car. I told him this. He went and talked to the guy I F u0026 and the seller came back and asked me if I would be able to kill more. Then he asked if I would be able to put down 15K. So, in all reality, with the 5K for a deposit and the deposit 15K, 20K, I would have put me on a 34K car. 20K down is out of my budget. Has anyone ever need to, 15K-20K put down beofre belongs on a car? If I said I would put in a position to 5K down, rather than 10K, so I wouldnt have been poushed set to 15K instead of down? Something just doesn't seem right with it. Let me put it like this. What would a normal down payment for a $ 34k car for someone who has a 560 credit score, be discharged with a BK, paid for with an open auto loan on time for 6 months, w / 2 credit cards on time for 4 months? I hope not wouild 20k

Reply:guyUOTEwould a finance company approve a loan with a 10k downpayment for a car that books for 33-35K?
Someone SHOULD!

Reply:anywayyyy, yes, the GTO is imported from Gm's sister company called Holden in Australia. I went to another dealer yesterday that is going to try to get 10k approved for the downpayment. My original question was, would a finance company approve a loan with a 10k downpayment for a car that books for 33-35K? I seem to be getting different answers from about almost all the dealers in my area. In fact, the local ford dealer basically shoved me out the door as soon as I mentioned BK. Totally amazing.

Reply:Sorry Marv.. Didnt mean for that to blow up like it did. Considering how other words are exchanged even on this board Im surprised one would get offended at any words. Ive been in this world for 40 years and there isnt a word in the world that offends me anymore. Ive been called all of them.

Reply:You obviously haven't driven the new GTO. She's all that!

Reply:
And pray tell me how is that different from:
FORD=First On Race Day
??????????????
Especially from a MOD?
Your Pontiac quote is based on a racial epithet…if you did`nt know I apologize. If you did it is uncalled for on this board ….so I would think.
It offends me….but hey it is a public message board so I let it be known…and I will stop with that.

FOR YOUR INFORMATION
My Pontiac quote is based on what I have heard all my life in the business.
If you construe this as a racial epithet from me you are very much mistaken.
I MEANT AND TYPED exactly JUST THAT AND NOTHING MORE.
Like I said if you DID`NT know it was based on a racial epithet I apologized.
Now that I told you how it can offend some people…thats that.

Reply:
And pray tell me how is that different from:
FORD=First On Race Day
??????????????
Especially from a MOD?

Reply:
OMG!!!!! how dare you!!!!!

Reply:
Careful I think this website is better than that
Especially from the MOD!!

Reply:a mercedes is nothing but a german taxi cab … overrated and expensive

Reply:
You might want to invest that kind of money in a much better car that holds it's reptuation AND its value!

Reply:34K for a Pontiac?? No way. I just bought an Acura for less than that, brand new.

Reply:
He couldn't get a 400hp mercedes for that price. I suspect that's why he would want the GTO.

Reply:You can get a Mercedes benz 2004 (hold much value & prestige) for less than that. You can negotiate off stick price.

Reply:
that aint what the original saying was lol

Reply:PONTIAC= Poor Old Nut Thinks It's A Cadillac

Reply:34K for a pontiac? Is that out the door or pre-tax and fees? Have you seen what else you can get for 34K?
for both of our last two cars we put more than 10K down. Even with low scores with 10K down you better really hold out for a low apr.

Reply:A deposit made when the car is ordered counts as part of the down payment. When they talk about the amount down it includes the $5000.
Of course you make their job easier the more you put down. But even with bad credit if you put down half the price of the car you should get a prime type APR (thus payments are more than proportionally lower). It would be worth it if you have the money.

Reply:Dude,
If you think 10k is kewl, then go to neighboring dealership and see what they come up with. If 10k is all you want to give, then don't move from that number. Doesnt sound like you sign any paperwork so your not obligated to anybody.
But what you should care is what the rate if you put that 10k down. Like earlier post have said, cash is king! The more you give the lower your monthly (and interest) would be.
Hygh

Reply:This is why people cringe at car salesman. You give them an inch and they take a foot. I am convinced that if you walk into a car dealer and ASK THEM what is the MINIMUM down payment you need to get financed, you are never going to get your answer. All youre going to get is "well..can you come up with this much more", Totally bypassing the initial question. If they're telling me that I could get financed with 15K down, why wouldnt I be able to get financed with 10K down? Either that, or they just done know what they're talking about. I made thr mistake of telling them that I could afford 10k down, so they probably figure if I could afford 10K,whats another 5K right? I'm about ready to just stick to the used market already.

Reply:The GTO is built by Holden…the Australian Unit of GM in Australia. Its considered an import for all intents and purposes. Its shipped on a boat. Do you think 10K down is suffient for 34K?

Reply:The more money you use as a down payment will lower the amount financed hence lowering your payment.
The old saying "Cash is KING" is very true in the auto biz.
Don't much care what credit is like, enough of a downpayment I'd venture to say with the right combination of F&I MGR and lender, could probably result in a 0% APR loan.
hmmmmmmmmmmm…….waiting 6 months for a Pontiac don't sound right to me though.
YMMV

3 GFE please review! [loan forum] [credit score]

admin — Fri, 16 Dec 2011 06:00:00 +0000

Ok guys so I know by now you all are probably sick of my posts but I am finally at the GFE stage. I have graduated from the student loan forum and default and if u followed my story on a 595 credit score I am here to hopefully give hope to anyone who may be inspired to know its not over if your score drops! Anyway enough sob story heres the meat:
Salary 46k – new to the company/field about 3 months and but I am working in my major(B.S. degree)
Scores- EQ 687, TU 734, EX not reporting??? – no trades other than SL 20K balance paying as agreed. CC 200 credit limit paying as agreed and an old collection of 61 dollars paid in full 0 balance. (I know limited credit)
Loan amount for house 196k
GFE1:80/20
80
loan amt 156,800.00 Loan2Value 80%
2/48 Balloon Conforming Balloon Conventional no pre payment penalty
amortization 600 months interest rate 6.980%
801. Loan origination fee: 1.75% 2,744.00
802. loan discount fee 1.00% 1,568.00
803. appraisal fee poc $0
804. credit report $0
805. lenders inspection fee $0
806. underwriting fee $950.00
807. assumption fee
808. processing fee $895
809. tax service fee $0
810. lender credit $0
811 flood certification $0
812. loan setup fee $0
813. doc prep $0
814. admin fee $0
815. yield spread $0
901. interest $509
902. 0
903. 0
904. 0
905. 0
1004. county property taxes $121.67
1101. settlement fee $255.00
1102. abstract $175.00
1103. $0
1104. title ins. binder $50.00
1108. title ins. $865
courier fee $ 45.00
recording fee $80.00
1202. city/county tax/stamps $975.00
1203. state tax/stamps $487.50
1204. recordation tax $672.75
1301. survey $200.00
1400 total estimated settlement charges $10,637.08
p&i $941.05
real est tax $121.67
total mo. payment $1,062.72
prepaid interest 509.83
20
loan amt 39,200.00 Loan2Value 20%
30/15 Balloon Conforming Balloon Conventional no pre payment penalty
amortization term 360 months interest rate 12.625%
loan origination fee 0.00%
underwriting fee $450.00
interest from 1/15/07 through 2/1/2007 at $29.99 /day @509.83
settlement fee $100.00
recording fee $40.00
total estimated settlement charges $1099.83
estimated monthly payment
p&i $422.17
prepaid interest and escrows
prepaid interest $509.83
total estimated charges $1099.83
prepaid interest and escrows $509.83
other estimated charges $590.00
thats GFE #1 sucks i know…

Reply:Oh ok I will not go for and ARM i'd prefer my rate not to jump up so I'll ask to make sure on the interest only! Looks like GFE2 is the route i will go but just some clarification, on that:
Flood determination,tax svc fee, application fee, and lender closing fee is all there underwriting fees at least thats what I was told, the appraisal fee is also included so that is good right? and he stated with there loans there are NO PMI so the zero was correct!

Reply: OK so GFE2 aka CITI is now saying his #'s were off but he may be able to even beat is off #'s by doing an interest only loan, my question is i don't know what that means and what are the advantages/dis advantages of this type of loan? He is claiming to get my payment as low as 1100 to 1200 a month including my condo fees, and taxes? I will post that GFE within the hour after he send sit I just wanted to know what a interest only is?
Interest only loan means the payment you make only pays the interest on the loan(s), no pricipal. It will keep you payments a little lower but usually has an adjustable rate and you will need to refinance at some point to offset that. If you can swing it, definately get a standard fixed rate for 30yrs.

Reply: Fla Tan you are the best… I am glad I held all my questions till the end as you answered alot of them. I know GFE 1 is out and no longer will be nor needs to be discussed! Now on to two and three… Two does seem more accurate and realistic as I wondered how GFE 3 was so low monthly? GFE 3 is sending over his more detailed report and I will post that for a more detailed review. To answer your alternative credit question yes I do have car insurance 1 1/2 – 2 yrs(all on time payments) and cell phone for a yr all also on time payments if thats what u meant?? Yes, that and utilities/rent are also considered alternative credit. GFE 2 is a my community program and he says carries no PMI (is that mortgage insurance?) It is and it does. MyCommunity has a lower PMI but it still has PMI. but i will ask and also should I ask about the application fees and underwriting or is that standard? thanks again in advance I hope this helps others as well and not just myself!
Edit: I just looked at GFE2 and it says underwriting fee 0, so I have no idea what lender closing fee really is?
guy

Reply:Fla Tan you are the best… I am glad I held all my questions till the end as you answered alot of them. I know GFE 1 is out and no longer will be nor needs to be discussed! Now on to two and three… Two does seem more accurate and realistic as I wondered how GFE 3 was so low monthly? GFE 3 is sending over his more detailed report and I will post that for a more detailed review. To answer your alternative credit question yes I do have car insurance 1 1/2 – 2 yrs(all on time payments) and cell phone for a yr all also on time payments if thats what u meant?? GFE 2 is a my community program and he says carries no PMI (is that mortgage insurance?) but i will ask and also should I ask about the application fees and underwriting or is that standard? thanks again in advance I hope this helps others as well and not just myself!
Edit: I just looked at GFE2 and it says underwriting fee 0, so I have no idea what lender closing fee really is?

Reply: Ok guys so I know by now you all are probably sick of my posts but I am finally at the GFE stage. I have graduated from the student loan forum and default and if u followed my story on a 595 credit score I am here to hopefully give hope to anyone who may be inspired to know its not over if your score drops! Anyway enough sob story heres the meat:
Salary 46k – new to the company/field about 3 months and but I am working in my major(B.S. degree)
Scores- EQ 687, TU 734, EX not reporting??? – This means that your 687 score will be used for score qualifying purposes. no trades other than SL 20K balance paying as agreed. CC 200 credit limit paying as agreed and an old collection of 61 dollars paid in full 0 balance. (I know limited credit) Do you have alternative credit?
Loan amount for house 196k
GFE1:80/20
80
loan amt 156,800.00 Loan2Value 80%
2/48 Balloon Conforming Balloon Conventional no pre payment penalty
amortization 600 months interest rate 6.980%
801. Loan origination fee: 1.75% 2,744.00
802. loan discount fee 1.00% 1,568.00
803. appraisal fee poc $0
804. credit report $0
805. lenders inspection fee $0
806. underwriting fee $950.00
807. assumption fee
808. processing fee $895
809. tax service fee $0
810. lender credit $0
811 flood certification $0
812. loan setup fee $0
813. doc prep $0
814. admin fee $0
815. yield spread $0
901. interest $509
902. 0
903. 0
904. 0
905. 0
1004. county property taxes $121.67
1101. settlement fee $255.00
1102. abstract $175.00
1103. $0
1104. title ins. binder $50.00
1108. title ins. $865
courier fee $ 45.00
recording fee $80.00
1202. city/county tax/stamps $975.00
1203. state tax/stamps $487.50
1204. recordation tax $672.75
1301. survey $200.00
1400 total estimated settlement charges $10,637.08
p&i $941.05
real est tax $121.67
total mo. payment $1,062.72
prepaid interest 509.83
20
loan amt 39,200.00 Loan2Value 20%
30/15 Balloon Conforming Balloon Conventional no pre payment penalty
amortization term 360 months interest rate 12.625%
loan origination fee 0.00%
underwriting fee $450.00
interest from 1/15/07 through 2/1/2007 at $29.99 /day @509.83
settlement fee $100.00
recording fee $40.00
total estimated settlement charges $1099.83
estimated monthly payment
p&i $422.17
prepaid interest and escrows
prepaid interest $509.83
total estimated charges $1099.83
prepaid interest and escrows $509.83
other estimated charges $590.00
thats GFE #1 sucks i know… Then I don't really need to say anything about this one since you already know how bad it is.
GFE 2
LTV 100%
rate 6.375%
sales/loan amt 196,000
conventional
30 yr fixed
801 loan origination fee 0
802 loan discount fee -.094% -184
803 appraisal fee 0
809 flood determination 11
tax service fee 70 application fee 200 I have never been a fan of application fees as they really are only beneficial to the LO.
lender closing fee 619 This is probably the underwriting fee in reality.
abstract title 200
title ins binder 25
attny fee 295
title ins. 882
recording fee 100
city/county/tax stamps 1,372
doc stamps 431
survey 175
total est. closing costs 4,196 but roughly 6K after talking with him
interest for 15 days $513.00
MOS. Taxes $1098.00
Total estimated prepaid items $1611.00
estimated closing costs $4196.00
estimated prepaid items $1611.00
estimated total costs $201,807.00
less
cash received at application $200.00
loan amount $196.00
closing costs paid by seller $4000.00
estimated cash for closing $1607.00
mortgage principle and interest $1223.00
estimated real estate taxes $122.00
HOA dues $185.00
total monthly payment $1530.00 This one is far better than the first GFE. I don't see mortgage insurance mentioned anywhere and there should be.
GFE 3
What we can offer.
Loan amount- $196,000
80%-$156,800 6.5% – $792.87 30yr fixed This payment is not correct. As an IO payment, the payment should be $849 and as a P&I payment it should be $991.
20%-$39,200 8% – $230.00 30yr fixed This payment is also incorrect. As an IO payment it should be $261 and as a P&I payment it should be $288.
Taxes – $122.00
Condo fee – $185.00
________________________________
Total Monthly Payment: $1,329.87 There is no logical way that payments with higher interest rates would be lower than a payment with a lower interest rate for the same term. The payment on GFE 2 is accurate but the payments here are way off. It is possible to make an error on one but it shouldn't occur on both.
PLUS are closing cost is going about 4% or lower of the total loan amount in
this case $7,840 VS XXX(GFE1) $11,736 closing costs. I would simply ignore GFE 1 and compare 2&3 only.
Closing Costs: 4% -$7,840
Seller Help: $4,000
_______________________________________________
Total: $3,840
HIP Grant: $5,000
________________________________________________
-$1,160 the remainder of the grant funds will go to buying
down you interest rate.
In this example it could buy the first mortgage rate to
%6.25 30 year fixed.
Minimum you will bring to the table is $500.
I know this one is very vague I have requested a breakdown of fees.. i appreciate all the help but I have questions which i will hold until you mortgage professionals review!!
Chi
I am combining my responses to the three GFE's into a single post. Something is just not adding up on the third GFE with the payments and that would concern me. Check that out and get back to us.
guy
Edited for spelling

Reply:GFE 3
What we can offer.
Loan amount- $196,000
80%-$156,800 6.5% – $792.87 30yr fixed
20%-$39,200 8% – $230.00 30yr fixed
Taxes – $122.00
Condo fee – $185.00
________________________________
Total Monthly Payment: $1,329.87
PLUS are closing cost is going about 4% or lower of the total loan amount in
this case $7,840 VS XXX(GFE1) $11,736 closing costs.
Closing Costs: 4% -$7,840
Seller Help: $4,000
_______________________________________________
Total: $3,840
HIP Grant: $5,000
________________________________________________
-$1,160 the remainder of the grant funds will go to buying
down you interest rate.
In this example it could buy the first mortgage rate to
%6.25 30 year fixed.
Minimum you will bring to the table is $500.
I know this one is very vague I have requested a breakdown of fees.. i appreciate all the help but I have questions which i will hold until you mortgage professionals review!!

Reply:GFE 2
LTV 100%
rate 6.375%
sales/loan amt 196,000
conventional
30 yr fixed
801 loan origination fee 0
802 loan discount fee -.094% -184
803 appraisal fee 0
809 flood determination 11
tax service fee 70 application fee 200
lender closing fee 619
abstract title 200
title ins binder 25
attny fee 295
title ins. 882
recording fee 100
city/county/tax stamps 1,372
doc stamps 431
survey 175
total est. closing costs 4,196 but roughly 6K after talking with him
interest for 15 days $513.00
MOS. Taxes $1098.00
Total estimated prepaid items $1611.00
estimated closing costs $4196.00
estimated prepaid items $1611.00
estimated total costs $201,807.00
less
cash received at application $200.00
loan amount $196.00
closing costs paid by seller $4000.00
estimated cash for closing $1607.00
mortgage principle and interest $1223.00
estimated real estate taxes $122.00
HOA dues $185.00
total monthly payment $1530.00

Can You Purchase a Home Under Business Name [credit score] [landlords]

admin — Wed, 14 Dec 2011 08:10:00 +0000

Rent A buddy and I try to buy some properties. There are a ton of houses in the $ 20,000 – $ 40,000 range, where I live, which actually in good condition and be decent enough areas landlords.
He has a good credit score (700)
and I have terrible credit. (500)
I earn good money, does he set it up not.
Is possible, is a business (or add it to business I already have) to select a loan to purchase these properties?

Best Answer: Since his business does not have established credit his personal credit is used.

You should avoid doing business with anyone with bad credit. Bad credit does not happen by accident, it happens when you screw over lenders. If his ethic are bad enough to have bad credit his ethics will allow allow him to completely screw you over.

Reply:$20k? Maybe a credit card BT, a personal/signature loan from your local bank. With a 700 score, $20k shouldn't be that hard to scrounge up. *as long as you have the income to support such a loan obviously*
edit – afterthought…. seasoning of this money may be an issue (ie how did you suddenly acquire $20k), they may ask that question.

Reply: Thank you…any ideas on where to get a $20,000 – $40,000 loan? Would $5,000 down make sense in this scenario?
I doubt $5k would do it
but you have to ask each will be different
I would start with a local broker and see if they have any hard money sources
if that doesnt work believe it or not try craigslist
expect to pay heavy fees and a very high rate if you do find it
Good Luck
B

Reply:You are looking for a hard money loan, they are not easy to get with good credit.

Reply:Thank you…any ideas on where to get a $20,000 – $40,000 loan? Would $5,000 down make sense in this scenario?

Reply:Probably not
unless you have large down payments and can find a private money source
conventional banks will not touch this scenario
They will always use the lowest score and for investments will expect way more than a 500
Good Luck

I may have to go postal on Experian [credit score] [dh]

admin — Tue, 06 Dec 2011 00:10:00 +0000

Has anyone noticed their new website today? They sent me a nice little note that my DH was updated credit score. The credit report is the same yesterday today but his score went from 609 to 587! Can someone explain? Should I send them a message and ask, why?

Reply:This same thing happened to me today. My score has been up to 662 for almost two weeks and today when I pulled my Experian fako it went down to 629 which made me curious because it had been sitting at 629 for some time before it moved up again. I am hoping something is wrong from when they updated the site…

Reply: The IS no correlation between FICO and FAKO. Your FICO may well have gone up. It could very well be an adjustment based upon an update 72-96 hours ago…those alerts are not usually real-time.
That being said, you are at a point where knowing precise scores is not an essential focus, no matter whether FAKO, FICO or partridge in a pear tree.
Not entirely true though. We are pre-approved for a mortgage through Bank Of America and we are just at a point of figuring out what kind of rate and down payment they will need. They have told us that of the 3 FAKO scores (NOT FICO- which is crazy to me) the middle one will be the one that they base it on and we have to get the middle one to a 620 to get the rate and down payment we want. So, I am relying on these scores!!! Luckily the EX was the lower one already so I am not too bummed. I just wonder how much of all of this is really true when it comes down to crunch time. The reason that they don't really care if there are delinq. on his report is because they are all racked up by his ex-wife and they can overlook them for now because we don't have the money to pay them all off and then hire an attorney to sue her for her 50%. Again, hard to believe!
whatever scores BOA is using they are not your EX FAKO scores.

Reply: FAKOs should be summarily ignored. Your energy is better spent on items that affect real credit scores.
I know but FICO's are too expensive and it is nice to see the FAKO's go up with all of my hard work…gives me a sense of accomplishment! It was just a let down!

Reply:FAKOs should be summarily ignored. Your energy is better spent on items that affect real credit scores.

Reply:I never pay attention to FAKOs.

MyPrivacyMatters score [credit score] [checking account]

admin — Sun, 04 Dec 2011 23:10:00 +0000

Is it nomal for their scores to be different than the TC scores? (Maybe why this is why Key only offered me a $750 CC when i opened a checking account last fall… )
Your credit score is 579
Summary

Given that you have a very low credit score, it will be hard for you to acquire any new credit. Prepare yourself to pay high fees and interest rates. Additionally, lenders almost certainly will require you to make a large deposit or down payment. Do not expect to receive a high loan amount. Concerning credit cards, it may be difficult for you to qualify for any card. If you do qualify for a credit card, you will probably have a very low credit limit with extremely high interest rates.

Explanation
Here are the top factors that make your score lower:

Too many active bankcard accounts
Ok, so with nearly 40 CC accts and 18 active, some might consider it too many.
Too many delinquencies
I have like 4 lates from 2/2004.
Length of time accounts have been established is too short An optimal credit report will contain about 30 years of credit history. Credit reports that are too short generally present up to 7 years of credit history. Credit reports with less than 3 years of history are considered not adequate.
My oldest reported card is 25 yrs, my avg age is 5 yrs.
Total balance of personal finance accounts is too high High credit balances for revolving accounts (credit cards) and some installment accounts (mortgages and auto loans) are considered by lenders to be a negative factor when determining credit worthiness.
I have no finance ccts, no installments, 2 6 mon old mortgages. CC balances = 22000, about 18% utility.

Reply: TC isn't any better IMO. TC has my EX at 684, 45 points under my FICO score.
These services are very deceptive in their advertising about how important it is to know your score. Their scores don't mean anything.
My TU TC is 657 – FICO is over 700… which makes this 579 even worse. It just seems to me like they pulled the number (and reasons) from someone elses report…
According to them, i'm in the worst group and no one will ofer me credit – hope they don't tell amex, i'd hate to see my gold card closed or a FR before i even use it.

Reply: [They are all proprietary and each of them got different formula. Why do you think other FAKO's must be similar to TC's FAKO?
Because it's from myprivacymatters and is based off TU – i thougt they use TC backed?

Reply:
Those fako scores are laced with snakeoil.
I know that – but i expected it to be about the same as the fakos from TC & experian – not 100 points lower.
It is normal for these fakos to be so wrong? If not, anyone just using this service will think they have worse credit than they really do. They are really farther off than TC scores.
TC isn't any better IMO. TC has my EX at 684, 45 points under my FICO score.
These services are very deceptive in their advertising about how important it is to know your score. Their scores don't mean anything.

Reply:
Those fako scores are laced with snakeoil.
I know that – but i expected it to be about the same as the fakos from TC & experian – not 100 points lower.
It is normal for these fakos to be so wrong? If not, anyone just using this service will think they have worse credit than they really do. They are really farther off than TC scores.
They are all proprietary and each of them got different formula. Why do you think other FAKO's must be similar to TC's FAKO?

Reply: Those fako scores are laced with snakeoil.

Reply: Is it nomal for their scores to be different than the TC scores? (Maybe why this is why Key only offered me a $750 CC when i opened a checking account last fall… )
It's still a FAKO, but then again any CC companies can use FICO or FAKO or whatever.

Reply:Those fako scores are laced with snakeoil.

Your credit score may change as FICO creators drop authorized users [credit score] [creators]

admin — Mon, 28 Nov 2011 00:30:00 +0000

http://www.baltimoresun.com/business/inves._investing_util

Reply:It's funny. I'm an AU on 2 old Chase accounts 15+ age and 40K in unused credit lines. But
the accounts are only showing up on my Experian credit report. Go figue.

Reply: I'll once again mention the rumor that fair isaac is going to try to sell this as a NEW type of score for which companies will have pay seperately for…if that is the case then we may not see this change effect consumers as quickly as some fear.
i hadn't heard that rumor but i wondered if they would keep the current method as a 'classic' fico and market the new method for just specific types of loans – as in mortgages.

Reply: I think AU's should factor into credit scoring only for married couples, although I'm not sure how the credit bureaus could enforce that. Although, I have to say it kind of bugs me to see 18 year old kids with 250k in available credit and Ficos in the 800's because Mommy and Daddy made them AU's on 25 year old accounts. That never seemed right to me.
there are two ways:
1. The creditor only reports spousal AUs (many creditors already ask the relationship when you add someone as an AU)
2. The CRAs only report AU accts when the billing address of the acct matches the address on the CR.
#1 would be the best IMHO.
(My kids are AU on some of my older accts, not for scoring but because they use the cards. One of my kids uses a gas card issued in the older kids name and signed by another child.)

Reply: it is not about riding on the coat-tails…AU status was created in part to protect non-working spouses; traditionally this meant stay at home moms who after divorce or other life event found themselves in need of credit but unable to obtain it due to a thin file or complete lack of history.
But… not all creditors use FICO for determination. They may use a scoring method that considers AU accts… provided the CRAs don't stop reporting AU accts. The best solution is for CC's to not report non-spousal AUs.
The ECOC was created to help SAHM who were AU on their DH's accounts. It required reporting on the AU's CR so i don't think the CRAs will remove AU accts from the CR, unless they stop reporting if the addresses don't match. All FICO is doing in not calculating these accts into the score…
It will be interesting to see if there are any actions taken under the ECOC by those who do end up with lower scores.
yah FICO is undermining the spirit of the ECOA for married couples.
AUs will still be reported just not scored. and you are correct regarding internal scores; they will probably continue to count (or not count) AUs.
I'll once again mention the rumor that fair isaac is going to try to sell this as a NEW type of score for which companies will have pay seperately for…if that is the case then we may not see this change effect consumers as quickly as some fear.

Reply: This isn't old news? Hmm….
this was the first publish report I've seen mentioning which CRA will be first. do you have a problem with me linking it?

Reply: http://www.baltimoresun.com/business/inves…_investing_util
Definitely something I don't have to worry about since I've worked hard to build my own credit and haven't ridden around on the coat-tails of someone else…
in this case, it has paid off for me to be independent I guess………..
it is not about riding on the coat-tails…AU status was created in part to protect non-working spouses; traditionally this meant stay at home moms who after divorce or other life event found themselves in need of credit but unable to obtain it due to a thin file or complete lack of history.

Reply:I wonder how this will effect the credit pools. Now will the scores adjust where the people who were just afloat, now get some air?

Reply: http://www.baltimoresun.com/business/inves…_investing_util
Definitely something I don't have to worry about since I've worked hard to build my own credit and haven't ridden around on the coat-tails of someone else…
in this case, it has paid off for me to be independent I guess………..
Ditto!
Unfortunately, I know my friend has been a sahm for about six years and will take quite a hit, as she only has one or two cards in her name, yet probably eight to ten as hubby's au.

Reply:This isn't old news? Hmm….

Reply:I started to build credit through Dh's accounts but luckily, now, I have seveal in my own name and 2 auto loans and I just got my first prime card..in with Citi in my own name. So hopefully with time, I'll have a good score as I know it's going to drop once the rules take place. Ugh.

Reply:or my scores could go up. Im only AU on one account with 90% utilization. If it drops, maybe i'll gain some points in better utilization

Reply: EX is first. LOL
No wonder companies are pulling EX so much.
FREEZE them if you can

Reply:I SURE WON'T PAY TO FIND OUT

Reply:EX already dropped my AU tradeline. I was an AU on an account with my mom for several years, finished paying it off – and she dropped me from it like we discussed. TU and EQ are still reporting it as a positive tradeline, but EX removed it entirely within a week. It caused a substantial drop in my score because it was an aged account with a high CL.
I was surprised that they did it so fast, and so soon – I thought I had a little more time before it went into effect. Oh well.

Reply:I guess I'm going to have to get my wife's AU accounts converted to joint accounts so she doesn't lose score/history. Maybe just the two old Citi accounts. She has one Amex of her own but other than that it's mostly AU accounts of mine and joint accounts from the paid off mortgages and HELOC.

Reply:Funny, but my recent addition of my GF's Chase card started reporting on TU and EQ a few weeks ago, and it's still not reporting on EX. I wonder if they'll just stop reporting the cards alltogether now?

Reply:Experian doesn't start til next month? Well I pulled my score about 2 days ago and my EX was down to 492 from a weak 606. I really though tit was from this change but I see it hasn't even taken effect uet. I guess all my new accounts finally started to effect my score. Oh well, I'm gonna hate to see what my score is when they do make the change. Guess I'll get my utilization down and hope for the best

Reply:So I guess Equifax' ineptitude of late can't be blamed on this scoring change. I thought it was gonna be Equifax.

Reply:EX is first. LOL
No wonder companies are pulling EX so much.

Reply: And now we know–EX is 1st…it'll be interesting to see the overall impact.
well I mentioned EX a while ago…

Reply:And now we know–EX is 1st…it'll be interesting to see the overall impact.

Questions on increasing credit score w/auto loan [credit score] [auto loan]

admin — Sat, 12 Nov 2011 05:20:00 +0000

Hello to all my center is 645, and now, and I have to buy the cash-u0026-demand, a used SUV. I am self-employed and can not really show a lot of income right now. I thought I would go my credit union and take just a loan against my account and pay that over a year. Suggestions? Thanks Rob

Reply: pay on it over a 3 year term.Thank you for your time & reply.

Reply:pay on it over a 3 year term.

Reply:On behalf of CreditBoards Admin, guy would like to extend a sincere and warm welcome to the Automotive Forum.
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Buy a house now with low rates or wait 6 months for better credit score? [credit score] [buying a house]

admin — Thu, 10 Nov 2011 15:50:00 +0000

I plan to buy a house when I come home from school in April. But, I wonder what would be a better decision prices as low as they are.
Right freecreditreport.com is now after my score was 636 and for the last 3 months, then it should go up this month or next month but a few.
With prices would be as low as they are now better for me to get a house with the credit have, or wait until April when my score is higher and the rates can be higher?
I'll try to do 100% financing shall be 30 years.
I live in Missouri around the zip code 63 129 and make around 45-50k

Best Answer: if i was you id go back to the bank in talk to her superior! they will handle her in if you politely tell them what happened they may be able to cancel the card where it wont show on your credit report at all

Reply:Thanks for the clarification.

Reply: If you are looking to buy in April of 08, you may want to wait a bit. The fed meets in January, March and April, with the possibility of dropping key rates each time.
per this article:
CNN Money article
"Wall Street is banking on more rate cuts at the central bank's first three meetings in 2008, which will take place in January, March and April. The fed funds futures are pricing in a fed funds rate of 3.75 percent by May, three-quarters of a percentage point lower than current levels."
I am not psychic, but many signs point to a rate drop early next year.
The fed rate has no bearing on mortgage interest rates except for HELOCS. Mortgage rates are determined by the bond market. So when the yield on the bond drops……mortgage rates drop. A good gauge of where the bond market is going is the stock market. When the stock market drops……fund managers move money form equities to the bond market…….the more money going into the bond market the less the bonds yield. Lower yield equals lower rates.

Reply: Chances are a higher score will result in the same kind of rate you would get today……..there is an improve to the rate with a 680 or higher score…….but with guideline changes……I think it's foolosih advice to suggest waiting till you get a higher score…..
Can you please explain what you meant about the guidelines changing? I seem to recall someone posting something about that a while back, but I can't remember any details. Does it pertain to a refi as well or just new purchases (I ask because I am holding off on a refi until the middle of next year)? Thanks!
Over 70% LTV (refi or purchase) with less than a 680 will start having rate adjustments the further you are away from a 680. Some lenders have already gone in affect, the rest will start at various points during January… all will be in affect in February. FHA & VA are exempt from those changes at this point.

Reply:If your credit history is clean and has some depth, you should be able to get 100%–expect to pay mortgage insurance. Look at 100% conventional and possibly FHA with down payment assistance.
With the feds supposed rate cut tomorrow, it is a great time to buy!

Reply:Ok, thanks guys. I guess I'll get the preapproval process going. Hopefully I can get 100% financing.

Reply: I plan on buying a house when I get out of school in April. But, was wondering what would be a better decision with rates as low as they are.
Right now according to freecreditreport.com my score is 636 and has been for the last 3 months, so it should go up this month or next month some.
With rates as low as they are would it be better for me to get a house now with the credit I have, or wait until April when my score is higher and rates may be higher?
I'll be trying to do 100% financing on a fixed 30 year.
I live in Missouri around the 63129 zip code and make around 45-50k
Chances are a higher score will result in the same kind of rate you would get today……..there is an improve to the rate with a 680 or higher score…….but with guideline changes……I think it's foolosih advice to suggest waiting till you get a higher score…..

Reply:I make about 45k right now. I don't think I'll make more in April. They are basically paying me as if I had the degree. I might go up a little bit. I'm looking to borrow 150k max.

Reply:Generally I would recommend acting now, but how much do you make now? Will you make more once you finish in April?
How much are you looking to borrow?

Joint Credit Card Confusion [card guru] [credit score]

admin — Mon, 31 Oct 2011 18:20:00 +0000

Hi Credit Card Guru’s,
I have poor credit (only because of short term credit history) and so my girlfriend did a joint credit card with me. She has a better credit score and much much longer credit history. We both signed for the joint credit card and I received the two credit cards even though we do not live together. I took the credit card with my name on it and I then drove to my girlfriend’s house to give her credit card with her name on it.
What we both are confused about is WHO the ‘primary credit card holder’ is? Once I received the credit cards I called up the credit card company, answered their questions, and they activated MY card. I was told that ONLY the primary credit card holder may activate the cards. My girlfriend hasn’t done anything with her credit card and she has not called to activate her card thus I don’t know even if she could activate it. If I could activate the card, does that mean I’m the primary credit card holder? With my credit card, I created an account online where I can view my credit card account information. However, I do not see anywhere on my online account her information or that she even exists on the joint credit card (except for the fact that I received a credit card in my name and one credit card in her name). But I do know that my HIGH credit limit isn’t due to my credit history but hers. Someone told me that the primary credit card holder can see BOTH credit accounts and that the primary card holder can keep track of how much is spent on both credit cards. Can anyone clarify?
Who is the primary credit card holder or how can I determine this?
Thanks!
Jason

Reply:
Both cards were mailed to me. My name appears on the letter that the two cards came in. Does this mean I'm the primary credit card holder?
That would be a good indication.
I guess it still doesn't make sense to me practically. I have a high credit limit because of my girlfriend. But, i'm the primary cold holder (even though I have a lower quality of credit than my girlfriend) where my girlfriend is not the primary card holder. It would seem like she should be the primary card holder since she has the higher and better credit than myself. However, being that i'm the primary credit card holder means that the responsibility ultimatly falls on me? And if my girlfriend purchases things that I'm essentially promssing to pay off any of her debts if she decides not to pay? The credit card companies go after the primary card holder first? If so, that's good considering that I will be the one utilizing the credit card and WILL be responsible with it. I'm not worried about the responsibility since I would be. I just want to understand and know…and my girlfriend wants to understand and know too. Thoughts?
I will also call them at some point tomorrow…to late tonight…the discussion helps to give me ideas of what to ask tomorrow
You are still thinking in AU (Authorized User) mode, which you and her are not. You two are equally responsible for the account no matter what since you two are joint. Being primary here does not add up to much except for a place for the bill to show up each month, thats all. Her credit most likely is the reason for the accounts particulars being what they are (in a good way) which she basically extended her good credit to you by being a joint, so thank her for that.

Reply:But, still just call them and be certain.

Reply:
Both cards were mailed to me. My name appears on the letter that the two cards came in. Does this mean I'm the primary credit card holder?
That would be a good indication.

Reply:
Both cards were mailed to me. My name appears on the letter that the two cards came in. Does this mean I'm the primary credit card holder?

Reply:
whats the difference???????????
It is a big difference. The AU by law cannot be held liable for the Account in anyway but a joint will be held equally liable and therefore has sayso over the management of the account too whereas the AU does not.
ah.. but both joint users and AUs get cards with their name on it right?
Yes they do.

Reply:IMO the OP should have been made an AU on the account instead of Joint. I really feel like it is shooting yourself in the foot by being Joint. You get all the credit/FICO benefits of Joint by being AU with none of the inq hits or responsibility in case stuff goes south.

Reply:
whats the difference???????????
My understanding of the difference would be a joint holder is equally responsible for bills, charges, etc. – an AU is authorized to use the card, but doesn't actually own it and isn't technically responsible to the creditor for the charges/fees.

Reply:
whats the difference???????????
"AU" IS NOT "JOINT"
"AU" AUTHORIZED USER-NO CONTRACTUAL RESPONSIBLITITY
"JOINT" BOTH 100% RESPONSIBLE

Reply:
whats the difference???????????

Reply:
His question is not about AU's but Joint account.

Reply:It should be reported on your credit report who is the AU is. At leats Crap 1 details it as an AU on my report.

Reply:
WHO'S NAME IS LISTED FIRST ON THE STATEMENT OR MAIL THAT YOU GET FROM THEM???

Reply:
Again you and her need to sit down together and call the Creditor and point blank ask all of these questions (strait from the horses mouth so to speak) so you will have some confidence in the answers given. The Creditor should be interested in answering all your questions and making sure you are a satisfied/happy customer.

Reply:So when I make purchases on my credit card can she see what I purchased? Or, if she makes purchases can I see what she purchased?

Reply:Typically when the account is activated with the "Primary" card the other card is also activated automatically. AMEX is the only company that I know of that makes the secondary and authorized users activate theirs cards.
As far as the confusion have your girl friend come over and the two of you point blank ask them on the phone how the account is set up and who is primary and whatever else you can think of. Don't worry they wont take the cards away from you.

2nd mortgage reporting as discharged in bk, should I dispute? [credit score] [bk]

admin — Fri, 28 Oct 2011 11:10:00 +0000

We have secured a second mortgage for $ 15,000, which was in our bk, but not fired. The Big Three are reported to be unloaded when it is live and has a balance of $ 6,000. Wants to contest this will help or hurt my overall credit score? Should I dispute it online or in writing with documentation?
Thanks
Joe

Reply: it is hurting because it's IIB….
but if you dispute it with the CRAs, and it gets deleted, it will hurt more. I'd write to the OC
If you reaffirmed it then it is being reported incorrectly.
I agree with pryan, write to the OC a "goodwill" letter. Stress your payment record with them and state that you wish to continue the relationship, HOWEVER, their misreporting of your account as being discharged in BK is not only incorrect, but a violation of the FCRA.

Reply:it is hurting because it's IIB….
but if you dispute it with the CRAs, and it gets deleted, it will hurt more. I'd write to the OC

Reply:I guess I didn't make myself clear. We reaffirmed the 1st and 2nd mortgage at the time of bk, the 1st is showing current with no lates. I would only want to dispute it with the credit reporting agencies if it is hurting my rating by showing a discharge. Would the fact that it is current help my overall rating or would having an open 2nd mortgage on my report actually lower my rating and ability to get an auto loan?
thanks

Reply: We have a second secured mortgage for $15,000 that was listed in our bk, but not discharged. The big three are reporting it as discharged when it is actually current and has a balance of $6,000. Will disputing this help or hurt my overall credit score? Should I disput it on line or in writing with documentation?
Thanks
Joe
Before you start disputing anything, why are you so sure it WASN'T discharged in BK.?? The fact that you probably did not reaffirm it, ( or your 1st ) and are still paying only means that they did not foreclose.
How is your 1st mortgage reporting?? Did you reaffirm IT??
If you dispute it with the OC and they request you sign a reaffirmation, you are not going to be helping yourself. It is POSSIBLE that your BK did in fact discharge your 2nd, which means that if you stopped paying them, they could not file against you short of a foreclosure.
In a foreclosure action, the 2nd would not be able to claim a deficiency, unless you reaffirmed it.

Reply:I'd contact the OC about it

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