OT: Request for help!

[Zorro]

I have agreed to help my step-son try to repair his credit, which is pretty bad. I am led to believe that a common-sense approach is not always effective and that there are some sharks in them waters. If anyone has first-hand knowledge and would be willing to share it, I would appreciate a pm.

Hey JS, Biff, Nan or whoever; I forgot (obviously!) the OT, and also hung an l in the thread title. Would you very sweetly fix it for me? Thanks. z

 

[j66kicker]

There are tons on "How to" articles listed in Google. Best is if you know a mortgage broker - they specialize in matching borrowers and lenders, and are experts getting borrowers' FICO scores up to snuff.

 

[Zorro]

Thanks JJ. Have been searching Google; problem is, the advice is sometimes conflicting. Hoping to find a BYer with some expertise and a few free minutes.

 

[j66kicker]

Prolly not a lot of American mortgage brokers in G'mala, huh? Is that McAfee guy still hiding out around there? He could probably just hack your step-son a better credit score in exchange for hiding his girlfriend out for a while and a few choice banana peels and herbs

 

[DaddyChoc]

first thing is to admit there's a problem, get spending in order, line up monthly bill, set up a budget, call collectors and work out a payback plan... and wait!

 

[KnightBridgeAZ]

first thing is to admit there's a problem, get spending in order, line up monthly bill, set up a budget, call collectors and work out a payback plan... and wait!

While that's the essence of it, I do think it wouldn't hurt to have someone more expert in your corner. Not one of these companies that advertise they get you out of debt but get you into debt with them.

I think I would start in that situation with a reputable financial adviser who - even if he / she can't specifically help - might direct you to a reputable resource.

 

[j66kicker]

Yes he needs to start spending responsibly, etc, etc. But, in the short term, a knowledgable professional with contacts (and motivation) can help him "correct" some of the injustices that may be unnecessarily penalizing his credit score.

 

[DaddyChoc]

Yes he needs to start spending responsibly, etc, etc. But, in the short term, a knowledgable professional with contacts (and motivation) can help him "correct" some of the injustices that may be unnecessarily penalizing his credit score.

not to go back and forth without fully being aware if the situation... how is it "unjust" and "unnecessarily"... isnt there just a simple cause and effect?

 

[j66kicker]

not to go back and forth without fully being aware if the situation... how is it "unjust" and "unnecessarily"... isnt there just a simple cause and effect?

Fundamentally, yes, but there are errors commonly made by the rating services, such as less-than timely updating or omitting certain data - things that can be corrected by someone who can work the system. This can include the intentional creation of new data or credit behavior to shift the score much faster than just, "Behave yourself and it will eventually take care of itself."

 

[Joobie]

I got myself into a bad situation with credit cards when my boys were teenagers. My ex refused to pay child support & pretty much everything they needed (essentials like clothes & shoes) wound up on my credit card coz my paycheck was going to other important stuff like rent, food & electricity. Anyway, I worked out a "deal" with the credit card company to pay off just the principle. My Dad (God bless him) gave me the money to do that (close to 10K) & he watched as I cut the credit card into tiny pieces. I got another card several years later; one of those Providian cards where they only allow you to have a small credit line. I graduated from there & now own a house with a very small mortgage. I also make it a point to pay my credit card balance every month. I am also proud to report that my credit score is AWESOME now!

 

[Zorro]

Prolly not a lot of American mortgage brokers in G'mala, huh? Is that McAfee guy still hiding out around there? He could probably just hack your step-son a better credit score in exchange for hiding his girlfriend out for a while and a few choice banana peels and herbs

I believe that Brother McAfee was extradited, but am not sure. He had not committed any crimes in Guate, to my knowledge, but WAS arrested here. We gots our own troubles down here; it's interesting.

 

[Zorro]

first thing is to admit there's a problem, get spending in order, line up monthly bill, set up a budget, call collectors and work out a payback plan... and wait!

That is common sense, but it seems that credit reestablishment is not all that commonsensicle.

 

[Zorro]

I got myself into a bad situation with credit cards when my boys were teenagers. My ex refused to pay child support & pretty much everything they needed (essentials like clothes & shoes) wound up on my credit card coz my paycheck was going to other important stuff like rent, food & electricity. Anyway, I worked out a "deal" with the credit card company to pay off just the principle. My Dad (God bless him) gave me the money to do that (close to 10K) & he watched as I cut the credit card into tiny pieces. I got another card several years later; one of those Providian cards where they only allow you to have a small credit line. I graduated from there & now own a house with a very small mortgage. I also make it a point to pay my credit card balance every month. I am also proud to report that my credit score is AWESOME now!

Good on you, Joobie! Once upon a time I owed the IRS over 50k, non-negociable, but that was 30 years ago and Mrs Z and I are now rock solid. Took a lot of sacrifice, though.

 

[Zorro]

While that's the essence of it, I do think it wouldn't hurt to have someone more expert in your corner. Not one of these companies that advertise they get you out of debt but get you into debt with them.

I think I would start in that situation with a reputable financial adviser who - even if he / she can't specifically help - might direct you to a reputable resource.

Good idea, exactly why I made the OP.

 

[j66kicker]

I believe that Brother McAfee was extradited, but am not sure. He had not committed any crimes in Guate, to my knowledge, but WAS arrested here. We gots our own troubles down here; it's interesting.

Hmmmm.. I found this in his Wiki:

"On September 8, 2015, McAfee announced that he will seek the office of U.S. President in the 2016 presidential election. He is running with the newly-formed Cyber Party."

http://www.businessinsider.com/john-mcafee-presidential-campaign-interview-2015-9

 

[Adesmar123]

Has he admitted he screwed up, or is he just accepting your assistance?
Have you checked out Daveramsey.com? Read his website. Its full of good advice. His extraneous stuff may drive you crazy, but he got the basics down.

Dadychoc's words above are dead on too.

 

[UcMiami]

not to go back and forth without fully being aware if the situation... how is it "unjust" and "unnecessarily"... isnt there just a simple cause and effect?

I had a situation years ago with a silly disputed bill that got reported to the credit agencies - it was a few hundred dollars for services not rendered that I refused to pay. It was still sitting there four years later, and a simple phone call to the ratings folks actually got it removed. So yes, unjust and unnecessary can have meaning when talking about credit reports - businesses report you to the agencies and you can only report them to the BBB unless you or they want to actually go to court.
And with credit cards being able to jack interest rates to astronomical levels for each late payment or missed payment or over limit charge, some of that stuff can get pretty 'unjust' even if it is technically legal - had business dealings with someone who was paying over 40% interest on one of his cards and over 30% on a few others.

Interesting story from years ago - a very wealthy friend paid all his bills immediately after he received them, until one month he mislaid one bill for two weeks - he still sent in his payment on time, but the company had already put in a cancelation notice because their computer had flagged him as delinquent if payment wasn't received within 5 days of billing based on his years of payment records.

 

[yanks61]

Credit repair companies are a rip off. One of the few ways to reestablish your credit would be with a "secured" credit card or two You will not be rejected, because you secure the card with a cash deposit equal to the card's credit limit. Use the card (pay on time & stay under the limit) and now you start showing an account with a good payment history. This will take time, there is NO quick fix. This is a start.

 

[yanks61]

I have agreed to help my step-son try to repair his credit, which is pretty bad. I am led to believe that a common-sense approach is not always effective and that there are some sharks in them waters. If anyone has first-hand knowledge and would be willing to share it, I would appreciate a pm.

Hey JS, Biff, Nan or whoever; I forgot (obviously!) the OT, and also hung an l in the thread title. Would you very sweetly fix it for me? Thanks. z

Credit Karma will give you some very good information, I recommend to customers.

 

[DaddyChoc]

I had a situation years ago with a silly disputed bill that got reported to the credit agencies - it was a few hundred dollars for services not rendered that I refused to pay. It was still sitting there four years later, and a simple phone call to the ratings folks actually got it removed. So yes, unjust and unnecessary can have meaning when talking about credit reports - businesses report you to the agencies and you can only report them to the BBB unless you or they want to actually go to court.
And with credit cards being able to jack interest rates to astronomical levels for each late payment or missed payment or over limit charge, some of that stuff can get pretty 'unjust' even if it is technically legal - had business dealings with someone who was paying over 40% interest on one of his cards and over 30% on a few others.

Interesting story from years ago - a very wealthy friend paid all his bills immediately after he received them, until one month he mislaid one bill for two weeks - he still sent in his payment on time, but the company had already put in a cancelation notice because their computer had flagged him as delinquent if payment wasn't received within 5 days of billing based on his years of payment records.

all still the card holder's fault

after 4 yrs, they said "whatever thats long enough" (after looking at things during those four years)
Late pymts or Missed pymts... dont make them and you'll have no problem cause what they can do is "technically legal"
30% 40%... guess they didnt read the fine print or was just sooooooooo desperate for the items they "charged" that the rate didnt matter (at the time)

that "wealthy friend" situation is bad if they're penalizing him for not paying on the same day as he did previously but within the due date... but was that wealthy friend cancelled?

 

[DaddyChoc]

I got myself into a bad situation with credit cards when my boys were teenagers. My ex refused to pay child support & pretty much everything they needed (essentials like clothes & shoes) wound up on my credit card coz my paycheck was going to other important stuff like rent, food & electricity. Anyway, I worked out a "deal" with the credit card company to pay off just the principle. My Dad (God bless him) gave me the money to do that (close to 10K) & he watched as I cut the credit card into tiny pieces. I got another card several years later; one of those Providian cards where they only allow you to have a small credit line. I graduated from there & now own a house with a very small mortgage. I also make it a point to pay my credit card balance every month. I am also proud to report that my credit score is AWESOME now!

great story...

 

[Zorro]

Has he admitted he screwed up, or is he just accepting your assistance?
Have you checked out Daveramsey.com? Read his website. Its full of good advice. His extraneous stuff may drive you crazy, but he got the basics down.

Dadychoc's words above are dead on too.

Yeah, I think he has finally had enough. Will check out Daveramsey. Thanks.

 

[Zorro]

Credit Karma will give you some very good information, I recommend to customers.

Yes, CK is great; I use it all the time to monitor my own financial situation. A great free resource.

 

[UcMiami]

all still the card holder's fault

after 4 yrs, they said "whatever thats long enough" (after looking at things during those four years)
Late pymts or Missed pymts... dont make them and you'll have no problem cause what they can do is "technically legal"
30% 40%... guess they didnt read the fine print or was just sooooooooo desperate for the items they "charged" that the rate didnt matter (at the time)

that "wealthy friend" situation is bad if they're penalizing him for not paying on the same day as he did previously but within the due date... but was that wealthy friend cancelled?

It was actual either a utility or phone bill, and they did shut the service off for a day - this was maybe 40 years ago. It was an absolutely ridiculous situation - early days of computers and a very bad programming job!

Credit cards are very similar in their marketing and fine print to the predatory mortgage business - and yes the borrower or credit card owner is responsible for their irresponsible actions, but ... it really is not far off the business model of loan sharks or drug dealers or gambling dens.

 

[vtcwbuff]

I agree 100% with DaddyC - All of the grumbling about interest rates, payment penalties and bad credit reports belongs squarely on the shoulders of the card holder/debtor. Spend only what you can afford, pay on time and most important - use credit wisely and there will be no problem. I would add - get a part time job. Get two part time jobs if that's what it takes

It's like the woman I saw on a talk show once. She was whining about drowning in credit card debt and she blamed the credit card companies because "they just keep sending me cards."

.