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Can't get credit witout credit!!!


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I have a serious problem which I can’t get any answers to or help with and I am at a loss.

Background: 29yo, never owned a home, never rented, STILL with live with my parents. I make $32k a year. Been on current job since March; previous job for 3.5 years; in the same field since ’99. Have $4k in a checking account with Chase. Have $20k in IRA with Chase. Have student loans at $140 a month (alas, no college degree of any kind) paid on time for 2 years. Have auto loan at $320 month paid on time for 7 months.

Credit History: My current scores are EQ: 505, EX: 509, TU: 619. I have had a few issues in the past, late payments on a Sears’s CC 6 years ago, late payments on medical bills 6 years ago, and late payments on a Fingerhut CC 6 years ago. All paid in full. Sears closed my account a number of years back, as did Fingerhut. I have had 3 auto loans. One more than 7 years ago and not showing up on any CR, one 6 years ago, only two 30 days late, paid in full 3 years ago, only showing on TU report (this might explain the drastic score difference as everything else is the same). One current auto loan, 7 months old, paid on time, shown on all three CR. I did have a Helzburg CC recently for 2 years. It was paid on time until they sold my account to Citibank, and never told me, so I still paid Helzburg. They didn't forward my payments till 3 months later. I got a call form Citibank saying I am 3 months behind. After straightening it all out, I now have it paid in full as of this past October with Citibank having closed my account in August, and with two 30 days late and one 60 day late on 3 CR!!! I can’t get this removed even though it wasn’t my fault. I applied for a home loan with Lending Tree 2 years ago, was approved by an out of state bank, but never found a place to purchase. I applied for a CC through Chase in this past May and was rejected. This past August, I applied through Chase for another home loan. Heart broken (all because of problems with Chase which I will be posting later), I didn’t get to purchase a place. I have numerous inquires on my CRs. My CRs are accurate. And as shown above, I have now VERY low scores to say the least (I have not check my scores since after the last home loan attempt, and had at least 5 inquiries since then so my score is problem in the upper 400’s now).

Problem: So I know I need to try to establish credit to boost my scores. But now here is my problem. I can’t get credit without (sufficient) credit. My auto loans and student loans are the wrong type of credit (non-revolving). So all I have left are the things form almost 7 years ago (which are bad and about to fall off) and the Helzburg incident. I have tried to get a major CC once a year, but have always been rejected. My parents have severe credit problems (foreclosures, BK, judgments, etc.) so they cannot even co-sign for me. Because of their problems, we have had to move 7 times in the past 11 years. I do not have any other family, friends, spouse, or significant other (uneducated 29yo still living with his parents, yeah right!) who can help me. I am on my own. I tried 3 years ago to get a secured card from Capital One when they still had one, they denied me (I can’t remember the reason). I have inquired about trying again through other Banks and CU (in person because I fell it looks better), but I am can’t get a straight answer as to why I would be turned down and I have been told by them that I can still be turned down even now, but they wont tell me unless I apply and they pull my report. They even said based on my situation, it doesn’t look like I will get one anyway. The last thing I want is another inquiry for secured card that I got rejected for showing up on my CR. This would be death. I inquired about a secured personal loan with Chase, but they also said base on my info I wouldn’t get it. I know homeownership is no longer an option for me (my score sucks and when it finally gets good enough, with inflation, I will be out of the market, as I am already mostly out of it now, my income is already maxed out for my job) so I need to rent, somewhere, anywhere, but I need credit to do it and I cant get any. I applied many times to rent a place, from nice places down to places you would feel safe in during daylight with a cop with you, and still rejected. I talked to credit counselors and they can’t help me because I don’t have unmanaged debt. One did say that part of my problem, especially for being denied a secured card, might be cause of my frequent residences. It may look like identity theft and raise a red flag to creditors, but there is nothing I can due about it other than being on my own which it what I am trying to do! I even called the Trade Commission and they said they couldn’t help me either.

I am out of options and at a loss! Can someone tell me where to go so I can get credit! I need to start a life (preferable before its time to retire!).

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We all started somewhere and of course reading some of the info that are stickies and credit rebuild does help you. Go to a credit union and put some money into a savings certificate and borrow on your owm money is a start. Check and make sure this is a creditor that does report. Go for the bank of america secured card. Try this link as well:

https://www.wellsfargo.com/credit_cards/select_card/secured/

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Change banks! Chase is merciless and unforgiving. If you're not perfect, you're not human to them.

Get an account with a credit union or smaller bank, and take out a secured loan and it will report to the bureaus as a positive tradeline.

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Check out this web site:

http://creditunionaccess.com/

It has all the credit unions in your city and state. You need to become a member to as many of them as possible. And they are so much more forgiving when it comes to establishing credit even though the credit you start off will be small.

Try your local credit unions first before you think about going to national credit card sub prime predators...

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I have had a few issues in the past, late payments on a Sears’s CC 6 years ago

That negative information will drop after 7 years.

late payments on medical bills 6 years ago

Is that a collection? Paid or not, you're taking a hit.

and late payments on a Fingerhut CC 6 years ago

Again, the 7-year reporting rule applies.

I have had 3 auto loans. One more than 7 years ago and not showing up on any CR, one 6 years ago, only two 30 days late, paid in full 3 years ago, only showing on TU report (this might explain the drastic score difference as everything else is the same). One current auto loan, 7 months old, paid on time, shown on all three CR.

Not all creditors report to all CRA's. Since they have to subsribe to the service, some opt to only report to one, some to two, some to all three major ones.

I did have a Helzburg CC recently for 2 years. It was paid on time until they sold my account to Citibank, and never told me

They had to have. It was probably in a notice that came along with your statement that you did not read. They have to by law, disclose that information, and the way they do it is to mass-mail their cardholders usually along with their monthly statement.

I applied for a home loan with Lending Tree 2 years ago, was approved by an out of state bank, but never found a place to purchase.

So you're credit isn't all that bad after all... see?

I applied for a CC through Chase in this past May and was rejected. This past August, I applied through Chase for another home loan. Heart broken (all because of problems with Chase which I will be posting later), I didn’t get to purchase a place. I have numerous inquires on my CRs. My CRs are accurate. And as shown above, I have now VERY low scores to say the least (I have not check my scores since after the last home loan attempt, and had at least 5 inquiries since then so my score is problem in the upper 400’s now).

As indicated in the above posts, stay away from Chase - if for no other than they are a prime lender - which means they want the creme of the crop. You have to set your bar lower - and pull your money out of them too.

My auto loans and student loans are the wrong type of credit (non-revolving).

No they aren't. Even though they are installment, they are an indication of your responsibility over the term of the loan. It will count toward your overall credit profile.

I am out of options and at a loss! Can someone tell me where to go so I can get credit! I need to start a life (preferable before its time to retire!).

At 29, you have plenty of time left.

How are the balances on the outstanding loans? That's a factor too. It doesn't mean everything just to pay on time. If the balances are too high to the amount of the loan, you're a bigger risk....

So yes, start checking those local credit unions! - the single branch variety.

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Don't be discouraged, Brian. We'll help you. One good thing is that you have saved some money for retirement.

Many credit unions offer "second chance" checking accounts, in which they fully expect you to have past credit problems. Check them out. It's a good start. And as Doc said, some of your debts are old enough that they'll be off your report soon. That will help.

Just read up on everything you can on this site. Believe me, we've been through it all. :wink:

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Brian,

Congratulations on your awakening. The best thing you have done is recognize your situation. Now it is time for the hard work to begin- time to turn it around.

I'm younger than you by about a year or two. But there are people that live their entire lives and don't recognize why they struggle and can't get ahead. You will not be one of them if you take this opportunity to get a grip on your financial/credit life. I started turning it around two years ago (credit repair part of it for only one year), and it is one of most gratifying things I have ever done- and I am only getting started. Plus, your credit isn't nearly as bad as mine was- I went through a BK7 in '04!

First things first- you have to read and read. I would estimate that I have spent maybe 150-200 hours reading all of the info from this site in addition to other financial books. Anything I can get my hands on really!

Then fire away questions if you have any- the people on this board aren't judgmental.

As far as a card, CREDIT UNIONS are the way to go. They are forgiving of so-so credit and thye have low rates. If you can't get a unsecured, then take $1K and secure it in a CD (rates are like 5% right now anyway!).

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Aside from the credit union advice, if you want to add some revolvings, you can try Target, they are fairly lenient with their guest card. Also, Orchard bank has been good to me, although you may have to pay a fee upfront (mine was $19) and an annual fee (I think they range from $19 to $79 or so).

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You should get a secured card for say $500 to start with. Orchard Bank is OK. It's hard to understand how you got turned down for a secured card. All you need is to be over 18 and have a social security number.

Target will give you a card with scores over 615. From 585 to 615 it's questionable.

As far as a secured loan goes I did one for $2000 some years back with a bankruptcy. I did it at a small regional bank. I suggest that you stop doing business with the large mega banks. Do some research. Look in your local yellow pages and make a list of all of your local banks. Then check them out at http://www.hoovers.com/free/tools/bcl/. Find a bank with sales under 1 to 10 billion and ones that operate in less than say 6 states.

Secured credit cards:

http://www.cardoffers.com/introCreditCards/directory/cards/searchresults.asp?Category=Secured&Apr=9999&Annual=9999&Submit=Go

Inquiries only effect your scores for 12 months.

Having multiple addresses listed on your report does not effect credit scores at all. That said I would work at getting all old addresses removed.

"I did have a Helzburg CC recently for 2 years. It was paid on time until they sold my account to Citibank, and never told me, so I still paid Helzburg. They didn't forward my payments till 3 months later. I got a call form Citibank saying I am 3 months behind. After straightening it all out, I now have it paid in full as of this past October with Citibank having closed my account in August, and with two 30 days late and one 60 day late on 3 CR!!! I can’t get this removed even though it wasn’t my fault."

What have you done to fix this? You need to dispute the late's in writing via CM,RRR with Citybank.

Have you tried disputing the other accounts that have late payments associated with them with the CRA's.

The two major things that are hurting you now are the lack of a revolving card or cards and the three late payment associated with the Citybank card.

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It's hard to understand how you got turned down for a secured card.

Aparently there is still risk involved - even if you front the cash. There have been numerous posts where members have defaulted and their security deposit remains untouched while CA's hound them....

I think that could use a little more research...

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I think some of the pickier lenders actually have qualifications for their secured cards. It's not just "write us a check and we send you a card." They'll give you the 30-day message, tell you to send the check, and later send your check back if they don't like what they see on your reports upon manual review.

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Brian,

There is hope! When I came to this board my credit was much, much worse than yours. I couldn't get anything in my name and everything had to be purchased in my husbands name. I also felt very down and didn't know what to do. After just a few months of credit repair things began to really look up and now two years later my credit is better than I ever thought it could be, and I no longer have any trouble getting approved for anything at all.

The first thing I would do, get the most recent copy of your credit report. You should be able to get one for free under new FACTA if you havent requested it yet. I too had several things that were, of course negative, and were 5-6 years old. Even though they weren't yet 7 years old, I still disputed then as old and outdated and the Credit Bureaus did remove them. I would then dispute the paid off car loan and the credit cards payment status. I would also dispute those most recent inquiries (within the past year) Equifax ususally gives no problem at all with removing those, the other two are a bit harder.

I wish you good luck! Keep reading and searching and asking questions. Sometimes it may seem like you aren't accomplishing anything, or not fast enough, but keep going, you can do it!

I just want to add, I did get declined for a BOA secured card when I first started out, so you can get declined for those. I also got declined for Target with score about the same as yours. If your job has a credit union try there, or any other credit union in your area.

Melissa

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I just want to add, I did get declined for a BOA secured card when I first started out, so you can get declined for those. I also got declined for Target with score about the same as yours. If your job has a credit union try there, or any other credit union in your area.

Melissa

I was denied for a SECURED LOAN from my bank. I was to put $1000 in my bank account at 2%, and they were going to loan it back to me at a higher rate- around 5%. The idiots still shot me down and gave up free money. So it happens. Credit Unions are a a great way to go and also become an authorized user on someone else's card with great credit if possible. Then I'd go for the Target card after you already have an established tradeline.

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The MAJOR problem I have (which is the real reason for this posting) is that my parents need more help (medicaly) than I can offer them and they will need to be moving into a assisted living center soon. The current lease is up end of this May and they are planning to go into one by then (I already know that they are in touch with a couple centers and have visted them already). So naturally, I need a place to live as I cannot live with them in the center. This is were my problem lies. I have almost zero time to build any kind of a history before I need to have a place to live or I am homeless. I have also contacted our leasing office (it's a small complex privately owned) and they were willing to possible help me out in some way provided my current credit situation did not change for the worse, but as of the 1st of this year, the complex is under a new ownership by a large corporation and after discussing my problem with them and what the previouse owners where going to do, they said that since I do not even come close to meeting their requierments, that they are not going to do anything for me. So I am in a real pickle.

Go to a credit union and put some money into a savings certificate and borrow on your owm money is a start.

I have already looked into this option with Chase and with other banks and CU's. Three things: First, I have no use for a loan, secured or unsecured. I want to save money, not spend it. And yes, I have been told to put the money that I borrow in a CD to try to offset some of the interest. Well, I dont really want to lock away $1000 or more for 6 months to a year when I may need it and then take a penalty for taking it out again on top of interest for a loan that I dont need. Second, With Chase and some of the other Banks and CU's that I have talkd to about this, they also have credit requirements even for a secured loan and most have told me based on my situation that it would be tuff for me to get one (Chase said flat out no to me) and the last thing I need is to keep having more and more inquires on my CR (which is part of my problem) and not get anywhere and make my situation even worse. Three, I need revolving credit that I can establish a history with, not more non-revolving credit (I already have 2 TL's of this). And with a personal loan, it is usually 6 months to a year in terms. Thats not much of a history and from what I understand it usually takes about 6 months to offset the negitives (inquiries and new trade line effects) before a positive result will occure. A 6 month loan wont do me any good and may actually hurt me. A year loan may help, but after reading a serveral postings here, it looks like it will take a couple of these before I can seriously get my score up. In my current situation, serveral years are not an option and wont matter by then.

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Change banks! Chase is merciless and unforgiving. If you're not perfect, you're not human to them.

Well, I just did change banks to Chase a few months ago when I moved my 401K into an IRA with them. At that time I closed my TCF checking account and opened a checking account with Chase. I did all of this to take advantage of an interest rate discount program for home loans that Chase has when you have certain amount of assets with them. I can always change checking accounts again, more of a pain, though I am not sure if this will affect any credit decisions. But I think I would take a hit on my IRA if I move it, not a federal penalty but a Chase one (their 'Service Fee').

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At 29, you have plenty of time left.

How are the balances on the outstanding loans? That's a factor too. It doesn't mean everything just to pay on time. If the balances are too high to the amount of the loan, you're a bigger risk....

So yes, start checking those local credit unions! - the single branch variety.

My current auto loan is around $14,500 and my student loan is around $10k.

They had to have. It was probably in a notice that came along with your statement that you did not read. They have to by law, disclose that information, and the way they do it is to mass-mail their cardholders usually along with their monthly statement.

There could have been a notice stating that my account was sold and I may have missed it, but why would they hold on to three months worth of payments, not forward them to CitiBank or return them to me? And why would it then take three months for CitiBank to give me a call and say "hey, you are very late"? They never even sent me an invoice till AFTER I was three months behind. This all sounds a bit fishy to me.

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Providian was nailed for witholding payments and not notifying their customers, so "fishy" may be just the word.

Or, given they process so many transactions per day, you're just lost in the shuffle until their computer spits out a notice that gets shoved in an envelope and mailed to you without ever being seen by human eyes.

This is where the "we're always right" attitude comes in - "computers don't lie". But they've never heard of GIGO - garbage in, garbage out either.

So that leaves you, as a consumer, writing their corporate offices where one of two things could happen. One, a human actually gets out of their chair and waddles across the hall to a file cabinet to see it was really a bona-fide error, corrects it, and apologizes to you; or two, "computers don't lie" - which means they don't feel like taking the time to investigate your issue the proper way.

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Another possibility is that his name is a common one and he may have a file that is mixed with another person. I would recommend that he get his name listed correctly on all three reports and get any incorrect names removed

My name is listed several times on the three CR's with various spellings. These are are common missspellings of my first and last name, i.e. Bryan, Brien, ect. (and the same goes with my last name too) that I have encountered in my life. I have received many peices of mail with either my name incorrectly spelled or my address incorrect ( I also have several listings for my currently address as well as my previouse adresses, misspellings, Rd. instead of Dr., marked as a business address instead of a residential, ect.) I was told by a credit counsulor that this is most likely the reason that I am having a hard time with credit.

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Get your name and address listed correctly letter

Well then you need to get that fixed.

With Experian I find that calling works best.

As far as the old or incorrect addresses go just say for each one that you never lived there.

For the other two CRA's send them this letter.

Do you need the addresses and phone number?

hides.gif

--------------------------------------------------------------------------------------

This is a letter to a Credit Reporting Agency to get your name listed correctly.

Include a copy of your social security card, birth certificate, and two bills showing your current mailing address and name. You may optionally give them a copy of your drivers license in steed of your birth certificate.

-------------------------------------------------------------------------------------

Your name

address 1

address 2

month, day year

big bad credit bureau

address 1

address 2

address 3

Dear Consumer Relations:

Going over my credit report, I have found it contains many errors. I request your investigation of the following "personal information". Please see the attached photo copy of my driver’s license – for your reference. For the record:

1. My social security number is: STATE NUMBER.

2. My name is: YOUR NAME. Please remove all other name variations IMMEDIATELY– they are not accurate!

3. My current address is: your address. Please remove all other addresses IMMEDIATELY – they are not accurate!

Please delete these disputed items. Thirty (30) days constitutes a reasonable amount of time for investigation. Per the Fair Credit Reporting Act, send me notification that these items have been deleted, as well as an updated copy of my credit report.

Sincerely,

Your name

NAME: your name

CURRENT MAILING ADDRESS: address 1 & 2

SS #: XXX-XX-XXXX

DOB: MO/DA/YEAR

2 PROOFS OF CURRENT MAILING ADDRESS AND SOCIAL SECURITY NUMBER ATTACHED

--------------------------------------------------------------------------------------

coolgleam.gif

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As far as making a name more unique another couple of tricks are as follows:

redecoration.gif

1. If your names are short have any open credit cards add your middle name to your credit card accounts. You don't have to have them send out new cards.

2. Use the initials of your first and middle name in place of your first name on all your credit cards.

Whatever accounts report on a monthly bases will determine what name variation rises to the top of the list. The other variations you can get disputed off of your credit reports.

Paul Adrien Maurice Dirac, a famous physicist from the twentieth century, went as P.A.M. Dirac

creator.gif

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Is there anything else I can do besides fix the name/address issue? I really dont think that this is the main reason why I can't get credit. I have a copy of the CR that Chase pulled, they faxed it to me for free as a nice gester, and my own copy I got shortly there after and they are almost identical with only the FICO score being a couple of points lower on my report (new inquries added since the Chase report).

Also, should I cash in my IRA, take a penalty, and try to pay off my student loans with it? I might just be able too. This will bring down my DTI, currently fixed at 55% because of auto and student loans, my only debt. Will this help me get credit or will I just be digger a bigger whole by closing out my longest TL at 2 years? This will liquidate ALL my assets. I was going to use this as a downpayment for a home purchase, but I now know that there is now hope in this area for me.

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In general I would NEVER EVER recommend cashing in an IRA to pay of a student loan.

Installment loans really have close to zero impact on FICO scores. Having an installment loan is probably a small plus. If a particular borrower has only one installment loan and pays it off a small decrees is score should result.

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In general I would NEVER EVER recommend cashing in an IRA to pay of a student loan.

In general, I don't think my situation has come up before, so thats why I am asking in my situation, is it worth it or will it do me know good either way. As it is now, whats the point of having money saved for retirement if I dont have a place to live 3 months from now.

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So get an apartment for now. Don't piss away your future to get the instant gratification of having a house. $20,000 in an IRA will be worth nearly $300K by the time you retire if properly invested. Why throw that away to get a house a year or 2 earlier?

Build credit and work for it.

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