[quote=“sureshot!,post:11,topic:26944"”]
edit: many many people have transformed their credit from low 500s to near 700 in just a few months with the advice and support of www.creditboards.com
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NO FUCKING WAY :eek:
[quote=“BikerFry,post:12,topic:26944"”]
How about you don’t finance a toy, but rather save your money and increase your asset:debt ratio and use a charge card that you pay off every month to build some responsible credit history? You can then ask for an increase in credit limit increase, thereby decreasing your debt:available debt ratio improving your credit score exponentially.
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before you start preaching, you should really know what the good book says, don’t you think? :roll2:
you are correct the percentage of available income in regards to debt is an extremely important factor when determining your credit score, however the total amount is a collaboration of multiple different account types. sure there are revolving accounts like credit cards or ‘store’ card ( bestbuy ) and there are also installment accounts ( student loans / auto loan ) but not all installment accounts count when this % is determinded. in fact, believe it or not, most installment accounts aren’t included! wow imagine that!
if i had 4k in available credit through credit cards, that were all paid off… it’d mean nothing if i still owed 30k for school. it’d say out of the 34k available, 30k is used. my ratio would be way too high to be considered for anything. the same goes for auto loans. i just bought an evo! sweet! 30k loan! does that make sense that my % of available credit should be destroyed even though i have excellent credit and all my credit cards are paid off? no of course not.
the short of this is that you would not hurt yourself taking out a loan, as long as you know you’ll make on-time payments. the credit agency will do a hard-pull of your credit score which will drop it a couple points, but it’s not a big deal. establishing the positive credit will make all the difference in the world. and once your score is better and you’ve been consistent you can refinance. :headbang:
[quote=“j_espo1,post:21,topic:26944"”]
NO FUCKING WAY :eek:
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absolutely true. you get into some grey areas morally/ethically but it’s totally possible and has happened countless times. you just have to work hard and do your homework.
ill explain one of the more common techniques for removing lates/collection accounts.
the 1-2 punch.
you dispute a late charge/collection account with the original credit agency. you send them a certified mail, return receipt requested letter stating you want to dispute this account for this reason or that… ( homework will tell you what to say here ). by law they have to stop collection activities and have to report to the credit bureaus that the account is being disputed. they have 30 days to prove whatever they have to prove to you. during this 30 days they cant make any reports or speak to any other agency or anything about your account. without facing serious penalty or incurring great fines.
once you get the green card from the post office stating that they recieved your letter, you send another letter to the credit bureau ( transunion ) and tell them you want to dispute a bad account on your report. they also have 30 days to figure out whats going on with the account to find out if its valid or whatever. they call the credit agency, who by law cant report on the account since they are researching it… when transunion doesnt get an answer they have to remove it from your credit report because they couldnt verify the information. poof its gone. rinse and repeat.
there are a lot of details i skipped over… a lot… and a lot of LAW… but i just wanted to briefly describe that anything is possible… it just takes work. 
[quote=“sureshot!,post:23,topic:26944"”]
absolutely true. you get into some grey areas morally/ethically but it’s totally possible and has happened countless times. you just have to work hard and do your homework.
ill explain one of the more common techniques for removing lates/collection accounts.
the 1-2 punch.
you dispute a late charge/collection account with the original credit agency. you send them a certified mail, return receipt requested letter stating you want to dispute this account for this reason or that… ( homework will tell you what to say here ). by law they have to stop collection activities and have to report to the credit bureaus that the account is being disputed. they have 30 days to prove whatever they have to prove to you. during this 30 days they cant make any reports or speak to any other agency or anything about your account. without facing serious penalty or incurring great fines.
once you get the green card from the post office stating that they recieved your letter, you send another letter to the credit bureau ( transunion ) and tell them you want to dispute a bad account on your report. they also have 30 days to figure out whats going on with the account to find out if its valid or whatever. they call the credit agency, who by law cant report on the account since they are researching it… when transunion doesnt get an answer they have to remove it from your credit report because they couldnt verify the information. poof its gone. rinse and repeat.
there are a lot of details i skipped over… a lot… and a lot of LAW… but i just wanted to briefly describe that anything is possible… it just takes work.
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so this is something i would do after i finished repaying the creditor?
[quote=“RedDawg,post:24,topic:26944"”]
so this is something i would do after i finished repaying the creditor?
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It’s not that easy. You need to start from the beginning
Start here: http://creditboards.com/forums/index.php?showtopic=142032
So he still owes creditors/collectors money. The loan would only be for a year. The loan would be for something totally unnecessary. The hard pull would hurt his already poor score, albeit slightly. The motorcycle itself will depreciate.
But installment debt doesn’t typically damage your FICO score so he should do it?
He has already paid in full and setup an installment situation that will undoubtedly collect a little more interest.
Surprisingly, credit repair is EASIER when you OWE money. it sounds ridiculous, but often case you don’t hold any weight or power when negotiating with credit bureaus because they already have all your money. often they could care less what you say because they have finished collecting. getting your credit fixed is easy when you owe money, because you can say: “Look, I’ll pay it all if you send me a letter in the mail stating you will remove the negative comments from my report.” They’ll send it if they want your money. if they don’t send it, you can fight them and take them to court over it, as they have undoubtedly incorrectly reported your account ( they all do ) in which case you not only are awarded damages in the form of $$ and a repaired credit report.
as i said before, if he is squared away and knows he can make consistent installment payments, he should do it.
I think you two are arguing different points.
Yes, taking the motorcycle loan and making payments on time and paying it off WILL help his credit.
But financing a toy when you have bad credit is stupid. You have bad credit because you bought more than you could really afford, and buying another toy on credit is the exact reason you are where you are.
Step 1, regardless of what the book says, is STOP BUY SHIT YOU DON’t NEED! 
Then start following their pointers for bringing your score up.
So he should finance a motorcycle to give him leverage with the credit bureaus?
<-Playing devil’s advocate because this is interesting and you seem better read on this than I am…
[quote=“JayS,post:28,topic:26944"”]
I think you two are arguing different points.
Yes, taking the motorcycle loan and making payments on time and paying it off WILL help his credit.
But financing a toy when you have bad credit is stupid. You have bad credit because you bought more than you could really afford, and buying another toy on credit is the exact reason you are where you are.
Step 1, regardless of what the book says, is STOP BUY SHIT YOU DON’t NEED! Then start following their pointers for bringing your score up.
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BUT people who have bad credit don’t necessarily owe anything to anyone, and can potentially afford to buy themselves a toy. if they are responsible and mature enough to do it ( they’ve learned from their mistakes ) then it would definitely help them to move forward and try and re-establish their credit with a new loan.
[quote=“JayS,post:28,topic:26944"”]
I think you two are arguing different points.
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I think you’re right.
:word:
[quote=“sureshot!,post:30,topic:26944"”]
BUT people who have bad credit don’t necessarily owe anything to anyone, and can potentially afford to buy themselves a toy. if they are responsible and mature enough to do it ( they’ve learned from their mistakes ) then it would definitely help them to move forward and try and re-establish their credit with a new loan.
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He doesn’t live at home.
He has reliable daily transportation.
He’s putting at least 10% of salary into a 401k per year.
He has enough liquid capital to live 2-3 months without a job.
If all of those are true, buy the bike with the loan. Otherwise there are WAY better places to put that money that will lead to financial stability.
citi-financial. very very high interest rate tho.
dunno if that was mentioned, didnt feel lik reading the rest.
[quote=“BikerFry,post:29,topic:26944"”]
So he should finance a motorcycle to give him leverage with the credit bureaus?
<-Playing devil’s advocate because this is interesting and you seem better read on this than I am…
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financing a motorcycle wont give him leverage with the credit bureaus. it won’t even help his credit score right away… it’ll take awhile. but if he is serious about fixing his credit, the sooner he establishes good long-term credit, the better. as i mentioned earlier, there are various types of credit accounts, and paid off installment accounts definitely reflect well in regards to a credit score ( assuming he does pay it off in a year. ) additionally he will have the history with that lender who would potentially give him a better loan down the road since they have already experienced his consistency and recognize him to have good character.
you have leverage with a credit agency when you owe them money and they’ve negatively reported to the credit bureaus on your account. then you can use the money you owe to work to your advantage. BUT ( a big but ) only if you are prepared to go to county/state court to plead your case, and ONLY if you have perfectly documented all the agencies violations that you can use to WIN the case.
[quote=“sureshot!,post:34,topic:26944"”]
financing a motorcycle wont give him leverage with the credit bureaus. it won’t even help his credit score right away… it’ll take awhile. but if he is serious about fixing his credit, the sooner he establishes good long-term credit, the better. as i mentioned earlier, there are various types of credit accounts, and paid off installment accounts definitely reflect well in regards to a credit score ( assuming he does pay it off in a year. ) additionally he will have the history with that lender who would potentially give him a better loan down the road since they have already experienced his consistency and recognize him to have good character.
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OK that makes sense to me. 1 year loan for $4k @ 15% would only be $400 dollars. Not such a big price to get a finished loan with no bad marks on his record.
This is assuming that the debt that he has is considered installment debt and not sitting there hurting his score the way a credit card would?
[quote=“BikerFry,post:35,topic:26944"”]
This is assuming that the debt that he has is considered installment debt and not sitting there hurting his score the way a credit card would?
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I have a feeling his dept is revolving dept thats gone to collections or even been charged off. Even if it was an installment account it wouldn’t make a difference if it’s been to collections or charged-off, those are the actions that will really hurt his score.
The concept of available credit really isn’t that big a deal. It plays a huge role, but all you have to do is pay it off. You aren’t fighting with credit bureaus or agencies, which is the biggest part of credit repair that most people don’t know about. If you pay your revolving accounts down to 0, they are being reported as 0 on your credit reports, give it 2 - 3 months and your credit score will reflect the change.
One thing to recognize is that even if you have paid everything off and been consistent… and even have gotten your credit score up above 650, your history can still hurt you. if you are showing accounts that were charged off or went to collections, you could still easily be declined, where as someone with a sub 600 score may get approved.
[quote=“sureshot!,post:30,topic:26944"”]
BUT people who have bad credit don’t necessarily owe anything to anyone, and can potentially afford to buy themselves a toy. if they are responsible and mature enough to do it ( they’ve learned from their mistakes ) then it would definitely help them to move forward and try and re-establish their credit with a new loan.
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which is my situation currently, i don’t owe tons of money anymore. I’m just left with a bad credit score because of my past decisions.
[quote=“JayS,post:32,topic:26944"”]
He doesn’t live at home.
He has reliable daily transportation.
He’s putting at least 10% of salary into a 401k per year.
He has enough liquid capital to live 2-3 months without a job.
If all of those are true, buy the bike with the loan. Otherwise there are WAY better places to put that money that will lead to financial stability.
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yes
yes
yes
could probably last 1 to 1-1/2 months without a job
I really should look into this… I pay everything ontime or within 10 days of being due, have not been sent to collections for anything except a parking ticket from 4 years ago that I didn’t even know about… but I owe a fair amount of $$ to 2 CCs, a federal college loan and a mortgage that I’m trying to sell the house to pay off… hmm… I wonder how bad my score is now…
I should do some further reading before grad school starts. Praxair reimburses 75% at the end of every semester and the other 25% when the degree is conferred, so I’ve got to find a way to front the money. Sounds like, done properly, it could be a good way to boost my credit score.