Rebuilding credit & Secure Credit Cards

Discussion in 'Finance, Investments, and Careers' started by Cardinals.Ken, Mar 2, 2009.

  1. Brian in Mesa

    Brian in Mesa BIM™ Contributor

    Age:
    45
    Posts:
    52,126
    Likes Received:
    115
    Joined:
    May 13, 2002
    Location:
    The Dark Side
    You can get a house without a decent "credit score." It's called manual or traditional underwriting. :thumbup:

    It's the way home loans used to be done before computers and punching in numbers (which a trained monkey could likely do).

    It's a much better way of telling if someone will be able to make their payments.
     
  2. Linderbee

    Linderbee Goodbye, Sir. Thank You Contributor

    Posts:
    26,484
    Likes Received:
    124
    Joined:
    Jun 27, 2005
    Location:
    MESA! :thud:
    That's an excellent idea. We're going to be needing a washer soon, and we may go that route, and just use the checking acct from Wells that I had to open. I'm in a similar boat as the guy on the show. My parents have a credit card acct that I use exclusively. I bought my car with it, and other semi-major purchases I didn't have the cash for. While I've made every payment like clockwork (and pay more than the minimum), it sure hasn't helped my credit any.

    DCR & I would like to buy a house this summer, and I have to get my score up. I have virtually nothing to show that I have made (or can make) payments on time. Our cell phones are in my mother's name, the electric is in dcr's & is the SRP M-Power card anyway. Dish & internet is in dcr's name...all I have is the water bill & my car insurance.

    I'll get there; just going to take time.
     
  3. Brian in Mesa

    Brian in Mesa BIM™ Contributor

    Age:
    45
    Posts:
    52,126
    Likes Received:
    115
    Joined:
    May 13, 2002
    Location:
    The Dark Side
    Look into manual/traditional underwriting. It makes your FICO score irrelevant. Even a bad credit history is irrelevant if you can explain it and it is not likely to recur.

    Couldn't hurt to at least inquire about it somewhere. :shrug:
     
  4. Ryanwb

    Ryanwb Banned

    Posts:
    35,579
    Likes Received:
    0
    Joined:
    May 13, 2002
    Location:
    Mesa
    Oh man, my mother in law has that and when we were taking care of her for a while I had to constantly babysit that thing like a heart monitor. It's a pain the rear because during the summer you burn through $50.00 every few days.

    There aren't any kiosks with in 10 miles of her house and on top of that, SRP told me they charge a higher per kilowatt hour charge for M-power customers then standard customers. Stupid company!
     
  5. Linderbee

    Linderbee Goodbye, Sir. Thank You Contributor

    Posts:
    26,484
    Likes Received:
    124
    Joined:
    Jun 27, 2005
    Location:
    MESA! :thud:
    It's a bit much during the summer, but not too bad; at that time we usually throw $100/week on it...but according to SRP the rate for M-Power was the lowest of all their plans; that's why we stuck with it. I didn't think it would be, but I looked it up online. Unless I read something wrong, M-Power is supposed to be cheapest.
     
  6. Linderbee

    Linderbee Goodbye, Sir. Thank You Contributor

    Posts:
    26,484
    Likes Received:
    124
    Joined:
    Jun 27, 2005
    Location:
    MESA! :thud:
    I did in the past. I was told that I had to have some sort of record of making utility payments, etc. on time, "alternative" credit, is what they called it, iirc. I didn't have enough then, even, and I have less now than I did then.
     
  7. Ryanwb

    Ryanwb Banned

    Posts:
    35,579
    Likes Received:
    0
    Joined:
    May 13, 2002
    Location:
    Mesa
    I guess you = right

    http://www.srpnet.com/payment/mpower/comparison.aspx
     
  8. Linderbee

    Linderbee Goodbye, Sir. Thank You Contributor

    Posts:
    26,484
    Likes Received:
    124
    Joined:
    Jun 27, 2005
    Location:
    MESA! :thud:
    There is no monthly service charge with the M-Power card...that chart doesn't make sense. Unless they're sucking it out when I'm not looking :)

    I'm glad I was right; I'd be torqued if we were paying more all this time than we would have with a "regular" bill.
     
  9. Gizmo Williams

    Gizmo Williams Registered

    Posts:
    1,300
    Likes Received:
    0
    Joined:
    Sep 11, 2002
    The only thing you need to be careful with here is that you do not want to use all of your credit limit up since line utilization is very important in calculating your FICO score. This is kind of tricky with low line cards. If you have a $500 dollar limit and charge $500 it will negatively impact your score. You are better off with a $500 limit and only putting $250 on the card to keep your utilization lower.
     
  10. dreamcastrocks

    dreamcastrocks Chopped Liver Moderator Contributor

    Age:
    37
    Posts:
    37,108
    Likes Received:
    20
    Joined:
    Aug 19, 2005
    If you have more than 30% of your credit line unavailable, it will affect your credit score. How much available credit is also worth 30% of your total credit score.
     
  11. AZZenny

    AZZenny Registered User

    Age:
    67
    Posts:
    9,235
    Likes Received:
    0
    Joined:
    Feb 18, 2003
    Location:
    Cave Creek
    I wondered why she'd specified a 'small' necessary item - I could see why it shouldn't be something totally frivolous, but I would have thought the higher you could swing the better. Good to know.

    Another important step is to actually take a look at your credit file -- I discovered stuff in my file from my ex-husband -- including a new account of his, not just really old stuff -- and a couple plain old mistakes.
     
  12. HeavyB3

    HeavyB3 Unregistered User

    Age:
    32
    Posts:
    8,478
    Likes Received:
    33
    Joined:
    Mar 11, 2003
    Location:
    Hicktown, AKA Buckeye, AZ
    Speaking of which, I just paid off my car loan. Saving me 300 a month.

    Hooray.
     
  13. Jersey Girl

    Jersey Girl Stand down Contributor

    Posts:
    27,834
    Likes Received:
    15
    Joined:
    Sep 17, 2002
    Location:
    Super Scottsdale
    It's an awesome feeling, isn't it? (Paid mine off last September.) :)
     

Share This Page