My boyfriend and I are trying to get a small personal loan to build up our credit?

Question

We both have bad credit like in the lower 500 and high 400 but we want to build that up. We are trying to buy the house we are living in right now but can't. The lender informed us that we need to obtain a loan to build our credit. But so far we have been turned down? Help? Does anyone know anyone that can help us?

Answer 1

Don't worry about the loan, you need to get your numbers up. A small loan is probably a bad idea and just lender telling you what you (and more importantly THEY) want to hear.

Simply do the rock-solid stuff. Pay off the credit cards you have, shred them, keep one or two low interest cards, with zero balances.

You are really establishing your credit by paying stuff off. If you don't have credit cards then you are STILL establishing you're credit by paying your phone bills, your electric bills etc.

So if they are genuinely "concerned" about your credit rating being very low. Fine. Get a credit card with a two-hundred dollar limit, Go out to dinner dinner, send the payment in when you get home. Don't carry any balance, or carry a balance only for a month or two and put the money in a jar to send out at the end of a couple of months.

Very quickly afterwards, the company will raise your limit. Do the same thing again. When you go to buy something, do three things.

1. Save up the cash for whatever you are going to buy, put it in the jar, or open an interest bearing savings account
2. Buy whatever it is on the credit card.
3. Wait 35 days.
4. Pay the whole amount for the credit card off + the interest accured.

What this does is raises the "maximum amount" you have ever used on the card, but it does not hurt you very much at all. All you pay is a few dollars for the month-to-month interest and maybe the yearly service fee.

It will take some time, and will not happen overnight, I wouldn't expect that your credit ratings would much improve in anything less than 18 to 36 months.

Watch the youtube on Maxed out
http://video.google.com/videoplay?docid=-1604922332896620425&q=maxed+out&total=6523&start=0&num=100&so=0&type=search&plindex=2

Get a savings account at HSBC
http://www.hsbcdirect.com/1/2/1/offer?code=PPG01D0000&WT.srch=1
which as a pretty good interest rate instead of a jar.

Answer 2

1

Answer 3

The last thing you need is a loan and everytime you apply your credit score goes down more. Face it in todays market there is no subprime and sorry that is where you fit in, and that just barely. Need to pay your bills on time and get those credit cards paid down to below 30% of the limit. Hate to tell you but there is no way you can get an unsecured loan, much less a mortgage these days with that score, and if some shyster would you would lose the house within a year. Clean up your credit first, then worry about a home

Answer 4

What? Get a loan to improve credit?

Do you have any credit cards?

Start paying them on time every month, and pay them down. If you have any old or bad debts, pay them off too. It may take a while, but your score will improve dramatically.

The way the real estate market is going, you have time to wait. Odds are prices will be the same or even a little lower if you wait.

Answer 5

Me to....1st : If you get your credit report from MyFico.com to check and make sure no one used your name for something you were not responsible for financing. Then try to establish communication with your lowest balance debt collection agencies. (The easiest ones to pay off and you should work your way up the price scale). Make sure to ask for the account to show a 0 balance and not nothing negative toward your credit report. By doing this they are force to recognize that you are making an effort.....So far I have paid off one student loan & a Macy's credit card which they return to me with the paid off balance to start over, and I got a capital one card on just that effort. But trust me when I say it takes alot of getting use to, paying money out on stuff that you have already use such a long time ago; & just to learn your score affects your bank loan on the house of your dreams, esecpically when you been thinking you got it all figured out.... thats why I said me 2....5 days a go and then I found a book called the credit secrets bible on amazon.com and currently reading..really interesting stuff, I truly reccomand it to anyone who just found out that their lowest score was a 499...really sucks, with nothing no dispute but medical bills that will have to be drop in '09 so i have 2 years to wait for lower interest rates which start at 750! That really, really hurt my feelings, but it would be cheaper to wait, it does take 18-24 months to get a 700 when you start out so low, but for what the extra house taxs, insurances(6 different kinds in FL), and added bills + utilities amount to, it will be worth the wait... Ya know..lol! O one more thing innovis.com...the 4th credit bureau...check them out 2!

Answer 6

There ways to improve your bad credit score by learning little secrets or how credit agencies works.

I was in your situation 4 months ago and this thing is helpingme out, really... and the best fo all is that is FREE there isnt hidden costs or sthg.

Look at the link http://www.speedybadcreditloans.com/free-credit-repair-kit.html

Answer 7

credit unions sell cd's you put money into each month, when its paid off you get the money back.

See:
https://www.nevadafederal.org/loans/personal.aspx
Check out the other loans they have, you do need to be credit union member.

Answer 8

My best advice is to visit a credit counselor, many do it for free. They will give you some good advice on how to mend your credit. Some of it will require some sacrifice and will power.

Answer 9

live on the street for a few months to save money