Comments on: The U.S. Credit Market is Closed to People with No Credit http://www.moneyunder30.com/us-credit-market-closed-people-no-credit Personal Finance for the Young and Ambitious Sat, 21 Nov 2009 04:23:03 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Ryan http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2531 Ryan Sun, 31 May 2009 23:06:52 +0000 http://www.moneyunder30.com/?p=2028#comment-2531 ^^^ This is me. I want to thank David for the nice write up, and all of you who posted for your advice. Here's where things stand now... --- My own bank (which is relatively small) actually cold-called me and said "We noticed you have a lot of money in your checking account, and wonder if you'd like to come into the branch to talk about investment options. Its pretty much a case of one hand not knowing what the other is doing. --- I do have some good news. I applied for a joint credit card with my dad from BB&T (who made it through the stress tests pretty well) and was approved for a huge limit, although we opted for only $1000. I'm expecting that card to arrive within the week. --- I also attempted to finance a mattress from Mattress Discounters with my mom as a co-signer. They use wells fargo though, and WF even rejected me with my mom signed on, even though she has good credit. I'm now in the process of trying to find a furniture or bedding store which finances through someone other than WF. IF ANYONE HERE KNOWS OF ONE, I'D LOVE TO HEAR ABOUT IT. --- I'm also waiting to hear back on an application I filed for a secured "union plus" card which is issued by HSBC and offered through the AFL-CIO. If I don't get that, an inquiry to my parents' credit union will probably be my next move. --- I work as a sailor in the merchant marine, and trying to figure out whether or not I'll be able to get a good score by the end of summer. If not, I may have to return to sea for a few months. I am thinking of prolonging my stay as long as possible though, since it would be worth it to me to catch the $8k tax credit. Thanks again for all your help. The carpet bomb suggestion is definitely novel, and might be worth a try too. ^^^ This is me.

I want to thank David for the nice write up, and all of you who posted for your advice. Here’s where things stand now…

— My own bank (which is relatively small) actually cold-called me and said “We noticed you have a lot of money in your checking account, and wonder if you’d like to come into the branch to talk about investment options. Its pretty much a case of one hand not knowing what the other is doing.

— I do have some good news. I applied for a joint credit card with my dad from BB&T (who made it through the stress tests pretty well) and was approved for a huge limit, although we opted for only $1000. I’m expecting that card to arrive within the week.

— I also attempted to finance a mattress from Mattress Discounters with my mom as a co-signer. They use wells fargo though, and WF even rejected me with my mom signed on, even though she has good credit. I’m now in the process of trying to find a furniture or bedding store which finances through someone other than WF. IF ANYONE HERE KNOWS OF ONE, I’D LOVE TO HEAR ABOUT IT.

— I’m also waiting to hear back on an application I filed for a secured “union plus” card which is issued by HSBC and offered through the AFL-CIO. If I don’t get that, an inquiry to my parents’ credit union will probably be my next move.

— I work as a sailor in the merchant marine, and trying to figure out whether or not I’ll be able to get a good score by the end of summer. If not, I may have to return to sea for a few months. I am thinking of prolonging my stay as long as possible though, since it would be worth it to me to catch the $8k tax credit.

Thanks again for all your help. The carpet bomb suggestion is definitely novel, and might be worth a try too.

]]> By: Vic http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2533 Vic Fri, 29 May 2009 00:09:43 +0000 http://www.moneyunder30.com/?p=2028#comment-2533 There are several options. Mine personally was getting my girlfriend to co-sign on my CC application. Luckily she had stellar credit (She did the auto-billpay for everything). - Have someone you trust co-sign on your card application - Have someone put your on their card as an authorized user - Take out a personal loan - Take out a car loan - Try obtaining a credit card from a LOCAL bank or credit union. (AVOID big banks!!!) - Get a secured credit card. If you cant get any of these options done, you may want to try and do an "e-mail carpet bomb" at some of the banks that took TARP bailout money. I would plead with them that you would be happy to give them money if they only gave you the chance. (Yes I know I said avoid big banks but this may be an option. I personally hate them but they are an evil you must sometimes deal with) http://consumerist.com/259713/how-to-launch-an-executive-email-carpet-bomb As it stands right now, there is nothing wrong with credit cards if you treat them as a debit card. Just put your normal transactions on the card and pay it off in full every month. It sounds like the OP knows how to budget so they should have the will and common sense to log their spending. If I ever come across a situation where I want to buy something, I ask myself "Is it a want or a need?" that usually gives me enough pause to put it back on the shelf. Heck, I've debated over spending $5 one time. :) There are several options. Mine personally was getting my girlfriend to co-sign on my CC application. Luckily she had stellar credit (She did the auto-billpay for everything).

- Have someone you trust co-sign on your card application
- Have someone put your on their card as an authorized user
- Take out a personal loan
- Take out a car loan
- Try obtaining a credit card from a LOCAL bank or credit union. (AVOID big banks!!!)
- Get a secured credit card.

If you cant get any of these options done, you may want to try and do an “e-mail carpet bomb” at some of the banks that took TARP bailout money.
I would plead with them that you would be happy to give them money if they only gave you the chance. (Yes I know I said avoid big banks but this may be an option. I personally hate them but they are an evil you must sometimes deal with)

http://consumerist.com/259713/how-to-launch-an-executive-email-carpet-bomb

As it stands right now, there is nothing wrong with credit cards if you treat them as a debit card. Just put your normal transactions on the card and pay it off in full every month. It sounds like the OP knows how to budget so they should have the will and common sense to log their spending. If I ever come across a situation where I want to buy something, I ask myself “Is it a want or a need?” that usually gives me enough pause to put it back on the shelf. Heck, I’ve debated over spending $5 one time. :)

]]> By: Hank http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2532 Hank Thu, 28 May 2009 13:03:56 +0000 http://www.moneyunder30.com/?p=2028#comment-2532 What about starting out with a secured credit card to build his credit report file? There are even secured cards available that transition over time to a regular, traditional credit card with proven good use. What about starting out with a secured credit card to build his credit report file? There are even secured cards available that transition over time to a regular, traditional credit card with proven good use.

]]> By: NickZ http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2527 NickZ Wed, 27 May 2009 22:38:31 +0000 http://www.moneyunder30.com/?p=2028#comment-2527 Rather than worrying about his credit, he should ask him why he wants to but an asset that could lose 20 percent of it's value over the next year. Rather than worrying about his credit, he should ask him why he wants to but an asset that could lose 20 percent of it’s value over the next year.

]]> By: Tim http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2530 Tim Fri, 22 May 2009 14:12:08 +0000 http://www.moneyunder30.com/?p=2028#comment-2530 Bank of American might not be interested in your $500, but have you looked into a local credit union for a secured credit card or loan? These not-for-profit financial institutions are weathering this financial storm in much better shape than the commercial banking industry. I can say my credit union doesn't even consider your credit score when issuing secured credit cards or loans, they simply look at your debt to income. Also, another trick is to be added as an "authorized user" to another's credit card. Providing they pay on time and carry a low balance, you will gain much needed points that way. The best part- that person never even has to give you a card! FICO was considering doing away with this in their FICO 08 scoring, but due to much scrutiny decided to keep this policy intact. Best of luck, though, things will get better! Bank of American might not be interested in your $500, but have you looked into a local credit union for a secured credit card or loan? These not-for-profit financial institutions are weathering this financial storm in much better shape than the commercial banking industry. I can say my credit union doesn’t even consider your credit score when issuing secured credit cards or loans, they simply look at your debt to income.

Also, another trick is to be added as an “authorized user” to another’s credit card. Providing they pay on time and carry a low balance, you will gain much needed points that way. The best part- that person never even has to give you a card! FICO was considering doing away with this in their FICO 08 scoring, but due to much scrutiny decided to keep this policy intact.

Best of luck, though, things will get better!

]]> By: Grant http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2528 Grant Thu, 21 May 2009 17:31:39 +0000 http://www.moneyunder30.com/?p=2028#comment-2528 He could try to find a house with seller financing. That is, avoid getting a loan from the bank and just pay the person directly. Get a good lawyer to make sure everything is setup correctly. p.s. It's "algorithm", not "FICO computer’s logarithm". He could try to find a house with seller financing. That is, avoid getting a loan from the bank and just pay the person directly. Get a good lawyer to make sure everything is setup correctly.

p.s. It’s “algorithm”, not “FICO computer’s logarithm”.

]]> By: John http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2529 John Thu, 21 May 2009 17:14:10 +0000 http://www.moneyunder30.com/?p=2028#comment-2529 Perhaps he could have a parent or trusting friend with great credit co-sign on a small personal loan of like $1,000 from a bank (which he immediately pays back), or a credit card to just use sparingly to get himself on the grid. I am sure he knows someone who would be willing to help him out knowing the situation. Perhaps he could have a parent or trusting friend with great credit co-sign on a small personal loan of like $1,000 from a bank (which he immediately pays back), or a credit card to just use sparingly to get himself on the grid. I am sure he knows someone who would be willing to help him out knowing the situation.

]]> By: Jonathan http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2526 Jonathan Thu, 21 May 2009 16:32:30 +0000 http://www.moneyunder30.com/?p=2028#comment-2526 Has he tried getting a credit card through his bank? I assume (perhaps incorrectly) his 20k isn't in cash in a box under his bed. Perhaps he could go to a branch and state his intentions to the branch manager. Indicate that he is looking to get a credit card to build his credit, note that he has 20k in their bank and that he'd like to get a mortgage with the bank as well. I have everything at one bank, and have for almost 15 years and they treat my like royalty. YMMV of course. Has he tried getting a credit card through his bank? I assume (perhaps incorrectly) his 20k isn’t in cash in a box under his bed. Perhaps he could go to a branch and state his intentions to the branch manager. Indicate that he is looking to get a credit card to build his credit, note that he has 20k in their bank and that he’d like to get a mortgage with the bank as well.

I have everything at one bank, and have for almost 15 years and they treat my like royalty. YMMV of course.

]]> By: Amy http://www.moneyunder30.com/us-credit-market-closed-people-no-credit/comment-page-1#comment-2534 Amy Thu, 21 May 2009 13:17:48 +0000 http://www.moneyunder30.com/?p=2028#comment-2534 I've always heard that when in this situation you would need to find a mortgage company that does manual underwriting. You may have to be really persistent with the mortgage companies out there because they don't like to do this since it causes more work on their part. I would make sure when you talk to the mortgage company you speak with someone in management about this possibility. Not all mortgage companies use manual underwriting nowadays so you may have to ask quite a few. I would think with the housing market the way it is though, that it would be worth it. In addition to this I did some googling and found a good article about manual underwriting here: http://antishay.com/?p=120 I’ve always heard that when in this situation you would need to find a mortgage company that does manual underwriting. You may have to be really persistent with the mortgage companies out there because they don’t like to do this since it causes more work on their part. I would make sure when you talk to the mortgage company you speak with someone in management about this possibility. Not all mortgage companies use manual underwriting nowadays so you may have to ask quite a few. I would think with the housing market the way it is though, that it would be worth it.

In addition to this I did some googling and found a good article about manual underwriting here: http://antishay.com/?p=120

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