Suggestions on raising your credit

[ALawicki]

My boyfriend has had many things go to collections and I have gotten him to finally work with me and set a budget and everything. We are in the next 2 weeks, paying off everything that he owes to collections and he will be debt free. His credit (he won't let me check his credit score, so I know it has to be bad) is horrible, and he needs a way to raise it. I know it takes time to raise your credit score, but I wanted some suggestions on how we should go about raising it. I am pretty sure that his credit is so bad that we can't even get him a student credit card (which is the easiest for us young people who have never had one or really anything to raise our credit). We are hoping to go open him a bank account once all of this clears collections, and hopefully he will be able to get one. I just really need to help him figure out something to raise his credit score over the next few years so that when we move we both have good credit. My credit is perfect (I was lucky to have parent's that explained how to budget my money and how to save, unlike he had) but I can't get a loan for a house alone. Please let me know if you have any suggestions to help. I don't want to do those stupid "Buy a computer and pay an arm and leg for it, but it will raise your credit score". That stuff isn't even worth the time. Thanks everyone!

[Cpogie]

It may take time for him to rebuild his credit, sometimes it takes years. My son can attest to that, he didn't listen to me, ruined his credit but is slowly getting it back.

Never fall for those credit card schemes that promise to repair your credit, they do no more than you can do on your own, and it costs you nothing. Everyone is entitled to 1 free credit report a year. It is always good to check it for the sake of mistakes if anything. If you find mistakes handle them by calling the credit reporting company or the company who did the reporting. Some items can be fixed by writing to them, they have to investigate any correspondence they get from you with an explanation.

Start off small rebuilding your credit, make sure your payments are on time, 1 day late can stay on your credit for 7 years, they do not take excuses.
It is better to have 1 or 2 creditors than 4 or more while you are rebuilding your credit. Slowly creditors will extend you more credit based on your credit score. That credit score is your ticket to lower interest rates on just about everything you purchase, the higher your credit score the better for you.

[MandMnmbr3]

Ashley.... my youngest daughters ages 23, 22, and 19 are finding it really hard to establish credit. Amanda our youngest went to Daniel's Jewelers and bought a ring for herself on a payment plan. That was the ONLY place that would allow her to obtain credit from them. She has tried Mervyn's, Kohl's, JC Penney, etc, to no avail. The reason all 3 of the girls have been turned down is because they have NO credit history!!

As for your boyfriend, I'd say wait a couple of years and have him apply for credit again. It's not likely he will be able to get a credit card now since he has had recent problems. I heard an infomercial about this book, "Debt Cures (http://search.barnesandnoble.com/Debt-Cures-They-Dont-Want-You-to-Know-About/Kevin-Trudeau/e/9780979825811/?itm=1)" by Kevin Trudeau, might be worth checking out at your local library to see what he suggests, or maybe purchase it.

Good luck hon!

Hugs,
Mae

[ALawicki]

I started getting my credit up by getting a Victoria's Secret card, just about any girl can get one, and that really helped. I will have to look up that book. I hope that after he pays all of this he will let me run his credit just so I can make sure that it is all off. I don't want you guys to think that I am running his money or anything, but he just doesn't understand it all and kinda puts it off, so if we need it done then I have to do it. I know that if we go to open him a bank account that we can get a copy of his credit report, so we might do that. I just don't know if he will be able to get one for awhile, but he really really needs one. We are getting him one that only has an ATM card and not a debit card. I will have to look about the jewelry thing. There is a website that he bought me a ring off of for Valentine's day and made payments, but we put it in my name cause he didn't have a card to order it on. When we move in December I might have the bills put in his name so that that helps a little. I know that we might have to put a deposit down, but if it helps then I am ok with that. He has his car payment to kind of help. He has a co-signer, but he has never been late on a payment and its over $400 a month, so do you think that will help? He is trying to sell his car though because we can't afford the car payment (well we can but that money could go towards more important things) and he hopes to just get someone to co-sign for a few thousand dollars on a loan so he can just buy a cheap car. He never really drives anyways, we always take my car. I will just be glad when we don't have collectors calling him all the time and letters coming all the time. His mother opens his mail, so she knows about it all and I don't really like that. But soon we won't have to worry about that!

[flowermom07]

I started getting my credit up by getting a Victoria's Secret card, just about any girl can get one, and that really helped. I will have to look up that book. I hope that after he pays all of this he will let me run his credit just so I can make sure that it is all off. I don't want you guys to think that I am running his money or anything, but he just doesn't understand it all and kinda puts it off, so if we need it done then I have to do it. I know that if we go to open him a bank account that we can get a copy of his credit report, so we might do that. I just don't know if he will be able to get one for awhile, but he really really needs one. We are getting him one that only has an ATM card and not a debit card. I will have to look about the jewelry thing. There is a website that he bought me a ring off of for Valentine's day and made payments, but we put it in my name cause he didn't have a card to order it on. When we move in December I might have the bills put in his name so that that helps a little. I know that we might have to put a deposit down, but if it helps then I am ok with that. He has his car payment to kind of help. He has a co-signer, but he has never been late on a payment and its over $400 a month, so do you think that will help? He is trying to sell his car though because we can't afford the car payment (well we can but that money could go towards more important things) and he hopes to just get someone to co-sign for a few thousand dollars on a loan so he can just buy a cheap car. He never really drives anyways, we always take my car. I will just be glad when we don't have collectors calling him all the time and letters coming all the time. His mother opens his mail, so she knows about it all and I don't really like that. But soon we won't have to worry about that!
Your on a great path. When we were younger we went through similar w/dh. We looked at the credit scores like cpogie mentioned. Go through the list. You'd be suprised how many times there's duplicates, etc. Go through the list & write your reasons on explanation area. It may or may not help but it won't hurt & helps towards the future purchase of a home. Making the car payments on time is Excellent. That definately helps. Rent in his or both names helps, cell phone bill helps (even if you have to put deposit). I normally would say eliminate all debts car loans included & buy something less expensive cash car wise .. but it's also important to keep the credit open and paid on time. From beginning to finish for me taking care of dh many many years ago it took us about 8 months before we could buy a house. But it paid off. Wrote the letters, lived tight (but not enough where we still couldn't have fun)paid the car payments, did the cell phone, opened the bank account & kept it current (no bounces) (we did everything in both our names). We did not open credit cards until we bought the home. We wanted the income to debt ratio to be in our favor. Hope all this helps you or hopefully may give you some more ideas. This is just my experience of what worked for us. It is possible to do it - the hardest part is the yucky waiting. :)

[countrypkin65]

I wouldn't reccomend getting "rid" of all your credit cards. Keep at least one card, and make small purchases on it occassionally. Pay it off right away. Cards & credits, even light bills, mortgages, car insurance etc, have to be paid on time, for at least 3 months straight in order to get a good rating on your report. Even checking into your credit report will drop your score. So I would reccomend NOT running your report or inquiring about loans, or credit cards, for anything, in order to raise or keep a good credit score. Both of you must have a good credit score, or some sort of credit, because if one of you has either bad credit, or no credit~ it will bring the total score down on Both of you.

[Cpogie]

Here is a good article you should read.

http://www.myfico.com/CreditEducation/CreditInquiries.aspx

[dmpriest]

A friend of mine filed for bankruptcy several years. Her lawyer told her that the best way to build good credit quickly is with a secured credit card. Pretty much anyone can get one from what she said because it is secured with your money. I do think they charge you some kind of monthly or yearly fee, but it's something to think about. Good luck with whatever you two decide.

BTW- It's against federal law for anyone to open another person's mail. Maybe he can politely drop a hint to his mom about that. It may not work (it didn't with my mom when I lived at home), but it's worth a shot. :)

[ALawicki]

He has no credit cards doesn't really want any. I have one with a $500 limit and then my Victoria Secret card, which I don't use anymore and am working on paying it off. I don't think he will let me run his credit anyways, so I think we will wait while. We are not planning on buying a house for atleast another 1 1/2 years, if we don't decide to wait another 5-6 years as we are moving to Hawaii then. I want to buy a house here and fix it up (his whole family is pretty well at that along with my family and alot of our friends) so that we can make a little more off of it when we sell it, but with how houses are selling I don't know if I want to do that. I am sure that in 5-6 years the economy will be better, but I don't want to get stuck with staying here when we are ready to move. We are not really sure on all of that yet, but we have a budget set so that once I graduate and he is out of Paramedic school we will have enough money to move then or within a year or so. He is doing rather well with all of this because I told him that he has to take care of all of this and raise his credit to show that he is serious about starting a life with me. Thanks for all of your advice and I would love to hear from anyone else that has advice.:D

[ALawicki]

A friend of mine filed for bankruptcy several years. Her lawyer told her that the best way to build good credit quickly is with a secured credit card. Pretty much anyone can get one from what she said because it is secured with your money. I do think they charge you some kind of monthly or yearly fee, but it's something to think about. Good luck with whatever you two decide.

BTW- It's against federal law for anyone to open another person's mail. Maybe he can politely drop a hint to his mom about that. It may not work (it didn't with my mom when I lived at home), but it's worth a shot. :)

I have asked him to change his address but he just hasn't had time to go do that. He has said something to her before and she stopped for awhile, so maybe she quit. He hasn't really had much going there lately because I have had him call all the people he owes money to and talk to them. She helps us when she can, but I just don't think she should open his mail. That is how they found out he got 2 tickets in Alabama:rolleyes:

[utkd29]

You can change your address on the internet at USPS.com for $1.00

[ALawicki]

Here is a good article you should read.

http://www.myfico.com/CreditEducation/CreditInquiries.aspx

Thanks I printed it all out for him so he can read it and not think that I am being a "Miss know it all" like he always says I am.

[ALawicki]

You can change your address on the internet at USPS.com for $1.00

He doesn't have a credit or debit card in his name so he can't do it online. I tried that already. He has to go into the post office himself:rolleyes: They make things so hard now-a-days

[flowermom07]

If he decides that he will do the credit report thing.. here's a free link https://www.annualcreditreport.com/cra/index.jsp

Here's also Suze Orman's site.. http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD012&SRCN=index&GnavID=84&SnavID=20 That has alot of answers to questions too. Hope all this helps. :p (I think you have to log in for some of it???)

[ALawicki]

If he decides that he will do the credit report thing.. here's a free link https://www.annualcreditreport.com/cra/index.jsp

Here's also Suze Orman's site.. http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD012&SRCN=index&GnavID=84&SnavID=20 That has alot of answers to questions too. Hope all this helps. :p (I think you have to log in for some of it???)

Is that link for the credit report, do you have to sign up for it? When I checked mine a few months ago I had to sign up and then call after 30 days to cancel it before they charged me for some bull crap. He definitely won't want to deal with that, so I need to find one where I can just his score and that's it. Thanks!

[utkd29]

Is that link for the credit report, do you have to sign up for it? When I checked mine a few months ago I had to sign up and then call after 30 days to cancel it before they charged me for some bull crap. He definitely won't want to deal with that, so I need to find one where I can just his score and that's it. Thanks!

If you have applied for credit in the past year you are entitled to a free credit report. Just go to equifax.com

[bvanpeltsw]

He doesn't have a credit or debit card in his name so he can't do it online. I tried that already. He has to go into the post office himself:rolleyes: They make things so hard now-a-days

I think he needs to start off by getting a bank account. That is very important and he can save money that way as well. Cash goes faster when it is just sitting in your wallet.

[flowermom07]

If you have applied for credit in the past year you are entitled to a free credit report. Just go to equifax.com

Yes it's a free one - One free per year. You are entitled to get one free report from all 3 companies or as utkd29 said if you've been denied also. or you can mail in your request https://www.annualcreditreport.com/cra/order?mail click on the links for equifax, transunion, & experian at the bottom & go through them if you like. (it'll ask you as you go through it if you want just one company or all 3 or you can also call up each one. ) Hope this helps

[ALawicki]

There are so many dang sites to look at your credit score. Gosh. I used one that I didn't like, but it was within the last year so I don't get another free one. He needs to check his once he gets all of this crap paid off so we can make sure that is all he owes (sometimes I wonder if he lies about what he owes or if he really just has not idea) and make sure that we know what it is after this so we can see how it improves over time.

I will have to look up the credit card one of you were talking about. I know he doesn't want a credit card, but I saw one that said you prepay for it and it helps your credit, but I could never find it. Once he used it for awhile and got his credit going up I think we would cancel it. I have one that I will always keep, but I won't keep anything on there that I can't pay. Once I get freaking Victoria Secret paid off that is it for me!!

Thanks again ladies! He will definitately appreciate it all when I tell him about it all. He doesn't know alot about all of this, and I know some but not a whole lot.

[flowermom07]

Get 1 FREE report every year
Visit AnnualCreditReport.com or call (877) FACTACT for your FREE Equifax, Experian and TransUnion credit reports. This was off Equifax's site direct.

[ALawicki]

I think he needs to start off by getting a bank account. That is very important and he can save money that way as well. Cash goes faster when it is just sitting in your wallet.

Ya I have told him that. He has started to give me his money that he wants to save so I can hid it from him. I don't want to be like the controller of his finances, but until he gets a bank account I don't know what else to do with him. I set him a budget and he has stayed to it pretty well so far, but I just hope it stays that way. I kind of broke down cause he was complaining saying my budget was wrong when I spent 45 minutes on it. He realized then that I was just trying to help not control him. He makes more money than me but he has more in bills (I was blessed with wonderful parents who bought me a car for graduation and I don't have a car note) so I take care of most of the groceries and such. I just hope he listens to all of this.

[ALawicki]

Get 1 FREE report every year
Visit AnnualCreditReport.com or call (877) FACTACT for your FREE Equifax, Experian and TransUnion credit reports. This was off Equifax's site direct.

I will have him do this after he pays it all. Thanks. I will remember this one next time I need to check mine. I don't remember what company I did, but it sucked. When I called to cancel my stupid membership thing they kept me on the phone for 10 minutes trying to get me to stay with them. I was getting so mad and told her I wanted it cancelled and that was it so to stop talking to me.

[flowermom07]

I will have him do this after he pays it all. Thanks. I will remember this one next time I need to check mine. I don't remember what company I did, but it sucked. When I called to cancel my stupid membership thing they kept me on the phone for 10 minutes trying to get me to stay with them. I was getting so mad and told her I wanted it cancelled and that was it so to stop talking to me. Your too funny I don't blame you. Although most of these credit reporting companies.. even these well know ones try to sell you their credit protection stuff now a days.. I guess they figure they better make some extra too. :p but I don't care for solicitation either. ;)

[flowermom07]

Have a good night .. Gotta go do some work or try too:p

[MandMnmbr3]

..... but until he gets a bank account I don't know what else to do with him.

Ashley... it might be hard for him to get a bank account since most bank run credit check on you when you go to apply for a new account. (Many employers do the same thing.) If you have bad credit they won't open an account. (or hire you for the position.)

Good luck hon!!

Hugs,
Mae

[imalittletoenail]

hidy...
building credit back just takes time...so first off don't let it frustrate you...my husband was in a bankruptcy when we met...his credit is still shabby several years later...but it's better than it was...and keeps getting better...there are a few things he did and we're doing to help his credit...first, he got a bank account...if your boyfriend can't get one right now would you opening one and putting him on it be an option?
also, he got a credit card...it has a low limit and he just spends a little on it here and there then pays it off...
something else that helps is having things in his name...bills like mortgage/rent, phone, utilities...things like that...just make sure they're always paid on time...
it's a step by step process...but he'll get there...

also, i wanted to give you a little encouragement about not trying to control his finances...i was in the same situation...i realized immediately that DH was horrible with money...when we got a joint checking account and I went to the bank one day to discover all the bounced checks...I flipped out...thankfully, he was at work and I'd calmed when he got home...I have perfect credit and I do not want to ruin it...Anyway, long story short...I took over the finances that day...He was hesitant at first, but over time he saw what a difference it made...so, i don't think it's a matter of control it's simply a matter of showing him what needs to be done so that he does not get into the same situation again...sometimes, it just takes a little time for these men to see these things :D

i wanted to share this too...
i will never forget the day when i was 12 years old and my daddy sat me down and said i want to teach you two very important things that you will need in life...I thought it was gonna be the s e x talk...haha...nope ... this is how you do your taxes and this is how you do a budget...i still thank him for teaching me this...;)

[ALawicki]

hidy...
building credit back just takes time...so first off don't let it frustrate you...my husband was in a bankruptcy when we met...his credit is still shabby several years later...but it's better than it was...and keeps getting better...there are a few things he did and we're doing to help his credit...first, he got a bank account...if your boyfriend can't get one right now would you opening one and putting him on it be an option?
also, he got a credit card...it has a low limit and he just spends a little on it here and there then pays it off...
something else that helps is having things in his name...bills like mortgage/rent, phone, utilities...things like that...just make sure they're always paid on time...
it's a step by step process...but he'll get there...

also, i wanted to give you a little encouragement about not trying to control his finances...i was in the same situation...i realized immediately that DH was horrible with money...when we got a joint checking account and I went to the bank one day to discover all the bounced checks...I flipped out...thankfully, he was at work and I'd calmed when he got home...I have perfect credit and I do not want to ruin it...Anyway, long story short...I took over the finances that day...He was hesitant at first, but over time he saw what a difference it made...so, i don't think it's a matter of control it's simply a matter of showing him what needs to be done so that he does not get into the same situation again...sometimes, it just takes a little time for these men to see these things :D

i wanted to share this too...
i will never forget the day when i was 12 years old and my daddy sat me down and said i want to teach you two very important things that you will need in life...I thought it was gonna be the s e x talk...haha...nope ... this is how you do your taxes and this is how you do a budget...i still thank him for teaching me this...;)

I am putting my name on his bank account because I know that he can't get one by himself. I am glad that you told me about how you did it. He told me that he understands I am trying to help and not control, so I feel better about the situation. Plus with my name on the account I can keep track to make sure it doesn't overdraft and if I need to (which crossing my fingers I won't) I can transfer money to the account when he is in trouble. He is NOT getting a debit card, and that is his decision. I told him to get one and just let me keep track of it, but he said he doesn't even want that. We are going to wait about another month or so until before trying to get an account, and once he gets one (hopefully on the first try) we are also getting him a secured credit card! He is going to put the minimum on it ($300) and he will use it for gas and groceries only. He is really working to get things straight and I know it takes time and that is our main reason for possibly renting for the next 5 years or so, plus we don't want to get stuck with a house and not be able to sell it when were ready to move. Everyone has really helped us out with your suggestions and such. Things seem to be a little less stressful for him after I let him read all of this and all the suggestions. He really stresses about this stuff and I am happy to see that he isn't really stressed anymore!! Thanks everyone, you have all been a great help!

[mood4amelody]

I'd recommend getting the credit report (the link that Sherry gave IS FREE and it is for all 3 credit reporting bureaus). There may be some items remaining on there that have been paid for quite some time and just have never been removed. I found things on mine that had to be changed when I did it! Tell him to not be scared, but to look at it as a challenge. :p

I would not recommend a secured credit card. The fees are killer. I would recommend that you and he jointly take out a small loan (like $300) and pay it off AS SCHEDULED (not early, definitely not late). Next time take out a $500 loan and do the same. With you on the loan, they should let you carry him, and it will be a great boost to his credit rating when they pay out on time. It doesn't really matter whose name the utiliities are in around here. They never report anything unless you have a way past due final bill. Same with rental agreements. If he is a good payer on his rent, tho, he can ask the landlord to report that to the credit bureau and if the landlord will, they will put it on his file, too.

It's only illegal to open other people's mail if you intend to keep if from them (federally, that is. It may be a misdemeanor to open it and then let them have it, but I'm not sure about that part.)

You are just the better person to handle the money. Not everyone can handle money, and not everyone can pee standing up. You budget, he writes his name in the snow. Fair deal for him! ;)

[ALawicki]

I'd recommend getting the credit report (the link that Sherry gave IS FREE and it is for all 3 credit reporting bureaus). There may be some items remaining on there that have been paid for quite some time and just have never been removed. I found things on mine that had to be changed when I did it! Tell him to not be scared, but to look at it as a challenge. :p

I would not recommend a secured credit card. The fees are killer. I would recommend that you and he jointly take out a small loan (like $300) and pay it off AS SCHEDULED (not early, definitely not late). Next time take out a $500 loan and do the same. With you on the loan, they should let you carry him, and it will be a great boost to his credit rating when they pay out on time. It doesn't really matter whose name the utiliities are in around here. They never report anything unless you have a way past due final bill. Same with rental agreements. If he is a good payer on his rent, tho, he can ask the landlord to report that to the credit bureau and if the landlord will, they will put it on his file, too.

It's only illegal to open other people's mail if you intend to keep if from them (federally, that is. It may be a misdemeanor to open it and then let them have it, but I'm not sure about that part.)

You are just the better person to handle the money. Not everyone can handle money, and not everyone can pee standing up. You budget, he writes his name in the snow. Fair deal for him! ;)

HAHA! That made me laugh. But ya good idea about the loan. He is trying to sell his car and once he does that we are going to try and use only one car for awhile. He will need a cosigner for a loan for a car, but I don't know if that is something I am ready to do considering we are not even engaged yet (we are discussing it, but money is an issue to get a ring, and well that is our main problem right now). I might do the loan for him to help pay for rent or something since he will be in school and using way more gas than normal. Also we can take out a loan when we move for the deposits. I think it is the same here on the utilites because that stuff wasn't on my credit and I always paid on time. I think they can see that you have had it in your name and you were on a good status with your bills, but I don't think they credit that into your credit score. I wish that he didn't need a cosigner for a new car. We are actually thinking of waiting for a few months, let me save up a little more money, and then me going and getting another car (mine is paid off). That way I don't have to have as much as a downpayment because I have extremely good credit, and he loves my car, and I want somewhat of a small SUV (I know gas prices, but my parent's pay my gas while I am in school, even though it won't go down by the time I get out, but you just have to get used to the gas prices.) I think that would be a rather good step for myself too, and we would have 2 cars. But ya we are still talking about that. I will definiately tell him what you said about looking at his credit. I think he said we can do it once he gets it all paid off (we are waiting to hear from the bank to know how much they lowered it too). So I think he is doing better and we will have it all figured out and getting better by this time next year!