How to aquire good credit?

If you are fortunate enough to have a job, a good credit score is easy.  Exercise some self-restraint and make good decisions.  Pay your bills on time--every time.  Don't buy E36 M3 you can't afford.  It's really that simple.

frenchyd said:If I had credit I could have bought that property in San Diego. Up until then I paid cash for every thing. So I didn’t have a credit score.  GI bill allows vets to buy nothing down.  Zero 0  

If you invest nothing, zero, 0 in Apple in 1970  ( (when that opportunity presented itself)  how much would you have?  ( yes I know) my point is  that to make money in the stock market you have to first have money.  

Yes Vets do get a break but roughly 1/2 of all marriages end in divorce and when that occurs a lot of time people simply walk away from real estate, or maybe they are upside down on it?  

So even people who aren’t vets can acquire real estate for little or even nothing down. Then whatever that property appreciates plus whatever equity they have in it is profit.  

A $200,000 piece of property appreciating at a little more than the rate of inflation could easily be worthy more than a million by the time its paid for.  

Let’s give you the rate of appreciation you mentioned with Apple ignore the fact that most people no longer own stock ( unlike my working days when more than 50% owned some in an IRA or 401k ) 

Now to average the best we need to consider the worst. Sears?  In the 1970’s Sears was considered a gold standard.  JC Penny?  Woolworths? 

How about automotive?  AMC? 

How many people invested in those?  I know what the DOW did during that period.  What were some of the really poor investments?  

The stock market is a Gamble select wrong and you lose.  Realestate  even if you don’t meet the average you at least have a place to stay.   

 

Dude I don't know why I bother engaging with you on subjects like this. You ramble and ignore info. You've essentially said you'd get the land for free with no expenses over 45 years. That's not the case. You would have paid $35k, spent hundreds of thousands in property taxes, maintenance, and interest. You obviously would have had to have money to have the property. Getting the loan doesn't mean you now own it and don't have to pay anything. As you know but for some reason choose to gloss over.

I said I was cherry picking just like you were. But again, you ignore whole sentences so you can make the point you want to make. Never mind, I'm done.

dculberson said:

 

Dude I don't know why I bother engaging with you on subjects like this. You ramble and ignore info. You've essentially said you'd get the land for free with no expenses over 45 years. That's not the case. You would have paid $35k, spent hundreds of thousands in property taxes, maintenance, and interest. You obviously would have had to have money to have the property. Getting the loan doesn't mean you now own it and don't have to pay anything. As you know but for some reason choose to gloss over.

I said I was cherry picking just like you were. But again, you ignore whole sentences so you can make the point you want to make. Never mind, I'm done.

It is incredible, isn't it? Just completely misses the point. 

I'm still here. Paying attention to all that is relevant. I have no interest in land in San Diego. 

Appleseed said:

I'm still here. Paying attention to all that is relevant. I have no interest in land in San Diego. 

How about some beachfront property in Kansas?

mtn and Frenchy, you  both need to go eat a snickers and drop it. This is the dumbest argument I've seen.

Suprf1y said:

 

mtn and Frenchy, you  both need to go eat a snickers and drop it. This is the dumbest argument I've seen.

Touche

I dunno, man. I've seen way dumber.

You had to be there

In reply to dculberson :

You mean Frenchy's other arguements? LMAOOO

dculberson said:

frenchyd said:If I had credit I could have bought that property in San Diego. Up until then I paid cash for every thing. So I didn’t have a credit score.  GI bill allows vets to buy nothing down.  Zero 0  

If you invest nothing, zero, 0 in Apple in 1970  ( (when that opportunity presented itself)  how much would you have?  ( yes I know) my point is  that to make money in the stock market you have to first have money.  

Yes Vets do get a break but roughly 1/2 of all marriages end in divorce and when that occurs a lot of time people simply walk away from real estate, or maybe they are upside down on it?  

So even people who aren’t vets can acquire real estate for little or even nothing down. Then whatever that property appreciates plus whatever equity they have in it is profit.  

A $200,000 piece of property appreciating at a little more than the rate of inflation could easily be worthy more than a million by the time its paid for.  

Let’s give you the rate of appreciation you mentioned with Apple ignore the fact that most people no longer own stock ( unlike my working days when more than 50% owned some in an IRA or 401k ) 

Now to average the best we need to consider the worst. Sears?  In the 1970’s Sears was considered a gold standard.  JC Penny?  Woolworths? 

How about automotive?  AMC? 

How many people invested in those?  I know what the DOW did during that period.  What were some of the really poor investments?  

The stock market is a Gamble select wrong and you lose.  Realestate  even if you don’t meet the average you at least have a place to stay.   

 

Dude I don't know why I bother engaging with you on subjects like this. You ramble and ignore info. You've essentially said you'd get the land for free with no expenses over 45 years. That's not the case. You would have paid $35k, spent hundreds of thousands in property taxes, maintenance, and interest. You obviously would have had to have money to have the property. Getting the loan doesn't mean you now own it and don't have to pay anything. As you know but for some reason choose to gloss over.

I said I was cherry picking just like you were. But again, you ignore whole sentences so you can make the point you want to make. Never mind, I'm done.

You have to buy stock.  You cannot put a little  ( or nothing ) down and finance stock over a 30 year period.  

Meanwhile if you buy that stock you still have to live someplace. 

Now I’ll grant you, maybe I’m Lucky picking real estate and maybe you are lucky  picking stock. But if you pick wrong you can lose everything. Whereas if I pick wrong I at least have a house to live in. 

In reply to frenchyd :

If you pick wrong in your personal housing choice, you have a depreciating asset that costs you additional money to continue to hold until the note is paid. 

If you pick a bad stock, you haven't lost that money until you sell it at a loss.

And if I don't figure out this credit thing, I loose the roof over my head.

In reply to Appleseed :

Is her credit preventing you from qualifying for renting or buying a new place to live? That seems implied but I didn't see it stated specifically (if you mentioned it already I apologize). If so, have you tried applying alone to see if your credit will suffice?

In reply to Appleseed :

I know, Frenchy 7 million dollar regrets have derailed this thread. 

Anyway, I've used the following forum for advice and guidance and it's always worked out for me:

https://ficoforums.myfico.com/

In reply to EastCoastMojo :

Her credit ws bad enough that the mortgage guy, a family member, took her off to better our chances. I'd be sitting pretty, as my scores were about 805 average between the three credit companies.. Problem is they see the loan I have out on the FR-S and they are looking at what I make. It would be razor thin. Not a problem in reality, as SWMBO would be contributing half of our expenditures, but the lenders don't know that.

In reply to Appleseed :

If the car loan is what's holding your approval back, is there any way to transfer the FRS to her name temporarily? Basically she "takes over" payment obligation, even though the bill is still paid however it currently is, just to improve your credit/debt ratio until you get settled, then switch it back? I've never tried this, just trying to think of something that would make an immediate difference for your credit, as most credit building for her situation will take time to see significant results.

Another option might be to see if a family member could loan you enough to pay off the car loan, and you make the same payments to them?

I think the quickest way to boost her score is to pay down/off as much of her cc debt as possible. If she still has any. That'll boost her scores the fastest and lower her DTI too.

I regards to your car loan. Maybe have a parent buy it from you for what you owe and just pay the monthly bill for them for awhile. That'll lower your DTI. 

Or, sell the car. Buy another after you are situated in the house. E36 M3ty option especially since you can afford the payments. 

I think we'll definably focus on reducing the CC bills. I'm sticking out the car. There is no one to bail me out, family wise.

In reply to EastCoastMojo :

Housing works the same way as stock. You haven’t lost until you sell. 

Appleseed said:

I think we'll definably focus on reducing the CC bills. I'm sticking out the car. There is no one to bail me out, family wise.

How close is the car to being paid off? How much time do you have to find a place? 

Reducing the outstanding CC balances is definitely worth doing, but as I mentioned on the previous page, the part that is likely to really hurt her score atm are the late pays, and unfortunately those will take time to heal.

Is the issue with the FRS loan the size of the payment or the fact that you have the loan at all? I would normally not recommend this, but if it's the size of the payment, is there a chance that you could refi the car into a lower payment at a credit union, but still keep paying like you are now (given that the size of the payment isn't the issue for you)?

frenchyd said:

In reply to EastCoastMojo :

Housing works the same way as stock. You haven’t lost until you sell. 

Worst case when you lose in real estate: the lender forecloses and you lose your property, you lose all of the money invested (equity + utilities paid while owned + taxes paid while owned +  insurance paid while owned) and your credit gets trashed.

Worst case when you lose with stocks: you lose all of the money invested, but it stops there. No far reaching ripple effects on the rest of your life.

650 is the city wide score considered standard where I live to rent but I've seen 600 + 640 in some ads with another office saying they don't look at the score specifically but your debt nonetheless. 571 a month ago 615 today means a decent rooming house for the next four months then take another look.

Unfortunately, around here there is the "Chicago" tax. Any neighboring county jacks up cost because "Hey, its almost Chicago." Rent on an apartment is $750-850/month. A home is usually $1,200-1,400/month. The irony is buying my own home is really the cheapest route.