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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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| I'm in a really horrible fix |
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This might be a little lengthy, but I just found this out from my parents today and I'm slightly emotional.
I had opened credit cards before college to establish credit because I knew that my parents weren't going to pay for college and their credit was not going to be of any help to me because of all the debt they have. Before I left for college my parents agreed to help me pay one credit card (visa providian) of mine in my name. I thought this was an awesome deal because it seemed like a little splurge money. I left for college the first 6 months were great they paid on time, etc. After the 6 months in December my parents made a late payment, now I am very anal about this because I like to be able to get my student loans every year otherwise I have to find a full time job... I mailed a payment to them by looking up their billing address. My parents somehow assumed that I was paying my credit card from that point forward and stopped paying my credit card... and of course, tragically I thought they were paying it. So now I have the huge problem that umm... my credit card hasn't been paid in like 9 months. WHICH IS AWFUL, I know. My parents felt bad and offered to pay it off immeadietely, all inccured charges and all- I have their check just holding on to it until my payment is due and until I can figure out if there is anything I can do about this. I definitely realize it was my fault, my own responsibilty- if I wasn't paying it I should have at least been making sure that it was getting paid. From now on I'm paying the credit card. I work and make enough money for spending and a little future investing (not sure where to go with that either yet), so I'm not too worried about anything but my credit.
Enough about the past- what's done is done, the problem is I'm totally scared of how awful my credit score is now? How long will this affect me... I'm 20... almost 21. Someday I want to get a house,car, all that jazz. But most importantly, in like a month or two I have to apply for a student loan that I am most surely not going to get. Is there anything at all that I can do? Any way to negotiate with a credit company? Or anyway to explain circumstances like this to a loan bank? Past experience? Advice? Any reply greatly appreciated.
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Fri Oct 07, 2005 5:05 am |
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Lithix
Full Member
Cash: $ 11.65
Posts: 50
Joined: 17 Sep 2005
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I don't know the answer to your question, as I am in a similar credit situation myself...
The main thing I would suggest is to petition for emanicapation from your parents. This is not a slight against them or anything, just that if you can reach "independent" status sooner then you are eligible for MUCH more student aid. You get more grants (based on your income instead of your family's) and you are eligible for larger federally subsidized loans - so you don't have to worry about getting denied by a third party lender.
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Fri Oct 07, 2005 5:34 am |
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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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Well then good luck to us both. Yeah I've been filing independent since the income tax after that incident. I feel really guilty because I let all my contact info be changed to them in case they did miss a payment after December... but my parents apparently don't answer phone calls or listen to messages... they think everyone is a telemarketer.
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Fri Oct 07, 2005 5:53 am |
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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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One more thing, I ordered my credit score and I'm embarassed to even tell anyone else. What is considered "good"? What would be a good one at my age (20) with limited credit.
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Fri Oct 07, 2005 5:58 am |
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jlee1224
Full Member
Cash: $ 12.65
Posts: 63
Joined: 26 May 2005
Location: Baltimore
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You can mail an letter of explanation to the credit bureaus. It won't change your credit score one bit, but they will attach your explanation to the bad marks on your credit report. Anyone potential lenders who read it may take it into account as to why your recent history is bad on this one particular credit card.
Did they suspend your credit card? If so, that would be a worse situation.
Pretty much, the only thing you can do is keep paying bills on time. Bad marks faze out over time, and disappear in 7 years completely.
You will get subsidized loans, mentioned previously, that you won't have to pay until you graduate.
I wouldn't worry too much. After a year or 2, you will probably have enough credit to receive loans, but your rate won't be the greatest. After 4 or 5 years, it will improve dramatically. After 7 years, refinance whatever loans you have then and you will be offered the best rates then if you have good credit then.
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Fri Oct 07, 2005 5:37 pm |
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LottomagicZ4941
Senior Member
Cash: $ 1.66
Posts: 2633
Joined: 02 Dec 2004
Location: Earth
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I let a girlfriend use a calling card once and didn't pay the bill due to the fact that it was going to my parents and I had forgotten about it.
They thought it was junk mail and kept pitching the bills.
Anyway eventually a collection agent called me.
I agreed to pay if they took it off my credit.
Well I didn't get anything in writing and got a ding!!!!
It was only $79. How annoying on getting dinged for something I could have easily paid.
AT and T also turned me over for not paying $0.00. Guess I should have sent a check for Zero Dollars and no cents. When I complained they gave me a $50 credit but being ticked off I had already distroyed the card.
Every now and then they send me a notice that if I don't use my credit they are going to send me a check.
Only found out about the A T and T ding because Monkey Wards er Montgomery Wards said I had a right to find out why I was turned down.
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Fri Oct 07, 2005 6:20 pm |
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ushomeloans
Full Member
Cash: $ 10.55
Posts: 57
Joined: 08 Sep 2005
Location: Sacramento
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I wouldnt worry about it too much. Your credit file is thin and that is what i would be working on. 4 credit lines and 1 or 2 loans. Emancipation? He's over 18, can't do more then that. Dont live with your parents so don't report there income then. Im guessing you dont make much to be turned down. I also dont think student loans that the college gives out weighs credit that much let alone a 79 dollar charge.
Good luck
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Mon Oct 10, 2005 10:39 pm |
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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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Hehe, first off I'm a girl. My loan is through bank one actually, not federal or school given. Also, I thought it was bad to have too many credit cards? I already have 3, closing one after I pay it on the 17th... and I have one student loan so far. Either way, I feel better about everything now that I've paid that credit card in one lump sum. Time to think about investing wages next month =)
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Tue Oct 11, 2005 6:40 am |
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jlee1224
Full Member
Cash: $ 12.65
Posts: 63
Joined: 26 May 2005
Location: Baltimore
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Too many credit cards is bad. But 3 is a good number, as long as you use them correctly (read: pay off immediately). Make sure your loan at Bank One is fixed, or your variable rate will go up. After that...just maintain good credit and you're good to go.
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Tue Oct 11, 2005 2:28 pm |
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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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Thanks for all the help, and yeah it is fixed. I feel better in general... I just paid of my second credit card. I'm working overtime to try to do this by this month just to get it off my mind.
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Wed Oct 12, 2005 8:37 pm |
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ushomeloans
Full Member
Cash: $ 10.55
Posts: 57
Joined: 08 Sep 2005
Location: Sacramento
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So you guys know, All lenders for home loans want to see/require, 4 open trade lines, older then 2 years. That means 4 credit cards, or 3 credit cards and one car loan. But when you close the car loan, you now have 3. When you close the credit card you lose the credit history.
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Thu Oct 13, 2005 5:17 pm |
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bedby12
New Member
Cash: $ 0.25
Posts: 6
Joined: 14 Oct 2005
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Sorry to hear about your problems, good luck i'm sure it will all turn out fine
Darren
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Sat Oct 15, 2005 7:19 pm |
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KaliRaksha
Member
Cash: $ 2.70
Posts: 13
Joined: 29 Sep 2005
Location: Austin, Texas
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thanks =)
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Wed Oct 19, 2005 1:55 am |
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UrCredit5
Member
Cash: $ 3.05
Posts: 14
Joined: 29 Aug 2005
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| Moving On! |
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It's sad to hear about what happened. Becasue this will stay on your credit report for about 7 years. But like you said, you have to move on. If you haven't already, you should check your credit report to see how hard it was hit by the mistake. When it comes to applying for loans, the best thing you could do is write proposals explaining your intentions for the loan and what exactly happened to your credit report. Explaining your credit report is not likely to help because people aren't always honest. Another thing to do is get a cosigner for any loans you try to apply for. This will also benefit you and the cosigner's credit score. When you show much improvement to your credit report with no other dings on it, its much easier to explain that one period of miscommunication on your credit report and have someone believe you.
Good Luck!
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Wed Oct 19, 2005 6:28 pm |
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