Ask MetaFilter questions tagged with loans and credit

Can bank charge off auto loan with totaled car despite continued payments?

Nickel — Sun, 11 Oct 2009 22:55:56 -0800

Car was totaled, bank that gave auto loan charged off the loan account because the collateral is gone despite us continuing with full and on time payments. What are our options? Our car was considered totaled by the insurance company, but the insurance company is refusing to pay for various reasons (not the point of this post, we've already hired a lawyer) so we can't pay off the loan in full. We've continued to make monthly payments in full to the bank that holds the loan.

However, the bank then sends us a letter saying they are charging off the account. A check of the credit report confirms that they have listed it as a negative account there. We call/write with proof that all payments have been made on time and in the full amount, they respond that it is their policy to charge off loans that have lost their collateral.

Is this legit? What are our options? It just seems wrong that they can charge off an account when we've been making all the payments and have proof of our payments.

How do I get a reasonable loan modification?

ccpearce5 — Mon, 23 Mar 2009 20:14:55 -0800

How do I get a loan modification without ruining my credit? I have heard many conflicting ideas that range from not paying the monthly mortgage to hiring a lawyer to sue. I personally don't need one, but my friend bought two homes over a five year period and both of them were negative amortization loans, so now he has balloon payments that he cannot afford. I'm trying to help him but have gotten conflicting advice.

One lawyer suggested not paying for two months because then mortgage companies know how seriously in trouble you are. I have also heard that if you have too much OR too little money, companies won't bother trying to help.

Does anyone know of some comprehensive resources that can be understood by someone who has some, but not extensive, financial experience?

Can I still get an unsecured loan in the United States?

Ariadne — Fri, 07 Nov 2008 05:07:24 -0800

I need a personal loan of 10k to buy a business. I have good credit and employment history. With the current credit crunch in the United States, are there any banks still giving unsecured loans? I'm an American citizen but currently living in Prague, where I work full time as a bar manager. I also run an internet business that is registered in the US and is almost 3 years old now. My credit score is 746 on Experian and 760 on Transunion.

I want to buy a bar here in Prague but I am short 10k. It is impossible to get any kind of loan in the Czech Republic without a longer banking history here and some type of collateral.

What should I be looking for? A business line of credit based on the fact that my online business has been running for almost 3 years? Are unsecured personal loans or lines of credit even possible anymore? Citibank and Bank of America still advertise them, but I don't want to waste a credit inquiry on something that is a longshot.

Internet Loans during a credit crunch?

empath — Thu, 25 Sep 2008 19:25:48 -0800

How is the credit crisis affecting places like prosper.com? Would it be smart to borrow/loan money there in an environment like this? With banks seizing up and me having some extra cash, would it be a smart investment to loan money to individuals directly? What about people having a hard time getting a loan from a bank? Is anyone out there using it right now?

How to pay off entire student loan with a credit card for points/cashback

elvedon — Sat, 12 Jul 2008 07:55:35 -0800

I want to pay off my student loans - can I do it with an AMEX/other card to get the points and then turn around and pay off my credit card? Sallie Mae says I can make individual minimum payments with a credit card, but that there's no way except a check or bank payment to pay off the entire amount. Can that really be true? is there a way around it?

How deep a hole is this?

peacheater — Tue, 25 Mar 2008 12:37:10 -0800

One of my boyfriend's student loans just got turned over to a collection agency. How bad is this? He's a graduate student and has several student loans. He's always been prompt with payments, including slowly paying off the principal. He assumed that this loan would be automatically deferred since he's still a graduate student, just like his other student loans. He even called them a few months ago and then they told him that the deferment was taken care of. Now, without any warning, they've turned it over to a collection agency. He never received an email, a letter or a phone call before this happened. It seems really unfair to me that my boyfriend should be punished because the company misled him. He now has to fill out a form saying that he's still in school and send it to them. My question is: how bad is this going to look on his credit report? Is there any way for him to get this completely removed from it? Basically, what recourse does he have to fight this?

Is it time for a credit card?

fogster — Fri, 14 Mar 2008 21:31:50 -0800

Should I sign up for a credit card right now? If so, from where? I'm an unemployed college student. I'm due to graduate in May, and currently have no job since I'm a full-time student. (I'm looking for "real" jobs for when I graduate.) I'll delve into (much) more detail in a minute, but the basic gist is that people keep telling me I need to get a "real" credit card to build history, but I think now may be a bad time.

I should also disclaim that I'm extremely contemptuous and distrusting of the credit industry. I believe that they, as an industry, have gone out of their way to exploit people with financial problems; I find it repulsive that they're exempt from usury laws; I'm yet to find a credit card company that doesn't engage in one sleazy practice or another. More than anything, though, I have major issues with credit reporting: I never asked to be put in a database with some random third-party group, and I think my financial data is the last thing in the world they have a right to know anything about. I realize that it's very helpful to banks, but that doesn't appease me. Not only is it a (creepy) invasion of my privacy, but I have major issues with them being the definitive word on whether I'm creditworthy or not. (It'd be like if I spontaneously declared that I was the "Job Rating Bureau" and kept files on every person in America, every time they've been disciplined at work, every place they ever worked, for how long, and also reported when people applied for jobs. And then, when someone went to apply for a job, the company would contact me to ask what I thought of them. Oh, and employees could only see my ranking of them once a year. And that's only because Congress forced my hand.)</rant>

So I acknowledge that some of my reluctance is that opening a credit card is "giving in" and playing by their rules. But I also think it just doesn't make sense at this point in my life:

- I have no job. I last had a job this past summer.

- I have about $2,000 to my name. It's in a local credit union, which has also issued me a (Visa-branded) "check card," which works as both a debit card and an ATM. The money just comes out of my checking account. This works very well for me.

- I have around $10,000 in student loans. I consider myself pretty prudent in this regard: they don't officially become payable until I graduate (and then I have the ridiculously long time they allow), but back when I did have a job, I worked on paying down monthly accrued interest and a small amount of principal.

- My 2007 tax return was for about $7,000 in income. (I consider this quite good for a no-skill summer job, but the point is that current debt, technically, outweighs my annual income. Further, I don't even have the job anymore.)

Also, I was turned down for an auto loan a couple years ago. (I had about $13,000 in the bank, and was seeking to buy a car for about that amount, but my mom convinced me I should try for a loan to build credit rating. So I applied for a $4,000 loan and was turned down.)

As I understand it, applying for a credit card and getting turned down would hurt my credit further. I almost signed up for the Costco AmEx card, but this thread got me worried about AmEx's apparent obsession with putting accounts under "financial review" at inopportune times and demanding years of financial data. If your answer is that I should apply for a card now, I'm also soliciting recommendations for a company that doesn't seek to cheat me too badly. I should note that, because I hate spending money I don't have, I expect to pay cards off in full, so I'm actually not too sensitive to interest rates.

I have no military links, so USAA is out. And thanks for reading this far; this came out to be a long one!

Are subprimes still lending?

tesseract420 — Sun, 03 Feb 2008 23:23:42 -0800

Subprimes still lending?? I thought that the subprime loan market was out of business. Why am I getting multiple calls from Household Finance claiming that they have "new programs" trying to lend me money I don't need? ps I don't have a loan with Household Finance. I don't know if they're trying to make a home loan or a consumer credit facility.

Is there any way I can clear a credit blemish off my records (from Federal Student Aid)?

oneous — Thu, 18 Oct 2007 21:58:51 -0800

My mom just gave me about a year and a half's worth of mail that she somehow thought I didn't need while I was away at college. A few of the letters in there are from Federal Student Aid telling me my account is overdue -- meaning that I had a small loan for University of California and when I dropped out of UC, I was apparently liable to pay back my entire loan ASAP. My mom just gave me about a year and a half's worth of mail that she somehow thought I didn't need while I was away at college. A few of the letters in there are from Federal Student Aid telling me my account is overdue -- meaning that I had a small loan for University of California and when I dropped out of UC, I was apparently liable to pay back my entire loan ASAP.

The amount I was supposed to pay is about $1000 and it's now about 70 days overdue. The most recent letter from them says that they just reported me to the three credit bureaus. FYI Prior to this, I had nothing on my records.

So: 1. Are there any loopholes by which I might be able to remove these reportings? 2. How bad is it?

Payoff CC with student loans? Then invest or pay off loans?

Anonymous — Wed, 12 Sep 2007 12:58:17 -0800

I am using extra student loan money at 6.8% (mostly unsubsidized) interest rate to pay off my credit cards (about 25K) worth. What should I do when I get a bunch of other cash? Pay off loans or invest? I will soon be getting $5K cash and will probably get some additional money for freelance jobs, while I am in grad school (MBA). My wife and I would like to buy a house at some point in the next few years.

So what do I do with the cash? Invest it (I typically return about 20% yearly on individual stocks...obviously riskier so maybe index fund?) Put it in a high yield savings account? Other thoughts?

Some have said I should immediately make payments on my student loan...seems to me if I can beat the 6.8% on the student loan I should save the money for the house.

(p.s. lest you think I am irresponsible with the 25K in debt their are valid reasons I won't go into..I am annoyed by it but it was mostly unavoidable)

Just how good does your credit have to be to qualify for 0% financing on a car loan?

saucy — Fri, 17 Aug 2007 05:03:52 -0800

Just how good does your credit have to be to qualify for 0% financing on a car loan? Ford is offering 0% 60 month financing for buyers who qualify. I have a fairly good credit score, but I'm curious if they have a set score that you have to meet to be approved? Does anyone happen to know?

Apply for a loan to help my credit?

MrBCID — Sat, 23 Jun 2007 21:05:05 -0800

I am in my 20's, have no debt and have no need for a loan; should I get one anyways to help my credit? I have a high credit score, and I pay off my credit cards monthly; but I have never taken out a loan, not even student loans... I worry this will hurt me when the time comes to apply for a car loan, home loan, etc...

What kind of loan should I apply for? I would be able to pay off any loan I apply for, but don't know where to begin... I don't need a car nor am I looking to buy a house; so car/home loans are out... I have only heard of personal loans but don't know if this is the best option...

Whatever loan I decide to get would be placed in a savings account accruing 4.5%...

Any help is will be GREATLY appreciated...

Whaddya mean I owe you 700 bucks?!

richter_x — Tue, 20 Mar 2007 17:53:06 -0800

Options for (re)building my credit...how best to re-build my credit history with an eye towards home ownership... After a period of credit irresponsibility in my youth, I am trying to rebuild my credit. I have a time table of a few years to accomplish this.

I have the opportunity to take out a small loan (under 4 grand, but at a positively usurious rate of 29.47%) to add a positive entry to my credit report.

My question to the hive mind is, is there a better way to do this? I have positive entries (paid off car loan, second car loan, charge cards that are current), but I can't seem to shake the negative ones.

For what it's worth, my score hovers somewhere around 590 (depending on which agency you ask), and I have the income to support taking out a loan at a loss to help build this.

Cosigning for a student loan

charmston — Sat, 01 Jul 2006 19:40:42 -0800

CreditFilter: Does co-signing for my student loans affect my parents' credit? My parents are concerned that cosigning for my student loans (which, before I complete my undergraduate studies, will probably amount to approximately $50,000) will adversely affect their credit. If not their FICO credit score, at least show up as some sort of debt that they are responsible for that might hurt their chances at getting future loans.

Are there any credit or financial experts that might know the specifics regarding this? Many thanks!

Credit card debt vs. car loan debt

tristeza — Tue, 27 Jun 2006 16:18:13 -0800

Which is a "worse" type of debt - credit card debt or car loan? I have a goodly sum left to pay on my car (around $6k). The interest rate is 5.5%.

I have the opportunity to put up to 19K on a particular credit card which they say has a 4.9% APR until the balance is paid in full.

Obviously, one rate's better than the other which is why I'm tempted to pay off the car with the card, but....is credit debt somehow "worse" or more insecure than car financing? Are there pitfalls to the credit card deal I'm unaware of (I had them confirm over the phone the rate for LIFE).

Please assume that a) I will never charge anything else to this card, b) I will pay more than the minimum, on time, every month, til death do us part amen.

When Past Transgressions Attack!

plaidrabbit — Mon, 27 Mar 2006 08:31:19 -0800

LawSchoolLoansFilter: As most undergrads do, I've got a few small blemishes (and one large one) on my credit report. I've gotten into school, but I'm paralyzed with fear to even start on my private loans. Am I being stupid, or am I right to be frightened? I can't imagine I'm the only person on the face of the earth who needs to procure private tuition loans for law school who's had a few missteps on their credit score.

The story: I have been very active with my credit since I've had the ability at the age of 18. I have had two signature loans, 6 credit cards, a few cell phones, deposits for water/gas/electric, etc. However, almost two years ago exactly, I decided to move out of the country to be with my fiancee (now wife). The move was hasty, poorly planned, and ended up with me completely screwing a couple of companies on my last payments - namely my cable company, a cell phone provider, and a signature loan for approx $6k. Prior to this, I'd missed ONE credit card payment, and was 30 days late a couple of times on a signature loan another time that I moved (this was almost 5 years ago, now).

Since then, I've moved back to the states - and I ran my credit report to see the dammage. I've contested the cable chargeoff (and it was removed), and have since settled with the cell phone company and began payments with the signature loan. I've never missed a student loan payment, have secured a credit card which I pay off every month, and bought a car in the last year (with my dad as a co-signer). All of these things I have been spotless with, either making multiple payments each month, or paying early.

My concern is that any private loan company will LAUGH when I try and apply - even though I've cleaned up these small things, at one time durning my serious screwup, I was 180 days late on the signature loan.

I'd get a copy of my credit report, but it just contains all that I told you. I can't read a FICO score, and for damn sure don't want to give some company $50 to tell me what I or you (may) already know.

Am I being stupid? Should I just go ahead and give Sally Mae a call and see if they'll approve me? My only worry lies with the signature loan - which is basically what I'm asking these institutions to do; hand me roughly $75k over the next three years on nothing more than my word.

Oh, and my parents are tapped for cosigning. They can't help me if I need them.

Any ideas?

Anyone know how to get out of a car loan you no longer want?

pikachulolita — Thu, 05 Jan 2006 12:13:47 -0800

How can my mom get rid of her car? It doesn't work, numerous attempts to repair it have been unsuccessful (long story), and she still owes money it. Is there some way to get rid of the car altogether without defaulting on her loan and ruining her credit? The unnecessary expenses are really killing her; she's paying an amount equivalent to her rent, and she could get along fine on the bus. She's tried taking it into a couple of shops and while they fix what is immediately wrong, on her drive home another issue always crops up. Even if she were to get it fully repaired, I doubt she could get even close to enough for it to pay off her car loan.

I have heard of something called the "lemon law" covering chronically broke-ass cars and will look further into that, but I know she would need a bunch of documentation if it would even qualify and she really doesn't have the energy to sue over it or anything.

Is there a way out for my mom? If she didn't care about her credit, defaulted on the loan, and got the car repossessed, would she be released from the commitment? Is there any other way out?

Starting to build credit

ubernostrum — Mon, 28 Mar 2005 20:12:31 -0800

As a young person with a pretty much blank credit history, I'm looking for ways to start building solid credit for the future (more inside) Quick summary of the situation:

I'm 24, been out of college for two years. I paid my way through with scholarships and grants, so I don't have any loans in my history. I own my car outright.

After college I spent a year at home (family medical issues, I needed to be around to help out), but last October I moved out on my own for the first time. I had a decent job during that year, but I'm now self-employed (web geek) and loving it.

Since moving out I've paid my rent and other bills promptly (only smudge is a $1.86 fee on my cell-phone bill because the USPS got my payment there one day late), but I'm looking at my future and wondering what the best way is to build up a strong credit history for things like buying a house, getting car loans, etc.

One suggestion a couple people have made is that I should get a credit card (I've never had one) and occasionally put something small on it and pay it off; I've got an offer from my bank for a decent-looking card, and that's certainly on my mind as an option, but I've never cared for credit cards and I'd like to know what else is out there.

A quick glance at the archive revealed lots of people asking about credit consolidation and such, but nothing that I could find about how to start a good credit history, so: what do you know about building credit?

repairing a credit report

Anonymous — Sat, 08 Jan 2005 01:18:06 -0800

I'm in college in the U.S., and have a few state student loans. They were under a forebearance that I once requested, which ended four months ago. I didn't realize this, and ignored the mail that was sent about it because I thought it was the usual mail they send me about how I have a loan and ads for consolidation. I just recently got this fixed and the forebearance backdated so it will have another year from when it ended. But I now have two 60-day late marks on my otherwise good credit report. Anything I can do to get rid of them?

Repairing Credit

Anonymous — Wed, 10 Nov 2004 19:45:33 -0800

How should I repair my bad credit? I'm 26, my income ($53k) exceeds my expenses and I have only $1.5k debt, but I was awful about paying bills on time until the last year or so. Now I'm finding it difficult to secure a car loan. I haven't even gotten a credit report because I'm afraid to look at it. I will probably end up talking to a credit counselor, but I thought I'd ask for advice before I do. College kids, don't wait until the utility bill is yellow to pay it. Trust me.

Student loan problems

filmgeek — Sat, 20 Dec 2003 08:43:27 -0800

Trying to solve a problem for a dear friend from highschool. She's been ignoring her school loans and came to me out of confidence. They were around 22k about six years ago; She doesn't know how to get herself straightened out. A second job isn't an option (based on her first) as the first job pays well (travel), but is being garnished; She needs a way to get them off her back, but not overwhelm her so much that she drowns trying to deal with them.

I'm ok with money, but I just can't figure out what to tell her.

Are there any counselors who specialize in this that I could send her to? If you're shy about this and dealt with this, please feel free to contact me directly by email.