This kind of spans multiple topics, sorry mods if you need to move it. Helping my stepson work on his finances a bit. He's got a Chase card with 1k limit, at about 80% util right now. That is the only thing on his CR, aside from an inquiry in Dec 2012 for TMobile, an inq in Apr for his apartment, and the inq for the Chase card in Dec as well. He's been 100% on time on his payments. He needs a new car, but isn't going to finance a new one yet. He is considering trying to take out a personal loan for 5k, paying about 4k for a car, and paying his card to 0.
I'm thinking of offering to pay his card down to 0, and hoping that helps his chance of getting a loan. He is planning on waiting (if his current car can make it) about 4 months before apping for the loan.
The only cards we could AU him on would only be 5-6 months old when it came time for him to app. There is either a 2k cashRewards, or a 10k nRewards. Both should have low util. Do you think adding him as the AU would help or hurt?
Like I said, I'll likely pay his card down to 0. If he gets the loan, can pay me back, if not, he gets to pay my bills for a month on his card.
Has anyone with a credit file as thin as his had any luck with getting a personal loan about this size? Particularly with NFCU?
Any thoughts or suggestions? He knows he could get a buy here pay here car, but would rather have the chance to pay his card down, only have 1 payment (instead of the card + car), and if the car is PIF he can save money by only having to carry liability instead of full coverage. Which I thought was a pretty smart thing to think of.
I'm thinking of offering to pay his card down to 0, and hoping that helps his chance of getting a loan. He is planning on waiting (if his current car can make it) about 4 months before apping for the loan.
The only cards we could AU him on would only be 5-6 months old when it came time for him to app. There is either a 2k cashRewards, or a 10k nRewards. Both should have low util. Do you think adding him as the AU would help or hurt?
Like I said, I'll likely pay his card down to 0. If he gets the loan, can pay me back, if not, he gets to pay my bills for a month on his card.
Has anyone with a credit file as thin as his had any luck with getting a personal loan about this size? Particularly with NFCU?
Any thoughts or suggestions? He knows he could get a buy here pay here car, but would rather have the chance to pay his card down, only have 1 payment (instead of the card + car), and if the car is PIF he can save money by only having to carry liability instead of full coverage. Which I thought was a pretty smart thing to think of.
Paying his credit card down would be his easiest bet for a loan. 80% Util might get in the way of an approval, personal or auto. As long as you both have a mutual payback agreement, I foresee no issues with your approach. Adding him as an AU to the cards you mentioned can only help things. Good luck. 
@MovingForward_2012 wrote:
Paying his credit card down would be his easiest bet for a loan. 80% Util might get in the way of an approval, personal or auto. As long as you both have a mutual payback agreement, I foresee no issues with your approach. Adding him as an AU to the cards you mentioned can only help things. Good luck.
I agree, the high util is a big no no!
I've got no payback worries about it, so I'm definitely going to pay that down. What's left of it, anyways. Thinking about suggesting to him that he spend the months in between paying on his card what would be the approx payback on the loan, to be sure he can afford it.
are you willing to cosign the loan with him? as someone who takes loans for a living, its highly unlikely he will get approved for a a unsecured personal line of credit/ loan.
whats his aaoa?
has he checked his score on here? (if hes had credit for longer then 6months)
if he becomes an au on your oldest card/ lowest utility, in the eyes of a car loan credit card limits play little value. (this part is my opinion but seeing as how i got a 35k car with 500 limit cards... just my 2cents on the last part)
He should look into joining a Credit Union(DCU or any local CU) as they are a lot more lenient when it comes to loans. Most prime banks require a few tradelines to get approved at a decent rate.
I would consider cosigning the loan, but our credit is just now in the rebuild phase.
His AAoA is 6 months. He's 18, just got his first card in Dec.
I can get him into NFCU, thinking of having him try them for the loan.
His AAoA is 6 months. He's 18, just got his first card in Dec.
I can get him into NFCU, thinking of having him try them for the loan.
I think that is your best bet.
Knowing NFCU they will decline him on the 5k loan but counter him with a 20,000 card, lmao.
@hausfrau wrote:
Knowing NFCU they will decline him on the 5k loan but counter him with a 20,000 card, lmao.
LMAO!!!