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Established Contributor
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Registered: ‎05-12-2012
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Helping my Parents

[ Edited ]

Well, my parents approached me with the desire to have me help them in rebuilding their credit so they may hopefully be approved for an auto loan as soon as possible.

 

They've been married for 43 years so pretty much everything they've ever done credit wise is on both their reports.

 

I've pulled all three bureaus for both of them and this is kind of a break down of what both of their profiles look like

 

1 Collection for Cap1

1 Collection for Orchard Bank

 

1 Positive PIF Mortgage Loan

 

and that's really all that is on their reports.

 

I haven't pulled any scores except for like CreditKarma and that is showing low 600s

 

I think my Mother has a Medical Collection as well for a relatively small amount.

 

The two credit card collections will be falling off by the 1st of 2014 so here's where my questions for the myFICO family come in.

 

Should they:

 

A. Wait for the collections to fall off before proceeding with further credit apps?

 

B. Attempt to apply for any secured or unsecured credit cards to begin the rebuild process?

 

C. Run for the Hills?

 

They of course really don't like the idea of settling for a secured card or one with outrageous fees (monthly/AF) even though that may be what they have to do eventually to get started.

 

EDIT: Wanted to add, they are both retired and on a fixed income, Social Security and Small Pension. Mother is 63 and Father is 72 if that matters.

 

Mods: I know this probably should of been in the rebuilding forum, but the main question was concerning if they should apply and what they may possibly be approved for. But it won't hurt my feelings if you need to move it. Smiley Very Happy


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Registered: ‎07-12-2011
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Re: Helping my Parents


BrokaToe wrote:

Well, my parents approached me with the desire to have me help them in rebuilding their credit so they may hopefully be approved for an auto loan as soon as possible.

 

They've been married for 43 years so pretty much everything they've ever done credit wise is on both their reports.

 

I've pulled all three bureaus for both of them and this is kind of a break down of what both of their profiles look like

 

1 Collection for Cap1

1 Collection for Orchard Bank

 

1 Positive PIF Mortgage Loan

 

and that's really all that is on their reports.

 

I haven't pulled any scores except for like CreditKarma and that is showing low 600s

 

I think my Mother has a Medical Collection as well for a relatively small amount.

 

The two credit card collections will be falling off by the 1st of 2014 so here's where my questions for the myFICO family come in.

 

Should they:

 

A. Wait for the collections to fall off before proceeding with further credit apps?

 

B. Attempt to apply for any secured or unsecured credit cards to begin the rebuild process?

 

C. Run for the Hills?

 

They of course really don't like the idea of settling for a secured card or one with outrageous fees (monthly/AF) even though that may be what they have to do eventually to get started.

 

EDIT: Wanted to add, they are both retired and on a fixed income, Social Security and Small Pension. Mother is 63 and Father is 72 if that matters.

 

Mods: I know this probably should of been in the rebuilding forum, but the main question was concerning if they should apply and what they may possibly be approved for. But it won't hurt my feelings if you need to move it. Smiley Very Happy


Hey Brokatoe!

Unfortunately, there's not a lot of options available that aren't secured besides the Cap1 route.  A lot of the rebuilders are just plain crummy but we gotta do what we gotta do to make up for our bad decisions. Smiley Happy

I recommend opening a secure tradeline with a CU or a big bank to start the rebuild process.  

Wait till the baddies drop off the 1st of the year then your parents will be good to go.  Having a positive tradeline showing along with the mortgage will set them up for some really good cards to move that FICO up when they want to app the car loan.

JMHO. Smiley Happy

Good luck!


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Current Score: EQ 773, EX 780, TU 777 (All FICO)
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Established Contributor
Posts: 726
Registered: ‎05-12-2012
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Re: Helping my Parents


improvingmycredit wrote:

Hey Brokatoe!

Unfortunately, there's not a lot of options available that aren't secured besides the Cap1 route.  A lot of the rebuilders are just plain crummy but we gotta do what we gotta do to make up for our bad decisions. Smiley Happy

I recommend opening a secure tradeline with a CU or a big bank to start the rebuild process.  

Wait till the baddies drop off the 1st of the year then your parents will be good to go.  Having a positive tradeline showing along with the mortgage will set them up for some really good cards to move that FICO up when they want to app the car loan.

JMHO. Smiley Happy

Good luck!


Hey thanks for the reply. Yah I know you're right, seeing how they messed up with Cap1 in the past, probably wouldn't help them get approved though them again. Although I don't know how forgiving they may be.

 

But you mentioning a CU gave me an idea of possibly a secured loan to get them started. If they do well with that, then maybe the CU would have a unsecured card offer for them. I'm not sure if they have much money to spare to put into something like that or not, but may be an option.

 

Again, thanks for the reply it's given me a few things to think about. Smiley Happy


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Re: Helping my Parents

[ Edited ]

HEy, just something to think about.   Adding a revolver will improve their chances at a better card once the baddies drop off the first of the year.  Many lenders are hesitant to open a cc with someone that doesn't show history with this type of credit.  Opening a new cc / secured card now (or possibly unsecured through the CU) will set them up for the first of the year when the baddies drop off because it will show a somewhat (though minimally) aged revolver.  Also, being that they already have a positive installment loan showing on their report... the car loan will be easier to get.  What will move the FICO up will be showing responsible use of different types of credit on the reports.  

 

Post thought:  even a small amount CC showing will make a big difference to the FICO when the baddies drop off.  $300 limit would be a good start


Starting Score: 642
Current Score: EQ 773, EX 780, TU 777 (All FICO)
Goal Score: 800+

Cards: NFCU Flagship 50K, DC 30K, BCP 28.6K, Arrival+ 25K, Citi DP 22.8K, CSP 20.5K, TotalRewards 20.5K, QuickSilver 20K

Epic Contributor
Posts: 27,341
Registered: ‎10-23-2007
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Re: Helping my Parents

I assume these are unpaid collections with Cap1 and orchard?? balance?

They have NO current open Credit?

INQ's?

 

since everything is so old, you might be surprised that a bank gives them more of a chance than a normal individual with baddies based on long credit history!

 

try the pre-quals just to be sure nothing instantly pops up... citcards.com chase, discover, especially the new Barclay one (look for Congratualtions or ingore all suggestions from it!)

 

if nothing from any of these 4 then we probably need to go further down food chain.... CU is great idea and option... secured loan or card for $300-$500 for 6 months then the collections will be gone and they will have 6 months of positive history and the doors should open.

Fico Scores 8: EX 718. TU 699. EQ 658. 11/10/2015
Established Contributor
Posts: 726
Registered: ‎05-12-2012
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Re: Helping my Parents


Creditaddict wrote:

I assume these are unpaid collections with Cap1 and orchard?? balance?

They have NO current open Credit?

INQ's?

 

since everything is so old, you might be surprised that a bank gives them more of a chance than a normal individual with baddies based on long credit history!

 

try the pre-quals just to be sure nothing instantly pops up... citcards.com chase, discover, especially the new Barclay one (look for Congratualtions or ingore all suggestions from it!)

 

if nothing from any of these 4 then we probably need to go further down food chain.... CU is great idea and option... secured loan or card for $300-$500 for 6 months then the collections will be gone and they will have 6 months of positive history and the doors should open.


Yes unfortunately these are unpaid collections, the original cards were only like $300-$500 limit, but the balances are now around $2,000 becuase of interest.

 

I will try the pre-qualify sites and see if maybe something good comes of it.

 

Thanks for the suggestions and support everyone!


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Re: Helping my Parents

Are the cc's joint or is one an AU? If AU, maybe you can work to have the trade line and collection removed from their file.

Once removed, maybe you will greater short-term success rebuilding by focusing on the parent with the cleanest history. Also, when buying a car, let them be the primary and the other parent be secondary.
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