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ObsessedwithmyFico wrote:I guess my point here is that I don't trust ANYBODY to be concerned about my credit scores except me. I have several friends I have loaned money to in the last two and have yet to get it back. And I am talking thousands of dollars. One actually had the nerve to call and ask me to buy a car and let him pay me back since his credit is so messed up. Nope. Didn't ask for me to co-sign, which I would never have done. But I figure... you ain't paid me back what you already owe...MAJOR FURTHER RISK. And these are people that I have known for YEARS! I trust nobody with my credit scores and though selfish as it may seem...folks are on their own..no help from me whatsoever.
Your brain is telling you which way to go.
@FicoPsycho wrote:
I am considering co-signing for him but cant bring my self to commit. i keep thinking if he has bad credit is for a reason and i fear he might bring me down the tube i dont know whats my best course of action here
FicoPsycho wrote:
I am considering co-signing for him but cant bring my self to commit. i keep thinking if he has bad credit is for a reason and i fear he might bring me down the tube i dont know whats my best course of action here
thanks alot creditmizer those are great tips if anybody is wondering i chose not to co-sign for my friend he looked kinda bummed out but understood the reason. also he seems to be interested in the advice i been giving him and is trying to do whats right. he did get taken on that loan if only he would have called me before he signed anyways i kinda like that advice i think i might use it for my own auto loan thanks alot everyone for your input and making my easy decision even easier.
@Anonymous wrote:He has a 500 FICO for a reaon. DO NOT CO-SIGN. It will haunt you for 7 years if you do.Everyone has a story but the # simpy do not lie. A 500 FICO has a massive default chance. "Something will happen".Now the good/bad news for your friend.In short term he is SOL. It will take him at least a year to bring his FICO up enough to make a refi wort it. Second likely if he bought on impulse he got taken on the sticker also. So the $16K he owes is likely on a vehicle worth $12-$13K.If your friend is SERIOUS about getting ahead here is what to do:1) Look up on KBB & Emdunds. Look at the trade-in value for the vehicle. Take the lower of the two. Let's say it's $13K. Now he knows how much negative equity he needs to erase. Paying the minimum payment will not do it. Remember as the loan goes down the mileage and age goes up so the vehicle is worh less. He needs to work faster than the depreciation.2) Needs to stop spening. PERIOD. Goal for next 12-18 months should be to get ahead. Refi the loan will likely save him $200 a month in interest. That is the prize. Sell it as $200 raise every month for life (his next vehicle will have lower APR).3) He needs to pull his credit report and find out why he has a 500. Eveyone has a story "Cable company screwed me, ex wife is a thief, I got hurt, etc. What does the CR say? If it judgements, collections, large number of lates, high balances.4) Help him and use forum to find out (based on CR) what he needs to do in next year to move that score into mid 600s.5) Start making 2 payments a month. It is easier to stick with. If payment is $520 per month on the 12th divide it in 2 = $260. Now how much more can he pay? Remember he has $2-$5K in negative equtiy to erase. The other "bonus" is at 21% APR each $1 extra paid will save him about $1.20 in interest. Pay $1 extra get a free $1.20. Let's say he can pay $350 twice a month and he gets paid on 1st and 15th. Don't wait till due date. Setup automatic payments of $350 on 2nd and $350 on 16th.If he gets paid every 2 weeks thats even better. Setup payments every 2 weeks instead (day after payday). This way he makes one full extra payment per year (52/2 = 26 * 1/2 payments = 13 full payments per year).MAKE SURE HE CHECKS WITH LENDER. IT SHOUDN"T BE A PROBLEM BUT ALWAYS CHEK FIRST. Some lenders do some questionable stuff like automatically considering 2nd payment principle only even in full payment hasn't been met for the month. He pays down loan but gets hit with late fee. CHECK WITH LENDER. It shouldn't be a problem. Most sub prime lenders prefer 2x monthly payments as the risk of default is high so anthing that prevents nopays or slow pays is good business. ---------------------------------------------------------------------------------------------------------------------------------