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Member
AFincher
Posts: 13
Registered: ‎02-06-2012

Furniture loan with medium risk credit

[ Edited ]

My husband and I desperatly in need of a new mattress; it isn't if we're going to get it, it's how are we going to get it. Long story short, when my husband was younger he had no other option other than getting in pretty bad debt. He owed around $10k with a score in the mid-400's. In the past 5 years that we have been married, we have been working as hard as possible to fix this as it's hard to have a future or even a life with this weighing us down. As we want need a mattress, we also see this as a good oppurtunity to add some positive onto his credit to help bring his score up and prove that we can make good payments on time. I have no credit at all, but I'm also a stay at home mom who only works 11 hours a week so we plan to use his name on everything no matter what. We found the mattress that we want, and he is offering us a fantastic deal (about $1k value off after a reduction and added incentives), we applied through the store to do the financing that they offer, which is a special financing loan that Wells Fargo has set up through them offering %0 financing for up to 24 months. We were denied. This is very devastating to us because we have tried so hard to fix this problem for our entire life together. We want a house in less than a year as right now we live in a mobile home because it was our only investment option without going by credit. It's really scary to live in a mobile home, ecspecially when you live in a city/state that was basically destroyed by f4's & f5's 2 years ago. So, obviously we need to do something NOW and the offer that we have handed to us will only last about a month. So, this is where we stand on the credit report: everything still shows on the credit, but it all shows as paid/satisfied, excpect 1 major $3k collection that we have plans of paying off when we get our taxes back. All of the stuff that shows as paid is 1 satisfied judgement, 2 closed and paid collections, 1 hard inquiry (now 2 once WF goes through), and a score of 629. That isn't TOO bad, is it? We obviously only have ONE MORE MOVE as I know that I don't want more than 3 hard inquiries, but at the same time I know it's better to bunch hard inquiries together over a few days period of time rather than wait a few months and do a 3rd one. Right now, we stand at the option of going through our personal bank to ask for a personal loan, which is Regions or finding another bank that is more likely to approve us. After being denied by a 2nd bank, our only option is a very scary option that I guess will be our only choice in the end - it will be a 15% Progressive Bank loan that doesn't go according to credit, but automatically goes back to original balace if missing a payment by one day, while we don't plan on ever missing a payment because we're really trying so hard to fix the credit, the whole thought of it still terrifies me. What are the chances of Regions approving us for this sort of loan with our credit looking like this? What are some other bank options that may be more forgiving if not our own bank? Anyone have any experience with Progressive Bank no credit pull loan? Any advice will be good advice. I'm sorry for making this post so ridiculously long and I thank anyone in advice that is taking their time out to read and/or give advice and answers.


Regular Contributor
XxRaVeNxX
Posts: 201
Registered: ‎08-19-2012

Re: Furniture loan with medium risk creit

You're focused on the wrong thing, inquiries. I have 8 and still get approved for $5000 credit cards...You have 4 collections...paid or not, it doesn't matter. You need to get them off your credit report...

Chase Southwest $5000 - November 2012 Wal Mart $1000 - November 2012 NFCU Visa $5,000 - Sept 2012 NFCU NavCheck $3,000 - October 2012 Amazon $900 - Aug 2012 Kay's Jewlery $2700 - Aug 2012 Buckle $250 (Shopping cart trick) - October 2012 Roaman's $250 (Shopping cart trick) - October 2012 Capital One Secured $225 - April 2012 Capital One Platinum $2500 - July 2012
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Furniture loan with medium risk creit

Ditto, focus on repair before the loan. I think your odds are very low for approval with Regions. Your score is too low and I'd focus on getting it to the 700s before trying again. Since everything was paid, I'd take the steps needed to get the baddies off. Send GWs to the collections. As mentioned, it doesn't matter if you owe $0 or $10k, the impact on your FICO is equal. You'd want them off. For the judgment, some had success by asking the plaintiff's attorney to ask the court to vacate the judgment. That worked for some in getting it removed. It's already paid. For the unpaid baddie, send a DV if it is a CA, then send a PFD. Pay it if they agree ot the PFD. I bet within a month or two, that 629 will be in the 700s provided lots of effort and never giving up.

 

Ditto to the inquiries. Inquiry damage is overrated.

 

Your credit can be built up in a hurry. I bet you can see in the 700s yourself by adding a couple of secured CCs. The limit doesn't matter. If you have no open accounts now, then you don't have a FICO. But after 6 months of reporting, it wouldn't surprise me if your starting FICOs were in the 700s too.

 

IMO, skip the loan. Loans aren't very good in rebuilding credit...revolving credit is better. Don't get the mattress for the sake of building credit. Buy it because you need it. I've purchased a mattress via Macys and it shows as a revolving account, but that was a stupid move on my part. You are better off paying for it in cash. It'll save you a ton of money and save you some time too when shopping for a loan.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Furniture loan with medium risk credit

Agree with llecs.  Both about how to fix the husband's credit, and build your own.  What kind of money are you spending on the mattress?  A lot of banks for a few thousand  won't even do a personal loan anymore, instead they'll have you apply for a CC, and use cash advance if you need the cash.  BOA does this for anything under 10k now I think.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
XxRaVeNxX
Posts: 201
Registered: ‎08-19-2012

Re: Furniture loan with medium risk creit

You can go to Aaron's. It is a rent to own place, with no credit pull. But once you pay it off, they report it to the bureaus.

Chase Southwest $5000 - November 2012 Wal Mart $1000 - November 2012 NFCU Visa $5,000 - Sept 2012 NFCU NavCheck $3,000 - October 2012 Amazon $900 - Aug 2012 Kay's Jewlery $2700 - Aug 2012 Buckle $250 (Shopping cart trick) - October 2012 Roaman's $250 (Shopping cart trick) - October 2012 Capital One Secured $225 - April 2012 Capital One Platinum $2500 - July 2012
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Furniture loan with medium risk creit


XxRaVeNxX wrote:

You can go to Aaron's. It is a rent to own place, with no credit pull. But once you pay it off, they report it to the bureaus.


Oof.

 

Just thinking about the total cost of ownership makes me wince.

 

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Furniture loan with medium risk creit

[ Edited ]

I'm getting OT...but I did Rent-A-Center back in my ugly credit days. They don't report, or didn't then, but I still shutter at the $5000 washer/dryer combo I could have paid 60% less for had I just paid cash....ETA. I'm in the wrong biz.

Member
AFincher
Posts: 13
Registered: ‎02-06-2012

Re: Furniture loan with medium risk credit

[ Edited ]

Thanks for all of the replies as of thus far. Thanks for the advice on building my credit, but mine really isn't a focus right now at all to be honest. The mattress is an incredible deal, so going somewhere else really isn't even an option if I wanted it to be, as it wouldn't be a $2000 deal for only $1049. I would much rather do the 15% through Progressive than Aaron's. Paying in full also isn't an option, as much as I wish it was. Our current mattress is over 16 years old and I'm having extremely horrible unexplained issues with my neck, so replacing my mattress obviously seems like the next step in trying to fix my chronic pain as no one can seem to pin-point my problem. I'm having to live on painkillers constantly, and unless you're a junky, that's really not how one wants to live. It's taking away from who I am as a wife and mother. I feel as if I'm more of a burden than a pleasure to be around. Anyway, I'm not here to complain about my personal issues (although I'm not against any prayers that you may want to throw my way), I'm just trying to explain how much it's really needed in my life. So, it's sounding like Region's may not be my best bet though. No one has any experience with this Progressive Bank mentioned? Since everyone says the inquiries aren't as big of a deal as I thought they were - what banks do you guys think would be the easiest and most accepting to get a loan through at this point?

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Furniture loan with medium risk credit

If Wells Fargo is the bank the store uses for financing that's about it.  Other furniture stores may use different companies, but WF tends to be pretty flexible.  For 1k, you're not going to get a personal loan.  You're going to get a line of credit or something similar.  If you don't have a CC you can use for the purchase I'd really have to recommend figuring out a way to pay cash.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Frequent Contributor
scarrollprint
Posts: 382
Registered: ‎06-26-2012

Re: Furniture loan with medium risk credit


AFincher wrote:

Thanks for all of the replies as of thus far. Thanks for the advice on building my credit, but mine really isn't a focus right now at all to be honest. The mattress is an incredible deal, so going somewhere else really isn't even an option if I wanted it to be, as it wouldn't be a $2000 deal for only $1049. I would much rather do the 15% through Progressive than Aaron's. Paying in full also isn't an option, as much as I wish it was. Our current mattress is over 16 years old and I'm having extremely horrible unexplained issues with my neck, so replacing my mattress obviously seems like the next step in trying to fix my chronic pain as no one can seem to pin-point my problem. I'm having to live on painkillers constantly, and unless you're a junky, that's really not how one wants to live. It's taking away from who I am as a wife and mother. I feel as if I'm more of a burden than a pleasure to be around. Anyway, I'm not here to complain about my personal issues (although I'm not against any prayers that you may want to throw my way), I'm just trying to explain how much it's really needed in my life. So, it's sounding like Region's may not be my best bet though. No one has any experience with this Progressive Bank mentioned? Since everyone says the inquiries aren't as big of a deal as I thought they were - what banks do you guys think would be the easiest and most accepting to get a loan through at this point?



Not to sound cruel and mean - BUT yes 16 years is old, beleive me. Our current mattress is over 23 years old. Its the same matteress I've had since I was in at LEAST Kindergarten (just about to push 30 now...) with all that said; and again I'm saying this as a cold dose of reality to help you through this what I would percieve as your best interest (in the end only you can determine what is best so really I'm giving advice based on whats worked for me and what I've learned and how I would personally deal with it - since obviously I am considering I'm sleeping on a 23+ year old matteress)

 

Your priorites are in the right area, but skewed.

 

Look at what exactly is your list of priority.

 

Health (your neck)

credit (both rebuilding as well as building)

cash flow (both immediate and long term)

 

I'm sure there are others in this situation but those at least are the major ones. I don't know how you prioritize those but I will say this - no one NEEDS a new matteress your head will not explode if you don't get one - people sleep on cardboard boxes every night. However in order to continue at the health level your at (which believe me I TOTALLY understand) you need to improve your sleeping arrangements. Are you sure there isn't a quicker/cheaper fix that could be done in the mean time?

 

About a year ago, I developed some nasty pain spasms. We knew it was due to the fact we had a 20 year old mattress. We couldn't afford a new mattress and honestly its not something I want to put on credit. We went and bough a really nice 4" memory foam topper. It basically made the bed new again. We didn't get the cheap one at walmart, we went and got a really nice one. We spent about 150 on it. Yes it doesn't replace the mattress but so far has bought us a year. We rotate it and the mattress frequently. We're thinking it should last us about another 10 months or so before being shot.

 

My point- we bought ourselves 22 months without having to buy a new mattress for $150.00. So far in the past year we not only were able to save up enough for a mattress set we were origionally looking at but by the end of the 22 months or so we will have saved up enough to get an even better mattress than we origionally planned on getting.  Now After this thing is shot, I wouldn't go and get another because at that point, its just throwing money away and long term a mattress would be a better investment. However, it does buy time to build credit, to save money, etc.

 

Long story short - are there any quick/cheap fixes out there that can help sustain some of your priorites while not knocking any of the other ones down? I'm sure there are since in the end your not 100% sure it IS the mattress (though we all bet it is).

 

Again don't take this post as mean/offensive/harsh. I've been (still kinda are) in the same position but believe me some times you need to think outside the box or so outside the box that your back inside the box to get the best answer.



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three

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