Rebuilding

[Harvey26]

Have a friend who has just started her rebuild stage. Scores are as follows pulled today

EQ: 488

TU:490

EX:503

She as alot of collections from having her daughter. I did add her to my Discover and Macys Amex to help out. She had one loan from about 2 or 3 years ago for $200 from a local CU. that she let chargeoff (young and dumb) 

She is looking to buy a car rather soon. I did agree to cosign as long as payments are made before hand everytime. Got approved through Westlake Financial @ 9.99. (Dealer financing. Think about checking out a local CU though probably could get a lower rate than that.)

So what are some suggestions obiviously paying off some of the collections. She is a member of NFCU and BOFA. She should get a secured card through BOFA OR NFCU. Any feedback is greatly appreciated.

[medicgrrl]

Are her only derogatory accounts medical collections?  Has she spoken to the CU who she currently has an account with?

[Harvey26]

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@medicgrrl wrote:

Are her only derogatory accounts medical collections?  Has she spoken to the CU who she currently has an account with?

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Yes only derogatory accounts are medical collections and the one personal loan chargeoff

[Gramz]

You are a really good friend trying to help her out establish credit.  I do not even co-sign for family members because of fear I get burn.  I have NFCU and if that's her only baddie then she could try and establish credit with them.  Also she will have to attack them collection account and the charge off so that it report paid (if she can get a PFD that would be ideal).  

[Kree]

My 2 cents, 

When I was dumb and young, I needed a car, and could not afford one.  So my step father co-signed for me. He also set up automatic payments, and had me pay him in cash every month. I will admit there was a time or two that I did not give him money on the 1st as promised, but the payment was never late because he took care of it. And owing money to family helped set me straight.

So, my recommendation is that if you co-sign, take care of the payments. I think you will be happier having to pick up the slack before a late payment, rather than after.  And if she makes payments to you on time every time, there still isn't a negative to this arrangement.

As for rebuilding? I think you are on the right track. A couple secured cards, the installment loan, and then wait for time to pass.