topic Re: Is this a lost cause? in General Credit Topics

Is this a lost cause?

Anonymous — Mon, 09 Nov 2009 00:48:12 GMT

Hey, everyone. I'm Melissa. My current Experian score is 588. I have two defaulted credit cards on my file that are NOT MINE, but my mother's, and I didn't cosign for them. I dropped a dispute letter in the mail to Experian a few weeks ago in hopes they'll remove it. (My "former name" is also listed as being my mother's name, and it never was.) I know this is bringing my score down, as well as having delinquent payments on my own two $500 limit CC's about two years ago, and one collections report that's paid in full. I can't seem to get rid of that one.

Question one: When Experian gets those two defaulted cards off my report, how much can I expect my score to go up? I have a few other cards on my report that are hers, but I'm keeping them there for my credit history as they were all paid timely and closed by her. Those two defaulted cards are the only two real bad ones.

Alright, now, the real reason I'm here:

I'm getting married in May, and we're planning something very budget. Our family keeps surprising us with help, but over all, we're pulling it together with our meager earnings.

He is seeking employment, and I am currently employed full time, making about $17,000 a year from that job. (Blah!) However, I generally have extra income because of the fact that his family is so generous and is constantly feeding us, haha. Also, I have a photography side business.

We're planning a European cruise for our honeymoon, and creating a honeymoon registry to fund it, as opposed to something at Target or Macy's, because neither one of us needs a thing for the home. I've lived on my own for a while now and have everything ... that, and what better a wedding gift than the gift of amazing memories and travel?

Problem: To book and secure the cruise, we need to lay about $3000 down. The cruise is about $5200, EVERYTHING including fights, gratuities, transfers, insurance ... everything, included. But to book it, we have to put $500 down and purchase plane tickets.

Our wedding is May 15th, and we'd leave for the honeymoon May 19th. The $3000 needs to be done soon (like, within this month if we can) and the rest of it needs to be paid by March.

Now, I'm not going to go around getting credit inquiries on my report ... so far, I've only done two. I tried raising my credit limit with Chase, so that was one. They told me no. I tried to get a Kay card (I was told people with 540 credit scores can get one) in order to finance our wedding rings, but I was rejected. (The rings are on layaway, right now.)

I've been searching all over the place to see if there's any way someone like me can get a loan or get credit for approximately $3000-$4000 just so we can book the honeymoon now ... then, we'd pay that loan off with all the money we get from the honeymoon registriy ... if we don't make enough (which I'm not really doubting we will -- we're both only children and our families are known for surprising us, that and we're also both very frugal people and always have a bit of money stashed and never even go out to dinner) then we'd just use our own money to pay the rest of the loan off, which, at the most, I imagine there'd be less than $2000 or even $1000 left.

Where the heck can I go to get this kind of loan/credit? Does any one here have any suggestions?

It just seems so unfair seeing as for the past two years, I've paid my two cards properly, have avoided credit inquiries, and I make enough money to pay little bits of things off at a time ... and yet I can manage to find a loan for this amount *anywhere* because of my 588 score.

What about peer-to-peer lending?

Hopefully, those baddies that *aren't mine* will be knocked off soon ... I'm hoping to get accepted into graduate school soon, which means I should be able to get some student loans ...

Again, the advantage here neither one of us plan to have this sit around for more than a year. More than half, if not all of it, would be paid off pretty much the day right after the wedding.

Thank you for your help.

-Melissa

PS -

I don't have any serious debt right now, either. My two CC's are really kind of pushing the limit because of an emergency recently, but I'm sticking $50 on each of them with the next paycheck and bringing them back down by Christmas ... I have a student loan sitting deferred right now to the tune of about $8000 ... and that's it.

PPS - Also, my car is paid in full and worth just over $4000, if that means anything.

Thanks again!

Message Edited by melissa2356 on 11-08-2009 04:22 PM

Message Edited by melissa2356 on 11-08-2009 04:48 PM

Re: Is this a lost cause?

Jazzzy — Mon, 09 Nov 2009 02:21:47 GMT

Hi Melissa,

I won't address all the questions in your post. I think you may want to put first things first, and that should be trying to clear your credit reports.

Let me ask this...where did you get your Experian score of 588? Is this truly a FICO score, or is it a PLUS or other type of score? Consumers are no longer able to buy their FICO scores from Experian, so I'm wondering if this is truly a FICO score.

Have your pulled your free annual credit reports from the 3 credit reporting agencies within the past year? I ask this because you said you sent a letter to Experian. That isn't going to cover Equifax or TransUnion, and, if you are going to apply for credit, you need to pay attention to all 3 reports.

Let's start there.

Re: Is this a lost cause?

Anonymous — Mon, 09 Nov 2009 04:52:06 GMT

with your credit score and history with your low salary also with the current credit crisis, your chances 99.99% against you. your only chance i see is your parents or his co-sign for you or them giving it too you as a gift.

Re: Is this a lost cause?

RobertEG — Mon, 09 Nov 2009 14:45:55 GMT

Laying down $3K for a cruise wth another $2K of debt over that seems to me to beyond reality. With your existing debt, that seems to me to be irresponsible.

I am an old man, but one thing I have learned is that family is to be cherished, not used.

It is just my humble opinion, but why do that?

Marriage is a commitment, not a cruise,

I wiould chuck ny plans for accrual of that planned cuise debt, and put my resources into meaningful future of you love.. If you dont, itt will bite you in the future, and while you see it now as a week in heaven, it will become years of hell.

IMHO, dont do it.,

Message Edited by RobertEG on 11-09-2009 06:28 AM

Message Edited by RobertEG on 11-09-2009 06:45 AM

Re: Is this a lost cause?

Anonymous — Mon, 09 Nov 2009 14:50:56 GMT

@Anonymous wrote:
Hey, everyone. I'm Melissa. My current Experian score is 588. I have two defaulted credit cards on my file that are NOT MINE, but my mother's, and I didn't cosign for them. I dropped a dispute letter in the mail to Experian a few weeks ago in hopes they'll remove it. (My "former name" is also listed as being my mother's name, and it never was.) I know this is bringing my score down, as well as having delinquent payments on my own two $500 limit CC's about two years ago, and one collections report that's paid in full. I can't seem to get rid of that one.

Question one: When Experian gets those two defaulted cards off my report, how much can I expect my score to go up? I have a few other cards on my report that are hers, but I'm keeping them there for my credit history as they were all paid timely and closed by her. Those two defaulted cards are the only two real bad ones.

Alright, now, the real reason I'm here:

I'm getting married in May, and we're planning something very budget. Our family keeps surprising us with help, but over all, we're pulling it together with our meager earnings.

He is seeking employment, and I am currently employed full time, making about $17,000 a year from that job. (Blah!) However, I generally have extra income because of the fact that his family is so generous and is constantly feeding us, haha. Also, I have a photography side business.

We're planning a European cruise for our honeymoon, and creating a honeymoon registry to fund it, as opposed to something at Target or Macy's, because neither one of us needs a thing for the home. I've lived on my own for a while now and have everything ... that, and what better a wedding gift than the gift of amazing memories and travel?

Problem: To book and secure the cruise, we need to lay about $3000 down. The cruise is about $5200, EVERYTHING including fights, gratuities, transfers, insurance ... everything, included. But to book it, we have to put $500 down and purchase plane tickets.

Our wedding is May 15th, and we'd leave for the honeymoon May 19th. The $3000 needs to be done soon (like, within this month if we can) and the rest of it needs to be paid by March.

Now, I'm not going to go around getting credit inquiries on my report ... so far, I've only done two. I tried raising my credit limit with Chase, so that was one. They told me no. I tried to get a Kay card (I was told people with 540 credit scores can get one) in order to finance our wedding rings, but I was rejected. (The rings are on layaway, right now.)

I've been searching all over the place to see if there's any way someone like me can get a loan or get credit for approximately $3000-$4000 just so we can book the honeymoon now ... then, we'd pay that loan off with all the money we get from the honeymoon registriy ... if we don't make enough (which I'm not really doubting we will -- we're both only children and our families are known for surprising us, that and we're also both very frugal people and always have a bit of money stashed and never even go out to dinner) then we'd just use our own money to pay the rest of the loan off, which, at the most, I imagine there'd be less than $2000 or even $1000 left.

Where the heck can I go to get this kind of loan/credit? Does any one here have any suggestions?

It just seems so unfair seeing as for the past two years, I've paid my two cards properly, have avoided credit inquiries, and I make enough money to pay little bits of things off at a time ... and yet I can manage to find a loan for this amount *anywhere* because of my 588 score.

What about peer-to-peer lending?

Hopefully, those baddies that *aren't mine* will be knocked off soon ... I'm hoping to get accepted into graduate school soon, which means I should be able to get some student loans ...

Again, the advantage here neither one of us plan to have this sit around for more than a year. More than half, if not all of it, would be paid off pretty much the day right after the wedding.

Thank you for your help.

-Melissa

PS -
I don't have any serious debt right now, either. My two CC's are really kind of pushing the limit because of an emergency recently, but I'm sticking $50 on each of them with the next paycheck and bringing them back down by Christmas ... I have a student loan sitting deferred right now to the tune of about $8000 ... and that's it.

PPS - Also, my car is paid in full and worth just over $4000, if that means anything.

Thanks again!
Message Edited by melissa2356 on 11-08-2009 04:22 PM
Message Edited by melissa2356 on 11-08-2009 04:48 PM

Hi Melissa,

I agree with Lynette, where did you get that score? If you can come up with about $25, you can get your TU and EQ scores off this site along with the reports. That would be the best place to start. Once you have those, you will know your scores AND exactly what your reports say.

I also agree that the cruise will be amazing and is a good idea...my husband and I also asked for "experiences" as presents and it worked out wonderfully. Although it can be hard booking stuff in advance since you don't have the "presents" yet.

I would suggest taking your scores and reports you get from this site to a local CU and talking with someone there. If you can, they can be a little nicer about loaning you money (although the rates can get high). Another option is to join a national CU/"cu like bank" (ie Navy, USAA) if you qualify, they will pull your score but you can explain your situation and they might be willing to work with you (expect to put money into an account with them).

Also, I would suggest coming up with another $25 and pulling your future husband's scores and reports...maybe his are higher than yours? If he doesn't have any score, or if his are the same or lower...consider getting a secured CC. You may have to put down $200-500 for this, but you might be able to borrow that from parents or someone and then you'll have something reporting.

Finally, you can look into peer-to-peer lending, but they might also pull your scores and deny you OR you can draw up a loan agreement with your parents/his parents...give them a fair rate and detail out what you are willing to pay them and when.

good luck!

(PS, you are getting married 1 day before my 1 year anniversary!)

Re: Is this a lost cause?

RobertEG — Mon, 09 Nov 2009 15:17:39 GMT

I dont understand any encoragement for this frivolous endeavor. Two credit cards in default, and high balances on the remaining. An unpaid loan, low income from one spouse, and no income from the other.

Yet encouragement for asuming new debt on an unnecesary cruise?

I guess I just dont understand reality.

Re: Is this a lost cause?

Anonymous — Mon, 09 Nov 2009 16:13:26 GMT

The defaulted cards aren't mine. They're my mothers. I'm trying to remove them from my account.

My own credit cards only have delinquent payments from two years ago when I graduated college and wasn't working yet. 30 days only.

The $3000 will be paid back in June, at the latest. I already have $1000 for it and more savings.

I wouldn't be going into this if I didn't have the means by which to pay on it until then, if I had many credit cards and loans out (I have one student loan that is deferred until I'm totally out of school, including graduate school, which means I have another 2 or 3 years, according to the company, before I owe on it), or if I was really lost, financially.

Not counting my student loan, I have about $800 in credit card debt which is paid on monthly.

I'm not one to argue on the internet, so clarification on my message is all I care to offer right now.

I'm completely willing to accept that this could be a bad idea, even if I *could* secure a loan, but I'm stubborn and determined and rarely in life have I ever given up on something after only a handful of shots at it. I love my fiance to bits and him and I have both told each other that we're a honeymoon in itself for the other, and if a drive to Chicago is all we can muster, then we'll both be fine ... but this is a dream trip for the two of us, something we want to do now if at all possible, while we're still in our early twenties and before life begins to take over (house, kids, promotions) ...

Thanks for all the input, though, all of it.

Melissa

Message Edited by melissa2356 on 11-09-2009 08:13 AM

Re: Is this a lost cause?

Anonymous — Mon, 09 Nov 2009 22:27:23 GMT

Hi Melissa,

If You really want to go deeper, Your best bet is local bank with car title in hand. Make sure it's worth what you think, before You go.

Halfast

Re: Is this a lost cause?

Anonymous — Tue, 10 Nov 2009 03:24:42 GMT

Only in America do you find so much irresponsibilty so encouraged. Robert's on the money.

Re: Is this a lost cause?

Anonymous — Tue, 10 Nov 2009 05:12:55 GMT

@RobertEG wrote:
I dont understand any encoragement for this frivolous endeavor. Two credit cards in default, and high balances on the remaining. An unpaid loan, low income from one spouse, and no income from the other.
Yet encouragement for asuming new debt on an unnecesary cruise?

I guess I just dont understand reality.

The original poster specifically stated the two derrogatories are not hers. I thought that was very clear and using that to somehow attack the original poster is uncalled for.

Further, she is asking for advice on credit sources and not for advice -- which nobody here is qualified to give anyhow -- on what she chooses to spend her money on. If her and her future husband feel a cruise is important to them, then how can you say it isn't?

Re: Is this a lost cause?

Anonymous — Tue, 10 Nov 2009 05:37:46 GMT

@Anonymous wrote:

"He is seeking employment, and I am currently employed full time, making about $17,000 a year from that job. (Blah!) However, I generally have extra income because of the fact that his family is so generous and is constantly feeding us, haha. Also, I have a photography side business."

"We're planning a European cruise for our honeymoon, ......" Problem: To book and secure the cruise, we need to lay about $3000 down. The cruise is about $5200, EVERYTHING including fights, gratuities, transfers, insurance ... everything, included. But to book it, we have to put $500 down and purchase plane tickets.

Our wedding is May 15th, and we'd leave for the honeymoon May 19th. The $3000 needs to be done soon (like, within this month if we can) and the rest of it needs to be paid by March.

Where the heck can I go to get this kind of loan/credit? Does any one here have any suggestions? If your score is correct, I doubt that you will find one.

PPS - Also, my car is paid in full and worth just over $4000, if that means anything." I wouldn't even consider refinancing your car. You'd be trading one debt for another.

Melissa,

I hope you are able to resolve the problems quickly regarding the bad CC's. That said..........

I too will try to discourage you from pursuing this. You're both young and just starting out. Europe has been there a long time and it'll still be there when you're better financially able to go. There's nothing more troubling in a marriage than money troubles. I am assuming that the 5200 you quoted as being the "full price" is the cost of the trip including only the things you mentioned. If not, are you aware that you will also be paying for sodas or drinks on the ship? There are many extras! A bottle of wine with dinner, a drink by the pool..? All extra.

And if you're traveling on one of the commonly used cruise lines here in the states you'll have to have a credit card on file with the ship. I don't know of any that will accept cash for payment any longer. Have you planned any tours for any of the cities you'll be visiting? A special meal in the city? Today, you'd pay 167.58 USD for 100 British Pounds. (GBP) and 149.89 for 100 Euro. And don't think for a minute that things are cheaper there. They aren't! (It's been several years ago but we paid the equivilant of 150.00 USD for dinner for 4 that we could get here for around 50.00, and to put this in perspective, I just checked out the price of a pair of 501's in the UK. 127.40 USD!

If you're determined to have a Honeymoon cruise, have you considered a caribbean cruise? You could do it much cheaper and save up for the trip of your dreams. The best things are yet to come, and worth waiting for. My advice? Don't put yourselves in hock this early in the game!

Wishing you luck with whatever you decide to do.

D-R

Re: Is this a lost cause?

llecs — Tue, 10 Nov 2009 11:58:36 GMT

OP, to echo others: don't do it. Save up the money first and have it in hand before committing to anything.

I understand how you feel too. DW and I went on a honeymoon cruise to Europe. I'm not going to lie to you: it was fun. However, we went down the same path you did by committing to something we didn't have the funds for and with a few monkey wrenches tossed in our path, we almost didn't go and almost lost our deposit money ($5000 or so).

We planned a year in advance. We already set the date. DW was a student at the time and didn't work but I saved every dime for the wedding and honeymoon. A year out, we budgeted for the rest of the year, knew how much we had already saved, and made a decision to commit to a cruise we couldn't really afford: a $40,000 3-week cruise.

Our credit was shot (thankfully) and knew we'd have to pay cash. A year out, we plopped down $5000 and began making payments every quarter in the tune of $13,000. We knew we were in trouble when we had to dip into savings to cover the first payment. My income was increasing, but it wasn't increasing fast enough. Six months out I had to make another payment and could only come up with half. The agent was cool and said we could float the remaining and pay $18k or so at the end, 3 months out from the cruise. Despite our efforts, we were on the way to visiting Disney or the Grand Canyon instead. There was no way we could make that last payment.

To complicate things, DW's parents promised to fund 100% of the wedding if they signed the contracts and deals with the wedding planner, church, reception place, cake people, etc. We appreciated the gift and let them run the show. Well, they signed contracts they couldn't afford, and it came time about three months out where they couldn't make the payments. Since we were locked in some contracts, cancelling meant we'd lose the money. So, I used my income to fund the wedding. We weren't expecting that. So, it came time to make the last payment and we go over to the cruise people to fess up. Gut wrenching moment. We prayed for a miracle, though.

We walked into the office and everyone had a long face as they greeted us. A miracle happened. Holland America cancelled our cruise because they had to reposition our boat for a different cruise. They offered to refund 100% of what we had put in or we could accept their counter-offer. The counter offer was to give us a shorter cruise (about 2 weeks), and to offer that cruise at 50% off. Instead of a simple cabin, they offered to upgrade us to a suite, pay for air fare, and added a couple of extra freebies like a limo ride to the airport, a free night in Venice, a honeymoon package, a behind the scene's tour of the ship, and a chef package where we got to hang with the chef at the chef's table for a meal. The price equalled exactly what we had already paid and we leapt at the chance.

If we had it to do over........and knowing that the cancellation was one in a million, then we'd pay for the cruise in cash (like we had done) and we would have only committed to the cruise if we already had the money set aside.

There were several expenses we failed to account for. It seemed like our personal expenses, like everyday bills and utilities increased at that time. We thought that our income would be higher, but it wasn't. We never dreamed that we'd have to fork out extra money for the wedding. It's amazing how many last minute charges you'll have to pay like hairstyling, last sec. repairs to a dress, flowers, unrealized charges for this or that, paying the organist or piano player, and so on. The charges really add up. Assuming you went on the cruise, you do have to pay extra money for food (when not on ship), hotels, shore excursions cost extra, taxi or bus fees when on land, last minute purchases (e.g. electric converters, clothes, cameras, digital cards, currency fees, etc.), etc. And finally, your budgeting can get sidelined between now and then like job changes, holiday budget, life's events, etc.

To echo others: don't do it. Someone already said it....Europe will always be there. This isn't a once-in-a-lifetime trip if you are determined to go.

Re: Is this a lost cause?

Anonymous — Tue, 10 Nov 2009 15:29:45 GMT

Appreciated, O6.

I'm really not trying to be irresponsible. I believe it'd be irresponsible if I was unemployed, had no assets, and no means by which to pay it back. It's not like I'm trying to buy a computer when I already have one, just because I want to keep up with the Joneses, or a new wardrobe or cosmetic surgery, or anything along those lines. Then again, our opinions are all going to be different ... and I'm not going to ruin my credit for this ... if that was an undeniable consequence, then I wouldn't have even posted this.

Thanks, still.

Re: Is this a lost cause?

Anonymous — Tue, 10 Nov 2009 15:35:54 GMT

Thank you so much for that insight llecs, as well as the poster before you.

That's the kind of thing I wanted to hear, really ... some good personal experiences.

As it stands, we're thinking of pushing it back to November, when we have all the gift money in cash, and then paying for another cruise that's later, in full. In the meantime, we'll drive the 4 hours to Chicago and see a play or something ... we really do just want that alone time together, after all the hustle and bustle of the wedding.

Thank you again. There are a lot of options to be laid out and I know we're going to work hard to find the right one.

Re: Is this a lost cause?

Anonymous — Sun, 06 Dec 2009 09:45:10 GMT

Melissa,

I commend your passion and confidence in your abilities to provide and make this honeymoon happen.

I could say "don't do it" because of my own experiences, I could say "go to it, and enjoy" because of my own wonderful memories, but what I'm going to ask you to think about is just this....

You cannot guarantee.

Heaven forbid any of the following, a car accident (not reconciled overnight - even with insurance) a serious illness/medical issue with you, your fiance, or an immediate family member that until that moment has been so generous to you both, layoff at work, hour cut backs, car breaking down, etc.

Our nest egg, that started out puny, gave us peace of mind, and helped us endure unforseen hardships that would have otherwise crippled us financially.

Start there, with the financial foundation for your marriage to stand on, that way when you go on your honeymoon - you can concentrate on enjoying it.

Congratulations to you both and all the best on your future together.

Re: Is this a lost cause?

RyVision — Tue, 19 Apr 2011 19:16:51 GMT

I ran across this thread while looking for something else. I'm so shocked I don't remember what it was..........

It's been over a year and no update from Melissa. I wish she had returned at some point and informed the board as to what she ended up doing, how it went and how they are now. I'm rather glad I wasn't around to see this back when she posted it, I would have been begging her to consider just using some of their cash on hand to do something a bit (ok,a lot) less expensive and save what was left over for a future vacation\honeymoon.

Do people really consider taking a 5000$ honeymoon while attending college, on deffered student loans while owing other bills they're paying 50$ per paycheck towards? Then looking at the future toward MORE student loans? Actually, it kind of ticks me off. For years (15 or so) I wondered where these younger people (not just 20's but up into 40's like me now) got the money to drive 40k$ cars, live in homes their grandparents couldn't imagine owning barring some huge windfall, and all the rest, you get the idea... I thought I was failing when young because I didn't have such things. I found out, they didn't have the money to have such things... I was actually doing just fine the entire time. i was brought up a saver, only spend about a third of what you make unless it's to make money with (that was when I was a kid, but I had enough to buy my own used first car cash when I turned 14, and it was in perfect condition with 61k on it, 1 owner). Friends were shocked my parents bought me a car, I told them they didn't, they LET me buy my own, only because they decided I would be responsible enough with it for them to allow it, they did pay half the insurance though, 300 or so a year. Friends later went out and got loans for cars, went to college, partied like rock stars, dropped out of college, some turned it around, some didn't. Some are still paying on student loans, over 20 years later..... I think this is why the banking industry had such an easy time of fleecing so many. And why things are in such a mess now.

If someone in this situation or something similar comes across this, please read all the posts for this thread. Esp if you have or may have to get student loans. Live cheap until you can pay cash to live large. Please? For your own sake?

I hope everything turned out alright for Melissa, maybe they reconsidered, maybe they read the other posts and thought it out. I can only hope.

Re: Is this a lost cause?

Shogun — Wed, 20 Apr 2011 02:09:15 GMT

This is an old thread that was dug up but found myself reading it as well. It's a difference of opinions and priorities. What might seem right for one doesn't seem right to another. My personal stance is my cell phone is screwed up, touch screen not working. Can't bring myself to buy a new one, $150 because I'd prefer to throw that money on a bill. Just my mindset I guess, and I make $122,000 a year. But I guess it's the YMMV thing kicking in again.

Re: Is this a lost cause?

Anonymous — Wed, 20 Apr 2011 14:42:02 GMT

@Shogun wrote:
This is an old thread that was dug up but found myself reading it as well. It's a difference of opinions and priorities. What might seem right for one doesn't seem right to another. My personal stance is my cell phone is screwed up, touch screen not working. Can't bring myself to buy a new one, $150 because I'd prefer to throw that money on a bill. Just my mindset I guess, and I make $122,000 a year. But I guess it's the YMMV thing kicking in again.

Funny you should say that...My droid just fell in water last Thursday and it is RUINED but I refuse to buy another phone because I'm waiting on the repsonses from a couple PFD's I just sent out

Re: Is this a lost cause?

Anonymous — Wed, 20 Apr 2011 14:44:43 GMT

At the age of 25 my cell phone is my LIFE !!! LOL! But it's for my own good.

Re: Is this a lost cause?

Shogun — Wed, 20 Apr 2011 21:19:07 GMT

Actually don't mind my phone being screwed up. It's a plausibe deniablility thing when someone is texting or calling. Sorry, didn't get that, phone is screwed up.