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Old 08-12-2009, 09:15 AM
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Went to the bank the other day to try to get a signature loan for my 22 year old daughter, who is working full time ($10.40 per hour) and still has one yr left for a BS in Chem and Biology. Her credit score is better than mine - the only blemish was a medical bill of hers that was late getting paid, that I ended up paying. I make annual salary of six figures, net worth comfortably in 7 figures with a balance of half mutual funds/annuities/etc and half real estate. I own two homes, three farms, and a ten stall boat shed, all paid for except about $50K on one of the farms. I work two full time jobs (one for 30 yrs) and between working the jobs and keeping up with two homes, three farms, and the boat sheds, I am late every couple of months on a doctor bill or credit card payment (which I pay off every month). When my daughter comes up short on her car payment or rent, I pay it. I have never failed to repay a loan, and usually pay them off early. Maybe I am biased, but in my mind, I would be a much better credit risk. Looks aside, would you guys rather give me a $10K loan, or my daughter?
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Old 08-12-2009, 10:06 AM
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Originally Posted by cudacat View Post
would you guys rather give me a $10K loan, or my daughter?
Sorry, need pic of daughter before I can decide.

(I know you said "looks aside", but you don't tell lender what to base his decision on!)

Last edited by Menzies; 08-12-2009 at 11:02 AM.
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Old 08-12-2009, 10:10 AM
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Edit: Nevermind, I can't read.

Just write a check?
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Old 08-12-2009, 10:10 AM
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I do know that despite high credit scores, if credit history is, what they call "insufficient" or has not been established, while the score might be high, it is not the complete basis for approval of the loan.

I would rather lend you the money over your daughter, absolutely.
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Old 08-12-2009, 11:10 AM
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Yes, but you are probably a Hog fan.

Therein lies the issue of your credibility.

Heehehehe....Just messin with ya Cuda...I think the Razorbacks are on the rise.
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Old 08-12-2009, 11:13 AM
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I have similar circumstances and never been late.. But my credit score is relatively low, none seems to figure out why?
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Old 08-12-2009, 11:33 AM
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Originally Posted by sweptvolume View Post
Just write a check?
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Old 08-12-2009, 11:39 AM
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So if'n you gots all that stuff and you makes all that money--- why don't you just give her the 10k?

Why mess with the mony changers at the bank?
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Old 08-12-2009, 11:43 AM
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What if he wants to teach his daughter about financial responsibility?, build her some credit?

How about it not being all about the handout from Daddy?

It is hard to resist when one puts out that they earn "six figures" and are worth "seven", though, it is not about him, it is the daughter.
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Old 08-12-2009, 11:44 AM
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cuda-

You are weighted in real estate, as in a liability to a computer determining your score.
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Old 08-12-2009, 12:14 PM
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Also, to add to what My Gal said, as I understand it, any late payments weigh heavily against you. The doctor may not report you but you can bet the CC companies do. Your "goods" don't count for you as much as your "bads" count against you.
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Old 08-12-2009, 02:17 PM
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Well, everyone in Arkansas is a Hog fan at heart (Or LSU, but screw those guys)

He's probably a Reddie or a Tiger fan. He'll know what I'm talkin' about.
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Old 08-12-2009, 03:39 PM
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Its not your credit score that is the problem. It is the lender interpreting it. Do business with those that would do business with you.
In other words if the bank doesn't have the smarts to look beyond a score and see an opportunity then do you really want to do business there?
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Old 08-12-2009, 07:08 PM
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I could have written my daughter a check, but I am slowly cutting the cord. I want her to get the loan in her name so she can build her own credit. She fell off my insurance when she hit 22 yrs old a few months ago, and the health insurance I found for her (not Obamacare) is $128 per month, which she is now paying at the expense of her cable TV and internet service. I put a pretty good chunk down on her current vehicle, so she could get the loan in her name and she is now making that payment. For some reason, I was harder financially on my son, but I did not do as well on my daughter. My son called me his first month in college and told me he had $20 dollars to make the last ten days of the month before I sent him another check. I told him he was going to have to learn how to ration his macaroni and cheese. Other than what I sent him, he never asked me for another dime after that. He even made it though medical school without any aid from me. I might be a little heavy in real estate, but I did not buy for the investment. Bought land for hunting (and to build a hunting camp) and it turned out some of it has almost doubled in price within the last 5 years. The escalation in my real estate worth about evened out my losses in the market. Trouble is, I don't intend on selling any of the land, and if I do, I will buy more. I am going to sell one of my houses within the next couple of years. I am not doing this for me - I am doing it for her. Yes, I am a hog fan, although I do pull for LSU when the hogs are out of the running.
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Old 08-12-2009, 07:26 PM
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Re your cerdit score/history.

It reflects just that - your credit.

They have zero visibility to your assets. They have NO ability to offset what they see in your credit risk with your asset base to cover it.

I have two Raymond James accounts, a Schwab account, healthy 401K, and a boatload of company stock options. They have absolutely no visibility to that - and neither does my bank. So if anyone is making a risk assesment off what is reportable they have only one side of the story.

Having said that, because I have those assets behind me I can manage and properly leverage credit, so I can keep that score high. But you do have to manage the credit rather than allow your asset base to do that for you. For example, there is a real issue with getting lazy about paying bills etc. because you "will get to it eventually and you have the dough", therefore you can screw up your score.

Sucks, but it is what it is. In fact I am happy with that set up, since I don't think anyone other than those I want to, should see what I am worth.
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Old 08-12-2009, 07:44 PM
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It is what it is, not about your money, but what you do with it. i don't make $hit,
but my card is 3.65, my line on the house was about the same, not any more.
Chase is kicking ass, I don't owe shit and they know it, It's a nice feeling
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Old 08-13-2009, 04:23 AM
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Originally Posted by thundra View Post
What if he wants to teach his daughter about financial responsibility?, build her some credit?

How about it not being all about the handout from Daddy?

It is hard to resist when one puts out that they earn "six figures" and are worth "seven", though, it is not about him, it is the daughter.
The first course in the class of financial responsibility is-- you don't have to owe anybody! In this day and time teaching some one to build credit!!!!!! Say what?

Write the check and have her pay you back. Simple and easy, and it keeps their money out of the changers hands.
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Old 08-13-2009, 08:10 AM
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I think everyone needs to have credit available. If she goes to medical school, I ain't giving her $60K per year so she can pay me back after four years of medical school and 5 years of residency - hell, I would be too old to to really use it then. If she ever wants to buy a house, I would expect her to have to get a loan at that time, and hopefully, pay it off early. Not that many folks can pay for a house with cash money - I did my second one, but not my first. I have a loan for a farm I am buying, and even though I could have paid cash for it, I wanted to fully fund my wife's IRA, my IRA, my SEP, and my TSP that year. I have also made some business investments where I borrowed the cash, bought the equipment, paid it off in a year and have made good money on those investments. For me, I am better off investing my money in avenues where it is somewhat difficult to access the money (IRA's, SEP, annuities, etc) and borrowing money for purchases without having to touch my investments. I do know different things work for different folks.
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Old 08-13-2009, 08:22 AM
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Every time you are over 30 days late the c/c company reports to the credit agency. If it occurs frequently then your credit will suffer. Also paying off early does nothing for your report. Companies want to see consistent payment history on time and the manner specified in the loan agreement.
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Old 08-13-2009, 09:12 AM
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I don't make anywhere near what you make but my credit score last December was 791. A lot (as I am told) has to do with your debt vs. credit ratio. Ex: 3 credit cards with a total of $75,000 credit and a balance of $25,000, you have a debt rate of 33%. 2 credit cards with a total of $50,000 credit with a $25,000 balance, 50% debt rate. At least this was how it was explained to me. I carry less than a $1,000 credit card balance. Late payments hurt but it is my understanding that different creditors carry different weight in determining your overall score.. I personally think it is a bit arbitrary, kind of like determining insurance rates using your credit score. What does that have to do with what kind of driver I am?
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