PDA

View Full Version : All you money people, Help a College Student!!


plutofreak
04-04-2005, 11:00 AM
Okay, so here's my deal. I am wanting to get another credit card, I really want the Disney Visa, I have been turned down twice by them. Right now, I have 1 credit card, it's a student card with a $750.00 limit, with about $700.00 on it right now, and an APR of 18.99%. :eek: I've been having the card for almost 3 years and no increase on my credit limit. I also have a $2000.00 loan cosigned by my dad I pay on monthly. When I got the loan my credit score was in the mid 600's. I think that's good. I also have about $10,000.00 in student loans.

My question is what should I do to get another card or have my limit increased? It's not that I want another card to buy more stuff, but I graduate in December, and I will be looking into buying a house. I just want the best credit score I could possibly have. This credit stuff is so confusing, they should teach you this in school. Any tips or comments will help.

Thanks everyone

RoyalCanadian
04-04-2005, 12:45 PM
Why are you interested in piling more high-interest debt on top of other high-interest debt?

I would strongly suggest paying down the 18.99% credit card debt.

MrsPete
04-04-2005, 12:50 PM
This probably isn't the answer you want, but it's the right answer: You should not get another credit card.

You already have one card that's almost maxed out, you are paying on a loan, and you have a sizable student loan waiting to attack you once you graduate. You're pretty well maxed out, as evidenced by the two turn-downs for the Disney VISA. Another card will not help your credit rating in any way; rather, it will be a potential pitfall. Thinking towards your future mortgage, lenders care about your debt ratio (your income to obligations ratio); so if you make $2000/month, and your credit cards plus your car cost $400/month, they'd say you have a 20% debt ratio -- that is, you've already spent 20% of your paycheck before it's even earned. They also consider the credit you have "just sitting there" waiting because that could become new debt literally overnight.

So I'd say forget about the Disney VISA. It would be a temptation to over-spend and would not help your credit rating. Instead, focus on paying off the credit card you have (pay something extra each month, even if it's only $5 -- at 18.99% it'll take you more than a decade to pay off $700 if you make only minimum payments).

Since you're looking towards buying a house, I'll tell you what really matters: the downpayment. With a new college degree and a good job, you will qualify for a mortgage. Lack of a downpayment will keep you from getting a mortgage; a mediocre credit rating will only mean you'll get a higher interest rate. People who are turned down for a mortgage typically are trying to buy "too much house" or they have ruined their credit. A new college grad with moderate credit will qualify for a SMALL mortgage. And if your interest rate is high, you can always refinance in a couple years once your financial state is better.

Incidentally, we DO teach these concepts in high school. Here's the main theme: You will never, ever, never get ahead by spending money you have not yet earned.

my3kids
04-04-2005, 01:10 PM
Don't worry about your "score." Pay off your debt, graduate and SAVE SAVE SAVE. I can't imagine why someone would want a credit card just because the thing says Disney on it.

cbrfan
04-04-2005, 01:22 PM
I agree with the above posters. Another credit card will not improve your credit score. When lender look at your repayment ability they add up the maximum debt you could "potentially" have. So if you were to get another card with a limit of, say, $2,000 they would proceed as if you actually OWED the $2,000. That's not going to help your income/debt ratio at all!

geetey
04-04-2005, 02:02 PM
The others are correct. Another card is not what you need. Buying a house is a huge responsibility and you need a good down payment and cash flow. Pay off your credit card, pay off the student loan, make all payments (cell phone, rent, utilities, etc.) on time or a few days early and you will have no problem qualifying for a mortgage in the future.
Good luck!

ziggystardust
04-04-2005, 02:21 PM
Be wary of constantly applying to credit cards. Every time you do, it acts as a credit check. Too many credit checks are not a good thing and can actually work against you. Especially if you keep getting rejected.

You should call your current credit company and work on the interest rate getting lowered. They most likely will do it, unless you have done something that would negatively effect your account with them.

plutofreak
04-04-2005, 11:32 PM
Thanks everyone,

Well here's what I'm going to do, pay off the credit card by the end of the summer and try to get to loan payed off. With my sign on bonus from the hospital I am working at, I could put that towards my student loan. Thanks again, I thought another credit card would increase my credit, but I guess having the least amount of debt possibe would be better. If anyother suggestions please feel free to respond

pirateparrot
04-04-2005, 11:42 PM
Okay, so here's my deal. I am wanting to get another credit card, I really want the Disney Visa, I have been turned down twice by them. Right now, I have 1 credit card, it's a student card with a $750.00 limit, with about $700.00 on it right now, and an APR of 18.99%.

If paying off the card is not in the near future, I strongly recommend finding a credit card with a lower interest rate. I really believe you can beat 18.99%. If you can join a credit union, I think you will have more luck getting a credit card with a lower interest rate.

Just one opinion.

disneefamily
04-05-2005, 01:17 AM
Disnee Dad Says.............................................. ........ Oh, the trouble with credit! Now I am not a professional credit person, but this is what I have learned over the years to get a 755 score. I know it can go higher, but I think I am hurt by all the unused debt I can have but don't use.

Feel free to get a second card, and a third. I would go with one of the gas cards, and a department store, like Sears, or Penny's, or Kohl's. But here is the iron clad rule. Only use them once every couple months, for stuff like socks and, well, gas. Always pay off the balance EVERY MONTH.

Within a year your credit score will jump as you have multiple credit cards and you will have a perfect payment record. PERFECT... right!???

By 19 I had Master Card,Visa,Wienstocks,Sears and Firestone. And when my car blew up, Firestone saved me, the bill was like $600, more like $2000 by todays dollars, which took me four months to pay so they got a little interest, but since the other four were at ZERO, I just didn't use them until car was paid for.

The funny thing about credit is, you want to get it so you have it, then just use it once in a while, saving it for when you really need it, like when my stupid Pinto blows a transmission! Lesson learned at 19, and is still true today.

Our poor cat was dying, spent $1700 to get her back to life, on the Disney card. She is fine now, we get 17 disney dollars and we paid it off when the bill came in. Evil bank gets ZERO. That should be your mantra, EVIL BANK GETS ZERO.

Use the system, don't let it use you.

golfgal
04-05-2005, 05:27 AM
If you want to buy a house some day, you need to get your credit score up. 600 isn't a very good credit score, sorry. The best way to improve your credit is not with more credit cards but to show you are responsible and can pay your bills. Having the student loan and paying on them monthly for a year or two will really help. I would put your sign on bonus into a long term CD or something that will earn some interest, pay on your loans for a couple years and then take that CD out and pay off your loans-or use that money toward a down payment on your house. Get your credit card paid off and keep it that way. When you are more established in your job, you can then get a new credit card with a higher limit, but don't go wild. Use your credit card like a check book, recording every purchace like you wrote a check and then when the bill comes, you will have the money to pay off the card every month. Don't get suckered into spending, spending, spending and then think that just because you can make your minimum montly payment you are doing ok.

Helene
04-05-2005, 06:25 AM
Just a thought...........

I would also suggest tuning into the Suze Orman show on CNBC Saturday Nights (9 pm eastern). She often deals with credit card issues as part of the overall management of our hard earned $$. Her style can be a bit annoying, but the info she shares is often quite good, especially for someone in your shoes who is just starting out.

Good Luck with your future planning!!!!

poohj80
04-05-2005, 08:52 AM
Congrats on your upcoming graduation! Your credit situation should GREATLY increase when you graduate and start working. When applying for loans, lenders not only look at your credit score but also your debt ratio. As you earn more money, you will become eligible for larger loans like to buy a home. I agree with paying down your debt as much as you can. I am still paying off student loans but you can't put a price on education and knowledge.

NancyIL
04-05-2005, 10:51 AM
Just a thought...........

I would also suggest tuning into the Suze Orman show on CNBC Saturday Nights (9 pm eastern). She often deals with credit card issues as part of the overall management of our hard earned $$. Her style can be a bit annoying, but the info she shares is often quite good, especially for someone in your shoes who is just starting out.

Good Luck with your future planning!!!!
I ordered 2 copies of this book for my 2 college-age daughters: http://search.barnesandnoble.com/booksearch/isbnInquiry.asp?userid=QC7fKeEBMh&isbn=1573222976&itm=1 My Sam's Club sells it for ~ $16.82. Read it before you apply for more credit cards. :)

vettechick99
04-05-2005, 01:43 PM
I think you should call your current card holder and say you are considering getting a new card to reduce your interest rate. You're willing to keep the balance there if they reduce it for you...and see what they say. If they can't help you, then shop for a new card! No way anyone should be paying 19% interest when there are so many 0% offers out there.

When you get the card, practice responsible spending - pay off the amount within a workable time-frame and don't put anymore purchases on there.

CREDIT CARDS are the devil if you aren't careful! Good luck!

JodyTG
04-05-2005, 06:44 PM
First of all...do NOT apply for any new credit cards until you know for a fact that your score is good enough to get one. Every time someone pulls your credit, it takes points off of your credit score. When you're shopping and are told "if you fill out a credit application, you can save 10% on today's purchase", JUST SAY NO. Right now I'm helping my husband get his credit back to where it should be. (The "dreaded-ex" syndrome.)

Go do www.myfico.com and you can pull up your credit with all three bureaus, with your credit score from each, and check for error. This included incorrect names, addresses, everything. (There were 3 incorrect addresses on my husbands credit report and this also takes away from your score.) On myfico.com you can dispute items and it helps you make out standard letters to print and mail. Keep a record and then follow up.

Keep your credit card (or any credit)npaid down to no more than 20% of the balance. Credit companies like to see us use credit responsibly, so pay the card off, then buy gas...make the minimum payment the next month...buy gas again...pay off the balance the next month. Continue this and you're credit score will go up.

I know this is a little long...but hopefully good information. I got my husband's credit score from a 580 (yikes) to a 670 in about 8-10 months doing this these things. It's just playing the credit game. We still have far to go, but we're getting there.

Forevryoung
04-05-2005, 07:22 PM
Wow this post has made me feel really bad because I have always (for the last 5 years pretty much) had a credit card under my parents. It was to be used for stuff that they would necessarily pay for anyway without having to give me cash all the time like their grocery shopping, pharmacy stuff, some clothes and for emergencies. I know that the card has a high credit limit if I was ever in a bad situation and needed it. Last summer I got my own credit card with a $500 limit. I use it every so often, some months more than others, to pay for gas and little stupid things. I never spend more than $100 in a month. I pay it off every month too. Here is where I feel really silly now: On my last trip home I got one of those old navy credit cards because we (my mom, my sister, and I) were getting new summer clothes and it was going to save us some money. The card will be paid off when it arrives and will be used very infrequently (only every few months when I shop at the Gap or Old Navy). Should I pay it off and cancel the card or will it not hurt me to have it??? Would it hurt to cancel the card?

WDWBetsy
04-05-2005, 07:31 PM
Since you're looking towards buying a house, I'll tell you what really matters: the downpayment. With a new college degree and a good job, you will qualify for a mortgage. Lack of a downpayment will keep you from getting a mortgage; a mediocre credit rating will only mean you'll get a higher interest rate. People who are turned down for a mortgage typically are trying to buy "too much house" or they have ruined their credit. A new college grad with moderate credit will qualify for a SMALL mortgage. And if your interest rate is high, you can always refinance in a couple years once your financial state is better.

Just to note: there are many programs out there for people who do not have the money for a down payment. Many are 0 or 1% down - Nehemiah is one such program. You are "gifted" money paid to the mortgage company at closing - and it does not have to be repaid. There isn't any catch. It's awesome! The only downfall is that without sizeable down payment, you have to pay PMI, but after 20% is paid down on your mortgage, you can remove the PMI.

We were able to use Nehemiah when we built our first house in 1999. Back then the interest rate we had was 8%. Then we built another house in 2002 and also used a similar program to Nehemiah. We were able to get a larger house with a smaller interest rate (5.5%). So more house for less $.

While it is a good idea to be able to save up for a down payment, not everyone has it and there are programs to assist. Plus I hated throwing away rent money when I could have a house for the same price.

A lot of people do not know about this, so I'm just adding my 2 cents.

KarenAylwood
04-05-2005, 07:34 PM
Forevryoung~ I personally don't think it would hurt you to hold onto it. That is, if you intend to use it. Btw, I'm one of those people that says "Would you like to save 15% today by signing up for a J Crew card?" ::: insert large smile here::: :wave2: (hey, it's my job, stop throwing things!!)

If you are one of those people with good credit and who always pay off your bills I don't see how it can hurt you. Also, many times having those cards will get you coupons or deals when you use your card (esp around xmas time). I have great credit (with some help from the rents when I was younger like you had) and do not think I've been hurt by having one of these. I only have ONE though. I'm not saying that you should be one of those people who opens a card at every store you walk into! ;)
If it's a company you buy from fairly often and would benefit from discounts it would give you, I say go for it. And like you said, pay off the ENTIRE BALANCE each month and not the minimum payment. That's where you get into trouble...

WDWBetsy
04-05-2005, 07:37 PM
Wow this post has made me feel really bad because I have always (for the last 5 years pretty much) had a credit card under my parents. It was to be used for stuff that they would necessarily pay for anyway without having to give me cash all the time like their grocery shopping, pharmacy stuff, some clothes and for emergencies. I know that the card has a high credit limit if I was ever in a bad situation and needed it. Last summer I got my own credit card with a $500 limit. I use it every so often, some months more than others, to pay for gas and little stupid things. I never spend more than $100 in a month. I pay it off every month too. Here is where I feel really silly now: On my last trip home I got one of those old navy credit cards because we (my mom, my sister, and I) were getting new summer clothes and it was going to save us some money. The card will be paid off when it arrives and will be used very infrequently (only every few months when I shop at the Gap or Old Navy). Should I pay it off and cancel the card or will it not hurt me to have it??? Would it hurt to cancel the card?

I think it's a good idea to have a credit card in your own name. Especially if you pay it off every month. After you've had it for a year, I would apply for a low interest Visa or Mastercard. Then use the Visa or MC either only for emergencies, or for everyday purchases that you would pay off each month. After getting a Visa or MC, I would then cancel the Old Navy card. But at least it will establish credit in your name.

MrsPete
04-05-2005, 07:48 PM
Just to note: there are many programs out there for people who do not have the money for a down payment. Many are 0 or 1% down - Nehemiah is one such program. You are "gifted" money paid to the mortgage company at closing - and it does not have to be repaid. There isn't any catch. It's awesome!

Interesting. Do you know who Nehemiah was in the Bible? He was an Old Testament Jew who was distressed because the walls of Jerusalem had fallen into disrepair -- the whole place was a ruin. So he took it upon himself to begin rebuilding. He recruited others to help rebuild, and because of his vision the whole place was eventually rebuilt.

As for no catch, I didn't believe it, so I did a google search and I found a huge catch -- here's a quote from their website:

"Any residential property can be purchased using The Nehemiah Program as long as the seller agrees to the Nehemiah participation requirements. Both new and existing homes can be purchased using this program. In exchange for helping the seller find a qualified homebuyer, the seller agrees to make a contribution to Nehemiah of 1-6% of the final contract sales price, plus pay a service fee of no more than 1% of the final contract sales price."

If I were the seller, I would not agree to pay up to 6% of the final contract price UNLESS I could adjust the total cost of the house upward to offset this very large cost (or unless the buyer agreed to pay my asking price, which would've already been bumped up a bit so I could negotiate down and still get what I wanted originally). After all, the seller bought the house as an investment; he's not going to give away his profit. So, while the buyer may get the house without a visible downpayment, that cost is actually going to be built into the cost of the house and -- eventually -- into the mortgage. And that means that you'll pay it back over 30 years -- with interest.

Searching for a seller who'd agree to be part of the program would also limit your choice of houses. Without knowing for certain, I would guess that people who had difficult-to-sell houses would be willing to go for this program.

It's an interesting program, and you could argue that it might be better to go ahead and buy rather than continuing to pay rent while the cost of housing goes up. That would depend upon the individual's other housing options, the cost of rent vs. mortgage, and other highly variable details. However, I think the facts bear out my original opinion: it's still best to have a good downpayment.

MrsPete
04-05-2005, 07:56 PM
"Would you like to save 15% today by signing up for a J Crew card?"

This must be a HUGE money maker for the stores 'cause everyone does it. Think about it: Because you're going to get a deal, you pick up a couple extra items that you otherwise wouldn't have chosen. After all, this 15% is a one-time deal -- better make it count! The mark-up is so high that the store still makes a good profit from your purchase. Then in the future you choose to shop at J Crew because you have the card. And since most people don't pay off their cards every month, the store makes money hand-over-fist on this deal.

And doesn't just about everything go on sale every month or so anyway? Just say no to the "save X amount today".

robinb
04-05-2005, 08:00 PM
With my sign on bonus from the hospital I am working at, I could put that towards my student loan.
I just wanted to comment on this. AFAIK, Student Loans do not "count" against you as much as other debt. Plus, the interest rate on a Student Loan these days is pretty darn low. It would be better for you to pay off the Student Loans on schedule rather than pay them off early. Save that $$ for your down-payment instead.

raven3517
04-05-2005, 08:10 PM
Should I pay it off and cancel the card or will it not hurt me to have it??? Would it hurt to cancel the card?

Don't cancel it. Opening and closing accounts can hurt your credit, as can applying for multiple cards when you've already been turned down.

Make a small purchase once a month, and pay it off on time (use free online banking that allows you to schedule your payments to auto-pay to make sure not to miss a payment). This will help you build credit.

KarenAylwood
04-05-2005, 08:36 PM
This must be a HUGE money maker for the stores 'cause everyone does it. Think about it: Because you're going to get a deal, you pick up a couple extra items that you otherwise wouldn't have chosen. After all, this 15% is a one-time deal -- better make it count! The mark-up is so high that the store still makes a good profit from your purchase. Then in the future you choose to shop at J Crew because you have the card. And since most people don't pay off their cards every month, the store makes money hand-over-fist on this deal.

And doesn't just about everything go on sale every month or so anyway? Just say no to the "save X amount today".

You got it Mrs Pete! They make tons on it. But there are some people who come in and are going to buy a ton of clothes anyway (school shopping, just lost weight, etc) and would save a good amount by opening the card. It's not uncommon to see someone come in and buy $500 or $800 in clothing (and I work at an outlet- where the prices are about 60-50% of the retail prices). They would save $75-$120- probably worth it at the time to them, and most don't even put the first purchase ON the card (nothing to pay off) and I think most people cancel when they get the card anyway.

I ask because it's my job as a lowly-part-time-retail-working graduate student, but I agree- just say no unless it's a big purchase!

I heard on one of those shows (Suze Orman or something) that student loans are "good debt" and credit card debt is "bad debt." I agree w/ Robinb on paying them off slowly. They won't hurt you that much.

WDWBetsy
04-05-2005, 08:38 PM
Interesting. Do you know who Nehemiah was in the Bible? He was an Old Testament Jew who was distressed because the walls of Jerusalem had fallen into disrepair -- the whole place was a ruin. So he took it upon himself to begin rebuilding. He recruited others to help rebuild, and because of his vision the whole place was eventually rebuilt.

As for no catch, I didn't believe it, so I did a google search and I found a huge catch -- here's a quote from their website:

"Any residential property can be purchased using The Nehemiah Program as long as the seller agrees to the Nehemiah participation requirements. Both new and existing homes can be purchased using this program. In exchange for helping the seller find a qualified homebuyer, the seller agrees to make a contribution to Nehemiah of 1-6% of the final contract sales price, plus pay a service fee of no more than 1% of the final contract sales price."

If I were the seller, I would not agree to pay up to 6% of the final contract price UNLESS I could adjust the total cost of the house upward to offset this very large cost (or unless the buyer agreed to pay my asking price, which would've already been bumped up a bit so I could negotiate down and still get what I wanted originally). After all, the seller bought the house as an investment; he's not going to give away his profit. So, while the buyer may get the house without a visible downpayment, that cost is actually going to be built into the cost of the house and -- eventually -- into the mortgage. And that means that you'll pay it back over 30 years -- with interest.

Searching for a seller who'd agree to be part of the program would also limit your choice of houses. Without knowing for certain, I would guess that people who had difficult-to-sell houses would be willing to go for this program.

It's an interesting program, and you could argue that it might be better to go ahead and buy rather than continuing to pay rent while the cost of housing goes up. That would depend upon the individual's other housing options, the cost of rent vs. mortgage, and other highly variable details. However, I think the facts bear out my original opinion: it's still best to have a good downpayment.

The point I was trying to make is that you do NOT have to have a down payment as you stated. There are programs out there that will allow someone without the funds for a downpayment to purchase a new home.

I think the majority of people who use programs such as Nehemiah are buying a newly built home. Homebuilders in our area strongly promote them and are willing to pay the contribution fee in order to sell houses and build diverse neighborhoods. Yes - there is a catch to the seller. But we did not have the homebuilder's fee built into the home price or our mortage.

I really do not feel there is a catch for most homebuyers in this situation - and that is who I was trying to inform. Actually if you end up using Nehemiah, you might have to take a home ownership class - it was very informative. We had to take one at a local downtown hotel for our first house, and didn't have to do anything for the 2nd as it was a different program. I believe there is an online course at the Nehemiah and you can get the full details at their website (http://www.getdownpayment.com/buyers/).

Yes - it is a wonderful thing to have a down payment. But many do not - and many do not have the amount that would eliminate PMI. I was just offering an alternative for people to look into. It really bothers me when people say you can't get a mortgage without a down payment. Of course, everyone should do their homework and decide if renting or buying a home is best for them.

Bottom line, we used these programs after paying 1% down to get into two houses since we didn't have a down payment. We now live in a 4 bedroom spacious house on a prime lot for a little more than we were paying in rent for a 2 bedroom apartment. We are also able to deduct the interest and property taxes. To me, that's worth it.

MrsPete
04-06-2005, 02:01 PM
The point I was trying to make is that you do NOT have to have a down payment as you stated . . . I really do not feel there is a catch for most homebuyers in this situation - and that is who I was trying to inform. Actually if you end up using Nehemiah, you might have to take a home ownership class - it was very informative.

Let me explain:

You have to believe this: No one is going to lose money to help someone else buy a house (okay, maybe your parents or grandparents would help you with a downpayment, but no business person will lose money to help a stranger buy a house). So the money has to come from somewhere.

Let's look at an example with nice round numbers: Suppose you choose a house that's worth 100,000 (that's possible in my area -- it may not be possible everywhere). The website says that to be part of this Nehemiah program, the seller must pay 1-6% of the house's cost plus 1% in fees. To make the numbers easy, let's say that the seller is paying 5% total; that'd be $5000.

Since the seller isn't going to lose that money, he sells you the house for 105,000 instead of 100,000. It may not be evident that this cost is built into the price of the house, but it is. You, the buyer, are paying the downpayment -- you've just financed it into the cost of your mortgage. You said that you know of a builder who's really pushing this program. Everyone likes to think they're getting a bargain; he probably prices the houses at 105,000 to start with, then gives a "discount" to those who don't use this program. Everyone's happy.

So you really are paying the downpayment -- there's simply no way around it -- you're just financing it over 30 years instead of paying it upfront. That's "the catch".

As I said in my earlier post, this may or may not be a good deal. It will cost the buyer more in the long run, but it might be better than paying rent while the cost of houses increases; it would allow the new buyer to start building equity and to take advantage of the miniscule tax deduction that home ownership provides.

Changing the subject slightly, a new home owner's class sounds like a great idea. I bet it could help new homeowners avoid many pitfalls.

cbrfan
04-06-2005, 02:19 PM
I'm all for saving up money for a larger down payment. My DD just bought a house last year. She got a mortgage for around $100,000. Her PMI payments account for over $70 a month of the house payment! Ouch!

WDWBetsy
04-06-2005, 06:00 PM
I suggest anyone interested in this read the following articles - decide for yourself. I'm not going to debate anymore about this subject. I am just passing along my experience and how we were able to benefit from down payment assistance programs.

FCIC article (http://www.pueblo.gsa.gov/cic_text/housing/low_down/low_down.htm)
Quicken article (http://www.quickenloans.com/mortgage/articles/no-down-payment.html)
CNN Money article (http://money.cnn.com/2004/02/18/pf/willis_tips/index.htm)
About.com article (http://homebuying.about.com/cs/downpaymentgift/a/homebuying.htm)
Lending Tree article (http://www.lendingtree.com/cec/yourhome/firsthomebuyers/down-payment-assistance-programs.asp?esourceid=23976&source=23976)

2angelsinheaven
04-06-2005, 06:24 PM
I found this book to be helpful when dregging through the complicated world of finance... try http://www.suzeorman.com/, her book Young, Fab and Broke it goes over getting a good score and many other issues. Check it out, I think there are even some online tools.

MrsPete
04-06-2005, 06:25 PM
These programs are known as zero-down or no down payment mortgages. This means that you are financing 100% of the value of the home . . . While no down payment mortgages can be a little more difficult for lenders, they are able to finance 100% of the purchase price.


I'll make one more comment: This quote, taken from one of WDWBetsy's articles, says exactly what I've been saying: You are not actually having your downpayment made by someone else -- you are financing 100% of the house.

Again, I'm not saying it's a bad program. I'm saying that you need to realize what's really happening. You, the buyer, are paying the downpayment -- you're just financing it along with the rest of the house (probably over 30 years).

drakethib
04-10-2005, 01:06 PM
Okay, so here's my deal. I am wanting to get another credit card, I really want the Disney Visa, I have been turned down twice by them. Right now, I have 1 credit card, it's a student card with a $750.00 limit, with about $700.00 on it right now, and an APR of 18.99%. :eek: I've been having the card for almost 3 years and no increase on my credit limit. I also have a $2000.00 loan cosigned by my dad I pay on monthly. When I got the loan my credit score was in the mid 600's. I think that's good. I also have about $10,000.00 in student loans.

My question is what should I do to get another card or have my limit increased? It's not that I want another card to buy more stuff, but I graduate in December, and I will be looking into buying a house. I just want the best credit score I could possibly have. This credit stuff is so confusing, they should teach you this in school. Any tips or comments will help.

Thanks everyone


Take if from a fellow Cajun (from Thibodaux, LA)

Forget about the credit cards. They can and will cause you grief.

There are too many people in the world right now just coming out of college with a ton of credit card balances.

Pay the balance off as well as your loan.

By that time of you realy want a Disney Visa, you can get one then.

Also, FYI, the more times that you are denied credit, the worse it looks on your credit report.