31, self employed, never had a credit card. Should I piggybacking?

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creditcardnewbie.
 
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31, self employed, never had a credit card. Should I piggybacking?

Postby creditcardnewbie. » Fri Feb 15, 2013 4:18 pm

As I mentioned, I am a total newbie to the CC world. Keep this in mind please. Also I apologize for the long post, just want to get the most accurate description.

I am 31, self employed, make a decent amount of money.

I had a few negative things on my credit report due to being a loose cannon when I first got out school, over ten years ago. I worked on paying these bills down and finally have non left.

I purchased a vehicle 10 months ago and got financed through a small local finance company, which killed me on interest, still is. 18%.

I decided to check my credit a few days ago, payed to get all three reports and scores. To my surprise, I have no negative things left on my reports with experian or equifax, transunion has a few collections, one that is originally from tmobile (never had tmobile always att) and a medical bill from a hospital (not mine at all, never been to a hospital). Other than this, the only thing on my reports is the car loan (not on transunion), which is paid as agreed. my scores are equifax 609, experian 573, transunion 570.

The main reason for me originally checking my credit is because I need credit cards, also need to get another vehicle. So I decided to check my credit, see what was up. I have applied for credit cards in the past and always gotten turned down.

So between talking with my banker and reading online, I have found that piggybacking was the way to go. I have wealthy parents that agreed to do this a few days ago and I should expect to have 6 or 8 AU accounts reporting soon. Their youngest account being 10 or 15 years old, and the lowest limit being 50k.

So basically I wanted to know what to expect, so naturally I took to the internet to try to get these answers. Now i'm even more confused! Some sites say that I will have the credit I need to do what I want, others say that lenders will not approve me because these are AU accounts.

I'm not looking to apply for credit cards and expect 100k credit limit, but I would love to have some sort of emergency protection at hand. I do want to purchase a nice vehicle, no Ferrari mind you, but a nice car, I have the possibility without the piggybacking, just with 30% down and super high interest. The most important reason being that I need to grow my business and of course, having good credit is the only way to start down that road.

So in your opinions, what should I really expect?

Thank you all for what I'm sure will put me at ease with all this that has been driving me crazy.


jriley
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Postby jriley » Sun Feb 17, 2013 1:32 pm

This whole post is a red flag.

First of all, you need to dispute the false charges on your credit report.

Secondly, you need to get a secured or easy to get card, and build your credit back up.

Finally, pay off your car loan immediately or refinance so you are not wasting your income on interest.
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DavidNY
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Postby DavidNY » Sun Feb 17, 2013 1:36 pm

BofA has a nice secured card.

RewardHop
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Postby RewardHop » Sun Feb 17, 2013 2:46 pm

Definitely focus your effort on disputing the false collections. You should get on that immediately.
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MemberSince99
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Postby MemberSince99 » Sun Feb 17, 2013 3:34 pm

Why is the post a red flag?

It sounds like you might have been a victim of identity theft. Or a mistake happened. From what I've seen disputing the items is a mixed bag. You always should do it, however, just because you dispute something that is wrong, doesn't mean the CRA will actually remove it. However, if you say you are a victim of identity theft, that will make it harder to get credit in the near future.
So you should dispute, but don't be shocked if the CRA comes back that those items are "verified". What this means is simply that the original credit (T-Mobile and the hospital) say the debt is valid - nothing more. The CRAs take this as the literal "word of God" and to them that's as solid as the sun rising in the east. If it gets to that point you will have to pursue it with the original creditor, which may open another can of worms, complain to the FTC (who will not do anything directly for you) and the BBB and your Congress-critter (good luck with that, those scum are basically in the employ of the CRAs and live to serve them in any manner possible) and hope that with extreme persistence and good fortune you can get the bogus items removed. Otherwise you simply have to wait and hope the creditors don't illegally re-age the items so that they go away in time. I have yet to see evidence of anyone other than the most obnoxious vultures being punished for violating the law like this, so the odds of anything happening if they do that are very small at best, but that's kind of another story.

Anyway do dispute and hope for the best with that, and being an AU will help you. As far as the results of being an AU it depends. In the case of Amex, if you give them the SS# of the AU, they open an account in that person's name which will appear on their reports, and you will reap the benefits of that, as this happened with someone I made an AU on my account. With Discover, they never got an SS# and the account never reported for the AU. So it will depend on how the creditor does things, but as long as it reports in your name, it's going to help you (assuming your parents don't go all deadbeat on you which will hurt you but with your scores, you can't be hurt very much at this point in any case).

I think you are doing a wise thing. Even if you become wealthy like your parents you will still pay for insurance which uses your credit as part of the cost you pay for insurance, and we all have seen that this cost sure as hell isn't going DOWN but continues to rise at double digit rates every single year. Even if you are wealthy, do you really want to give them more of your money than you have to? If you do, please throw some my way, I'm not too proud to take it!

Just bear in mind that no matter what over time if you do things right your score will go up. It's seldom a quick and easy process you just have to work on it.

Good luck!



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