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For most of my adult life, I've had excellent credit. For a 2 year period, for many reasons, my credit turned ugly. I had limited money and I needed to buy diabetic supplies.

 Thanks to a manager at my credit union, She helped me raise my bureau  to around 700.
That's not great, but better than I had in years.

I still had my son's bill's to pay but I paid for them. I paid all my bill's on time and still do.

I have credit cards, too many I guess. I am prompt enough, that my credit limit goes up
all the time with various cards. I stopped carrying lots of cash.

I have to move, I decided to use my Veterans financing. I have been turned down
do to my debt-income ratio. I always pay my debt's and have money left over.

I explained to the loan officer, I was spending over one thousand dollars a month paying
for diabetic supplies, and other needs of my son. Finally, I am getting him Social
Security which will allow him to pay HIS own bills. He is 32 years old.

After a 5 year wait, He now lives in Seattle Public hosing. He has a small, cute, one
person studio apartment for $50 dollars a month. He now has food assistance.
he is a Type1 diabetic who test's his blood sugar 10 times a day. His doctor says 4 times
 day is plenty. He insists he needs to test it more often. The state pays him only
enough for 4 tests a day.

I have a friend who had perfect credit. He got involved in a bad business deal and
his credit fell to below 500. THAT  is bad credit. He lost his home and business.
He was using his wife's credit and ruined hers as well.

As a 68 year old man, he and his proud wife are forced to live in the downstairs of
a friends house. He does labor for them.

He has no idea how to get even an apartment because his credit score must be a
certain number or he can't live there.

Our life is now controlled by a number. You can't explain anything. You have to reach
a score or your screwed.  

I remember a time when you could sit down with a financial decision maker. If he or
she  would look AT YOUR WHOLE LIFE, you may get the loan. Now you talk after
an invisible machine decides if your credit worthy.

Everyone should pay their bills on time. Sometimes in life, negative things happen to
even the most intelligent. Maybe Bill Gates or people like him, have had nothing but
good happen. There are others who are human and deserve a another chance if they
need money.

Continue reading under the fold.

I WILL get my loan because I simply need to pay off my credit cards. No one now tells
me I don't pay my bills. I have too many to pay. I will fix that.

I have every confidence my friend will solve his financial issues. I warned him the ONLY
way to fix your credit, is to get a secured Visa card, pay it every month. Only time
 can improve your credit score.
Never pay someone to fix your credit. Ask me, my charge is a smile.
If you do as I say,, your credit will be at least 700 in 3 years or less. We live in a computer world now. Your a number. Accept that and fix your issues my way.

Never get depressed over something so silly as credit. Pretend you live in Syria, or Iraq.
Pretend you live in Africa. You could have a very scary disease.

Life is too short to sweat the small stuff. If you have bad credit, fix it.

Your a progressive liberal or you would not read the DK.

-Life is like playing a violin solo in public.
and learning the instrument as
one goes on.
-Samuel Butler

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Comment Preferences

  •  loans are only for those (12+ / 0-)

    Who don't need them.

    The care of human life and happiness, and not their destruction, is the first and only legitimate object of good government. - Thomas Jefferson

    by ctexrep on Mon Sep 01, 2014 at 03:08:52 PM PDT

  •  Once again the banks have the upper hand over (8+ / 0-)

    the lives of the taxpayers, the same banks that are preparing to ask the taxpayers to cover their fraud losses due to hacking.  The banks themselves are irresponsible, not unlucky like so many individuals.  They are not carrying enough insurance coverage because their premium payments cut into profits, and their computer security is done on the cheap as well, according to several ITs who comment on DK.  The game is truly rigged.
    Your son is young, and their is reason to be hopeful that a cure for diabetes will be found in his lifetime.  Glimmers of hope in current research.  Chins up and don't let the bastoads get us down, as you say.

    Building a better America with activism, cooperation, ingenuity and snacks.

    by judyms9 on Mon Sep 01, 2014 at 03:10:13 PM PDT

    •  judyms9 (1+ / 0-)
      Recommended by:
      waterstreet2008

      Thanks for your kind words. My young son was told so many times he would be dead by 30. He drank and did drugs, The medics were in our house 15 times last year.
      He now is a health nut. No middle of the ground for him.
      I hope living by himself, will help him grow up.
      Thanks for writing,
      Mike

      Social activist, nutrition and exercise advice,long distance runner, Writer.

      by Vet63 on Tue Sep 02, 2014 at 06:39:01 AM PDT

      [ Parent ]

  •  I would like to think this is in my wheelhouse... (27+ / 0-)

    I work for a credit union as a member service rep. and deal with turndowns and loan applications on a regular basis.  Prior to this job I worked for GMAC which turned into Ally while I had that job...  

    While most of  my coworkers view turndown explanations as a challenge, I like to take them, because there is almost always something that can be done to help the member... even if there isn't an immediate solution.  I love taking a call that is intrinsically negative in nature and sending the caller away satisfied that they have solid info with which to proceed.

    My institution is very 'conservative' (as in we don't take a lot of financial risk in lending policies).  On the particular issue that caught Vet63, in general when it comes to home equity we are looking for around 40% debt to income ratio including the loan we are extending.  

    In particular on debt to income, keep in mind that the bureaus are reporting a snapshot of your credit that is usually a couple of months in the past.  If you've paid off a bunch of debt you want to make sure those transactions reflect on the bureaus before you authorize the inquiry.  

    Inquiry's have their own impact on the bureaus, but only 1 or 2 every several months is ok.  Technically multiple inquiries in a short time span for the same type of debt should be recognized as a single inquiry... but that isn't always the way things work for the bureaus.

    You can see your bureau free once a year by going to annualcreditreport.com   .  Don't get that site confused with the jokers who play the band on the beach and the golf course.  annualcreditreport.com was set up by the govt. when they passed the credit law a few years ago.    It's always a good idea to ask the bank you are applying with which bureau they use.  Again, if you see something funky in the report (and the bureaus are notoriously inaccurate so don't be surprised) make sure any contests and corrections are updated before authorizing the bank to give the inquiry.  

    Ways to build credit:  Secured credit cards help establish revolving debt.  Savings loans, where you secure your own debt on and installment loan with a deposit much like a secured card, will help establish installment loan debt.  My c/u is so conservative that we tend to turn down installment or revolving applications if there is no established history with that form of debt.  BUT... savings loans are automatic, and with my c/u at least, the one thing someone could establish to build credit history that is automatic, with no credit bureau inquiry needed.

    Sorry for the book!   I hope my 2 cents have been worth reading...  

    I am the neo-con nightmare, I am a liberal with the facts.

    by bhfrik on Mon Sep 01, 2014 at 03:37:49 PM PDT

  •  Can you get him (3+ / 0-)
    Recommended by:
    viral, oldpotsmuggler, hbk

    an insulin pump?  That would cut down on the testing supplies.  I don't have any clue as to whether or not medicare would pay for it. Check with the manufacturers to see if they can help.

    Someone needs to remind Republicans that being President while black is not an impeachable offense.

    by regis on Mon Sep 01, 2014 at 03:48:18 PM PDT

    •  Would be a good idea (0+ / 0-)

      which will help improve blood sugar control, and also tends to reduce insulin requirements.  Note however that if Medicaid does not cover, the pump and supplies are very expensive.  (Around 10k for a pump and high costs for supplies.)

      Democrats give you the Bill of Rights; Republicans sell you a bill of goods!

      by barbwires on Mon Sep 01, 2014 at 06:14:03 PM PDT

      [ Parent ]

    •  fregis (0+ / 0-)

      You know I have never THOUGHT about that. Thanks,
      I will check it out.
      I love your quote!
      Mike

      Social activist, nutrition and exercise advice,long distance runner, Writer.

      by Vet63 on Tue Sep 02, 2014 at 06:47:52 AM PDT

      [ Parent ]

  •  Close many cards. (5+ / 0-)
    I have credit cards, too many I guess.
    Cancel as many as you can.  Your total debt limit of all those cards added together can be way too high compared to your income.

    About testing--my mother-in-law tested many times daily.  She finally came to trust her doctor who told her to stop doing that.  Her blood sugar level zig zagged up and down very frequently for little good reason, and she was trying to chase it with the insulin.  Less frequent testing and less frequent shots made her feel better.  Some people just have body chemistry that is up and down and up again too often.

    •  Not necessarily right (4+ / 0-)
      Recommended by:
      OrganicChemist, PinHole, indie17, Vet63

      One big factor in your credit score is the credit utilization ratio, i.e., how charged up of your cards. So if your balances come to 90% of your total credit lines, it's really bad.

      If you cancel accounts, you reduce the denominator of credit utilization and make that component of the score worse. Conversely, having lots of unused credit reduces your credit utilization and helps your credit score. Unused credit may be a problem for getting a mortgage. But the diarist's problem is debt/income ratio, which probably also means a high credit utilization ratio. As s/he pays off the cards, both will improve.

      One other thing: If you do cancel credit card accounts, keep the oldest ones open. Length of credit history is also very important.

      I'm no expert on this, but for personal reasons have been reading a ton on this subject. I think what I said is accurate, but of course I defer to the real experts like our credit union commenters. I second the motion for one of them to write a diary on this subject.

      •  Kenneth Thomas (0+ / 0-)

        I think credit experts should become a regular feature here.It's tough when 'm told I'm close to an approval
        but not there yet. At least I have no collections.
        Thanks for your thoughts,
        Mike

        Social activist, nutrition and exercise advice,long distance runner, Writer.

        by Vet63 on Tue Sep 02, 2014 at 06:53:43 AM PDT

        [ Parent ]

    •  MarEng (0+ / 0-)

      I am paying the cards off and plan to cancel. My so has several mental issues. He is a work in progress.
      Thanks for your advice,,
      Mike

      Social activist, nutrition and exercise advice,long distance runner, Writer.

      by Vet63 on Tue Sep 02, 2014 at 06:50:24 AM PDT

      [ Parent ]

  •  Consider yourself liberated. (3+ / 0-)
    Recommended by:
    Mother Shipper, oldpotsmuggler, Vet63

    Just don't use it and find ways to function without it. I've seen it done.

    •  brooklynbadboy (1+ / 0-)
      Recommended by:
      brooklynbadboy

      I have no problem paying cash for most things. I have an old car. I keep it tuned. Until I can pay cash for a car, I want no car payments,
      Take care,
      Mike

      Social activist, nutrition and exercise advice,long distance runner, Writer.

      by Vet63 on Tue Sep 02, 2014 at 06:57:16 AM PDT

      [ Parent ]

  •  I don't know what my credit score is (1+ / 0-)
    Recommended by:
    Vet63

    As such, it's probably OK.

    No matter, I ain't borrowing nothing.

  •  Go to the VA. Go to the mortgage people. At least (2+ / 0-)
    Recommended by:
    PinHole, Vet63

    when I last had to counsel a borrower to do this about 10 years ago it still worked. Someone in that office should be willing to sit down and talk to you. At least that used to be the main thing that they got paid for doing. And they were all vets.

    You have a real people conversation with them for awhile. And then, as long as there is any way in hell for them to do it, the rules get "massaged" in such a way that they give you the help that you need. Even to the point of approving your mortgage application when no private company underwriter underwriting per "authorization" from the VA would dare to do. They'll work with you. Then they'll point you to the loan officer, or the mortgage company you need. They can literally approve your loan, but they, for some quirky reason, had to have a private sector intermediary actual take your mortgage application. But they tell you who and how, and, if you go back a few times, they can often get vets across the finish line.

    On the occasions in the past when I used this process, most of the veterans received some or all of the help that they needed and very few, if any, of these loans ever went bad.

    Sometimes it just takes a veteran to understand.

    There can be no protection locally if we're content to ignore the fact that there are no controls globally.

    by oldpotsmuggler on Mon Sep 01, 2014 at 05:54:14 PM PDT

    •  oldpotsmuggler (0+ / 0-)

      I'm unsure of which VA folks your talking about. I have gone to authorized VA lenders, I would love to talk directly
      with the Va.
      Great advice,
      Mike

      Social activist, nutrition and exercise advice,long distance runner, Writer.

      by Vet63 on Tue Sep 02, 2014 at 07:00:05 AM PDT

      [ Parent ]

      •  In Salt Lake City, we have a VA office in the (0+ / 0-)

        Federal Building. One part of that office deals with VA mortgages. We're not really a big city, so I thought that there must be a number of such resources around the country.

        I didn't always get what I wanted over there, but it was always worth trying. And the vets that went on their own actually did a bit better, on average, then if I went with them.

        There can be no protection locally if we're content to ignore the fact that there are no controls globally.

        by oldpotsmuggler on Tue Sep 02, 2014 at 05:32:06 PM PDT

        [ Parent ]

  •  We've always had decent credit. (6+ / 0-)
    Recommended by:
    sebastianguy99, SGA, Chi, PinHole, indie17, Vet63

    A few years ago, we were up over 800.  Then a couple of years ago, I pulled our scores and we'd dropped to - like - 754 because we didn't have enough "accounts that were current."  And, of course, all of the accounts were totally current.  

    So, we did what any good consumer does.  As total DIYers, we took out a Home Depot card and a Lowes card.  Now, instead of paying cash, we roll our projects through the cards when they have a special "no interest" offer.  We take a few months to pay it off and then do it again.  

    It works.  We bought a car on Saturday and the sales manager who came to push the extended warranty after pulling our credit said, "That's the highest credit score I've ever seen for someone who didn't use a walker."

    I totally agree that credit cards can be a horrible swamp for some people, but if you want the score, and can play the game, the opposite can actually work for you.

    I wish the best to you and your son, Vet53.  It is a crime that our system allows good, honest people such as yourself to not get a loan so that you can get ahead because of a number.

    "Just because your voice reaches halfway around the world doesn't mean you are wiser than when it reached only to the end of the bar." ~ Edward R. Murrow

    by CJB on Mon Sep 01, 2014 at 06:00:11 PM PDT

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