Credit Advice

Does piggy backing raise your credit score?

Credit is all a bunch of bull**** anyways...pay cash and the lenders can go **** off. They thrive off late fees and interest charges...Banks are ****ing con artists

Re: Credit is all a bunch of bull**** ....

Yes, but paying cash isn't the way to deal with that... you use your credit card like a debit card and set aside the money to pay it every month, and you get cards with great rewards and no annual fees. So, your money gets to sit in your interest bearing account an extra month, the credit card companies make no money directly from you (they will make a little money off of the merchants you spend money with, but that is negligible), and you build credit history by using your cards and paying on time. Oh, and get a credit union account... they are usually _much_ better than bank accounts... I have a checking account with a 5.01% APY that charges no fees (except the obvious like overdrafts, but I've never given them a dime other than to hold onto for me), and refunds up to $20 a month in fees other atms charge me.

Italian81, the vast majority of people need credit in order to purchase a home. For most people, that is unavoidable. For people who choose to not use credit until they are ready to buy a home yet don't have the cash to buy it completely, they are in the worst situation because they can't get approved for loans.

It is true that banks look to make money off of its customers. Otherwise, they wouldn't offer credit if they didn't think it would be profitable. However, it's not difficult to turn the tables on them.

Italian81: Unless you plan on paying cash for your next car or if you ever plan on buying a house, you need a credit history. Some purchases in life are too big to pay cash for. What if you have an emergency and need some money right away? Credit cards come in handy there, too. It's like anything else in life, moderation is the key.

whats piggy backing?

The good news is that when you marry, you and your girlfriend will maintain separate credit histories, credit reports, and -- luckily for you -- separate credit scores, so good credit or bad credit, there is no direct influence of one credit file on the other.

The bad news is that if you plan to apply for a loan together, such as a home mortgage, then both you and your girlfriend's credit reports and credit scores will be taken into consideration.

What does this mean? Having one applicant with a poor credit score could affect whether the banks will approve the both of you for a loan, and if so, how much they will lend to you newlyweds. Generally speaking, the terms of the loan may be impacted as well, including a higher APR, higher down payment requirements, and additional closing costs on your loan.

When the two of you marry and take out that first joint mortgage or joint auto loan, you need to make sure she adopts your healthy credit habits. If you co-sign on a loan or are a joint holder, the payments of the loan are reported to both loan holders' credit reports and thus will affect each individual's credit score.

A healthy marriage will benefit from minimizing any money strain, so be sure to discuss each others credit history and financial position before tying the knot. If you know what you're getting into, you will be better prepared to tackle bad financial actions together and take positive financial steps for your family's future.