It was the personal loans that got me!
By ERIman on Jun 17, 2009 in Finance
During my time in college, like so many others, I was deluged with offers from all varieties of credit cards. At first it struck me as somewhat funny that they would think I’d waste my time filling out and sending in an application for a credit card when I knew for a fact that I had zero credit.
It wasn’t until my sophomore year that a dorm mate enlightened me about the freedom and liberty associated with taking advantage of all that “free” credit that was still being continually offered to me.
Well, after a number of years, all that credit has caught up with me. I spent much more than I could ever repay, and now that my credit rating is at its lowest point ever, I’ve decided to take a firm stand and do whatever I can to repair it.
However, it was really the personal loans that did the most to help me get over the poor credit and find a way to step out of that hole that I’d been living in for all these years. By taking loans at much lower interest rates than what the banks were charging me, I was finally able to not only get back to zero, but actually get ahead with my finances.
And yes it really feels fantastic!
On Jul 3, 2009, Robert P said:
The interest rates are lower with a personal loan? That’s really good news. I have tons of credit card debt so maybe I should look into that now.
On Jul 3, 2009, Shelley Winnters said:
Last time I tried to get a personal loan, they insisted that it be a HELOC on my house. Do people who don’t own homes qualify for personal loans? They sure seemed to “pick on” me just because I did own a home. I’m really trying not to mortgage the equity in the house!
On Jul 3, 2009, Tricia Vose said:
I think you can just shop around until you get a place that’s willing to just deal with you, personally. I think it’s an easy “out” for them to attach your home. Someone will make you a personal loan. Just keep trying!
On Jul 3, 2009, U. Baker said:
My sons are now of age, and they got TONS of credit card offers, but I’ve warned them so much that now they just shred them all. They each have one card–a card for new college students where if you keep your balance under 250, it’s zero percent interest. Of course, they’re hoping you go over so they can charge you….but in the meantime, it’s a heck of a way to establish credit in your name!
On Jul 3, 2009, Annette M. said:
Opening tons of lines of credit doesn’t necessarily help you, you know. As a matter of fact, it’s a factor in determining (lowering) your score in terms of the credit companies and insurance companies. You can open one to use, then one to have open that shows you have lots of available credit you’ve never used…that looks really good.
On Jul 3, 2009, Joel said:
How long did it take you to pay everything down to zero? How much debt did you have? I’m afraid the only way I’ll ever get back to zero is when I sell my house. I’m sure I’ll have nothing left to show for sitting on this house for so long, but at least I’ll be debt-free!
On Jul 3, 2009, Verna said:
Young people get so caught up in a fast lifestyle and the feeling of entitlement to own everything out there, that they run up credit without being able to save up for a house. Owning a home is one of the best ways to build up some wealth, but in this day and age, you need a hefty down payment to own one.