Credit Standing

[golden boy]

from my knowledge, we don't have a company that consolidates loans like the ones from US. but want you can do is do a balance transfer to a credit card company and avail of an installment scheme. if your credit card loans are small amounts ,what you can probably do is do a balance transfer of all your outstanding balances from your other cards into one credit card company then pay them in installment. but, this will depend on your credit limit. the total oustanding balances from your various credit cards should not be more than atleast 80% of your credit card limit to which you will consolidate all your debts. another option is to avail of a personal loan or salary loan or an instant cash facility from your credit card from which the proceeds will be used to pay all your outstanding loan balances - this way you have consolidated all your debts and will just pay one provider. hoped this help.

 

for those who are getting out of some credit card problem/s, i suggest you read the book by david bach entitled " start late, finish rich". if you can buy a copy the better. if not just browse thru it either in national bookstore, powerbooks or fully booked. if you can't find the book you may also try" the automatic millionaire" by the same author. there is a section there dedicated in solving your credit card problems. very practical suggestions. will try to post a summary some other time (sorry quiet sleepy na). :sleepysmiley03:

[golden boy]

sorry for the double post, medyo na double click ko reply ko and getting my eyes closed na..... :hypocritesmiley:

 

those interested may also read, robert kiyosaki's "rich dad, poor dad" to give you some kick in getting out of your debts. i guess the sad reality is we can't really avoid getting into debt but we should be responsible in making sure that we fully pay them at the soonest possible time.

[kadjo]

from my knowledge, we don't have a company that consolidates loans like the ones from US. but want you can do is do a balance transfer to a credit card company and avail of an installment scheme. if your credit card loans are small amounts ,what you can probably do is do a balance transfer of all your outstanding balances from your other cards into one credit card company then pay them in installment. but, this will depend on your credit limit. the total oustanding balances from your various credit cards should not be more than atleast 80% of your credit card limit to which you will consolidate all your debts. another option is to avail of a personal loan or salary loan or an instant cash facility from your credit card from which the proceeds will be used to pay all your outstanding loan balances - this way you have consolidated all your debts and will just pay one provider. hoped this help.

 

for those who are getting out of some credit card problem/s, i suggest you read the book by david bach entitled " start late, finish rich". if you can buy a copy the better. if not just browse thru it either in national bookstore, powerbooks or fully booked. if you can't find the book you may also try" the automatic millionaire" by the same author. there is a section there dedicated in solving your credit card problems. very practical suggestions. will try to post a summary some other time (sorry quiet sleepy na). :sleepysmiley03:

 

 

ok. thank you for the advice. the truth is I'm in too deep already. All my cards were cancelled already. I've tried asking for a loan from different institutions(ie. lending companies). They turned me down whenever I tell them I'm going to pay up my balances. Anyway, thanks for this information. Its really not good if you have a bad credit history.

 

any lending company that you know that would help me with my situation?

[golden boy]

ok. thank you for the advice. the truth is I'm in too deep already. All my cards were cancelled already. I've tried asking for a loan from different institutions(ie. lending companies). They turned me down whenever I tell them I'm going to pay up my balances. Anyway, thanks for this information. Its really not good if you have a bad credit history.

 

any lending company that you know that would help me with my situation?

 

to be honest, it will be very difficult to apply for any credit card company or lending institution like personal loans, car loans, housing loan, etc. once your name has been included in the credit bureau's namelist with positive findings with either of the ff reasons: 1) unpaid past due credit card account, 2) court case and 3) bouncing check case. in your case, the best way is to pay your debts and fully settle them so that your name can be taken off this list.

 

i think the best option for you is to apply for an SSS loan, company loan or salary loan (since its an automatic salary deduction) since compared to credit card and other loan facilities these options doesn't rely much on the credit bureau's positive findings list. avail of these loans to pay some of your credit card debts, ofcourse the only limitation of these facilities is that at most, the amount you can loan is 2x your salary but atleast you are able to pay your debts little by little. as a last resort or desperate move, if you have a property like house or a car, you might want to explore a secured loan for which any of these will be used as collateral - however, i don't advise people in doing this just to pay for their credit card balances.

Edited August 24, 2007 by golden boy

[kadjo]

to be honest, it will be very difficult to apply for any credit card company or lending institution like personal loans, car loans, housing loan, etc. once your name has been included in the credit bureau's namelist with positive findings with either of the ff reasons: 1) unpaid past due credit card account, 2) court case and 3) bouncing check case. in your case, the best way is to pay your debts and fully settle them so that your name can be taken off this list.

 

i think the best option for you is to apply for an SSS loan, company loan or salary loan (since its an automatic salary deduction) since compared to credit card and other loan facilities these options doesn't rely much on the credit bureau's positive findings list. avail of these loans to pay some of your credit card debts, ofcourse the only limitation of these facilities is that at most, the amount you can loan is 2x your salary but atleast you are able to pay your debts little by little. as a last resort or desperate move, if you have a property like house or a car, you might want to explore a secured loan for which any of these will be used as collateral - however, i don't advise people in doing this just to pay for their credit card balances.

 

 

...yup. this is so true. slowly but surely would be the best solution for my problems. its really hard to get a loan if you are on the negative file. thanks for this.

[homealoneguy]

Actually, an antidote for a bad credit rating/history is another loan -- especially that this time around, you are able to show good paying habits. This may be a little difficult, but possible. And you may need to repair this soonest because the longer it stays, and the older you get, you may not have another good enough chance to redeem yourself. I'm speaking from experience here, so I'd say it is absolutely "possible"...

 

You'll need to repair your record by the following:

1. Of course, first you'll need to settle the loan and arrears. Rather than hiding from your creditors, meet them face to face and you'd be surprised that most of the time, they're easy to talk to. Remember that even if they already cancelled your loan or credit card, they're still charging you interest until you show resolve to pay up. When you meet with them, you can explain your situation and could very well be able to forge an understanding beneficial for both. Remember, the bank is a large institution and your loan may only be a small dot in their books, but that they need to do it to protect their interests. If and when you decide to conquer your pride and meet up with them, they don't care how long you'd be able to pay so long as they are able to collect. If you notice, most of the time, it's not the bank doing the collecting but an agency -- meaning 40% of whatever is collected goes to the collection agency -- so they don't really care -- they just want to piss you off. In my case I was able to fulfill 3 things: stop the interest from accumulating; cut half of the interest charges after the loan default, work out an arrangement that had me paying less than 5K monthly until everything was settled.

 

2. When you have worked a payment arrangement, promise yourself not to go into any other type of loans and then default. After the last cheque clears, approach the bank and ask for a written certification of full payment. Make sure you keep a copy.

 

3. Build up your bank account, surrender your cards and keep paying cash. You'll need to lie low for a while. I lived the next 5 years after paying my debts without any plastic wallet or loans.

 

4. When you're finally on your feet again (you'll know your financially stable once you regained your self-confidence back. Admittedly, a lot of self-confidence is lost once you fall into debt -- it's mostly taken up by self-pity and a self-deprecating attitude), train yourself to be financially responsible by resisting the urge to own any credit cards until you develop a good paying habit. One way to develop the habit is to pay your taxes in full and without any intent to deceive. What for? It's not so much about care for the government or love of country... you need the papers to show for it. The ITR tells these lending institutions about your earning power and your capacity to pay. Maybe you need to keep up 3 years' worth of evidences after you've completed paying off your bad loan.

 

5. Sadly, you need another loan to erase a bad loan record. This is so true. House or car? Take your pick but never a cash loan. Why? The bank needs to trust you again, remember? One way for them to be comfortable is to have something to hold on to just in case you default again: a collateral. Of course, you need a percentage as equity, that's when the bank account comes in handy, but never zero it out. You need the savings account to show them that you are really saver not a spender, if you can help it.

 

6. A car loan may be easiest, but you may need to fork out as much as 40% as equity or downpayment since you've got a bad financial reputation. You will still be tagged a "very high risk" customer, but never be discouraged, it's normal -- own up to your fault. Show them your savings portfolio, payslips, ITR, the full-payment letter, plus 3 good character references may be required (be careful who you elect -- since if their bad payors themselves, then you'll get yourself into more trouble) These character references need to have good character themselves as far as the banks are concerned. Oh btw, when you do decide to take out a car/house loan to repair your record, it doesn't need to be in the same financial institution as where you got into trouble; ideally, you should seek out another institution with a good customer-focus than the lust for profit.

 

7. Once you do succeed in taking out the loan, again, do the best you can to pay up on-time and as agreed-upon. Depending on the term of the loan, you may opt to finish it or preterminate at some point, but make sure that you have spent at least 2 years of paying up -- 3 years is more ideal. Once you do finish the loan, voila, you're clean as clean can get.

 

Here's my story:

1992, I was in 3rd year college when I got a credit card because the manager of the bank was a good friend of a family member. So I had the family member sign up as co-maker. 20K credit limit. No big deal! So I got gadgets left and right and had it on 12-month installments. Well, I was very careful then, I made sure the total monthly amortizations did not exceed 1K. After college, I got invited by a benefactor to visit Australia -- they paid half the fare, I shouldered the rest. Where else to get the money? Oh, great, the travel agency accepts credit cards -- so I charged -- got debited for 10K. Before leaving, I instructed a family member to pay the minimum: 5% monthly. How much does it total to? 550 pesos -- oh, it's very cheap -- I still had my allowance then; I bargained with my guardians to keep it flowing until I land a job and receives my 3rd month salary -- but for the meantime, I'll travel as a gift to myself.

 

The 2-week break easily became 3 months, then 8 months -- I extended it because I like the place and I had free accomodations. When I arrived back, there were letters for me from the bank lawyers. I was overdue for a long time -- It turned out, there were no payments made to the bank -- they didn't know how credit cards worked. Ok, no worries, I accepted a sales job, but was not good at it -- I relied on commissions which were not enough, so I learned a very bad habit: I learned about cash advances...very bad!!!! Never imagined the interests were computed daily. I withdrew a total of 18K over a certain period. I was way over the limit and not making any money. Then I got shy and hid from the bank. They got pissed and slapped me penalties and daily charges, my bill shot up easily to 40K. They got tired and got an agency to collect: they added legal fees and incidentals, and after a while my bill was 80K -- they're still charging interests on the unpaid amount. I was buried alive in tons of debt and I haven't even encashed my very first real paycheck. A very good cousin offered to help -- never financially but a sound advice. He told to call up the bank and explain my situation. I got to talk to a lawyer who was stubborn, so I asked to talk to the credit/collection manager instead. She was only giving me the option to pay up everything within 6 months or the lawyer will file a case. I told her that I'm in between jobs and had series of interviews. Then she asked matter-of-factly: "How much can you afford?" Very honestly (swallowing all traces of pride), I said I can only set aside 3,000 pesos a month but with a 2-month grace period. I was expecting her to shout back at me, instead I got a bonus: if I could settle 3,000 a month, she'll take out interests charged after the card was cancelled, I'll only get to pay the original overdue amount plus penalties but she'll need to include a little interest as cost of money. I got the deal: 3,000 a month for 18 months, and she'll grant the 2-month grace period. I literally cried: I got a better problem: land in a job that will pay at least 10K and I can honor the 3K to the bank. I did land in a job that paid 8,500. I got a weekend job doing programming for a small company; I got extra for teaching a choir on a Saturday night.

 

For almost 2 years that was all I did -- Afterwards, I got to earn more, but paid mostly in cash -- no plastics. That lasted for another 5 years. I got a chance to open up a business so I left my job and focused on working for myself. It paid off, got a business deal that earned me 750K in a snap. I got an offer for a credit card and I thought, I think I'm ready to be a plastic admirer again -- you know charging for groceries and restaurant bills and pay them in full after 2 weeks, so no interest. I got denied, and I pitied myself. A friend told me about the CIBI (Credit Investigation Bureau, Inc.) it's like a detective agency. They pry on you and keep all your financial records, including the checks that you issue. They then sell the info to the banks -- so the banks quite literally fight each other for your business -- but if you screw up, they share information among themselves how risky a client you are. So I followed the advice I gave above.

 

Oh, I remembered, I have great power left that the banks will be fighting each other over. I had 750K in my bank account. So I decided to buy a new car. The year was 2000 and it was selling for 600K. I could very well pay for it in cash -- instead, I used it to clear my name. I approached a more client-oriented bank and told them that I'd like to buy a car -- gave them the model and the dealer. They checked their records and saw a problem with my accounts: they "whispered" something like "very high-risk". So they asked for proof of income: I showed my business papers, tax returns, references -- no good. Then I showed my bank statement -- they saw something they liked: cold, hard cash. Did I mention they were client-centric? They called the other bank I had trouble with, gave me a reference letter and instructed to go to the main branch of the other bank. I had to get a certificate of full payment. Apparently, the banks are fast enough to submit your name in the watchlist when you screw up; but never exerts effort to fix it up even when you've settled. So, I got the certificate. Another question, can you shoulder 40% of the cost of the car? Perhaps as a goodwill gesture. No problem. Another small problem: I can only take the 4-year terms. Fine. I signed-up and they processed it the same day and I drove my brand-new car at exactly 7pm. The power of cash.

 

I paid religiously for 3 years until I decided to preterminate, saving me 12-months' worth of interests. I then knew that I had done my job -- I'm clean again. How did I know? Almost immediately, the agents started calling me again, offering credit cards, loans, insurance -- all the works.

 

Through it all, I learned the value of integrity and reputation; and a much-needed habit of paying up.

 

8 years hence, I closed up shop and got back into regular employment again and rose from the ranks out of diligence and hard work. I sold the car I used as "collateral" to rebuild my image. Most importantly, I got back my self-confidence. At this point, my monthly income shot up 1,200% ever since the 8,500-a month job I signed up for. I now own a Citibank Gold credit card with 250K credit limit; an American Express card with $5,000 spending limit, another silver card with 150K credit line. Well, I always carry it but more of as a status symbol, because I never really had an urge to splurge; on rare occasions when I do, I pay it up by month-end without incurring a cent in interests. The banks are so impish on tempting me to the dark side again by increasing my credit limits automatically every single year -- they must never have earned a single cent on me, that's why.

 

I know this is a lengthy piece but if it could teach a lesson and prove a point, then pardon me.

 

I just felt concerned about the guy who started this thread, who may have owed to the teeth at some point. Remember: the light at the end of the tunnel is not always an incoming train (meant to crush you, haha)... and what doesn't k*ll you makes you stronger. Three things are most certain in this world which we must not fear because they end up teaching us to care: Death, Debt and Taxes. So if you're still afraid: of dying, of paying the right amount of taxes, of owning up to our debt: be a man! Face it, and it will surely go away. You'll end up being stronger than ever -- since when the time comes, you have not only conquered your fears, you've mastered your own self, and drawn up your destiny. Believe me, you're meant for higher things -- it's up to you to accept it and act on it. The bad memories do serve a very useful purpose of not repeating the same mistake twice.

 

I told you, it's difficult... but never improbable, much less impossible.

[azayco]

Credit card availments are what you call unsecured loans because there is no collateral. Some banks in the US though give out cards provided one keeps a bank deposit with them. In such a case, any credit card availment is essentially a secured loan, there being a hold-out or collateral on the bank deposit. Hold-out means you can't withdraw your deposit.

 

I have a friend who ran up some bills with a credit card company. He applied with another company which was affiliated with a bank. Initially, he was rejected but I suggested the scheme described above. The bank relented and issued him a card.

 

Just my 2 cents worth.

[kenshin11]

Credit card company will always give credit card to those who have a lot of cards already and don't need it rather than to those who really needs it. All of them use the same credit evaluation technique.

If this is your first credit card, suggest you get it from the bank you deposit your money in. Another way is to try from your friend who is an account executive selling credit card. They will tell you how to get it, especially if they can have pre-approved ones. Finally, when you are approved a credit card, no matter how small a credit limit, get it, used it properly and build up your credit. I guarantee that your credit limit will increase, and everyone will offer you one. By the way, always pay on due date the full amount, as minimum payment is a rip off.

Edited May 27, 2008 by kenshin11

[Shane Garcia]

Homealoneguy, very interesting and informative post. I salute you for your determination and I can tell from your writing style that you've obviously had a good education and are doing well in life now.

 

Kudos and thanks for the lessons...

[wettt]

Actually, an antidote for a bad credit rating/history is another loan -- especially that this time around, you are able to show good paying habits. This may be a little difficult, but possible. And you may need to repair this soonest because the longer it stays, and the older you get, you may not have another good enough chance to redeem yourself. I'm speaking from experience here, so I'd say it is absolutely "possible"...

 

You'll need to repair your record by the following:

1. Of course, first you'll need to settle the loan and arrears. Rather than hiding from your creditors, meet them face to face and you'd be surprised that most of the time, they're easy to talk to. Remember that even if they already cancelled your loan or credit card, they're still charging you interest until you show resolve to pay up. When you meet with them, you can explain your situation and could very well be able to forge an understanding beneficial for both. Remember, the bank is a large institution and your loan may only be a small dot in their books, but that they need to do it to protect their interests. If and when you decide to conquer your pride and meet up with them, they don't care how long you'd be able to pay so long as they are able to collect. If you notice, most of the time, it's not the bank doing the collecting but an agency -- meaning 40% of whatever is collected goes to the collection agency -- so they don't really care -- they just want to piss you off. In my case I was able to fulfill 3 things: stop the interest from accumulating; cut half of the interest charges after the loan default, work out an arrangement that had me paying less than 5K monthly until everything was settled.

 

2. When you have worked a payment arrangement, promise yourself not to go into any other type of loans and then default. After the last cheque clears, approach the bank and ask for a written certification of full payment. Make sure you keep a copy.

 

3. Build up your bank account, surrender your cards and keep paying cash. You'll need to lie low for a while. I lived the next 5 years after paying my debts without any plastic wallet or loans.

 

4. When you're finally on your feet again (you'll know your financially stable once you regained your self-confidence back. Admittedly, a lot of self-confidence is lost once you fall into debt -- it's mostly taken up by self-pity and a self-deprecating attitude), train yourself to be financially responsible by resisting the urge to own any credit cards until you develop a good paying habit. One way to develop the habit is to pay your taxes in full and without any intent to deceive. What for? It's not so much about care for the government or love of country... you need the papers to show for it. The ITR tells these lending institutions about your earning power and your capacity to pay. Maybe you need to keep up 3 years' worth of evidences after you've completed paying off your bad loan.

 

5. Sadly, you need another loan to erase a bad loan record. This is so true. House or car? Take your pick but never a cash loan. Why? The bank needs to trust you again, remember? One way for them to be comfortable is to have something to hold on to just in case you default again: a collateral. Of course, you need a percentage as equity, that's when the bank account comes in handy, but never zero it out. You need the savings account to show them that you are really saver not a spender, if you can help it.

 

6. A car loan may be easiest, but you may need to fork out as much as 40% as equity or downpayment since you've got a bad financial reputation. You will still be tagged a "very high risk" customer, but never be discouraged, it's normal -- own up to your fault. Show them your savings portfolio, payslips, ITR, the full-payment letter, plus 3 good character references may be required (be careful who you elect -- since if their bad payors themselves, then you'll get yourself into more trouble) These character references need to have good character themselves as far as the banks are concerned. Oh btw, when you do decide to take out a car/house loan to repair your record, it doesn't need to be in the same financial institution as where you got into trouble; ideally, you should seek out another institution with a good customer-focus than the lust for profit.

 

7. Once you do succeed in taking out the loan, again, do the best you can to pay up on-time and as agreed-upon. Depending on the term of the loan, you may opt to finish it or preterminate at some point, but make sure that you have spent at least 2 years of paying up -- 3 years is more ideal. Once you do finish the loan, voila, you're clean as clean can get.

 

Here's my story:

1992, I was in 3rd year college when I got a credit card because the manager of the bank was a good friend of a family member. So I had the family member sign up as co-maker. 20K credit limit. No big deal! So I got gadgets left and right and had it on 12-month installments. Well, I was very careful then, I made sure the total monthly amortizations did not exceed 1K. After college, I got invited by a benefactor to visit Australia -- they paid half the fare, I shouldered the rest. Where else to get the money? Oh, great, the travel agency accepts credit cards -- so I charged -- got debited for 10K. Before leaving, I instructed a family member to pay the minimum: 5% monthly. How much does it total to? 550 pesos -- oh, it's very cheap -- I still had my allowance then; I bargained with my guardians to keep it flowing until I land a job and receives my 3rd month salary -- but for the meantime, I'll travel as a gift to myself.

 

The 2-week break easily became 3 months, then 8 months -- I extended it because I like the place and I had free accomodations. When I arrived back, there were letters for me from the bank lawyers. I was overdue for a long time -- It turned out, there were no payments made to the bank -- they didn't know how credit cards worked. Ok, no worries, I accepted a sales job, but was not good at it -- I relied on commissions which were not enough, so I learned a very bad habit: I learned about cash advances...very bad!!!! Never imagined the interests were computed daily. I withdrew a total of 18K over a certain period. I was way over the limit and not making any money. Then I got shy and hid from the bank. They got pissed and slapped me penalties and daily charges, my bill shot up easily to 40K. They got tired and got an agency to collect: they added legal fees and incidentals, and after a while my bill was 80K -- they're still charging interests on the unpaid amount. I was buried alive in tons of debt and I haven't even encashed my very first real paycheck. A very good cousin offered to help -- never financially but a sound advice. He told to call up the bank and explain my situation. I got to talk to a lawyer who was stubborn, so I asked to talk to the credit/collection manager instead. She was only giving me the option to pay up everything within 6 months or the lawyer will file a case. I told her that I'm in between jobs and had series of interviews. Then she asked matter-of-factly: "How much can you afford?" Very honestly (swallowing all traces of pride), I said I can only set aside 3,000 pesos a month but with a 2-month grace period. I was expecting her to shout back at me, instead I got a bonus: if I could settle 3,000 a month, she'll take out interests charged after the card was cancelled, I'll only get to pay the original overdue amount plus penalties but she'll need to include a little interest as cost of money. I got the deal: 3,000 a month for 18 months, and she'll grant the 2-month grace period. I literally cried: I got a better problem: land in a job that will pay at least 10K and I can honor the 3K to the bank. I did land in a job that paid 8,500. I got a weekend job doing programming for a small company; I got extra for teaching a choir on a Saturday night.

 

For almost 2 years that was all I did -- Afterwards, I got to earn more, but paid mostly in cash -- no plastics. That lasted for another 5 years. I got a chance to open up a business so I left my job and focused on working for myself. It paid off, got a business deal that earned me 750K in a snap. I got an offer for a credit card and I thought, I think I'm ready to be a plastic admirer again -- you know charging for groceries and restaurant bills and pay them in full after 2 weeks, so no interest. I got denied, and I pitied myself. A friend told me about the CIBI (Credit Investigation Bureau, Inc.) it's like a detective agency. They pry on you and keep all your financial records, including the checks that you issue. They then sell the info to the banks -- so the banks quite literally fight each other for your business -- but if you screw up, they share information among themselves how risky a client you are. So I followed the advice I gave above.

 

Oh, I remembered, I have great power left that the banks will be fighting each other over. I had 750K in my bank account. So I decided to buy a new car. The year was 2000 and it was selling for 600K. I could very well pay for it in cash -- instead, I used it to clear my name. I approached a more client-oriented bank and told them that I'd like to buy a car -- gave them the model and the dealer. They checked their records and saw a problem with my accounts: they "whispered" something like "very high-risk". So they asked for proof of income: I showed my business papers, tax returns, references -- no good. Then I showed my bank statement -- they saw something they liked: cold, hard cash. Did I mention they were client-centric? They called the other bank I had trouble with, gave me a reference letter and instructed to go to the main branch of the other bank. I had to get a certificate of full payment. Apparently, the banks are fast enough to submit your name in the watchlist when you screw up; but never exerts effort to fix it up even when you've settled. So, I got the certificate. Another question, can you shoulder 40% of the cost of the car? Perhaps as a goodwill gesture. No problem. Another small problem: I can only take the 4-year terms. Fine. I signed-up and they processed it the same day and I drove my brand-new car at exactly 7pm. The power of cash.

 

I paid religiously for 3 years until I decided to preterminate, saving me 12-months' worth of interests. I then knew that I had done my job -- I'm clean again. How did I know? Almost immediately, the agents started calling me again, offering credit cards, loans, insurance -- all the works.

 

Through it all, I learned the value of integrity and reputation; and a much-needed habit of paying up.

 

8 years hence, I closed up shop and got back into regular employment again and rose from the ranks out of diligence and hard work. I sold the car I used as "collateral" to rebuild my image. Most importantly, I got back my self-confidence. At this point, my monthly income shot up 1,200% ever since the 8,500-a month job I signed up for. I now own a Citibank Gold credit card with 250K credit limit; an American Express card with $5,000 spending limit, another silver card with 150K credit line. Well, I always carry it but more of as a status symbol, because I never really had an urge to splurge; on rare occasions when I do, I pay it up by month-end without incurring a cent in interests. The banks are so impish on tempting me to the dark side again by increasing my credit limits automatically every single year -- they must never have earned a single cent on me, that's why.

 

I know this is a lengthy piece but if it could teach a lesson and prove a point, then pardon me.

 

I just felt concerned about the guy who started this thread, who may have owed to the teeth at some point. Remember: the light at the end of the tunnel is not always an incoming train (meant to crush you, haha)... and what doesn't k*ll you makes you stronger. Three things are most certain in this world which we must not fear because they end up teaching us to care: Death, Debt and Taxes. So if you're still afraid: of dying, of paying the right amount of taxes, of owning up to our debt: be a man! Face it, and it will surely go away. You'll end up being stronger than ever -- since when the time comes, you have not only conquered your fears, you've mastered your own self, and drawn up your destiny. Believe me, you're meant for higher things -- it's up to you to accept it and act on it. The bad memories do serve a very useful purpose of not repeating the same mistake twice.

 

I told you, it's difficult... but never improbable, much less impossible.

 

Nice piece--i got something here

[hugoboss28]

CMAP and BAP is not a government entity.

It's a private org that banks created to seek customer verification.

The action needed to get rid of your record is to ask your previous card or financing company to request

for it's removal.

Write them a demand letter seeking for such action.

This is mandatory for paid up accounts.

They are directed to provide updates on settled accounts.

They can be held liable for not applying a regulatory process.

 

Seek legal counsel and he'll clarify the issue.

 

Just sharing the experience.

Cheers!

[joshblue]

geez, i hope im on the right thread...

 

guys,

 

just wanna ask something bout credit cards...

 

for instance, if i were to buy something worth 15k, can i pay 5k in cash and then pay the remaining thru credit card?

 

would that be possible?

[Guest xerxes]

Actually, an antidote for a bad credit rating/history is another loan -- especially that this time around, you are able to show good paying habits. This may be a little difficult, but possible. And you may need to repair this soonest because the longer it stays, and the older you get, you may not have another good enough chance to redeem yourself. I'm speaking from experience here, so I'd say it is absolutely "possible"...

 

You'll need to repair your record by the following:

1. Of course, first you'll need to settle the loan and arrears. Rather than hiding from your creditors, meet them face to face and you'd be surprised that most of the time, they're easy to talk to. Remember that even if they already cancelled your loan or credit card, they're still charging you interest until you show resolve to pay up. When you meet with them, you can explain your situation and could very well be able to forge an understanding beneficial for both. Remember, the bank is a large institution and your loan may only be a small dot in their books, but that they need to do it to protect their interests. If and when you decide to conquer your pride and meet up with them, they don't care how long you'd be able to pay so long as they are able to collect. If you notice, most of the time, it's not the bank doing the collecting but an agency -- meaning 40% of whatever is collected goes to the collection agency -- so they don't really care -- they just want to piss you off. In my case I was able to fulfill 3 things: stop the interest from accumulating; cut half of the interest charges after the loan default, work out an arrangement that had me paying less than 5K monthly until everything was settled.

 

2. When you have worked a payment arrangement, promise yourself not to go into any other type of loans and then default. After the last cheque clears, approach the bank and ask for a written certification of full payment. Make sure you keep a copy.

 

3. Build up your bank account, surrender your cards and keep paying cash. You'll need to lie low for a while. I lived the next 5 years after paying my debts without any plastic wallet or loans.

 

4. When you're finally on your feet again (you'll know your financially stable once you regained your self-confidence back. Admittedly, a lot of self-confidence is lost once you fall into debt -- it's mostly taken up by self-pity and a self-deprecating attitude), train yourself to be financially responsible by resisting the urge to own any credit cards until you develop a good paying habit. One way to develop the habit is to pay your taxes in full and without any intent to deceive. What for? It's not so much about care for the government or love of country... you need the papers to show for it. The ITR tells these lending institutions about your earning power and your capacity to pay. Maybe you need to keep up 3 years' worth of evidences after you've completed paying off your bad loan.

 

5. Sadly, you need another loan to erase a bad loan record. This is so true. House or car? Take your pick but never a cash loan. Why? The bank needs to trust you again, remember? One way for them to be comfortable is to have something to hold on to just in case you default again: a collateral. Of course, you need a percentage as equity, that's when the bank account comes in handy, but never zero it out. You need the savings account to show them that you are really saver not a spender, if you can help it.

 

6. A car loan may be easiest, but you may need to fork out as much as 40% as equity or downpayment since you've got a bad financial reputation. You will still be tagged a "very high risk" customer, but never be discouraged, it's normal -- own up to your fault. Show them your savings portfolio, payslips, ITR, the full-payment letter, plus 3 good character references may be required (be careful who you elect -- since if their bad payors themselves, then you'll get yourself into more trouble) These character references need to have good character themselves as far as the banks are concerned. Oh btw, when you do decide to take out a car/house loan to repair your record, it doesn't need to be in the same financial institution as where you got into trouble; ideally, you should seek out another institution with a good customer-focus than the lust for profit.

 

7. Once you do succeed in taking out the loan, again, do the best you can to pay up on-time and as agreed-upon. Depending on the term of the loan, you may opt to finish it or preterminate at some point, but make sure that you have spent at least 2 years of paying up -- 3 years is more ideal. Once you do finish the loan, voila, you're clean as clean can get.

 

Here's my story:

1992, I was in 3rd year college when I got a credit card because the manager of the bank was a good friend of a family member. So I had the family member sign up as co-maker. 20K credit limit. No big deal! So I got gadgets left and right and had it on 12-month installments. Well, I was very careful then, I made sure the total monthly amortizations did not exceed 1K. After college, I got invited by a benefactor to visit Australia -- they paid half the fare, I shouldered the rest. Where else to get the money? Oh, great, the travel agency accepts credit cards -- so I charged -- got debited for 10K. Before leaving, I instructed a family member to pay the minimum: 5% monthly. How much does it total to? 550 pesos -- oh, it's very cheap -- I still had my allowance then; I bargained with my guardians to keep it flowing until I land a job and receives my 3rd month salary -- but for the meantime, I'll travel as a gift to myself.

 

The 2-week break easily became 3 months, then 8 months -- I extended it because I like the place and I had free accomodations. When I arrived back, there were letters for me from the bank lawyers. I was overdue for a long time -- It turned out, there were no payments made to the bank -- they didn't know how credit cards worked. Ok, no worries, I accepted a sales job, but was not good at it -- I relied on commissions which were not enough, so I learned a very bad habit: I learned about cash advances...very bad!!!! Never imagined the interests were computed daily. I withdrew a total of 18K over a certain period. I was way over the limit and not making any money. Then I got shy and hid from the bank. They got pissed and slapped me penalties and daily charges, my bill shot up easily to 40K. They got tired and got an agency to collect: they added legal fees and incidentals, and after a while my bill was 80K -- they're still charging interests on the unpaid amount. I was buried alive in tons of debt and I haven't even encashed my very first real paycheck. A very good cousin offered to help -- never financially but a sound advice. He told to call up the bank and explain my situation. I got to talk to a lawyer who was stubborn, so I asked to talk to the credit/collection manager instead. She was only giving me the option to pay up everything within 6 months or the lawyer will file a case. I told her that I'm in between jobs and had series of interviews. Then she asked matter-of-factly: "How much can you afford?" Very honestly (swallowing all traces of pride), I said I can only set aside 3,000 pesos a month but with a 2-month grace period. I was expecting her to shout back at me, instead I got a bonus: if I could settle 3,000 a month, she'll take out interests charged after the card was cancelled, I'll only get to pay the original overdue amount plus penalties but she'll need to include a little interest as cost of money. I got the deal: 3,000 a month for 18 months, and she'll grant the 2-month grace period. I literally cried: I got a better problem: land in a job that will pay at least 10K and I can honor the 3K to the bank. I did land in a job that paid 8,500. I got a weekend job doing programming for a small company; I got extra for teaching a choir on a Saturday night.

 

For almost 2 years that was all I did -- Afterwards, I got to earn more, but paid mostly in cash -- no plastics. That lasted for another 5 years. I got a chance to open up a business so I left my job and focused on working for myself. It paid off, got a business deal that earned me 750K in a snap. I got an offer for a credit card and I thought, I think I'm ready to be a plastic admirer again -- you know charging for groceries and restaurant bills and pay them in full after 2 weeks, so no interest. I got denied, and I pitied myself. A friend told me about the CIBI (Credit Investigation Bureau, Inc.) it's like a detective agency. They pry on you and keep all your financial records, including the checks that you issue. They then sell the info to the banks -- so the banks quite literally fight each other for your business -- but if you screw up, they share information among themselves how risky a client you are. So I followed the advice I gave above.

 

Oh, I remembered, I have great power left that the banks will be fighting each other over. I had 750K in my bank account. So I decided to buy a new car. The year was 2000 and it was selling for 600K. I could very well pay for it in cash -- instead, I used it to clear my name. I approached a more client-oriented bank and told them that I'd like to buy a car -- gave them the model and the dealer. They checked their records and saw a problem with my accounts: they "whispered" something like "very high-risk". So they asked for proof of income: I showed my business papers, tax returns, references -- no good. Then I showed my bank statement -- they saw something they liked: cold, hard cash. Did I mention they were client-centric? They called the other bank I had trouble with, gave me a reference letter and instructed to go to the main branch of the other bank. I had to get a certificate of full payment. Apparently, the banks are fast enough to submit your name in the watchlist when you screw up; but never exerts effort to fix it up even when you've settled. So, I got the certificate. Another question, can you shoulder 40% of the cost of the car? Perhaps as a goodwill gesture. No problem. Another small problem: I can only take the 4-year terms. Fine. I signed-up and they processed it the same day and I drove my brand-new car at exactly 7pm. The power of cash.

 

I paid religiously for 3 years until I decided to preterminate, saving me 12-months' worth of interests. I then knew that I had done my job -- I'm clean again. How did I know? Almost immediately, the agents started calling me again, offering credit cards, loans, insurance -- all the works.

 

Through it all, I learned the value of integrity and reputation; and a much-needed habit of paying up.

 

8 years hence, I closed up shop and got back into regular employment again and rose from the ranks out of diligence and hard work. I sold the car I used as "collateral" to rebuild my image. Most importantly, I got back my self-confidence. At this point, my monthly income shot up 1,200% ever since the 8,500-a month job I signed up for. I now own a Citibank Gold credit card with 250K credit limit; an American Express card with $5,000 spending limit, another silver card with 150K credit line. Well, I always carry it but more of as a status symbol, because I never really had an urge to splurge; on rare occasions when I do, I pay it up by month-end without incurring a cent in interests. The banks are so impish on tempting me to the dark side again by increasing my credit limits automatically every single year -- they must never have earned a single cent on me, that's why.

 

I know this is a lengthy piece but if it could teach a lesson and prove a point, then pardon me.

 

I just felt concerned about the guy who started this thread, who may have owed to the teeth at some point. Remember: the light at the end of the tunnel is not always an incoming train (meant to crush you, haha)... and what doesn't k*ll you makes you stronger. Three things are most certain in this world which we must not fear because they end up teaching us to care: Death, Debt and Taxes. So if you're still afraid: of dying, of paying the right amount of taxes, of owning up to our debt: be a man! Face it, and it will surely go away. You'll end up being stronger than ever -- since when the time comes, you have not only conquered your fears, you've mastered your own self, and drawn up your destiny. Believe me, you're meant for higher things -- it's up to you to accept it and act on it. The bad memories do serve a very useful purpose of not repeating the same mistake twice.

 

I told you, it's difficult... but never improbable, much less impossible.

 

 

this is very nice

 

yes, it is true

 

instead of hiding, ask the bank itself for a payment arrangement suitable/with in your budget

 

and do not forget to ask for certificate of payment completion which you can use in the future

 

banks, when you applied for loan, would ask for the certificate if you really have paid for it :thumbsupsmiley:

 

i agree with hugoboss, once paid, write the bank andd emand to have your name removed from the list fo delinquent

 

geez, i hope im on the right thread...

 

guys,

 

just wanna ask something bout credit cards...

 

for instance, if i were to buy something worth 15k, can i pay 5k in cash and then pay the remaining thru credit card?

 

would that be possible?

 

 

yes, just tell the sales staff you intend to pay partially with cash and the remaining, through your credit card

[marc.alan]

quick question lang po...

 

does this (credit standing/check) also include stuff like unpaid (therefore disconnected) cellphone bills, internet/cable TV bills... and such?

[josefgueta700]

very nice thread, kudos guys...