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BK-CPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 933
Experience:  Owner of a CPA firm
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I lost my job in 2008, due to overseas company. I lost my

Customer Question

I lost my job in 2008, due to overseas company. I lost my house and owed a lot on credit cards. I'm on disability now but I'm trying to get my credit turned around. One loan company "Covington Credit" loaned me money and I paid them back early. I need someone to let me borrow $4500 for about 3 years with an average percent of interest, to help build my credit back the way it use to be.
Submitted: 1 year ago.
Category: Finance
Expert:  BK-CPA replied 1 year ago.

Hello and thank you for your question.

If you are able to obtain a loan, credit card, etc., then that of course solves the issue. I assume you are asking because you are having trouble obtaining credit. If that is the case, I suggest using a cash secured credit card (google "cash secured credit").

Building your credit score using any line of credit involves having a history of successful on-time payments. Cancelling a credit line can hurt your score, ironically, meaning that your score may have taken a hit when you paid back Covington Credit early. Inquiries, or requests for credit, also show up on your credit report and can hurt your score, so if you have been shopping around and have multiple inquires showing, you may want to stop until you are able to find a source where your approval odds are very good.

There are a lot of credit building websites and resources out there. I personally have dabbled with Credit Karma (google it) and found it to be helpful and free (if you are asked to provide credit card information, you are at the wrong site!), but I cannot recommend any one resource over another.

Piggy-backing is also a common method to boost credit scores. There are a lot of websites out there that describe what piggy-backing is (google "piggy-backing credit"), but the basic explanation is that you are added to another person's credit card as an authorized user. That person's history with that credit card then shows up as a part of your credit report. Of course, this requires finding someone willing to add you as a user and has the potential to back-fire should that person default, miss payments, etc.

Another suggestion is to try a person-to-person lending platform, such as Lendingclub or Prosper. These have been around for about a decade now and have evolved a little bit. As one of the early lenders on Prosper, I can tell you they got off to a rocky start and people defaulted like crazy, but some improvements have been made and it is possible you might be able to make a convincing loan request that people would elect to fund.

The best of my suggestions is probably the cash-secured line of credit. Try your local bank or credit union first where you already have a checking account with some history to see if they offer it.

Good luck!