Why Renter Pilots suck

[KeithASanford]

1. Because I don't own and I'm at the mercy of what's either new, but 60 miles to the south of me, kinda new but 80 hours to the north of me or close by but old and riddled with squawks AND STILL always checked out before me.

I can't wait to be a hated Owner someday...

 

[e.pie]

I look forward to the day I am a stupid aircraft owner.

 

[poadeleted21]

Why does the story of King Midas come to mind

Just wait till you're at the mercy of your credit limit

 

[DavidWhite]

Why does the story of King Midas come to mind

Just wait till you're at the mercy of your credit limit

I have 0 credit limit so I'm at the mercy of my regular bank account.

(PS Building credit sucks)

 

[poadeleted21]

I have 0 credit limit so I'm at the mercy of my regular bank account.

(PS Building credit sucks)

Awww we know you rake it in as a pro pilot.

Building credit is pretty easy because the algorithm is stupid.

Go get a 500 credit card. Buy your motorcycle gas on it, pay it off each month. Wash-rinse-repeat for a few years.. wah-la. Get your mortgage, cut up the card and never touch one again.

 

[Z06_Mir]

I have 0 credit limit so I'm at the mercy of my regular bank account.

(PS Building credit sucks)

That's one of the reasons I got my first car loan at 17. Build good credit, don't be late and in a couple years you'll be in the high 700's.

 

[bluerooster]

Awww we know you rake it in as a pro pilot.

Building credit is pretty easy because the algorithm is stupid.

Go get a 500 credit card. Buy your motorcycle gas on it, pay it off each month. Wash-rinse-repeat for a few years.. wah-la. Get your mortgage, cut up the card and never touch one again.

Can be done quicker than that, and banks don't like to see a payoff everytime the bill comes in. They want to see a carried balance, on-time payments, then a payoff.

 

[bluerooster]

Walk in to the bank, talk to a loan person, and tell them that you want to borrow $500, (or whatever the minimum is), and you want to back the loan with cash. (the cash that you are borrowing) They will lock it in a 12 month CD, and you'll get a payment book. The first 7 payments, you make each week, using a coupon from the payment book. Then Make the remainder of the payments on time each month. You will have made 12 payments in 6 months, and paid it off.
You now have some credit with that bank. And it's been reported.
Just to add to it, borrow double the first amount, and back it with cash. (you can actually cash out on this one) and make payments same way. You will have established a good line of credit with the bank, and will be able to borrow a significant sum from them with just your signature to back it up. Even more if you want to give them a mortgage.
At least that's how I did it. YMMV

 

[DavidWhite]

Awww we know you rake it in as a pro pilot.

Building credit is pretty easy because the algorithm is stupid.

Go get a 500 credit card. Buy your motorcycle gas on it, pay it off each month. Wash-rinse-repeat for a few years.. wah-la. Get your mortgage, cut up the card and never touch one again.

Yeah I'm well on my way to making all the money. My bank (wells Fargo) will only give me an card that has a limit that is whatever I put in an account especially for it, which I think sounds kind pointless and dumb.

 

[poadeleted21]

Yeah I'm well on my way to making all the money. My bank (wells Fargo) will only give me an card that has a limit that is whatever I put in an account especially for it, which I think sounds kind pointless and dumb.

There's others. The WF Secured card isn't a bad option. I can't recall if it reports as "secured" or not or if that has any bearing on your score.

Orchard Bank/HSBC would probably give you one.

Funny thing about credit scores, your actual income and dollar amounts on the credit limit mean nothing. it's the ratio and like bluee said, they like to see a balance then pay it off. You don't want much credit AT ALL when they're charging 25% or so on the money. It doesn't take long, the credit algorithims LOVE revolving credit accounts. Bite the bullet and get a WF insured or one of the mega high interest rate $200 credit limit ones and run about $10 balance on it (The more the limit, the more balance you need to run to keep the algorithm happy). You can also request that bills (like cell phone, rent etc..) be reported to get the ball rolling, even if it's not a typical credit reporting type account.

That said, credit outside of a mortgage is pretty much stupid. You don't get rich paying down credit card debt.

Give WF 200-300 bucks and run a little balance on it for a little while. I had cash in my pocket to purchase my first car but elected to get a loan and pay it off over a few months. That helped but installment loans don't impress the algorithim as much as paying off a $200 CC... go figure.

Another idiotic thing about the algorithm is that it actually punishes you for paying off a collection.

 

[N747JB]

Yeah I'm well on my way to making all the money. My bank (wells Fargo) will only give me an card that has a limit that is whatever I put in an account especially for it, which I think sounds kind pointless and dumb.

Having no credit is easier to fix than bad credit. I credit card with a small limit that you pay on time, even a secured card will get you started. The important thing is never be late, ever. Even if you set up your bank account to automatically pay a certain $ amount each month so you don't forget. Paying it in full won't hurt your credit rating, it will not make the bank happy, they don't make much without interest or late charges.
I sold a new car to a girl today, 22 years old just graduated from college and starts her job next week, good down payment and a bank approved her for 2.5% APR for 60 months. All she had was a credit card that she paid off every month.

 

[KeithASanford]

Walk in to the bank, talk to a loan person, and tell them that you want to borrow $500, (or whatever the minimum is), and you want to back the loan with cash. (the cash that you are borrowing) They will lock it in a 12 month CD, and you'll get a payment book. The first 7 payments, you make each week, using a coupon from the payment book. Then Make the remainder of the payments on time each month. You will have made 12 payments in 6 months, and paid it off.
You now have some credit with that bank. And it's been reported.
Just to add to it, borrow double the first amount, and back it with cash. (you can actually cash out on this one) and make payments same way. You will have established a good line of credit with the bank, and will be able to borrow a significant sum from them with just your signature to back it up. Even more if you want to give them a mortgage.
At least that's how I did it. YMMV

The passbook method is superior to all described, especially if it's a national bank. Just be leery, though, because once you've established good credit with the toughest lending institution in the financial services industry, the 0% finance charge card offers are gonna come out of the woodwork. Default once and that sweet 0%, same as cash rate leaps to an astounding 29%. One card, revolving balance not to exceed 10% utility of the credit limit and keep it FOREVER because the other thing that makes your credit score great is the longevity of your credit history.

 

[poadeleted21]

The passbook method is superior to all described, especially if it's a national bank. Just be leery, though, because once you've established good credit with the toughest lending institution in the financial services industry, the 0% finance charge card offers are gonna come out of the woodwork. Default once and that sweet 0%, same as cash rate leaps to an astounding 29%. One card, revolving balance not to exceed 10% utility of the credit limit and keep it FOREVER because the other thing that makes your credit score great is the longevity of your credit history.

When you're trying to qualify for a mortgage, they use your FICO score (typically and among other things) which weighs heavily on revolving credit accounts, and does "not much" with an installment loan. You'll move the needle a little with an installment loan, a $200 credit card showing responsible use of credit "at your disposal" does a lot more for you than "just having a payment". I'd save my money and back a WF secured card with it instead. run up a little Mooney gas on it, and pay it off over a couple of months, wash rinse repeat a few times. Done. You might get a 10 point jump with an installment loan, expect a 50-100 jump with a credit card.

NOTE: I'm not suggesting a CC is a good idea, it's just what the morons who designed the algorithm put the most weight on. I'm also suggesting a nominal amount that you could pay off at anytime. It's the revolving credit limits to your balances ratio that they get so sideways about i.e. a 200 card with 100 bucks on it paid off over 3 months, is good. Do that a few times.

 

[ChrisK]

Goes the other way. I just had a screwed up final payment on a promo balance on a retail credit line that resulted in a late payment. I resolved the $7 balance by phone as soon as they emailed me. They reported me and my credit score dropped 55 points.

They told me to write a letter and their verification department would consider removing the report.

$7. Fixed immediately. I should have known as soon as Capital One bought it out.

 

[KeithASanford]

When you're trying to qualify for a mortgage, they use your FICO score (typically and among other things) which weighs heavily on revolving credit accounts, and does "not much" with an installment loan. You'll move the needle a little with an installment loan, a $200 credit card showing responsible use of credit "at your disposal" does a lot more for you than "just having a payment". I'd save my money and back a WF secured card with it instead. run up a little Mooney gas on it, and pay it off over a couple of months, wash rinse repeat a few times. Done. You might get a 10 point jump with an installment loan, expect a 50-100 jump with a credit card.

NOTE: I'm not suggesting a CC is a good idea, it's just what the morons who designed the algorithm put the most weight on. I'm also suggesting a nominal amount that you could pay off at anytime. It's the revolving credit limits to your balances ratio that they get so sideways about i.e. a 200 card with 100 bucks on it paid off over 3 months, is good. Do that a few times.

Oh, I agree completely. I just think having good bank credit brings out the credit sharks. You just have to be careful with secured cards because not all of them report. You have to also be sure that your credit card is not like Capital One, which does NOT report your credit limit, so you are judged by only your payment history and not low utilization, which can be a big boost to a credit score.

 

[poadeleted21]

Oh, I agree completely. I just think having good bank credit brings out the credit sharks. You just have to be careful with secured cards because not all of them report. You have to also be sure that your credit card is not like Capital One, which does NOT report your credit limit, so you are judged by only your payment history and not low utilization, which can be a big boost to a credit score.

Through a series of acquisitions, I now find myself with 2 Cap One cards (The only two I currently have) , they both report the limit. I had the WF Secured long ago, it reported back then, and I even believe is one of their selling points that they report to all three.

I'd also recommend to go with WF or some other pseudo respectable company, cuz you'll likely want to keep the card open, since that helps more than a closed one. They converted my WF Secured over to an unsecured after a year, after the current administration's overhaul on CC and Checking account billing practices (i.e. no more ordering overdrafts/over the limit charges to inflict maximum pain). WF decided to start charging a yearly fee to keep my zero balance card open (as well as a fee for servicing my savings account, which I also closed) to recoup their losses for no longer being able to charge morons for being morons, so I closed that one about 4 years ago.

 

[KeithASanford]

Through a series of acquisitions, I now find myself with 2 Cap One cards (The only two I currently have) , they both report the limit. I had the WF Secured long ago, it reported back then, and I even believe is one of their selling points that they report to all three.

I'd also recommend to go with WF or some other pseudo respectable company, cuz you'll likely want to keep the card open, since that helps more than a closed one. They converted my WF Secured over to an unsecured after a year, after the current administration's overhaul on CC and Checking account billing practices (i.e. no more ordering overdrafts/over the limit charges to inflict maximum pain). WF decided to start charging a yearly fee to keep my zero balance card open (as well as a fee for servicing my savings account, which I also closed) to recoup their losses for no longer being able to charge morons for being morons, so I closed that one about 4 years ago.

So Cap One finally caved, huh? Great news! There were certainly enough letters written complaining about how they reported in the past. A co-worker of mine used to spend his lunch hours on Creditboards.com. There's some great information there for building, rebuilding and repairing credit.

 

[moonshine]

If I still lived close to KUGN and Skill Aviation (*disclaimer - no affiliation whatsoever except I used to fly there and speaking from experience of four years ago) I wouldn't be an owner, I'd still be renting

 

[gprellwitz]

If I still lived close to KUGN and Skill Aviation (*disclaimer - no affiliation whatsoever except I used to fly there and speaking from experience of four years ago) I wouldn't be an owner, I'd still be renting

Yeah, Skip has a good outfit. I have a great setup too about 100 miles south at 1C5!

 

[moonshine]

Yeah, Skip has a good outfit. I have a great setup too about 100 miles south at 1C5!

Should I consider that an invitation next time I'm up there?

Been at your airport once - logbook says 02/23/2009 - dropped off Skip's DA20, picked up a DA40 from maintenance - there was a coyote or something of the sorts camping out on the runway when we were taking off. Tried scaring him off by pulling prop and revving up, nothing helped. Called out wildlife on the CTAF, taxied to and around the arrogant creature and took off from the remaining runway He never moved.

 

[gprellwitz]

Should I consider that an invitation next time I'm up there?

Been at your airport once - logbook says 02/23/2009 - dropped off Skip's DA20, picked up a DA40 from maintenance - there was a coyote or something of the sorts camping out on the runway when we were taking off. Tried scaring him off by pulling prop and revving up, nothing helped. Called out wildlife on the CTAF, taxied to and around the arrogant creature and took off from the remaining runway He never moved.

The cajones were big on that one, eh?