Growing up as a young kid and into my teenage years, my parents and grandparents let me in on some valuable information regarding financing. They told me to work hard, and save money for the things I want. Did I listen? OF COURSE! I saved EVERY LAST PENNY. THE END.
I hope you felt the sarcasm in that. I ended up NOT listening, and spending all my money, so that I have practically none in savings. And once you turn 18, suddenly you get all this mail with credit card offers (and if your parents are smart like mine, they'll shred 'em), and it's like "WOW MONEY OOH". But i'm smarter than that (or so I thought). I did not get a credit card at 18, and I am not in debt, and for that I was proud.
So finally sometime last year around Christmas time, I decided that it was time to branch out a little, and get a car of my own. I tried to get a car with no money down, and no established credit whatsoever, and they all but laughed in my face. So I went home, had a little cry, and made a promise that I was going to save up money over the next six months for a down payment.
Someone also recommended going to a credit union to establish some credit, and that's also what I did. So with the advice of a loan officer there, I took out a small personal loan, and paid it off over 6 months, regularly. I was on my way to getting the car of my dreams!
Over time, things tend to change. Priorities shift, and obstacles seem to get in your way, like those tiny, irritating gnats that fly in your face and hover. I made the decision to move out of my parent's home, and move into a one bedroom apartment with my boyfriend. This decision drastically affected my income, and I seriously had to re-budget myself (which I am still constantly doing). Eventually I paid off the loan, and that same day, I went to the bank to see if my newly established credit paid off. Also, my friend had a car for sale, and it was reasonably priced, and I could afford it.
First of all, my loan officer didnt remember me. Okay, understandable. I hadn't seen her in 6 months, and she probably has a lot of customers. But I did learn some other invaluable information that day. I learned how to completely insult someone into wanting to pull their membership from a credit union! Here's how: 1) Don't remember me. 2) Get my information wrong. 3) Talk over me, and dont let me ask questions. 4) Be all over the place with your information, so I can't follow your train of thought. 5) Speak to me in a condescending tone, like I am a delinquent child.
I was so appalled. I looked around at other credit unions, but was denied because of "insufficient credit history". I asked a loan officer from another union and he said that even though I took out a 6 month personal loan, it's practically the same as having no credit history. I was completely floored. All that work was for nothing. Wasted time and interest paid.
So in order to get even the car, I end up having to go back to my original loan officer with my tail between my legs like a bad dog. Shame, shame, know your name.
It's just a really sad process. I did not get a credit card at 18 when I was "pre-approved" because I knew I was not ready for that responsibility. I knew that I would just shop and spend (I can't tell you how many times I went in the negatives in my actual bank account...). I did the right thing. And after the economy crashed and as the credit and loan market became more skeptical and skeptical about lending, I can no longer get lines of credit in my name.
So my question becomes, how does a young, responsible person without any credit history, get approved for a substantial line of credit to start building credit? It's a bad cycle to be in. And it makes me so unbelievably sad and angry. I'm sad that this reinforces the feeling of shame and being an "irresponsible teenager" when I didn't DO anything to deserve this treatment. I'm angry at all the people before me that went and ruined it for the future kids trying to establish themselves. Now no one wants to take a risk, and shun every young person out there. I mean, I understand how it would be a risk to the bank to some extent, but at the same time, they need to listen to each person's story. Stereotypes at its finest.
What really matters though, is that I was still able to get the loan. It is at a higher interest rate, but fortunately they were still able to finance it. The trick is to keep your head up high, and just remember that you shouldn't feel bad for taking responsibility for yourself. It's always going to be an uphill battle, and if you're lucky like I am, you'll have friends and family to help pick you up when you stumble.
There's a lyric line that has helped me through some tough times from Holly Brook's song "All Will Be Forgotten" - This is dedicated to all my friends and family that have ever helped me out when I needed them the most, and I hope they know I'm there for them too.
"All will be forgotten. Every tear you've cried. As soon as you awaken, to what's right in front of your eyes, standing by your side."
PinkStar26
Even though I found this entry a tad bit depressing, i really enjoyed reading what you had to say about credit! :) When you talked about turning 18 and you yourself not being ready to own a credit card, it made me think of my mom always reassuring me (when i was 18 too) that credit cards were BAD/ the devil. Then when I was 19?, I was shopping in Macy's and decided to purchase something when the sales associate woman offered me the opportunity to sign up for a "store card". Thinking that it was just one of those store rewards cards that they just swipe everytime you present it and it racks up points, I signed up; only a few moments later did I realize that what she was actually louring me into was investing in her company's credit card. >_< I can't remember why I took that risk, but although I signed up for a VS store credit card a year before that (being totally tricked into it by the sales associate), looking back on it, i think it was a positive move on my part. Now that we're both older and wiser, we are handling our money a lot better. Don't knock yourself over for not getting approved for a loan, i still haven't registered for one myself yet! nor do I fully understand the ins-and-outs of the whole loan business. What I'm trying to say is that this was a learning experience for you. Your growing into a full fledged adult that wants to own her own car, live in her own place, and take responsibility over everything in your life.I can say that not nearly as many people our age have done the things that you've already accomplished for yourself. People like me look up to you as a model of what being a responsible adult is really all about.
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