Monday, March 30, 2009
Real Stories: Mom/Son Team Lower Payments, Boost Credit Score
By Dupaco Money Makeover Artist Cindy Hilkin
I had a 21 year old come in with his mom inquiring on paying off a credit card from another financial institution.
From his credit report, I was able to see he also had an auto loan there. But, his credit score was a 582 and mom was concerned with his high rate.
After talking with mom, I found out that mom was considering buying a empty lot next to their current home and planned on taking out an unsecured loan to pay for this. I spotted a way to help them both!
I was able to do a home equity loan for mom, who then put the son's credit card and auto loan on (mom loves and trusts son).
The son now has his paycheck directly deposited into his Dupaco account--and has payroll deduction effortlessly pay part of his balance on the Home Equity loan.
Meanwhile, mom also purchased the vacant lot and included that in the balance.
Then, to help the son's credit score, we opened a Visa card with a limit of $1,000. In less than four months, his credit score has gone from a 582 to 645. And the icing on tke cake was that the son opened a Roth IRA and puts $15 a week into it.
I think that is HUGE for someone of his age!