What Happened
We did not live happily ever after. Our marriage ended. I became a statistic: Single mother of two, a part-time job, some child support, no credit history of my own, and an old car. I found myself back at square one, back to when I was 18 years old. Only now, I was 35. After I completed all the stages of grief, from denial to acceptance, I picked myself up. I took a second job and I enrolled in college. I had a plan. My car, however, did not play along and blew its head gasket. There was no money for repair, and certainly none for a new vehicle.
Step One
My heart pounded when I walked into the local credit union. I was certain they would simply laugh and point the way to the exit door. Instead, the young man listened to my story and offered a starter / rebuilder loan. One might also call it a high interest loan. The offer was a pre-approved loan for $6,000, to be repaid in 36 months, with an interest rate of 18%. In order to establish good credit, I had to make all payments on time and not pay the loan back early. “Three years” I thought, “I can do this. I will play the game.” That same day I bought my new used vehicle for $5,000. It felt good. I was thankful for the opportunity to prove that I am worthy. Each month, the Credit Union received their payment.
Step Two
About a year later, I applied for a secured Master Card at the same financial institution. They froze $300 that I had carefully saved; a Credit Card came into my wallet. I only used it for gasoline and I paid the bill in full when it arrived. After six months, the Credit Union added $200 more, unsecured. After a year, they unfroze the $300 and added another $500. I was establishing my credit.
Step Three
Other things that were in my favor included:
Same employment for seven years Same address for nine years College enrollment
Step Four
Although things were going smoothly, I was obsessed with negative thoughts about messing it all up. I worked out a realistic budget that included savings. I canceled anything that I did not need: Magazine subscriptions, Book Club membership, Premium Movie Channels, Caller ID, Long Distance Plan, and the Newspaper. For the first time in life, I felt in control of my finances. When the water heater resigned, I had the money saved to buy a new one. No stress.
Step Five
The car lasted five more years after the last payment. The day when part of the flooring broke through, I walked back into the Credit Union. I was anxious. What would they tell me now? I smiled when I heard: Pre-approved for $30,000, 84 months, 1.9%.
The Outcome
I did not need that much. The VW Beetle that I had my eye on was only half that amount. It did not happen over night. I played by the rules, I paid my debts, and today, I am relieved to say: I am no longer on square one.