Building Credit
Guys I have 0 debt, ive always paid for everything in cash because i didnt like owing money, but now i have 0 credit, thereis no credit info for me in any of the credit check places, and its kind of biting me in the ass now, how can i build some credit?
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quote:NO, do NOT pay it off in full every month - that will give you a ZERO credit rating!
I don't believe this is true, but if it is, I am right on track. My goal is to have a credit score of zero.
Definitely is not true. I have "Excellent" credit and I have never let my monthly payment go without getting paid. If anything this is something that the credit card companies started so they could make money.
Jon0 -
Buy something you want or need from one of the "0% for a year" deals and pay it off within that year. It builds credit. 0 -
Wrong! Pay it off EVERY month!
JM0 -
quote:Originally posted by Marc1301
quote:Credit card companies are in business to make money and make nothing if the balance is paid off each month.
Not true,.......they make the discount rate, from the merchant, off of every purchase that I use them for. In my case that is virtually everything, as I never carry any significant amount of cash. I use "dividend" cards, and make anywhere from 800 to 1200 bucks a year in cash.
I have never done anything other than pay them off in full, my entire life.
My FICO score runs between 780, and 820, depending upon whether I have taken a "hit" for opening a Lowes card, to take advantage of a "no interest for 12 months" deal, like when I replaced all of my appliances with SS, and then when you close that account after paying it off in 10 months.
Where is my FICO coming from then?
I meant the credit card company is not making profit off the cardholder, not the merchant. FICO scores are based on a number of factors, e.g., length at residence, home ownership, length & type of employment, credit history, etc. People who own homes and have steady jobs will have higher FICO scores with those factors which make little or no credit history less important in the total score. However, a young person just getting started and living at home or school needs to build their score up until they accomplish those other factors and using a card for a minimum 12-month period keeping a small balance open will help accomplish that. They need a record of responsibility and that 12-month report will help establish their credit worthiness.0 -
quote:Originally posted by spanielsells
Get yourself a SECURED credit card. This means you'll have to put down a deposit with the issuer for the amount of your credit limit. So, if you want a $500 limit, you put down a $500 deposit.
You'll get the benefit of having a Visa or MC, and you won't be stuck purchasing only at one store. Moreover, nobody knows except you that it is a secured credit card.
What he said. 3 months in the bank will issue you an unsecured card and so on.
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You don't need a credit history to get one of these. As long as you have the deposit, you'll qualify for the card.
Actually, you do. For instance, if you have a public record, such as a tax lien, no bank will issue even a secured credit card.
Stay away from second rate cards and banks, like capitalone, orchard bank, etc.0 -
try a credit card from you bank 0 -
quote:Originally posted by Spider7115
quote:Originally posted by Marc1301
quote:Credit card companies are in business to make money and make nothing if the balance is paid off each month.
Not true,.......they make the discount rate, from the merchant, off of every purchase that I use them for. In my case that is virtually everything, as I never carry any significant amount of cash. I use "dividend" cards, and make anywhere from 800 to 1200 bucks a year in cash.
I have never done anything other than pay them off in full, my entire life.
My FICO score runs between 780, and 820, depending upon whether I have taken a "hit" for opening a Lowes card, to take advantage of a "no interest for 12 months" deal, like when I replaced all of my appliances with SS, and then when you close that account after paying it off in 10 months.
Where is my FICO coming from then?
I meant the credit card company is not making profit off the cardholder, not the merchant. FICO scores are based on a number of factors, e.g., length at residence, home ownership, length & type of employment, credit history, etc. People who own homes and have steady jobs will have higher FICO scores with those factors which make little or no credit history less important in the total score. However, a young person just getting started and living at home or school needs to build their score up until they accomplish those other factors and using a card for a minimum 12-month period keeping a small balance open will help accomplish that. They need a record of responsibility and that 12-month report will help establish their credit worthiness.
Not saying you are not correct, as I am not in the finance, nor loan industry. I was making a point about CC companies not making money from people like me.
Why would making payments, a bit at a time,.......with interest, demonstrate anymore "responsibility", than a young person, paying their bill in full every month, like I used to do!
Been awhile since I could be considered a "young" person BTW.
I would look at the young person that paid in full, as a much better risk, than the "payment" maker, that could end up over their head.
If you receive payment in full, that shows TOTAL responsibility, and very little chance of loss to the CC company, as opposed to the other scenario.
This must be one of those "grey" areas, I guess,.......or is it simply about milking money from folks that don't need to be milked?[:D]
No need for an answer to that BTW![;)]0 -
I'm in the middle of finishing up a paper for my Management class right now but I'll dig out my most recent issue of Kiplinger's Personal Finance later tonight. Kiplingers publishes best rates on CD's, Money Market Accounts, 1-year returns on mutual funds and all kind of other data. I pretty much ignore the credit card bit but I know they publish credit card rates almost monthly. I'll list the top 5 for you on this thread with the contact info before I hit the sack tonight.
I don't see how you'd have a problem in any other market condition but the current credit crunch is making things a little tougher. I got my first credit card at the age of 18 in 1993. My bank occasionally goes off-line and I prefer to use my Visa check card which draws off my checking account. If my bank is off-line and am in the middle of a purchase where I can't use my check card then I'll throw down the Cabelas Club Visa. As soon as I get home I jump online and due an online bill-pay through my checking account to get that sucker paid off.0 -
You probably have no assets to back up your credit. You should see about getting a money card for your checking account. 0 -
Take $300 (or more) and deposit it in a bank. Wait two weeks and ask that bank to hold the $300 in lieu of a personal $300 loan. Take that $300 and go to another bank and do the same. (5 banks is better) Make a payment within 7 days of the loans and in less then 37 days you will have an excellent FICO score. I read this in a book I bought years ago, and it does work. 0 -
As of August 10 per Kiplinger's Personal Finance Magazine:
Simmons First National Bank 7.25% 800-636-5151
Capital One Platinum Prestige 7.89% 800-548-4593
Pulaski Bank and Trust 7.99% 800-980-2265
Wells Fargo Bank 8.25% 800-642-4720
TNB Members 8.25% 800-820-84170 -
Noize my kids 20 and gets all kinds of credit card stuff in the mail. the only loan he has had is an auto loan I co signed for when he was 19. he has made all payments through payroll deductions. Try a major retailer to get started. Hell half of them ask you in the check out line if you like to sign up for a card. Start slow they can get you in trouble if not used wisely. 0
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