SERIOUS thread about building credit - SERIOUS posters only

[the.gladiator1987]

Out of all places to post this question here I come to EF C+C. Great, anyway I need to rebuild my credit. I currently have acredit card that has a $300 limit and its sitting at 250. Im paying that off in 2 days.

Should I get a secured credit card as well to help build my credt faster? What else can I do for better credit in the shortest amount of time

 

[bakemeacookie]

No. credit is overrated (guess what put us in the shape we are today? lol). Put money in the bank/securities and when it comes later to buying a house - simply spend more time shopping, put more money down, buy a condo or cheaper house, or get a co-signer. Dontt waste your time making OTHERS money. That's the big credit scam going on. Worst case - go get a cc and just pay it off every month or pay off a new car (btw: paying $50 a year to have a $500 cc you pay every month and keep it two years (total $100) isn't gonan do you squat). google "secured cc" for more info on scams.

People want to have good credit so they can borrow the most and buy the most expensive house they can. And that's what gets them in trouble - and hence why 'credit' is so dangerous and have gotten millions of idiots right now in such shit.

c

 

[Wulfgar]

its not easy to build credit with the financial system the way it is. CC companies and commercial banks are tighter than a virgins honeypot when it comes to giving out cards. u are smart to begin with a secured credit card... just use it, pay your bills on time. and wait...time and consistency build credit

 

[mustang_00]

some of the secured credit cards are in fact scams. so watch out. they interviewed some dude on the today show about pre paids and him along with a lot of other people agreed it was the fastest way to build credit... i think suze orman did a segment about it too

 

[the.gladiator1987]

thanks guys, the wells fargo banker girl told me that a secured credit card could get me 100 points on my credit score in a year, of course my credit score is probably around 400. Horrible I know.

So the best way is to just be consistent with the credit card I have now (capital one), and maybe get a secured card later? I just want enough credit to buy a bike for 10,000

 

[ponyfitness]

thanks guys, the wells fargo banker girl told me that a secured credit card could get me 100 points on my credit score in a year, of course my credit score is probably around 400. Horrible I know.

So the best way is to just be consistent with the credit card I have now (capital one), and maybe get a secured card later? I just want enough credit to buy a bike for 10,000

How did that happen? You may have to wait out the process and have those black marks fall off of your rating, although here that takes six years. I went through it.

As for secured credit cards, I did it and it helped - just be perfect on everything from now on and it will go up. I went from 550ish to now having about a 700 (which according to equifax is still low but much better). But that's because a write off I got when I was 24 fell of of my rating finally.

 

[the.gladiator1987]

How did that happen? You may have to wait out the process and have those black marks fall off of your rating, although here that takes six years. I went through it.

As for secured credit cards, I did it and it helped - just be perfect on everything from now on and it will go up. I went from 550ish to now having about a 700 (which according to equifax is still low but much better). But that's because a write off I got when I was 24 fell of of my rating finally.

A collection with a bank, and having a credit card that half the time was over the limit. I honestly just want to improve my credit score so in 2 years i can put 3000 towards a car/bike and be able to finance the rest. Would it be smart to have a secured cc and my capital one and use them both each month?

 

[joe d]

nearly max your card every month and pay it every month. in a few months they will probably extend your credit a little bit. if not ask them to. after that just use 2/3 of it. dont go over that and pay all bills on time. you can get a free credit report from all 3 credit buroughs by contacting them online. this will show you any debts you have to clean up. doing that and having a proof of a suitable income will be all you need for an auto loan in the time rame you gave. during that time take the credit card offers you get but after you get multiple cards just use 30% or less of the available credit.

 

[Rachel...lol]

yes, secured card through your bank is a good idea - i used to work for a bank and credit union, and we advised this as a credit builder. Also you said you do have a CC already - try and see if you can get the limit raised, but remember to generally stay under 30% or so of your available balance. If you do put a large purchase on it, and then pay it off, that is good as well, but don't pay it off completely. It's strange but part of credit building is showing that you can carry and manage a small amount of debt.

 

[cindylou]

people want good credit so when they buy a house or need a loan they can get the lowest interest rate possible.

 

[SpyWizard]

Free Credit Reports Credit Repair Counseling Increase Your Credit Score Debt Consolidation

this is the single best site for information and credit...

50% max on your credit limits per card
3 max
no inquiries (the link tells how to get those off)

Car loan small and paid off
home loan
merchant account *you might not be able to get this one..

 

[-SD-]

If your credit is at 400 you arent getting financing anytime soon for no motorcycle. If you do get financing by chance, the terms will be fucked on your end (high interest) and it wont be worth buying the bike after you pay 3 times the sticker price once its paid off. I would say its probably going to take at least 3 years for your credit to make significant progress. Building credit takes time bor, no two ways about it.

 

[miplank]

sorry, but a $300 CC isn't going to do shit for your credit. Yeah, it may raise your score but it's a false positive.

That's not enough for a bank to take any risk on you.

 

[ceo]

I just want enough credit to buy a bike for 10,000

Oh, well...that is SERIOUS indeed!

I honestly thought you might foolishly be thinking of purchasing a home in the future, and wanted to build up your credit for that. I'm glad to see you want to use your credit to finance something so practical as a motorcycle.

If you must buy a bike (because I know how completely necessary that is, and it's way more practical than having a good car). Buy a used bike and pay cash. You'll probably wreck the fucking thing anyway.

This was a SERIOUS reply.

 

[the.gladiator1987]

lol I wanted a bike because its cheaper than a house and it would help build my credit up. It was either a bike or a car.

 

[iggy]

thanks guys, the wells fargo banker girl told me that a secured credit card could get me 100 points on my credit score in a year, of course my credit score is probably around 400. Horrible I know.

So the best way is to just be consistent with the credit card I have now (capital one), and maybe get a secured card later? I just want enough credit to buy a bike for 10,000

shit bro....
mine is like 475 and C C companies still won't approve me for a credit card.

 

[bakemeacookie]

lol I wanted a bike because its cheaper than a house and it would help build my credit up. It was either a bike or a car.

So you're willing to spend an extra $3,000 in interest to build up credit so you can save money later down the line??

Save that $3k and collect interest and use it as a down payment instead. Dont' use credit to buy stupid things like groceries, clothes, plasma tv's, etc. THAT'S what gets most americans in trouble. I bought a house even though I barely used credit. Had high income, high down payment, affordable house, shopped around, great rate = too easy.

c

 

[ceo]

lol I wanted a bike because its cheaper than a house and it would help build my credit up. It was either a bike or a car.

Yes, a bike is cheaper than a house, but I wasn't aware you could live/sleep/shower/etc. on a bike.

So between a bike and a car, you are going with the less practical option of a bike?

 

[redshirt27se]

buying a $10,000 bike you can't afford doesn't seem like the most responsible thing to do.









But I actually did just read a study that has shown apricot seeds have credit rebuilding properties.

 

[the.gladiator1987]

Yes, a bike is cheaper than a house, but I wasn't aware you could live/sleep/shower/etc. on a bike.

So between a bike and a car, you are going with the less practical option of a bike?

no ill probably go with a car. honestly it doesnt matter what I buy, i just wanted to buy something and pay it off which would really help my credit. Ill probably buy a car though and have a high down payment with cash so even if my credit isnt good i can still get the car.

Im gonna use my cc for gas and pay it off every month

 

[nangiggles]

Im in a similar situation, I dont have bad credit I just have NO credit, I already applied for CC and NO ONE will give me one, Im financing a car but it's financed buy the dealer and doesnt go on credit report, I realy dont think I have much more of a choice for building credit, I cant cosign with anyone since I know no one and cant get a CC anywhere.....

 

[bakemeacookie]

Im in a similar situation, I dont have bad credit I just have NO credit, I already applied for CC and NO ONE will give me one, Im financing a car but it's financed buy the dealer and doesnt go on credit report, I realy dont think I have much more of a choice for building credit, I cant cosign with anyone since I know no one and cant get a CC anywhere.....

Cash in the bank > CC. Esp in this economy

There are people who immigrate to this contry every day and 3 years later - they own houses and cars. You can do it too. You may just have to go a bit further then fill out a form and click submit to get a house loan - that's all.

c

 

[lartinos]

In a about 2 years of consistenyly paying it off it really pays off. BMAC knows all his shit really when it ocmes to finances.

 

[RottenWillow]

Few things I've learned


1)Do not use a co-signer. If a lender tells you to get one, walk. If they all do, wait until you've built your own credit a bit more. Co-signed loans tell other potential creditors you need co-signers. A loan solely in your own name, paid on time of course, is what shows you're a good risk.

2)If you have unsecured, revolving credit accounts, DO NOT close them after you've paid your balance in full. I used to do this to protect myself from my own spending impulsivity. Cut up the card if you must to keep from using it anymore, but keep the account open

3)Do not go for those "transfer your balances at this super fucking low rate!" offers. Yeah it might save you some money in interest, but opening additional unsecured, revolving credit accounts looks bad on your credit record. Just choose your cards wisely and pay them as agreed.

 

[hurricane]

Few things I've learned


1)Do not use a co-signer. If a lender tells you to get one, walk. If they all do, wait until you've built your own credit a bit more. Co-signed loans tell other potential creditors you need co-signers. A loan solely in your own name, paid on time of course, is what shows you're a good risk.

2)If you have unsecured, revolving credit accounts, DO NOT close them after you've paid your balance in full. I used to do this to protect myself from my own spending impulsivity. Cut up the card if you must to keep from using it anymore, but keep the account open

3)Do not go for those "transfer your balances at this super fucking low rate!" offers. Yeah it might save you some money in interest, but opening additional unsecured, revolving credit accounts looks bad on your credit record. Just choose your cards wisely and pay them as agreed.

good stuff

was never aware of this .. especially #2 & 3

 

[miplank]

Few things I've learned


1)Do not use a co-signer. If a lender tells you to get one, walk. If they all do, wait until you've built your own credit a bit more. Co-signed loans tell other potential creditors you need co-signers. A loan solely in your own name, paid on time of course, is what shows you're a good risk.

wrong...

 

[RottenWillow]

wrong...

the points of ellipsis add a lot to your post

 

[miplank]

the points of ellipsis add a lot to your post

a cosigner does not negatively affect your future credit purchases.

In today's market, banks will not take a risk on a "ghost" or "first time buyer". Your only option in such instance is to have a cosigner.

By getting a cosigner the "ghost" will begin to establish credit. Depending on the purchase/pay history is what will determine if you need a cosigner again in the future. If you're having someone cosign on say a 15,000 car, and in the future you go to purchase another car you'll be fine to get the loan on your own as long as you paid accordingly.

Now there are some lenders out there that will take first time buyers/ghosts with no cosigner. But they're gonna ass rape you on interest (21% on up depending on your state cap)because they have no idea what your pay history is like and they're basically going to treat you as though you have shit credit. Why start your credit history in the shitter like that when with a qualified cosigner you could be under 5-6%?

Now, if you're starting out with shitass credit (depends on the level of shittyness). Well most banks won't give 2 fucks if you have a cosigner anyways. And in the event that they will take one, and you can find one willing to do it knowing your pay history. well..would you rather pay 10-12% or 21+?

Either way with a cosigner, as long as you're paying on time as agreed in the Retail Installment Contract you'll be building/rebuilding your credit. Cosigner or not.

 

[miplank]

there are a few other things to consider like income, job time, etc. But to keep things simple i left those out.

 

[bakemeacookie]

Funny how few people look at "buy less on credit" or "make more money" as options these days

oh u silly americans. how i love thee.

c

 

[miplank]

Funny how few people look at "buy less on credit" or "make more money" as options these days

oh u silly americans. how i love thee.

c

credit isn't the issue...Retarded people is.

 

[-SD-]

Here bor, this bike was $3000 cash money. Dont go blow $10k on a damn bike.

 

[nangiggles]

Funny how few people look at "buy less on credit" or "make more money" as options these days

oh u silly americans. how i love thee.

c

Well I want a credit card to build credit and buy a house to live with my husband and little ones (dogs ), for now Im stuck paying rent but would love to put that money as payments for a nice quiet house, property value is really low here now and would have loved to buy a house to take advantage and possibly sit on it and flip it or just live peacefully.... but seeing I start from 0 that aint gonna happen any time soon....

 

[samoth]

Well I want a credit card to build credit and buy a house to live with my husband and little ones (dogs ), for now Im stuck paying rent but would love to put that money as payments for a nice quiet house, property value is really low here now and would have loved to buy a house to take advantage and possibly sit on it and flip it or just live peacefully.... but seeing I start from 0 that aint gonna happen any time soon....

*buys $300k house*
*pays $700k over 30 years*
*claims house is an investment*

vs.

*spends 1/3rd or 1/4th as much renting*
*saves $1500/mth instead*
*yields 5%/yr return on that $1500/mth*
*has $1,577,913.35 after 30 years assuming 0 wage increases*

 

[-SD-]

*buys $300k house*
*pays $700k over 30 years*
*claims house is an investment*

vs.

*spends 1/3rd or 1/4th as much renting*
*saves $1500/mth instead*
*yields 5%/yr return on that $1500/mth*
*has $1,577,913.35 after 30 years assuming 0 wage increases*

One would think after the past two years that buying a house is not the smart purchase it once was. My low rent lifestyle looks more and more attractive to people after everyone lost their asses.

 

[samoth]

One would think after the past two years that buying a house is not the smart purchase it once was. My low rent lifestyle looks more and more attractive to people after everyone lost their asses.

Personally, I'm a house person... just how I grew up and stuff. I would never even think about doing so without 25% down and mortgage + misc at less than ~35% of monthly gross income, though.

I think the problem isn't just limited to houses -- people/americans just *assume* they are *entitled* to getting crap on credit that they simply can't afford.

But, as per above, we can't control the dumbs, so we gotta control the credit.

 

[miplank]

*buys $300k house*
*pays $700k over 30 years*
*claims house is an investment*

vs.

*spends 1/3rd or 1/4th as much renting*
*saves $1500/mth instead*
*yields 5%/yr return on that $1500/mth*
*has $1,577,913.35 after 30 years assuming 0 wage increases*

where can you rent anything equivalent to a house for 1/3-1/4 less?

 

[samoth]

where can you rent anything equivalent to a house for 1/3-1/4 less?

I think the OP of what I copied was referring to high-COL areas like NYC, HK, &c.

 

[bakemeacookie]

Well I want a credit card to build credit and buy a house to live with my husband and little ones (dogs ), for now Im stuck paying rent but would love to put that money as payments for a nice quiet house, property value is really low here now and would have loved to buy a house to take advantage and possibly sit on it and flip it or just live peacefully.... but seeing I start from 0 that aint gonna happen any time soon....

Nah. I know a ton of immigrants who did. Buy a smaller house, buy a condo, make more money, put down more down payment, shop around aggressively for mortgages. There's always options that don't involve making someone rich for giving you money to buy plasma tv's and jet-skis (or $10k bikes). However corporate america doesn't want you to know this.

I never use credit, have lotsa savings and live in a house. Just sayin'. Banks hate guys like me.

lol @ samoth - dude ur talking to americans about money

c

 

[miplank]

I think the OP of what I copied was referring to high-COL areas like NYC, HK, &c.

I think nan is somewhere in florida IIRC

 

[calveless wonder]

every single one of your threads should start with the title "tell me how to do <this> in life"

 

[nangiggles]

Here in my areas homes are going for as little as #0-50k so this really is the time to buy but no one will lend me a penny....

 

[RottenWillow]

Well I want a credit card to build credit and buy a house to live with my husband and little ones (dogs ), for now Im stuck paying rent but would love to put that money as payments for a nice quiet house, property value is really low here now and would have loved to buy a house to take advantage and possibly sit on it and flip it or just live peacefully.... but seeing I start from 0 that aint gonna happen any time soon....

Samote's right Nan. Unless you can make a sizable down (like at least 20%) and get a great fixed interest rate, the better alternative is just to rent. Choose your landlord and the rental property as carefully as he/she chooses renters. If you pick a reliable, conscientious landlord your only expense is the rent itself and possibly renter's insurance.

I would absolutely be following my own advice and renting were my mom not an RE broker and cash cow RE investor for the last 20 years. She found me a foreclosure in '05 she bought off the courthouse steps for 50% of FMV and then extended me a 1% loan to repay her. But of course I still have all the BS headaches of home ownership, so there are times when even with a sweet deal like I got, I wish I were a renter.

 

[nangiggles]

Well since I didnt have a history or background I didnt get to "pick" were to rent, I did get a decent apt for $650 including water, sewage, hot water and trash.... just have to pay power...it's a 12 month lease but if I give a 60 day timeframe/heads up Im leaving I dont have to stay the whole 12 months... could be worse I guess....