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I went overseas for my college education and have just come home in the last year, since being back I've had a lot of problems come up because I have no credit. Not bad credit, it's literally 0 on the free credit reports I tried, which is supposed to be worse than bad? So I put it off for a year thinking it would just magically appear from me being in the country and paying rent and stuff while only using a debit card and miraculously, no, it didn't. Finally giving in and googling my options I came across only two things I could do 1. Get a student credit card from the only place that would accept me (even though I'm not a student anymore, they didn't require proof I was). it has a $300 limit on it but is 'unsecured'. 2. Get a 'secured' card, which is supposed to be different from a prepaid card. So I deposited $500 to open it. Both are with Capital One if it matters. As soon as I got these two cards (one Visa, one Mastercard) I started getting a ton of prepaid card offers but they all say in the small print that prepaid cards do not affect your credit rating at all, so I can just shred those? Now for the two cards I do have, I make six figures so 300-500 bucks is not a significant amount of money to do, I just don't know how I'm supposed to go about using them the best way to build credit. Charge them max, then pay it off? Do I need to wait every month to pay them off or can I just keep charging them full and paying it off the next day? Is there a general time frame for going from zero credit to credit enough to get an actual not-laughable limit card? Is Obama to blame for any of this?
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Jul 10, 2015 04:05
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| # ? May 2, 2024 07:11 |
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http://www.nerdwallet.com/blog/credit-score/building-credit/ If you really work the system it's probably possible to go from 0 to 700 in a year, which is usually enough to qualify for lowest offered mortgage rates and whatnot. More likely it would take two years. raton fucked around with this message at 07:51 on Jul 10, 2015 |
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Jul 10, 2015 07:40
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Get a card. Buy something. Pay it off. Repeat.
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Jul 10, 2015 13:11
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You need scratch to earn credit. Hope this helps.
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Jul 10, 2015 15:56
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Get a secured credit card, use it to subscribe to Netflix or Spotify or something cheap that recurs monthly, then set it up to autopay the balance every month. Repeat this with one or two more cards, forget about them. Check in about six months to see if you can get a small personal loan from a credit union and pay it religiously.
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Jul 10, 2015 16:24
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Please don't take out interest bearing loans just to "build credit" 
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Jul 10, 2015 16:28
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If you have a cell phone in your name, it will build credit. If you have cable/internet/utilities in your name, that will build credit. If you get a car loan, that will build credit. If you open a bank account, that bank will offer credit cards. They will be more likely to extend you credit at a lower rate (because they have all your money anyway). Using one of those credit cards will build your credit. The nerdwallet thing is 100% legit. But if you want the Cliff's Notes version, these are the two things that will give you bad credit: - late payments - stopping payments entirely And basically everything else will give you good credit. There is more to it - utilization rates and how long you keep a card open and how many cards you have open and etc, etc. But if you do none of that crap, and just pay on time, you'll have good credit in short order.
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Jul 11, 2015 07:33
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CoolCat posted:Get a card. Buy something. Pay it off. Repeat.
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Jul 11, 2015 09:17
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Okay, so I stopped paying for SiriusXM hoping it would just "unsubscribe" as I got another job that gave me free SiriusXM. And now I see the fuckin late/no payment on the SiriusXM on my credit report. If I call SiriusXM and pay them, will it remove it from my credit report, or is that poo poo there to stay as an ugly wart for 7 years?
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Jul 11, 2015 22:34
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Call SiriusXM and find out what they want. If it goes to collections it will be a long (expensive) road. FYI, instead of paying $10/mo you are now probably paying $10 + $50 worth of late fees.
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Jul 11, 2015 22:49
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photomikey posted:If you have a cell phone in your name, it will build credit. At least in the US, these 2 things are rarely true. Most utilities will report bills that have charged off as collections, but do not report on time payments. Series DD Funding posted:Please don't take out interest bearing loans just to "build credit" Also, this. Don't do that.
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Jul 12, 2015 14:50
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Yeah the only way to build credit is to have one or more credit cards. Paying bills on time, having a cell phone, having a nice job and paying rent every month on time for years will not help build a credit score. Yes, it is completely loving retarded. I have two different friends who had to put off their homebuying for two years because they hadn't had a credit card and thus had to get one and use it for a year+ before they could qualify for any mortgage. Even though they had like 30+k in the bank.
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Jul 12, 2015 14:55
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wilfredmerriweathr posted:Yeah the only way to build credit is to have one or more credit cards. Paying bills on time, having a cell phone, having a nice job and paying rent every month on time for years will not help build a credit score. Yes, it is completely loving retarded.
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Jul 12, 2015 20:21
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An apartment lease is a credit transaction  And Experian at least lets landlords post rental payment history.
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Jul 12, 2015 21:16
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Cicero posted:Why is it retarded that things that have nothing to do with credit don't help your credit score? I think it goes back to the fact that your report will get dinged for one late payment, but you get nothing for paying on time.
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Jul 12, 2015 22:29
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Yeah exactly. Because leasing you something is a type of credit, which you make payments on each month. You can't have it both ways, getting hosed on your credit when you miss a payment yet not helping it when you pay on time. Except you apparently can if you're a lender, because that's what they do. And it is totally retarded. I assume its not so stupid in other countries, but I'd like to hear from people with personal experience. I'm glad my friends had that experience because it made me get a card and start building credit. My parents were the "never use credit for anything" type people, who never bought a drat thing on credit, including their house, and urged me to never get a credit card. Though that's kinda good because I never rely on credit and only put stuff on my card that I can pay off immediately. wilfredmerriweathr fucked around with this message at 22:58 on Jul 12, 2015 |
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Jul 12, 2015 22:56
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Cicero posted:Why is it retarded that things that have nothing to do with credit don't help your credit score? Ur a dummy
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Jul 12, 2015 23:14
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| # ? May 2, 2024 07:11 |
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Botnit posted:Charge them max, then pay it off? Do I need to wait every month to pay them off or can I just keep charging them full and paying it off the next day? Don't hit the credit max, that is bad, never use more than 75% of your credit limit. It's good to sometimes carry a small balance. Store cards are very easy to get. Get set with what you need then stop, every time you apply for a card or loan your report gets a ding.
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Jul 13, 2015 04:59
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