Building Credit - FreeiPodGuide Forums

theysayjump

05-08-2006 13:21:58

Being the filthy foreigner that I am, I have no credit and realise that it may come in handy, sometime down the road. /sarcasm.

Anyway, I want to build my credit but only just got my work permit so I have no job which means no income to pay off a card. Does your credit build if you have a card but don't use it, or do you have to be actively using it for your credit to build? I can get money from freebies to pay it off if it's a small amount. I heard that you can build your credit by having an active cell phone service, or is that bollocks?

What's a good way to build my credit, without getting myself into a serious mess?

kdollar

05-08-2006 13:27:23

bigger purchases such as mortgage and car payments on time is the quickest way.

through credit cards....when you apply you will have a low limit and unless you use and pay it off thats when you they raise it- this is good.

then credit is determined by making sure your payments are on time, but the biggest thing for you score is the available credit and used credit gap.

phone service is shit for helping your credit but can hurt it just the same if you dont pay your bill and they report it to a collections agency.

theysayjump

05-08-2006 13:31:54

Yeah I had no intention of getting a card or trying to build my credit without being able to pay everything off at the end of the month.

What are some good CC's/CC companies to apply for or with?

kdollar

05-08-2006 13:33:57

just look in your mail or your offers for the best apr's and the ones that offer zero interest for a year or six months or until 08' this way if you cant pay off you dont gain any interest. this is also help to transfer other balances over too.

visa and mc are most takin. discover i found sometimes isnt takin everywhere. i have a cap 1 that lowered my apr really quickly.

applying too much when you have too many accounts open is not good, and u dont have to worry about paying it off but remember your available credit gap and its okay to make minimums as long as its on time. now if you do slip up, you will pay a fee on ur cc but it wont be until you slip up a lot that they report it on your credit report.

theysayjump

05-08-2006 13:42:03

So if I got a CC that was 0% APR for a year, does that mean that after the year is up they'll charge an extortionate amount of interest or will it go to the regular level for someone in my position (provided I've paid every month on time)?

kdollar

05-08-2006 13:46:50

usually after a year is when they will raise your credit limit or offer a lower apr....assuming you have used it quite a bit and paid it off.

it will say on the card or your agreement what it will bounce back up too after a year, so just read the fine print....its usually boxed. with you having no credit probably be in the low 20 percent aprs, if you look hard enough you can find an 18.99 or something but stay away from the high 20's.

Darkside

05-08-2006 13:51:12

http//banking.about.com/od/loans/a/buildcredit.htm

Rampage575

05-08-2006 14:39:44

[quote9de678d9d1="theysayjump"]So if I got a CC that was 0% APR for a year, does that mean that after the year is up they'll charge an extortionate amount of interest or will it go to the regular level for someone in my position (provided I've paid every month on time)?[/quote9de678d9d1]

As long as you plan on paying the card off in full every month, it doesn't matter how high the rate is. To avoid paying high interest rates, avoid spending more than you can pay off each month.

justinag06

05-08-2006 14:49:40

buy stuff on layaway and pay it off on time

kdollar

05-08-2006 15:03:03

[quotefa98a39828="justinag06"]buy stuff on layaway and pay it off on time[/quotefa98a39828]

late on paypal fipg trades is not good.

hairyferry

05-08-2006 15:04:54

Frank, the best way to get credit being the future finance broker here in the near future is getting a car loan and having a co signer. Just buy like a 3 or 4K car and get a co signer. Applying for a credit card is fine, but if you don't get it because of lack of credit your credit gets worse because you didn't get it. If you go apply for a car loan without a co signer and you don't have credit you'll either get a super high APR rate or you wont get the loan. If you don't get the loan you'll credit will go down. But, because you are married you have a better chance in getting it because of that.

kdollar

05-08-2006 15:06:44

[quoteb591f6a038="hairyferry"]Frank, the best way to get credit being the future finance broker here in the near future is getting a car loan and having a co signer. Just buy like a 3 or 4K car and get a co signer. Applying for a credit card is fine, but if you don't get it because of lack of credit your credit gets worse because you didn't get it. If you go apply for a car loan without a co signer and you don't have credit you'll either get a super high APR rate or you wont get the loan. If you don't get the loan you'll credit will go down. But, because you are married you have a better chance in getting it because of that.[/quoteb591f6a038]

thats so in my first post! wink

kyks17

05-08-2006 15:44:17

TSJ, when i turned 18 i applied to about 3 or 4 credit cards who all told me i couldnt have one because i had no credit history - duh. i applied to MBNA and they approved me right away, only for $500 but it was a start. i used it to buy wat i would have paid cash for, and instead used the cash to pay the bill, and quickly built good credit resulting in a higher credit card limit. i now have an 11 grand limit with them, 3 years after opening the account D

in short, i would suggest MBNA for getting approved, and just buy the things u would have already bought, and keep the money to pay the bill so it all works out the same, but helps establish good credit.

hairyferry

05-08-2006 15:52:17

lol, you da man K dollar!!

kdollar

05-08-2006 15:55:26

[quote21b6b7c01d="kyks17"]TSJ, when i turned 18 i applied to about 3 or 4 credit cards who all told me i couldnt have one because i had no credit history - duh. i applied to MBNA and they approved me right away, only for $500 but it was a start. i used it to buy wat i would have paid cash for, and instead used the cash to pay the bill, and quickly built good credit resulting in a higher credit card limit. i now have an 11 grand limit with them, 3 years after opening the account D

in short, i would suggest MBNA for getting approved, and just buy the things u would have already bought, and keep the money to pay the bill so it all works out the same, but helps establish good credit.[/quote21b6b7c01d]

yea kyks is right, i love my mbna card. it was a student one at a&m now im a platnium customer!

no hairy your the man and far from a fairy!

Vector

05-08-2006 16:25:14

get a job buy something, finance it, pay it off on time, wooo!

you can start with a dell

then move on to a dodge

then move into a duplex!

DDDUH!

J4320

05-08-2006 16:26:30

Vector is a funny guy.

Vector

05-08-2006 16:27:12

[quote97b48dc87c="J4320"]Vector is a funny guy.[/quote97b48dc87c]

lol yay!

Admin

05-08-2006 16:27:18

9 months ago i got my first card from my credit union -- $500 limit, 13.9%. I used it a lot but paid it off weekly. i am now at $2500 with 9.9% apr which is fantastic for a 19 year old. i have never paid a cent in finance charges but its good to know that if it comes to that i'm going to pay less than some people with 20 years of credit history pay.

J4320

05-08-2006 16:44:44

[quote9a74596791="Vector"][quote9a74596791="J4320"]Vector is a funny guy.[/quote9a74596791]

lol yay![/quote9a74596791]

I don't even know why I laughed about the Dell, Dodge, Duplex thing but I did. It just sounded funny. lol

i blame history

06-08-2006 00:44:37

i recently got a capital one card. i just responded to an offer i got in the mail. $300 limit, and no annual fee ever, so thats good. i forget the apr, but as my dad has told me, the apr does not apply IF you pay everything off in full by the due date, which i will do anyways. i guess the apr comes in to effect only when you make minimum payments... after all, i assume that if you pay it off in full right away, there is nothing left over to charge interest on.

i use my debit card all the time... i am too against buying things with money that i do not have to my name. once i get the balls (er...) to use the damn thing, i see myself buying a weeks worth of groceries with it every month or something, since the $25-30 or so a week is something i always spend because i need to and i have the $25-30 to spend, meaning i will have enough to write the check and pay it off in full at the end of the month.

i really have no reason for a limit of more than $300 right now, honestly. i buy food and i pay my bills. everything bought and paid is split with my boyfriend. i have never liked the 'buy now, pay later' mentality... i almost cried when i realized that i needed to get a credit card. but i suppose one day i will want to buy a house, and theres a good chance that my psychology degree will leave me in dire need of a home loan.

tylerc

06-08-2006 00:49:01

Buy a few things every month that you are going to buy anyway (food, socks, that type of stuff), then PAY IT OFF that month.

I got a credit card from Chase (where I have my checkings/savings account) that has a Rewards program, and you can redeem your rewards points for cash and/or giftcards to places like iTunes, Best Buy, etc.

The limit on my card is $4,500 (due to my parent's income), but the APR is pretty steep--23.24% APR on purchases, 28.24% on cash (whatever that is). However, I won't have to worry about it because I pay everything off each month.

Edit-which reminds me, go back to Scotland.

tjwor

06-08-2006 02:21:26

you reminded me, I need to pay my CC bill soon...

johnjimjones

06-08-2006 08:47:33

[quote835234710b="Admin"]9 months ago i got my first card from my credit union -- $500 limit, 13.9%. I used it a lot but paid it off weekly. i am now at $2500 with 9.9% apr which is fantastic for a 19 year old. i have never paid a cent in finance charges but its good to know that if it comes to that i'm going to pay less than some people with 20 years of credit history pay.[/quote835234710b]

That's exactly how I started, except the credit union gave me some scholarship that came with the credit card so I didn't have to worry about no credit history. I don't know what my APR is now, but I don't worry too much about it because I don't plan on paying late at all. Just start small at first and then go big. Discover is a really good card to get after you've got some credit built up, they offer cashback bonuses and they can really add up if you spend a lot, but not as many places accept it as Visa and MasterCard.

theysayjump

06-08-2006 11:23:02

Hmmm......lots of good information here. D

Thanks guys, +karma to all (besides tylerc). wink

jadem

06-08-2006 12:06:52

Also, remember, if you carry a balance that is 50% or more of your limit, it's negative on your credit report. Anything under the 50% mark and you're good. Generally, they only care about how much credit you have available (your limits) unless you go over that 50% mark.

I've learned a LOT about credit in the last two years. Stupid county libraries.....lol

Vector

06-08-2006 12:23:49

[quote032a7a66ca="i blame history"]i recently got a capital one card. i just responded to an offer i got in the mail. $300 limit,...[/quote032a7a66ca]

Let me warn you. I got one fo those that said $300, then it said that there was a $200 fee for activating it at the rate and a $30 fee for first time using which means that they take $230 at the beginning and you have a card with a good rate but only $60

hairyferry

06-08-2006 14:01:41

I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.

tjwor

06-08-2006 14:13:09

[quote9885ddb119="Admin"]9 months ago i got my first card from my credit union -- $500 limit, 13.9%. I used it a lot but paid it off weekly. i am now at $2500 with 9.9% apr which is fantastic for a 19 year old. i have never paid a cent in finance charges but its good to know that if it comes to that i'm going to pay less than some people with 20 years of credit history pay.[/quote9885ddb119]

same with me...

In October when I got my cell phone I was told I had the highest credit of anyone under 25 he had ever seen, and I could buy up to 4 cell phone plans w/o paying a down payment... pretty sweet )

I just applied for a new CC so I can finish my Nui-Tech site...

Admin

06-08-2006 14:27:22

[quoteecadf6ea1d="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quoteecadf6ea1d]

I was under the impression that available/unused credit was a significant plus on your credit? e.g. if you're only using 10% of your credit vs. 90% its a lot better.

johnjimjones

06-08-2006 14:29:59

[quote2c7e6ab7df="Admin"][quote2c7e6ab7df="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quote2c7e6ab7df]

I was under the impression that available/unused credit was a significant plus on your credit? e.g. if you're only using 10% of your credit vs. 90% its a lot better.[/quote2c7e6ab7df]
I think it could go either way, one way is that you could go into debt but then again it seems more logical that it would be better since they trust you with a higher credit line.

theysayjump

06-08-2006 14:37:00

My wife filed for and was granted bankruptcy last year, so will that affect my credit or my chances of receiving credit?

xyclonez

06-08-2006 14:43:33

[quote278b151256="theysayjump"]My wife filed for and was granted bankruptcy last year, so will that affect my credit or my chances of receiving credit?[/quote278b151256]

Does my spouse have to file bankruptcy with me?

No, you may file without your spouse. [b278b151256] The effect on your spouse and any debts you have jointly will vary depending on the marital property laws in your state.[/b278b151256]

i blame history

06-08-2006 14:50:14

[quoteed254edf53="Vector"][quoteed254edf53="i blame history"]i recently got a capital one card. i just responded to an offer i got in the mail. $300 limit,...[/quoteed254edf53]

Let me warn you. I got one fo those that said $300, then it said that there was a $200 fee for activating it at the rate and a $30 fee for first time using which means that they take $230 at the beginning and you have a card with a good rate but only $60[/quoteed254edf53]

i just read through everything again, and i see no mention of anything like that. when i called to activate it, the guy told me that there are no fees on this card. i also just checked my online statement, and since i have not used it there are obviously no charges there, but i also see nothing that has to do with activation fees. it just says that i still have a limit of $300, meaning that i have not used any of it yet. thanks for the warning... i will keep my eye on it, and i will be making an angry phone call if something happens. if they did that without telling people, like it would be in my case because i have not been told of anything like that, would they not get kind of screwed over if a persons first purchase was $200 of the $300 limit?

johnjimjones

06-08-2006 15:00:54

I just applied for a Discover Miles Card, but it [ia8dbf215cd]might[/ia8dbf215cd] be an issue since I barely make any money because of school, but then again they might love having a student get a credit card in the hopes that I might not pay the balances in full.

hairyferry

06-08-2006 15:03:05

They look at it as you have a 5000 credit limit and at anytime you can go out and max your card, thus putting you into more debt. You might be right in what you're saying, but I've never heard it. It also depends what situation you're going into. Are you buying a house, are you buying a car, or are you just applying for another CC?

TSJ,
If you did not file then you should be ok as long as her name isn't on the card application as a co-signer or on the loan that you want. If you are getting a card you can get card with her name on it but not have her as a co-signer.

[quoted9de2e99e4="Admin"][quoted9de2e99e4="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quoted9de2e99e4]

I was under the impression that available/unused credit was a significant plus on your credit? e.g. if you're only using 10% of your credit vs. 90% its a lot better.[/quoted9de2e99e4]

kyks17

06-08-2006 15:05:47

beware of capital one...their customer service sucks, and make sure u always check online for when ur bill is due. i opted out of paper statements and they emailed me when the bill was going to be due, and one time i didnt get an email and wondered 2 days past the due date why i hadnt gotten one....bam, $15 late fee even tho they hadnt sent the damn bill (checked spam folders too). everytime ive called them to change my addy or whatnot theyve been very bitchy and pushy with wanting to make me buy more credit protection.

mbna's service is great D the people there are super friendly, their site is well made, and u get rewards on ur cards D

Trainn-Alan

06-08-2006 15:11:22

The easiest and best way to start (or restart) building a credit file is to open a secured credit card with your bank of financial institution.

A secured credit card is a full fledged credit card, but you 'secure' (hence the name) the promise that you will make the payments with a security account that you must open at the same time. Most banks and financial institutions offer a variation of it and almost everyone can qualify for (some do not allow recent bankruptcy filers).

The way it works is you open up a savings, certificate of deposit, or money market account and deposit a certain sum of money in it (most places start at $250 and go up from there) and whatever the amount is that you deposit, they will issue you a credit card with a limit of that deposit. This money does not get returned to you until the card is A) closed B) converted to an unsecured line (which many will do within 12-18 months).

During the length of the card, you cannot touch the money that you place in the security account and it does not count towards the credit card balance (it only secures the banks interest if you were to default on it), but the whole time it earns you interest on your deposit.

After 9-12 months of on time payments (it really doesn't matter if you carry a balance or not, the impact will be the same) you have built up a good start and can begin to qualify for unsecured credit cards. The best part about this is that you can open up a card with as many banks as you wish (I would recommend 3-5) and that will only improve the amount of credit that you are building

[quoted1f8e4dc56="Admin"][quoted1f8e4dc56="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quoted1f8e4dc56]

I was under the impression that available/unused credit was a significant plus on your credit? e.g. if you're only using 10% of your credit vs. 90% its a lot better.[/quoted1f8e4dc56]

It all depends on what is being applied for, but it's always best to keep it as low as possible. There is a myth that by keeping it low they fear you have that much more to run up, but high dollar transactions (such as a mortgage or car payment) go by more then that.

Alan

dmorris68

06-08-2006 15:12:00

CapitalOne is a very reputable company, there should be no exhorbitant fees. Of all the banks where I've had CC's, CapitalOne is probably my favorite. My APR has been fixed at 5.9% ever since I've had it, and that includes transfers and cash advances, all with NO transaction fees. Citi has been good to me too. I don't have an MBNA credit card, but we do have a personal line of credit with them, and I must agree that their customer service is great. On the contrary, I've had problems with Providian, Bank Boston, and First Union (bought out by Wachovia, I think).

It's the unheard-of institutions, and some well-known who have established themselves as providers of high-risk credit, that charge the huge fees.

[quote02afc627b5="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quote02afc627b5]
Not true. To confirm Admin's impression, lots of liavailableli credit is great for your credit score. The wider the ratio between the available credit and used credit, the better your score. This is the single most important positive factor in your score (other than paying on time, of course).

There are several factors that go into computing your score, but the most common & important are
[list02afc627b5][li02afc627b5] Derogatory information (slow pays, charge-offs, bankruptices, judgements). Speaks for itself, and will have significant negative impact on your score.
[li02afc627b5] Ratio of limits to balances. Lots of available credit without much of it being used is great for your score. Maxing out your accounts is bad for your score.
[li02afc627b5] Number and variety of accounts established. Having only revolving debt (credit cards) will lower your score. Open-ended revolving debt is considered a "bad" form of credit, while "good" forms of credit are real-estate loans like mortgage and auto loans, or department store loans with a fixed term. It's good to have CC credit, just not excessive, and it should be offset with "good" forms of credit when possible.
[li02afc627b5] Length of time with established credit. As you get older, your credit score will improve even if your financial or credit situation remains the same. You won't reach the highest scores until you've had 10-15 years of solid credit history.
[li02afc627b5] Inquiries. These are the credit checks performed when you apply for new credit, lease, insurance, job, etc. Routine checks done by yourself or creditors you already have an account with don't count against you, but checks for new credit do. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/listu02afc627b5]

Trainn-Alan

06-08-2006 15:18:05

[quoteefae4391a4="dmorris68"]CapitalOne is a very reputable company, there should be no exhorbitant fees. Of all the banks where I've had CC's, CapitalOne is probably my favorite. [/quoteefae4391a4]

Among the financial community, Capital One is one of the at-your-own-risk when it comes to credit card companies. They have shifting policies (you have to be especially careful if you're using one of their lower tier cards) and with many of their credit cards that do not report a credit limit which can significantly effect your credit score and Balance/Limit ratio if you do not have a subtantial amount of other lines to offset the Capital One balance.

Alan

dmorris68

06-08-2006 15:25:23

[quotecd892a7ef8="Trainn-Alan"][quotecd892a7ef8="dmorris68"]CapitalOne is a very reputable company, there should be no exhorbitant fees. Of all the banks where I've had CC's, CapitalOne is probably my favorite. [/quotecd892a7ef8]

Among the financial community, Capital One is one of the at-your-own-risk when it comes to credit card companies. They have shifting policies (you have to be especially careful if you're using one of their lower tier cards) and with many of their credit cards that do not report a credit limit which can significantly effect your credit score and Balance/Limit ratio if you do not have a subtantial amount of other lines to offset the Capital One balance.

Alan[/quotecd892a7ef8]
Interesting information. That hasn't been my experience at all, and I've been with them for 6-7 years now at 5.9% APR, with no increase APR, no billing errors or extra fees, nothing like that. Nothing but great service. But I don't have a low-tier card, so maybe that's why.

Trainn-Alan

06-08-2006 15:25:26

[quotecc67a79c24="dmorris68"]Length of time with established credit. As you get older, your credit score will improve even if your financial or credit situation remains the same. You won't reach the highest scores until you've had 10-15 years of solid credit history. [/quotecc67a79c24]

The greater the length, the better the tradelines weight, but I've seen 19 & 20 year olds (with 1 and 2 year histories) with scores over 720. It's still a short file, but with sufficient income and good ratios, you can get nearly anything with a signature over the 720 mark.

[quotecc67a79c24="dmorris68"]Inquiries. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/quotecc67a79c24]

This is also a more of a thing of the past. You should only apply for something that you need (since they do take roughly 3-7 points off your score for each inquiry/group), but these days it's more commonplace to have 4-5 a year without it greatly effecting your file.

[quotecc67a79c24="dmorris68"]Interesting information. That hasn't been my experience at all, and I've been with them for 6-7 years now at 5.9% APR, with no increase APR, no billing errors or extra fees, nothing like that. Nothing but great service. But I don't have a low-tier card, so maybe that's why.[/quotecc67a79c24]

I'm sure a lot of the stuff can be attributed to user issues, but one bit of the rate hiking that is true is they use the universal default terms which means if you miss one payment on another card, even if you haven't on theirs, they can hike your rate)

Alan

theysayjump

06-08-2006 15:28:01

Ok, so I checked out my bank's website after reading Alan's post and this is what they offer. To me, it seems like a good deal, but is it?

http//bank.commerceonline.com/personal_banking/visaPlatinumCC.cfm

Also, would me having a current account with them give me a better chance of being accepted for it? Is there any point in me applying for one being unemployed at the moment?

EDIT Nevermind. Not only do they require employment information, but they have this clause which just puts all my dreams to an end

[quotefc98260df4]Patriot Act Notice - Important Information About Procedures for Opening a New Account To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to verify your identity. We may also ask you to send a copy of your driver's license or other identifying documents.[/quotefc98260df4]

dmorris68

06-08-2006 15:45:48

[quote145ddb7b5c="Trainn-Alan"]The greater the length is the better, but I've seen 19 & 20 year olds (with 1 and 2 year histories) with scores over 720. It's still a short file, but with sufficient income, you can get nearly anything with a signature over the 720 mark.[/quote145ddb7b5c]
True, 720 is considered the magic number that pretty much guarantees you won't have trouble getting "mainstream" credit. But the scores go as high as 850 or so, and I know quite a few people with scores >800. All of them are middle-aged 40+ folks, and from my research it's virtually impossible to achieve that level of score without 20 years of history. Those are the folks who get the invitations to Amex Onyx and such. )

[quote145ddb7b5c="Trainn-Alan"][quote145ddb7b5c="dmorris68"]Inquiries. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/quote145ddb7b5c]

This is also a more of a thing of the past. You should only apply for something that you need (since they do take roughly 3-7 points off your score for each inquiry/group), but these days it's more commonplace to have 4-5 a year without it greatly effecting your file.

Alan[/quote145ddb7b5c]
You may be right, but they do vary slightly depending on the algorithm used (FICO/Beacon, TU, Experian). Last I checked my Equifax FICO a few months back, I seem to recall them mentioning 3-4 as the number to stay within. Of course when it's 3-7 points per inquiry and your score is quite high to begin with, it's not a major hit regardless. That's why it's usually rated near the bottom of influential factors. However I do believe there is a "cliff" you fall off of, when you have an excessive number in a very short period, that will more drastically affect your score.

From the myFICO[=http//www.myfico.com/CreditEducation/CreditInquiries.aspx]myFICO site, which explains how FICO is computed

[quote145ddb7b5c]Inquiries can have a greater impact, however, if you have few accounts or a short credit history. [b145ddb7b5c]Large numbers of inquiries also mean greater risk People with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports.[/b145ddb7b5c][/quote145ddb7b5c]
Since FICO uses a 24-month period for inquiry tracking, their implication is that 6+ in a 2-year period is viewed as "greater risk."

Trainn-Alan

06-08-2006 16:09:15

TheySayJump, do you have any family with credit cards? If so, you can ask that they add you as a "authorized user" and just by adding you, you will inherit their credit history for that card the entire time you are listed as an AU (once they remove you the tradeline disappears).

Also, one card that you might want to look into if you could provide the necessary information to is the Bank of America Secured Card[=http//www.bankofamerica.com/creditcards/?template=secured_plat_visa]Bank of America Secured Card. As long as you have not filed a BK, they are pretty easy to get since you are securing it with your own funds. I've even heard of people who do lawn cutting and snow shoveling can get these cards.

[quote9516f08962="dmorris68"][quote9516f08962="Trainn-Alan"]The greater the length is the better, but I've seen 19 & 20 year olds (with 1 and 2 year histories) with scores over 720. It's still a short file, but with sufficient income, you can get nearly anything with a signature over the 720 mark.[/quote9516f08962]
True, 720 is considered the magic number that pretty much guarantees you won't have trouble getting "mainstream" credit. But the scores go as high as 850 or so, and I know quite a few people with scores >800. All of them are middle-aged 40+ folks, and from my research it's virtually impossible to achieve that level of score without 20 years of history. Those are the folks who get the invitations to Amex Onyx and such. )

[quote9516f08962="Trainn-Alan"][quote9516f08962="dmorris68"]Inquiries. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/quote9516f08962]

This is also a more of a thing of the past. You should only apply for something that you need (since they do take roughly 3-7 points off your score for each inquiry/group), but these days it's more commonplace to have 4-5 a year without it greatly effecting your file.

Alan[/quote9516f08962]
You may be right, but they do vary slightly depending on the algorithm used (FICO/Beacon, TU, Experian). Last I checked my Equifax FICO a few months back, I seem to recall them mentioning 3-4 as the number to stay within. Of course when it's 3-7 points per inquiry and your score is quite high to begin with, it's not a major hit regardless. That's why it's usually rated near the bottom of influential factors. However I do believe there is a "cliff" you fall off of, when you have an excessive number in a very short period, that will more drastically affect your score.

From the myFICO[=http//www.myfico.com/CreditEducation/CreditInquiries.aspx]myFICO site, which explains how FICO is computed

[quote9516f08962]Inquiries can have a greater impact, however, if you have few accounts or a short credit history. [b9516f08962]Large numbers of inquiries also mean greater risk People with six inquiries or more on their credit reports are eight times more likely to declare bankruptcy than people with no inquiries on their reports.[/b9516f08962][/quote9516f08962]
Since FICO uses a 24-month period for inquiry tracking, their implication is that 6+ in a 2-year period is viewed as "greater risk."[/quote9516f08962]

They stay on file for 2 years, but I believe the impact of the inquiry begins to taper after 13 months.

That's definitely the recommendation, but my point (which I guess could have been clearer) was that it's very common nowadays to get more then that and people should not worry that they ruined their credit or tanked their scores by applying for more then that.

You do want to keep in inline though and not do everything at once as it can be perceived that you're desperate for credit or in financial despare.

theysayjump

06-08-2006 16:17:50

[quotee69a79a76e="Trainn-Alan"]TheySayJump, do you have any family with credit cards? If so, you can ask that they add you as a "authorized user" and just by adding you, you will inherit their credit history for that card the entire time you are listed as an AU (once they remove you the tradeline disappears).

Also, one card that you might want to look into if you could provide the necessary information to is the Bank of America Secured Card[=http//www.bankofamerica.com/creditcards/?template=secured_plat_visa]Bank of America Secured Card. As long as you have not filed a BK, they are pretty easy to get since you are securing it with your own funds. I've even heard of people who do lawn cutting and snow shoveling can get these cards.[/quotee69a79a76e]

Not in my immediate family/household, but my brother-in-law has credit/credit cards so he's about the only person I could ask. The thing is, even though I consider myself responsible with money and even though it may help me, I wouldn't want to possible jeopordise his credit if something unexpected happened and I couldn't pay one month.

I'm going to check out that link you posted however as it seems like a good option.

I didn't jointly file with my wife when she filed for bankruptcy so I should be good on that aspect. Thanks again for the help, +karma to you and David.

Admin

06-08-2006 18:00:33

[quote66017af72e="dmorris68"]
[list66017af72e]
[li66017af72e] Inquiries. These are the credit checks performed when you apply for new credit, lease, insurance, job, etc. Routine checks done by yourself or creditors you already have an account with don't count against you, but checks for new credit do. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/listu66017af72e][/quote66017af72e]

Which is why smart people (and people who do a lot of real estate flipping) will purchase multiple things on credit in a single 2-3 day period... its a great way to minimize the damage to your credit score when you need/want to get some additional credit.

jy3

06-08-2006 20:01:49

some links...
http//www.fatwallet.com/c/52/
http//www.fatwallet.com/t/52/457977/
http//www.fatwallet.com/forums/arcmessageview.php?catid=52&threadid=315582
http//www.fatwallet.com/forums/arcmessageview.php?catid=52&threadid=158558
http//www.fatwallet.com/redirect/bounce.php?afsrc=1&url=http//www.fatwallet.com/forums/arcmessageview.cfm?catid=52&threadid=155093
http//www.fatwallet.com/redirect/bounce.php?afsrc=1&url=http//www.fatwallet.com/forums/messageview.php?catid=52&threadid=158558

hairyferry

06-08-2006 20:50:50

Having lots of available funds on a credit card is not good. Many people have more than one credit card. So if you have 2 or 3 cards with a 5000 limit or a 7000 limit that means you can instantly be 15-20K in debt. When banks look at giving you a loan they look at your income to debt ratio. So if you can go into 15-20K in debt in a matter of 5 minutes or less and you only make 20K a year the underwritters are not going to give someone the card, or loan, or whatever even if your credit is good or not.

[quoteb0c3cf1a7a="dmorris68"]CapitalOne is a very reputable company, there should be no exhorbitant fees. Of all the banks where I've had CC's, CapitalOne is probably my favorite. My APR has been fixed at 5.9% ever since I've had it, and that includes transfers and cash advances, all with NO transaction fees. Citi has been good to me too. I don't have an MBNA credit card, but we do have a personal line of credit with them, and I must agree that their customer service is great. On the contrary, I've had problems with Providian, Bank Boston, and First Union (bought out by Wachovia, I think).

It's the unheard-of institutions, and some well-known who have established themselves as providers of high-risk credit, that charge the huge fees.

[quoteb0c3cf1a7a="hairyferry"]I have a credit card with a $15500 limit on it. Depending what you make a high limit can be bad because that's instant debt that you can get yourself into. When you're applying for a house/car/whatever that is bad, depending what you make.[/quoteb0c3cf1a7a]
Not true. To confirm Admin's impression, lots of liavailableli credit is great for your credit score. The wider the ratio between the available credit and used credit, the better your score. This is the single most important positive factor in your score (other than paying on time, of course).

There are several factors that go into computing your score, but the most common & important are
[listb0c3cf1a7a][lib0c3cf1a7a] Derogatory information (slow pays, charge-offs, bankruptices, judgements). Speaks for itself, and will have significant negative impact on your score.
[lib0c3cf1a7a] Ratio of limits to balances. Lots of available credit without much of it being used is great for your score. Maxing out your accounts is bad for your score.
[lib0c3cf1a7a] Number and variety of accounts established. Having only revolving debt (credit cards) will lower your score. Open-ended revolving debt is considered a "bad" form of credit, while "good" forms of credit are real-estate loans like mortgage and auto loans, or department store loans with a fixed term. It's good to have CC credit, just not excessive, and it should be offset with "good" forms of credit when possible.
[lib0c3cf1a7a] Length of time with established credit. As you get older, your credit score will improve even if your financial or credit situation remains the same. You won't reach the highest scores until you've had 10-15 years of solid credit history.
[lib0c3cf1a7a] Inquiries. These are the credit checks performed when you apply for new credit, lease, insurance, job, etc. Routine checks done by yourself or creditors you already have an account with don't count against you, but checks for new credit do. More than 3-4 inquiries in a 2-year period is considered bad and will lower your score. However the algorithms do recognize and detect for "rate shopping" when shopping for a house, car, insurance, etc., so that numerous inquiries for such a loan in a short period of time will be lumped together and counted as a single inquiry.[/listub0c3cf1a7a][/quoteb0c3cf1a7a]

dmorris68

07-08-2006 05:14:49

[quote4145fc2bf2="hairyferry"]Having lots of available funds on a credit card is not good. Many people have more than one credit card. So if you have 2 or 3 cards with a 5000 limit or a 7000 limit that means you can instantly be 15-20K in debt. When banks look at giving you a loan they look at your income to debt ratio. So if you can go into 15-20K in debt in a matter of 5 minutes or less and you only make 20K a year the underwritters are not going to give someone the card, or loan, or whatever even if your credit is good or not. [/quote4145fc2bf2]
Again, I disagree, based on my own experience.

Income to debt ratio is just that the amount of income compared to the amount of debt you carry. Available credit is not debt. Now if all of this available credit was due to brand new accounts, then it might raise a red flag -- you haven't had it long enough to prove that you handle it responsibly. But if you have established credit for many years without using your available credit, then it does nothing but improve your score, and quite dramatically I might add.

My mortgage officer was telling me how one guy came in to get a mortgage. He was unique because he had applied for EVERY SINGLE CC that he was offered in the mail. He never used them, he just applied and received them. Thy guy had like 40 open CC accounts, no joke. But his credit was excellent, with a very high score, because he had all this available credit that he never used.

hairyferry

07-08-2006 05:39:22

Yeah, credit's a funny thing. I was once told in a finance class years ago that no one understands credit and how it works and no one will ever understand it. I stopped over at my future bosses office this morning and we were chatting about it a little and he agreed with what I was saying. I bought my house when I was 21 and they said that between the time I filled out my application for the mortgage and the time I got it not to buy anything that was based on credit specially credit cards because that is instant debt. You could have $10 on a CC with a $5000 limit and have a past history that is great. But tomorrow something drastic could happen in your life and you'd need that $5000. When I was 18 I checked my credit score, and my brothers was higher than mine and he was 17 and he didn't have any credit at all and I had a car loan. Who knows, it's a mystery

theysayjump

13-02-2007 11:18:39

Bump for update.

I applied for my first credit card through my bank since I've been a member with them and in good standing since I moved over here over 3 years ago. they denied on me on the grounds of Insufficient Credit History, and Insufficient Credit References.

I went to the bank, asked if there's anything I can do since I've been with them in good standing etc and was told that all I can do is either apply to more places and try to get a card, or take out a loan with my bank. Since I don't have credit, I'd have to have the same amount of money in a savings account or CD that I'd want to take out (If I wanted a loan for $1,000, I'd need $1,000 in a SA or CD incase I deferred on any payments, they could recoup their lost money). Paying the loan off on time over however long it would be for would then build my credit.

Fair enough, but is this advisable? I think I'm very good with money and know when and when not to buy something or when I can or cannot afford something.

Should I continue to apply at other places for a Credit Card? I was thinking of trying the Paypal card but I really didn't want to just apply at shitloads of places only to be denied, as it can be detrimental to apply for lots of cards right?

I looked into secured cards but their rates are extortionate and don't seem worth it. (

topbillin1

13-02-2007 11:54:59

I have a couple credit cards but I'm not currently working and when I was working I was pretty much at 28k and under for the majority of my life, however I have a providian credit card (before they merged with WAMU) and I had a Citi Mastercard (lowgrade card that didn't even open up a website.....

You can try the providian card and try the lower end Citi Cards (student) as well as a couple others... These cards aren't great and the interested in pretty steep (I have a couple of them in a Credit management plan with a company called CCCS).

If I didn't have any credit, from my own personal experiences I would get a secured card and fund it whenever I want to use it.....

That way you're not taking necessary risks with companies with shaky terms and high interest....

www.creditboards.com

That's the place to go to really learn well....

I have a question though....

I have a couple doctors bills that's currently on my credit that I cannot pay right now due to lack of funds, basically, I got sick last year and spent a week in the hosiptal with Sickle cell and the hospital paid off my main bill (about 12k)....

However, I have some side bills that refuse to accept the payout from the hospital and want me to pay these bills off, I cannot... so they proceded to put these bills on my credit...

My credit is crappy, very crappy but since I don't make a large enough income to apply for a home loan or finance a car should I try to pay it or wait till I get into a better financial situation?

csurge

13-02-2007 14:51:25

[quote61bdb3eed7="theysayjump"]Bump for update.

I applied for my first credit card through my bank since I've been a member with them and in good standing since I moved over here over 3 years ago. they denied on me on the grounds of Insufficient Credit History, and Insufficient Credit References.

I went to the bank, asked if there's anything I can do since I've been with them in good standing etc and was told that all I can do is either apply to more places and try to get a card, or take out a loan with my bank. Since I don't have credit, I'd have to have the same amount of money in a savings account or CD that I'd want to take out (If I wanted a loan for $1,000, I'd need $1,000 in a SA or CD incase I deferred on any payments, they could recoup their lost money). Paying the loan off on time over however long it would be for would then build my credit.

Fair enough, but is this advisable? I think I'm very good with money and know when and when not to buy something or when I can or cannot afford something.

Should I continue to apply at other places for a Credit Card? I was thinking of trying the Paypal card but I really didn't want to just apply at shitloads of places only to be denied, as it can be detrimental to apply for lots of cards right?

I looked into secured cards but their rates are extortionate and don't seem worth it. ([/quote61bdb3eed7]

Getting a secured loan should quickly give you some much-needed credit and from there you can re-apply for a credit card somewhere. You should be able to get a high interest credit card for now, and then work your way down a few months from now. Okay, maybe not a few like 3 or 4 months, but at least half a year I'd say.

I guess I got lucky because I'm in college and so I was only denied once, before I got approved for 2 credit cards and received a $2000 credit line with CitiBank. And I don't even have a job shrug

NYUDiana

13-02-2007 15:45:41

I would have just said a lot of things already mentioned here. Just try and apply to get a low limit credit card. Then once you have one, build yourself up and everyone will start offering you new and better cards.

Just charge a little bit each month and pay it off right away so you never have a late charge like I just did lol. I totally forgot to pay my Chase bill until I read this thread. I go check my account online and it was due yesterday D;

But I also wanted mention something about what Alan said. The Amex Onyx card he was talking about I know know as the American Express Centurion Black Card, and it is THEE sexiest credit card I have ever seen. I've held one once in my life and it was amazing.

Just the sheer knowledge of how powerful it is, is so cool. I work at a store part time when not in college, and a customer paid with it, and when he handed it to me I was like wow.

And it was only like a week after I saw the episode on Studio 60 where Jack says he's authorized to post a million dollar bail with his American Express Black Card. That's such a good show. <3

http//www.contentimages.de/content/GlobalPictureGallery/0/1347521100_1138196263077.jpg[" alt=""/img7a91cdabbb]
[url==http//www.contentimages.de/content/GlobalPictureGallery/0/1347521100_1138196263077.jpg]picture[=http//www.contentimages.de/content/GlobalPictureGallery/0/1347521100_1138196263077.jpg]picture[/url]

http//en.wikipedia.org/wiki/American_express_centurion
check out the section with references to it in the media, like celebrities, and more importantly, when its mentioned in TV shows like Studio 60 and Gilmore Girls!

Anyways... let us know how its going TSJ. Its probably best to ask to call a credit card company and ask if you have no credit, they would approve you for like a student account or something. Good luck dear!

Admin

13-02-2007 16:11:04

thanks diana, now i have a new goal in life

Gigante

13-02-2007 16:22:01

TSJ, get a secured credit card from the bank. They will have you deposit money and then they give you a card with limit and after a while you won't need this anymore. This should throw you in the 600 score range, and from there you can get some low limit cards.

Do not keep applying to cards because
1. Each inquiry on your report lowers your score.
2. Each denial lowers your score even more.

I am working on building my score up now, so if you got any questions you know where to find me.

unknown uchiha

13-02-2007 16:48:30

You get one free credit report per year right? I'm dying to find out what my score is (though I think it might have been lowered since I've applied to a few cards/been denied/gone through credit checks for cell phones and gotten denied/etc. but my current card with a $12,000 limit has been paid in full for the past like 4-5 months)

tylerc

13-02-2007 17:15:41

How do you have a $12,000 limit as an 18 year old? Mine is $4,500 and that's a lot.

zr2152

13-02-2007 17:29:04

[quote5f6b8e617e="tylerc"]How do you have a $12,000 limit as an 18 year old? Mine is $4,500 and that's a lot.[/quote5f6b8e617e]

MIne is up there too. Ive had 2 loans paid in full with perfect scores. Also a credit card with perfect scores.

KeithA

13-02-2007 17:38:46

[quote380c43c5f2="unknown uchiha"]You get one free credit report per year right? I'm dying to find out what my score is (though I think it might have been lowered since I've applied to a few cards/been denied/gone through credit checks for cell phones and gotten denied/etc. but my current card with a $12,000 limit has been paid in full for the past like 4-5 months)[/quote380c43c5f2]

You get one free credit report per agency per year.

https//www.annualcreditreport.com/cra/index.jsp[]https//www.annualcreditreport.com/cra/index.jsp

manOFice

13-02-2007 18:04:51

I can never get a credit card...i don't have any bad credit...I've had a car loan for quit awhile now...for my new apt...they did a credit check and it was really good so i didn't have to provide any deposit but when it comes to applying for a credit card they ALWAYS deny me.

I just opened a bank of American checking and savings the other day...i'll go see if i can get one from them )

johnjimjones

13-02-2007 20:05:32

Damn. Mine right now is only $1,000 and I thought that was a lot.

tylerc

13-02-2007 20:07:53

It's based on parents income I think...

johnjimjones

13-02-2007 21:01:53

[quote594b7b03b9="tylerc"]It's based on parents income I think...[/quote594b7b03b9]

That doesn't seem to make sense considering you don't use any of your parent's information on a credit card request.

tylerc

13-02-2007 21:17:57

For minors/people just turning 18.

doylnea

13-02-2007 21:21:27

[quote28bdc91135="johnjimjones"][quote28bdc91135="tylerc"]It's based on parents income I think...[/quote28bdc91135]

That doesn't seem to make sense considering you don't use any of your parent's information on a credit card request.[/quote28bdc91135]

That's exactly how a lot of people establish credit, by being added to an established creditor's account. In my case, I applied for a CC when I was 17 and was declined. My parents co-signed the next app, and then added me as a user on their CC. I don't know how things have changed since then though.

winkie

13-02-2007 21:35:18

I would recommend a providian credit card simply because mine updates monthly with a basic credit report. Some of the info that the report displays is my FICO score, number of credit accounts open, and number of inquiries of my credit.

http//www.aboutprovidian.com/our_products.htm

Gigante

13-02-2007 22:11:32

[quoted57a06f397="tylerc"]It's based on parents income I think...[/quoted57a06f397]

Don't think that's right.

unknown uchiha

13-02-2007 22:28:09

Nevermind, I meant $1200 not $12000 haha.

I tried getting my credit report online, they couldn't give it to me and have to mail it or something =/

tylerc

13-02-2007 23:17:17

[quotea8bf59b682="Gigante"][quotea8bf59b682="tylerc"]It's based on parents income I think...[/quotea8bf59b682]

Don't think that's right.[/quotea8bf59b682]

Why else would I get a $4,500 line of credit on one card as a just-turned 18 year old?

yingyang

13-02-2007 23:51:22

You could inflate your income if you wanted to.

If you can't get a regular credit card, get a store credit card from Macy's, Best Buy, Express/Structure or some place like that. Those cards show up on your credit score and are very easy to get. Hope that helps.

gmario

14-02-2007 03:58:46

All i have is a credit card, had it for about a year and my crdit score is 680, but when i went to finance a new motorcycle i was told that my credit was young x meaning i didnt have enough stuff to backit up, but the phone line works, and to build it real quick try to finance something and have a co signer to even out your odds on getting a good background

johnjimjones

14-02-2007 06:51:10

[quote3f1a311ed4="tylerc"][quote3f1a311ed4="Gigante"][quote3f1a311ed4="tylerc"]It's based on parents income I think...[/quote3f1a311ed4]

Don't think that's right.[/quote3f1a311ed4]

Why else would I get a $4,500 line of credit on one card as a just-turned 18 year old?[/quote3f1a311ed4]

Did your parent's co-sign on it?

Kidd

14-02-2007 07:37:34

dam ive been around only a couple people with that amex black card its really hard to get. it feels so much thicker than a regular credit card. i have something to aim for in life now P anyways spending 250k a year minimum is a bit tough especially on material things like clothes and etc.

dmorris68

14-02-2007 13:30:49

Household Income is requested on every credit application, hence if you live at home with parents you can declare it. However they can ask you to document your income sources and if you don't make much, they can still decline you or require your parents to be liable on the account.

I've opened and closed many credit card accounts over the years, and only once was I required to document my income. I don't remember which bank it was, but they wanted tax returns, W2's, and paystubs going back like 3 years. lol It was a good card at the time though, so I did it and got approved. That was years ago though, and I don't have that card anymore.

One thing that has always bugged me about credit scoring is that they don't consider income in the calculations. If person A has $20K in debt and makes $30K/year while person B has $20K in the same type of debt but makes $100K/year, IMO person B should be a lower risk and warrant a higher score. But they don't. Scores are based strictly on credit history and activity, not income. I know some well-off folks who live on credit but are still very financially solvent. If you take a snapshot of their credit file at any point in time, it will appears that they are overextended, yet they regularly pay off their bills. The only time income comes into play is when you are past the score threshold to qualify and they're just deciding on credit limits and such. But for many CC's, if you have a borderline score, you might not even get to the point of having your income verified.

FreeOffersNow

14-02-2007 14:19:55

I've got quite a bit of literature on building credit, credit scores, etc. from the Personal Financial Planning course I'm taking (not required...taking it for no reason other than personal development). The professor has been in the banking/loan industry for over a decade, so it should suffice to say that he knows what he's talking about.

There is some great advice here, and for that reason...I'm really not going to bother reiterating what others have said...however, here are some important points

- Cancelling unused credit lines (cards) will actually [i6f80b05d55]hurt[/i6f80b05d55] your credit score. You are better off paying them off and putting them somewhere safe.

- Available/unused credit isn't necessarily seen negatively...but it may be taken into consideration, as hairyferry mentioned. However, as jadem pointed out, "maxed" (or nearly maxed) credit lines [i6f80b05d55]are[/i6f80b05d55] viewed negatively, and may adversely effect your credit score. If you have to, you are better off carrying a small balance on several cards than "maxing" just one or two.

Gotta run, more to come later - maybe )

Jams44

14-02-2007 14:33:27

While we are on the topic of credit cards I suggest not getting anything associated with CitiCorp. Although CitiBank is a nice establishments, the collections agents behind CitiCorp are down right ridiculous. They call your house to see if you can pay early because when they collect they get a certain percentage of the amount due. Anyways I had a card that needs about $950 paid off, it was originally around $1200 but I have been paying it off according to a set plan they gave me. Anyways in a bad night I can get 16 (SIXTEEN) calls from them regarding paying. Now normally I would tell them to fuck off but seeing as they technically have a right to call I don't. It's just ridiculous, make sure you carefully read terms regarding payments and payment plans and make sure you can pay them off. Also, try to pay in large amounts rather than little increments seeing as they will hunt you down. My two cents.

Gigante

14-02-2007 15:07:55

[quote94448041a8="FreeOffersNow"]I've got quite a bit of literature on building credit, credit scores, etc. from the Personal Financial Planning course I'm taking (not required...taking it for no reason other than personal development). The professor has been in the banking/loan industry for over a decade, so it should suffice to say that he knows what he's talking about.

There is some great advice here, and for that reason...I'm really not going to bother reiterating what others have said...however, here are some important points

- Cancelling unused credit lines (cards) will actually [i94448041a8]hurt[/i94448041a8] your credit score. You are better off paying them off and putting them somewhere safe.

- Available/unused credit isn't necessarily seen negatively...but it may be taken into consideration, as hairyferry mentioned. However, as jadem pointed out, "maxed" (or nearly maxed) credit lines [i94448041a8]are[/i94448041a8] viewed negatively, and may adversely effect your credit score. If you have to, you are better off carrying a small balance on several cards than "maxing" just one or two.

Gotta run, more to come later - maybe )[/quote94448041a8]

It is interesting to see how professor's opinions differ. I am also in a personal finance class. The prof is a smart guy, got his degree from oxford and got his pdD and the works and is a prof at the business school. He pointed out that unactive accounts hurt you. The advice about paying them off and putting them somewhere seems to conflict. My prof recommends "taking them for a spin" every 3 months to keep them active. Also, he recommends keeping utilization really low, around the 10-15% area.

dmorris68

14-02-2007 15:10:48

[quote0c30f60b8d="Jams44"]While we are on the topic of credit cards I suggest not getting anything associated with CitiCorp. Although CitiBank is a nice establishments, the collections agents behind CitiCorp are down right ridiculous. They call your house to see if you can pay early because when they collect they get a certain percentage of the amount due. Anyways I had a card that needs about $950 paid off, it was originally around $1200 but I have been paying it off according to a set plan they gave me. Anyways in a bad night I can get 16 (SIXTEEN) calls from them regarding paying. Now normally I would tell them to fuck off but seeing as they technically have a right to call I don't. It's just ridiculous, make sure you carefully read terms regarding payments and payment plans and make sure you can pay them off. Also, try to pay in large amounts rather than little increments seeing as they will hunt you down. My two cents.[/quote0c30f60b8d]
First, I'll just say that I've never had a problem with any Citi account I've had. They've been very good to me, but then again I've not gone to collections with them either. ;)

Collection agencies must abide by very strict consumer protection laws, primarily the Fair Debt Collections Practices Act.[=http//www.ftc.gov/os/statutes/fdcpa/fdcpact.htm]Fair Debt Collections Practices Act. CA's are pretty easy to handle if you know exactly what to say to them. They depend on consumers not knowing their rights and being ashamed or intimidated into doing whatever they want you to do. Be polite yet confident when you explain to them that you have researched and understand your rights under the FDCPA, and that you will adhere to a payment plan as already decided. Tell them to NOT call you anymore as long as payments are being made as agreed. Calling you 16 times a day is harassment, plain and simple, and is against the law, even if you were a deadbeat. When they understand that you are aware of this, I'll bet they will back off. Ask for the caller's name and employee number if he has one, and log every call. If they continue, file a complaint with the FTC.

Now if you [b0c30f60b8d]don't[/b0c30f60b8d] hold up your end of the agreement, they can certainly pursue further action, including more calls, letters, and legal action, but only so far as necessary to collect their debt -- they cannot harass or intimidate you by law.

theysayjump

14-02-2007 15:21:25

I keep hearing Ads on the radio saying that to get credit for a car all I need is $88 DOWN, $88 A MONTH!!!!!!!!!!. Or another one that states that to get a car regardless of credit, all I need to do is take my W-2 and show them (the car dealership).

Since it doesn't appear that I'll be getting a CC any time soon, what are the chances of being approved for car credit?

By the sounds of the secured CC's I've read up on, the fees and interest rates seem astronomical and just not worth it. My bank doesn't even offer a secured card, meaning I'd have to open another bank account with a bank who did. (

FreeOffersNow

14-02-2007 16:13:23

[quote8c0ee76cd3="Gigante"]It is interesting to see how professor's opinions differ. I am also in a personal finance class. The prof is a smart guy, got his degree from oxford and got his pdD and the works and is a prof at the business school. He pointed out that unactive accounts hurt you. The advice about paying them off and putting them somewhere seems to conflict. My prof recommends "taking them for a spin" every 3 months to keep them active. Also, he recommends keeping utilization really low, around the 10-15% area.[/quote8c0ee76cd3]

What your professor and my professor are saying are likely both correct...just two different ways to avoid the negative effects of cancelling the credit line altogether. They seem to agree on the utilization idea.

Also, for perspective I've never made a "major" purchase (no mortgage, paid cash for my car), but I've also never had a late payment...and started building my credit (thanks to the advice of my mother) when I was about 17. Now, at age 21, my Experian score is 735. I have 3 credit cards, with lines of $8,500, $6,000, and $1,200 (not including my Express card...with a limit of $500) with balances of $0, $949.XX, and $0 respectively. I rarely carry a balance, and if I had to guess, I'd say I've paid MAYBE $30 in finance charges...EVER.

Best of luck establishing your credit!

UniPrize Media

14-02-2007 17:58:56

Ha, this reminds me to pay my MBNA bill due tomorrow. Ya, MBNA now bank of America is the easiest one to get approved for. I applied for so many CCs about a couple of years ago and non of them except for MBNA accepted me bc. I was a starter. I built my credit just by using the MBNA card and now I have a score in the 730s with a credit limit of 2,500. In the last couple of weeks I applied for a couple more CCs online and was approved instantly for about 4,000 on each.The instant magic number seems to be in the 720s. Just pay your bills on time and you should have no prob. building your credit. Oh, having a collection agency post on your card greatly affects your score. I had a bill($100) I didn't pay from my previous apartment and they sent to a collection agency which lowered my score by 200 points. But all you have to do is pay the collection agency and everything goes back to normal.

tylerc

14-02-2007 18:34:11

I never carry a balance over from one statement period to another.

FreeOffersNow

18-08-2007 09:49:33

I'm going to go ahead and resurrect this for two reasons

A) There is clearly some very important information here that is relevant to most/all of us

B) I just recently sent a message to Citi through their message center

[quote2254fbdcd9][b2254fbdcd9]Annual Percentage Rates 08/17/07 014216 PM 5 of 5
You wrote[/b2254fbdcd9]

I would like to speak with someone about lowering the Annual Percentage Rates on one or all of my Citi accounts. I have been a Citi customer in good-standing for several years now, and have an excellent credit rating, thus I feel that my APR's should reflect and reward that. Thank you.

[b2254fbdcd9] Re Annual Percentage Rates 08/17/07 025616 PM 5 of 5
Customer Service Wrote[/b2254fbdcd9]

We have reviewed your account for a rate adjustment. Your account has been restored to the standard APR on all of the active balances, including

-Balance Transfer Rates
-Rate Sale Offers
-Intro Rates
-APR Buy-Downs

Thank you for using our website.

[b2254fbdcd9] RE Annual Percentage Rates 08/17/07 031758 PM 5 of 5
You wrote[/b2254fbdcd9]

Thank you for your prompt reply. What are my APR's now on each account? Thanks.

[b2254fbdcd9] RE Annual Percentage Rates 08/17/07 042147 PM 5 of 5
Customer Service Wrote[/b2254fbdcd9]

Our records indicate the Annual Percentage Rate (APR) for purchases on both the accounts is currently at 13.24%. This variable APR is based on the prime rate (currently 8.25%) plus 4.99%.

Thank you for using our website. [/quote2254fbdcd9]

My previous rates on my two main cards had been in place for a few years each, 17.xx% and 18.xx%. I don't generally carry a balance anyway, and have about $10K lines on each card, but it worked for me...so it's probably worth a shot (just don't use the "I have been a Citi customer in good-standing for several years now, and have an excellent credit rating" part if it's not true!)

Gigante

18-08-2007 10:34:36

Nice FON.

And I hoped everyone else has had good success since this thread started. I've raised my credit score around 50 pts.

theysayjump

18-08-2007 22:55:11

I still don't have credit.

I got refused by a couple of places including my bank for "Not having sufficient credit history".

I tried to get my mobile phone plan in my name but was refused for the above reason so I had to get it in my wife's name. I'd like to get credit so I can get us a new car but they'll likely refuse me even though there are places that I hear advertised on the radio who will give a car to anyone regardless of their credit score.

I dunno, we'll see I guess.

FreeOffersNow

19-08-2007 03:34:19

TSJ, check this out http//www.lendingtree.com/smartborrower/Ask-an-Expert---Credit/How-to-build-your-credit.aspx

theysayjump

19-08-2007 08:52:29

Hmm.....Interesting, thanks FON.

The only thing is, as it says in that article, is that when I asked about a secured line of credit from my bank they told me the only way I could get one was that if I opened a savings account with $500 in it, I'd need another $500 as a kind of security deposit should I defer on any of the payments, they'd get their money back.

As I said on the Car Payments thread, all of my paycheque was needed and saving wasn't an option and I didn't just have $1,000 laying around. Now I need a car kinda sharpish and whilst I could get a secured line of credit from my bank now, I don't really have the time to open it and use it and pay it off for however many months just to build up my credit before getting a car.

I hear on the radio about places offering vehicles to people with no credit as long as they have a W-2/payslip etc. I'll likely just call up those places and see what they say.

Thanks for the information though.

FreeOffersNow

19-08-2007 08:59:52

If all else fails, just ask bos to borrow some $ ;)

Gigante

19-08-2007 09:33:09

[quote277713394d="theysayjump"]
I hear on the radio about places offering vehicles to people with no credit as long as they have a W-2/payslip etc. I'll likely just call up those places and see what they say.[/quote277713394d]

By taking the time to build your credit you will save MOUNDS of money. You would basically be taking a subprime auto loan, and you know how the subprime loans have worked out for those in the mortgage industry... You will pay a much higher interest rate on the car.

dmorris68

19-08-2007 10:53:42

[quotebbe9785ac1="Gigante"][quotebbe9785ac1="theysayjump"]
I hear on the radio about places offering vehicles to people with no credit as long as they have a W-2/payslip etc. I'll likely just call up those places and see what they say.[/quotebbe9785ac1]

By taking the time to build your credit you will save MOUNDS of money. You would basically be taking a subprime auto loan, and you know how the subprime loans have worked out for those in the mortgage industry... You will pay a much higher interest rate on the car.[/quotebbe9785ac1]
Yeah, you'll probably be paying 18-23% APR or some such ridiculous rate, so you don't want to have a huge principal. Not only that, but not all subprime finance companies report good credit to the bureaus -- only if you fail to pay.

That said, it's understood that sometimes that's the only way you can get financed. Just be sure that they'll report your loan to help build your credit. And don't overextend yourself -- buy the cheapest, reliable car you can get from them, finance it, and pay it off as quickly as you can. Then you can trade that, combined with your newly established credit record, for a better vehicle at a better rate.

theysayjump

19-08-2007 22:15:43

Again, thanks for the information.

So for someone with no credit and needing a car in the very near future, what would be the best route for me to take?

Finance a car through the dealership and pay a crazy APR?
Apply for a loan through a bank and possibly get a better APR?
Steal a car?
Steal money to buy a car?
Bypass the above two and just go straight to prison?

jdizzle314

19-08-2007 22:49:03

ummm use someone in your family that has good credit to co-sign /

tylerc

19-08-2007 23:00:17

Your wife could co-sign it.

theysayjump

20-08-2007 00:30:19

My wife filed for bankruptcy two years ago and likely has very bad credit, plus she doesn't work so that probably won't help matters.

Mother-in-law and sister-in-law have bad credit and wouldn't do it anyway.

Brother-in-law has too much shit on his plate right now to even consider co-signing for me.

I'm on my own.

x323smostwantedx

20-08-2007 01:34:04

Apply for a phone with T-Mobile to build your credit. Theres a new program called "Flexpay", everyone qualifies for that program. The only difference with flexpay is that you will have to pay your first months bill upfront, along with the phone. Maybe that can help a bit.

ajasax

20-08-2007 10:15:39

I'm in the same boat as TSJ. I'm looking for a car to replace my recently totaled one soon (like this week). I'll probably go with some cheap (<$6k) Kia or Hyundai for now just to get me through college. The only thing is, some of these loan companies will only loan me money for a newer/lower mileage car since my credit sucks. My parents can't cosign since neither of them have good credit (although, they're trying to build it), and I don't want to burden any of my extended family with a co-sign.

Right now, I think I'll have to suck it up and take the high APR, pay on time, then refinance in a year. My only choice really shrug

On the side, anyone know the reliability of Kias?

Gigante

20-08-2007 18:46:46

I got a decent credit score (724/730/709) yet I never get high credit limits. My Chase card was originally $300 limit and I asked for $5k, and they gave me $500 and said $5k is too much. I have expenses exceeding $5,000 monthly. Has anybody here tried requesting lines over the phone instead of online and possibly sending them proof of income in order to get a higher line?

guelah75

20-08-2007 18:56:30

[quotea5a953e6b5="Gigante"]I got a decent credit score (724/730/709) yet I never get high credit limits. My Chase card was originally $300 limit and I asked for $5k, and they gave me $500 and said $5k is too much. I have expenses exceeding $5,000 monthly. Has anybody here tried requesting lines over the phone instead of online and possibly sending them proof of income in order to get a higher line?[/quotea5a953e6b5]

yes that's what i did for 2 CC I have, called them talked to them, faxed in some paper work on my end waited awhile then was approved for a higher limit

FreeOffersNow

20-08-2007 20:25:04

Gigante, proof of income should be very helpful. Also, how "long" is your credit history? They look at total available credit (there's a term for this that is escaping me at the moment), not just what you're using. I have around $25K in credit, give or take, between 4 cards and I'm only 21. Two "primary" cards (one used to be all I used, but when they cut my dividends from 5% to 1% I started using my rewards card), two "secondary/emergency" cards.

Gigante

20-08-2007 22:31:45

[quotebb47d0c241="FreeOffersNow"]Gigante, proof of income should be very helpful. Also, how "long" is your credit history? They look at total available credit (there's a term for this that is escaping me at the moment), not just what you're using. I have around $25K in credit, give or take, between 4 cards and I'm only 21. Two "primary" cards (one used to be all I used, but when they cut my dividends from 5% to 1% I started using my rewards card), two "secondary/emergency" cards.[/quotebb47d0c241]

My credit history definitely is not long (only for credit cards since February), so I am hoping I can get income to make up for that. My available credit on my three cards is pretty weak.

Kidd

20-08-2007 22:46:59

gigante i would go ahead and suggest american express.

they always offer the highest credit limits.

even if they dont initally use the credit limit request on the website and ti will basically approve you for any limit.

i love my plat card but it has a hefty annual fee.

there is alot of amex card that are fee-less

Gigante

21-08-2007 08:36:49

[quote7665e3f86e="Kidd"]gigante i would go ahead and suggest american express.

they always offer the highest credit limits.

even if they dont initally use the credit limit request on the website and ti will basically approve you for any limit.

i love my plat card but it has a hefty annual fee.

there is alot of amex card that are fee-less[/quote7665e3f86e]

Thanks for the suggestion, I will keep my eyes open for a good bonus for signup on an amex with no annual fee.

manOFice

21-08-2007 08:56:08

Right now I have a a captial one visa and a babies R us chase card. My capital one card recently upped my limit to 500 bucks without me even knowing and the chase card only has a 300 limit. More than enough for me as I'm just trying to build credit

I have one car loan on a co sign with my parents which built me up enough credit to get my own car loan now

So basically have two car loans, two credit cards building up my credit )

I don't know if it helps but I always pay all bills on time and in full.

I wll say capital one is the ONLY card that didn't reject me at first

doylnea

21-08-2007 08:59:29

[quotec51c396483="Gigante"][quotec51c396483="Kidd"]gigante i would go ahead and suggest american express.

they always offer the highest credit limits.

even if they dont initally use the credit limit request on the website and ti will basically approve you for any limit.

i love my plat card but it has a hefty annual fee.

there is alot of amex card that are fee-less[/quotec51c396483]

Thanks for the suggestion, I will keep my eyes open for a good bonus for signup on an amex with no annual fee.[/quotec51c396483]

No annual fee AmEx cards are hard to come by - however, there are plenty of no-fee for a year or two AmEx cards. LucroCash has the AmEx - Preferred Rewards Green Card - which has a nice bonus associated with it ;)
[quotec51c396483]li Get 5,000 Bonus Membership Rewards� points redeemable for Rewards right away 2
li The Membership Rewards program also lets you transfer points to 16 frequent flyer programs 1 point = 1 frequent flyer mile or frequent guest credit for most programs
li Global Assist� Hotline allows you to travel with total peace of mind when you are more than 100 miles away from home3
li Many other travel and shopping benefits
li No Pre-set Spending Limit[/quotec51c396483]

skepticalcynic

21-08-2007 09:18:20

If you are looking to get a car very quickly with no credit, the best thing to do is go to a place that has buy-here-pay-here. It will NOT reflect on your credit. You'll pay a little more for a used car than what you would pay elsewhere, BUT you won't pay any finance charges at all. So it washes out to about the same. They usually set up a bi-weekly or monthly payment schedule and you'll probably have the whole car paid off in 10-12 months.

Again - this will do absolutely nothing for your credit one way or the other - but it's a good way to get a decent used car quickly and affordably. Just use the same caution you would when dealing with any used-car salesman.

Kidd

22-08-2007 09:30:18

[quote62fd782d2c="doylnea"][quote62fd782d2c="Gigante"][quote62fd782d2c="Kidd"]gigante i would go ahead and suggest american express.

they always offer the highest credit limits.

even if they dont initally use the credit limit request on the website and ti will basically approve you for any limit.

i love my plat card but it has a hefty annual fee.

there is alot of amex card that are fee-less[/quote62fd782d2c]

Thanks for the suggestion, I will keep my eyes open for a good bonus for signup on an amex with no annual fee.[/quote62fd782d2c]

No annual fee AmEx cards are hard to come by - however, there are plenty of no-fee for a year or two AmEx cards. LucroCash has the AmEx - Preferred Rewards Green Card - which has a nice bonus associated with it ;)
[quote62fd782d2c]li Get 5,000 Bonus Membership Rewards� points redeemable for Rewards right away 2
li The Membership Rewards program also lets you transfer points to 16 frequent flyer programs 1 point = 1 frequent flyer mile or frequent guest credit for most programs
li Global Assist� Hotline allows you to travel with total peace of mind when you are more than 100 miles away from home3
li Many other travel and shopping benefits
li No Pre-set Spending Limit[/quote62fd782d2c][/quote62fd782d2c]

i wouldnt say hard to come by..

all their blue cards are fee free so are a couple other ones.

they are offering 150 bucks to sign up for the gold business card and fee waived for 1 year.

some nice signup bonuses come around

Yesitsfree4you

25-08-2007 12:16:13

This is how I built my credit back up about 10 years ago.
Apply for a secured credit card. Secured means you give them a certain amount of money, usually just a few hundred bucks. This money goes into similar to a savings account.
Your credit limit on the card will usually be 1 X to 1.5 times the money you've given them. ex. If you open the account by giving them $300, your credit limit will be between $300-$450.
Charge a few things here and there, make your payments on time and soon, you'll be getting offers for regular credit cards, gas cards, etc.
As long as you keep making your payments on time, you will start to build up your credit. Once the company sees that you've been able to keep your payments up, they will raise your credit limit and return your original money you sent them.
It worked for me and my credit had gone from great to pretty bad, now it's back to where it used to be and even better!
I'm sure you can search online for secured credit cards, shop around, find a good one.
Hope this helped!

lootyloot

26-08-2007 05:31:35

You have to actively use it! What I did when I was younger! If I filled up my car, I charged it and right that second wrote a check and paid it off... on the back of my check book was my cc address! The longer you keep it paid off the better your odds of building credit are! Best of luck!

topbillin1

26-08-2007 11:07:59

I owe about 5 grand and I have a couple credit cards consolidated with Consumer Credit Counseling. I applied for a Sony Credit Card for the $150 back promo with any order over 300 bucks.

I got declined for being a part of CCCS, lol... I had no idea that would happen. I don't want anymore cards, I want to pay off my credit cards and not use them unless emergency.

dmorris68

26-08-2007 11:37:25

Yes, being part of a credit counseling service WILL hurt your credit rating. But it's a helluva lot less hurt than failing to pay your bills or declaring bankruptcy. So if it ever comes to that, try CCCS or one of it's legit brethren before things go too far to be fixed.

kingclips

27-08-2007 12:16:30

yea best way is to just keep buying and paying off in time

skepticalcynic

27-08-2007 15:31:59

I have actually heard from people who have gone through financial advisors that CCCS and others like them give you a worse mark on your credit than bankruptcy. The theory is that a lot of things could have brought you to bankruptcy - divorce, illness, etc. - but going through a consumer counseling service is basically admitting that you don't know how to manage your money, which means a bad risk for creditors - plus they only get pennies on the dollar from the counseling service of what you owe them.

Aside from that - once you declare bankruptcy you may not file again for another 7 years, so people are more willing to extend credit because you have to pay up.

I have no idea what the ins and outs are - the only major debt I've ever had are my student loans, which I can't bankrupt anyway.

Gigante

27-08-2007 15:54:08

[quote6fcf65b3ad="skepticalcynic"]I have actually heard from people who have gone through financial advisors that CCCS and others like them give you a worse mark on your credit than bankruptcy. The theory is that a lot of things could have brought you to bankruptcy - divorce, illness, etc. - but going through a consumer counseling service is basically admitting that you don't know how to manage your money, which means a bad risk for creditors - plus they only get pennies on the dollar from the counseling service of what you owe them.

Aside from that - once you declare bankruptcy you may not file again for another 7 years, so people are more willing to extend credit because you have to pay up.

I have no idea what the ins and outs are - the only major debt I've ever had are my student loans, which I can't bankrupt anyway.[/quote6fcf65b3ad]

I don't know myself, but I wouldn't place any merit on what i heard from someone who was told by someone else.

theysayjump

19-09-2007 14:33:05

I'm still getting nowhere and I still can't get a co-signer, so I'm ready to just start applying for cards online and see if any accept me. Only one at a time though since I don't wanna have too many accept me at the same time.

I have no credit so can it really hurt it by applying at places and being denied, or will it only increase my chances of being denied more?

Who's good to start with or apply to? This thread is over a year old so some of the suggestions may be out of date.

Cheers!

manOFice

19-09-2007 15:03:54

[quotec5672a9c4a="theysayjump"]I'm still getting nowhere and I still can't get a co-signer, so I'm ready to just start applying for cards online and see if any accept me. Only one at a time though since I don't wanna have too many accept me at the same time.

I have no credit so can it really hurt it by applying at places and being denied, or will it only increase my chances of being denied more?

Who's good to start with or apply to? This thread is over a year old so some of the suggestions may be out of date.

Cheers![/quotec5672a9c4a]

Discover or Capital one try those. Capital one is the only one who accepted out of a million cards.

Jeremiah1218

19-09-2007 15:26:15

I applied for several cards including BP gas cards and stuff like that and kept getting declined. After a few months I started getting all these pre-approved cards sent to me in the mail and I got a nice deal with Capital One. No annual fee, no interest for 6 months, $300 limit. Capital One seems like one of the best companies for people that are just starting out, so if you do get any pre-approved CCs in the mail you should check them out and see what they offer.

gmario

19-09-2007 16:09:09

I found building credit pretty easy, just had a capital one card with a 300 credit limit an i paid my cell an gas and paid for food an always paid it full. A few months later bam $5.5k credit limit twisted thas when the fun begins!

dmorris68

19-09-2007 16:43:15

TSJ, yes applying multiple times will hurt your credit score. Each application results in a credit bureau inquiry, and more than a few new, unrelated inquiries within a year or two will count against you. A frantic rush of applying for everything under the sun all at once could have a significant impact. The theory is that you appear frantic or irresponsible in attempting to establish a lot of debt in a short period. They do make exceptions for certain types of inquiries, such as mortgage or auto loans made within a short timeframe -- those are usually lumped as a single inquiry for scoring purposes, since people are expected to shop for rates and they can't get rates until they apply -- but a lot of credit card apps are always considered risky behavior.

The impact isn't huge compared to, say, paying bills late or not at all, but when your score is low or non-existant to begin with and you're trying to establish a good rating, you can't afford even the small dings. So give some thought to who you apply through, and take it slow. Apply for no more than one or two at a time, wait a bit, try another, etc.

Gas and store cards are the easiest to get. You might start with those and then try a bankcard after you established a usage and payment history. I also hear Capital One is easier to get for people with poor credit, however I also hear their terms in such cases can be quite brutal. They treat their "high-risk" customers completely different than their mainstream or "exclusive" customers that have good credit. I've heard of them doing things like jacking up the APR if you're a day late on a single payment, or after just a few months of carrying a balance, etc. Now personally, they've been good to me with the low-APR platinum card I've had with them for years.

theysayjump

19-09-2007 17:22:18

Well just having a quick look at Capitol One's site they do appear to be "lack of credit history"-friendly. This card is specially for those with little to no history, does it look alright as it seems fine to me, but I don't need to explain my knowledge of credit on here? ;)

http//tinyurl.com/2ln9zl

Kidd

19-09-2007 17:32:03

go for it

looks like my first card

manOFice

19-09-2007 17:37:10

yep capital one with a 300 limit was my first

dmorris68

19-09-2007 17:39:32

19.8% is a lousy rate, but for a starter rate it's probably about right. Note they can raise your APR to the Default APR of 28.15% if you have 2 late payments (3 or more days late) within a 12-month period, so if you get it be sure to pay on time!

I also like that they're specifically disclaiming Universal Default, a concept I always considered shady and unfair.

theysayjump

19-09-2007 17:48:20

Done.

Thanks again. D

Kidd

19-09-2007 20:12:58

well 19.8 is a lousy rate i hope he isnt getting a credit card to get himself into debt.

dmorris68

19-09-2007 20:22:41

[quotec4145ca8d3="Kidd"]well 19.8 is a lousy rate i hope he isnt getting a credit card to get himself into debt.[/quotec4145ca8d3]
That shouldn't be a goal for anybody. ;)

Yeah, it's a lousy rate, but for someone with zero/bad credit, it's about average.

APR is irrelevant IF you don't carry a balance. Pay it off every month and they could charge 100% and you wouldn't care. There are a lot of premium cards that have nice features, rewards, etc. but charge a high APR even for good credit -- those are for people who use cards a lot but never carry a balance from month to month. The premium features are worth more to them than a good APR.

However the reality is that MOST people will wind up accruing a balance they can't pay off quickly, so be very careful with a high APR card and never pay just the minimum payment otherwise you never make a dent in the principal. Another drawback to not carrying at least a small balance once in awhile is that some banks and CC issuers frown on it and could close your account or otherwise deprive you of favorable consideration or features in the future. Also, if someone looks at your credit report to determine how you manage credit, it won't look like you even use the cards, so that could potentially hurt you as well.

d11m

19-09-2007 23:00:24

don't know if this was mentioned but try paying your bills a couple weeks in advance
if you have multiple cc's its an easy way to boost your score

Kidd

19-09-2007 23:01:59

not true.

yes it could get your a higher credit limit.

but paying early wont affect your credit score.

when you check your credit report it says paid on time doesnt say when.

gmario

20-09-2007 05:03:33

[quote2afcb2f919="manOFice"]yep capital one with a 300 limit was my first[/quote2afcb2f919]

mine too oops

dmorris68

20-09-2007 06:15:00

[quote7537ff26f7="d11m"]don't know if this was mentioned but try paying your bills a couple weeks in advance
if you have multiple cc's its an easy way to boost your score[/quote7537ff26f7]
As Kidd said, not true. While it looks good to your credit card company, who may reward you with a credit limit increase, card upgrade, etc., early payments don't show up on a credit report or impact your credit score at all.

Kidd

20-09-2007 06:43:43

my 1st card was a crapital one that didnt show the credit limit on the credit report. they are going to start doing that soon boosting my score hopefully. they are really stingy with the credit limit btw.

starting limit- 500
years of history-6
current limit- 3000

2nd card was a chase card. also stingy with the credit limit but amazing customer service.
starting limit 1.5k
years of history 4.5 years
current limit- 5k

3rd card was my 1st amex- optima later changed to blue.
starting limit 3k.
years of history- 4 years.
current limit is 15k

4th card is my platinum business amex.
starting limit 20k.
years of history- 1
current limit is the same.

i use my business card because it doesnt show up on my credit report so i can utilize more spending without taking a score hit.

yes i paid all on time no lates no nothing.

if you stay on top of your stuff you get rewarded.

manOFice

20-09-2007 06:57:41

Kidd is a credit pimp

Kidd

20-09-2007 08:00:55

also didnt add to the list the chase freedom card i got cuz they offered a 250 dollar signup bonus.

thats a sock drawer type card.

theysayjump

25-09-2007 10:37:46

Holy mother of shit, Capital One actually approved me! D

Now I'm a real American. Credit Card debt here I come!

dmorris68

25-09-2007 11:58:27

Congrats! Now don't screw it up! P

manOFice

25-09-2007 12:05:22

[quote1aaa0ecf71="theysayjump"]Holy mother of shit, Capital One actually approved me! D

Now I'm a real American. Credit Card debt here I come![/quote1aaa0ecf71]

congrats!!

dmorris68

25-09-2007 12:08:31

Oh, and if you're going into debt anyway, buy me something nice!

theysayjump

25-09-2007 12:27:28

[quote36321f1ee8="dmorris68"]Oh, and if you're going into debt anyway, buy me something nice![/quote36321f1ee8]

I've already ordered them through the LucroCash Business Account. Overnight shipping!

http/" alt=""/img407.imageshack.us/img="407/7979/225pxanalbeadsaf6.jpg[" alt=""/img36321f1ee8]

Gigante

25-09-2007 12:46:35

[quote7addc49a92="theysayjump"][quote7addc49a92="dmorris68"]Oh, and if you're going into debt anyway, buy me something nice![/quote7addc49a92]

I've already ordered them through the LucroCash Business Account. Overnight shipping!

http/" alt=""/img407.imageshack.us/img="407/7979/225pxanalbeadsaf6.jpg[" alt=""/img7addc49a92][/quote7addc49a92]

Can I get some too? And would you mind getting them a little bigger for me? thanks

dmorris68

25-09-2007 14:29:07

[quote8696bf45a5="theysayjump"][quote8696bf45a5="dmorris68"]Oh, and if you're going into debt anyway, buy me something nice![/quote8696bf45a5]

I've already ordered them through the LucroCash Business Account. Overnight shipping!

http/" alt=""/img407.imageshack.us/img="407/7979/225pxanalbeadsaf6.jpg[" alt=""/img8696bf45a5][/quote8696bf45a5]
Sweet! My dominatrix will be so proud. Did you order the lube with extra grit? You know how I like that...

theysayjump

25-09-2007 18:36:12

Dude, you're not even getting the lube, just a huge sack (get it?) of grit.

sweeedfish

25-09-2007 18:36:44

I got my first card when I was 18 or so, a Visa from my local bank, I think it had a limit of like $3,000. I had that card for about 3 years.

I canceled it because it's worthless if you pay your card on time all the time. And if you don't get points for at least every dollar you spend to buy other stuff that's sucks.

Since then I had a Citi Mastercard that I've had for 3 years, I started at a 10k limit and now have a 30k limit.

I also opened an American Express gold card that I've had for about 2 1/2 years, it has no limit.

Recently I opened a business AMX card through Costco that also has no limit that I use for all business stuff.

I've never paid late and would recommend AMX cards, yes you pay yearly for personal cards, no fees for the Costco card with your paid membership, but AMX rocks for purchase disputes and they extend warranties and different things.

Kidd

25-09-2007 22:23:36

why cancel your oldest card

do you realize that the made your credit score go down somewhat?

tylerc

25-09-2007 23:03:01

How is it worthless to pay your card off all the time?

dmorris68

26-09-2007 07:37:17

[quotefaa6cf352f="tylerc"]How is it worthless to pay your card off all the time?[/quotefaa6cf352f]
I'm not sure who you're asking, but I didn't say it was worthless. I said it doesn't show active use of credit. Creditors like to see that you actually use credit sometimes. People who pay off their bill every month are not he best customers, because the creditor makes no interest. Therefore it's generally best to run up small balances and pay them off over a few months (keeping finance charges low but measureable) and showing that you've carried a balance on your credit report. Most credit reports have a column for "high balance." If this is always zero, it looks like you're not even using the card and doesn't actively demonstrate that you use credit responsibly.

I'm not saying to keep balances on all your cards, I'm just saying split the payoffs over a month or two once in awhile. I can virtually guarantee you that it will improve your credit profile, if not your score. Not all creditors look at just the credit score number -- they use the number as an initial qualifier but then analyze the patterns of your credit history to get a better idea of how YOU use credit. We could both have identical 750 FICO scores and the same income, but use credit in different ways that might make one of us slightly more favorable than the other when it comes to determining credit limits or other features. This is especially true for loan applications as opposed to mainstream credit card applications, most of which just use the score nowadays. However I expect the premium cards (Diamond cards, Onyx/Black cards, etc.) use more than just a score and income since they're so exclusive.

doylnea

26-09-2007 07:53:16

dmo, I rarely disagree with you, but I've never seen anything to suggest that keeping a balance on a CC will do anything but hurt your credit score. Most credit reports identify whether payments have been made a) in full, b) on time, c) later than 30 days and d) later than 90 days. My understanding is that you're penalized for any late payment (assuming it's reported to the credit agencies); therefore, carrying a balance, even a small one is detrimental, rather than beneficial.

sweeedfish

26-09-2007 07:55:59

[quoteac5778a2bc="Kidd"]why cancel your oldest card

do you realize that the made your credit score go down somewhat?[/quoteac5778a2bc]
I've watched my score and it actually went up from when I had that card until a few months after I canceled it.

doylnea

26-09-2007 09:19:29

[quote52c88c7630="sweeedfish"][quote52c88c7630="Kidd"]why cancel your oldest card

do you realize that the made your credit score go down somewhat?[/quote52c88c7630]
I've watched my score and it actually went up from when I had that card until a few months after I canceled it.[/quote52c88c7630]

If I'm understanding you correctly, your credit score went up while you had the card, and then continued to go up after you canceled? If that's the case, why would you cancel?

Kidd

26-09-2007 10:22:44

im pretty sure thats not the case of your score going higher due to canceling that card.

a- you have 1 less active credit line which means less total credit
b- you lose your oldest account which is a pretty big part of the fico methodology.

doylnea

26-09-2007 10:36:48

I just got around to reading yesterday's paper Here's a link to an article that describes the FICO methodology, and impacts of account closings, and applications on your score.
http//online.wsj.com/public/article/SB119068346276538229.html

dmorris68

26-09-2007 19:19:05

[quote0c9d8b7f89="doylnea"]dmo, I rarely disagree with you, but I've never seen anything to suggest that keeping a balance on a CC will do anything but hurt your credit score. Most credit reports identify whether payments have been made a) in full, b) on time, c) later than 30 days and d) later than 90 days. My understanding is that you're penalized for any late payment (assuming it's reported to the credit agencies); therefore, carrying a balance, even a small one is detrimental, rather than beneficial.[/quote0c9d8b7f89]
First, don't get me wrong if you can pay off your balance every month, you're probably better off. You'll save in finance charges (low thought they may be on a minor balance) and you'll avoid the temptation to stretch out a balance while continuing to use the card, resulting in a steadily inflating balance.

That said, keeping HIGH balances (above 50% of credit limit) will absolutely have a negative impact on your score. However, keeping low balances will have negligible if not any negative impact on your score. And as I mentioned (or thought I did), carrying a low balance probably won't show up as a score improvement, but some creditors will consider it as a liprofileli improvement. When they screen your report to analyze your credit patterns, someone who uses credit moderately and pays it off over a reasonable term can be considered more attractive than someone who never carries a balance. Reason being, the creditor makes more profit. That's all I meant. I might not have been clear enough but did point out that it can have a positive effect beyond your score.

Also, note that even if you pay a card off every month, your credit report won't necessarily show that. Your report logs your current balance on the day that it is reported to the credit bureau. This interval varies by creditor, and could be monthly, weekly, biweekly, etc. So if I go charge $1000 today and pay it off when the bill arrives in two weeks, but next week my card issuer reports to the bureau, my report will show I had a $1000 balance, at least until the next update.

Another caveat to watch out for is how the creditor reports your balance vs. your credit limit. Credit reports have a column for "high credit or H/C" that can be used either for credit limit or for "highest balance" depending on the creditor. So if you had a $5000 limit and a $1000 balance, and the highest balance you ever had was $1500, then depending on the creditor your report might read as if you had a $1000 out of $5000 balance (not bad), or a $1000 out of $1500 balance (not good). Follow me? Even though you really have a $5000 limit with a 20% balance, if the creditor reports highest balance instead of credit limit (and some do, I have a couple that do that), it can be interpreted as if you had a limit of only $1500, in which case you would appear to have a 66% balance. Those reporting credit limits will usually add a blurb on the record stating "value in H/C is credit limit." But these aren't always picked up by scoring algorithms. Along the same vein, by not reporting your limit, they are hiding some of your available credit and thus lowering your score -- you might have a $20K limit but never had a balance higher than $1K, in which case your available credit is being shortchanged by $19K.

FICO and the other scoring methodologies use a LOT of different criteria for calculating their scores, and you're right that on-time payment is a major factor, but is not the only one. Balance-to-limit ratio (available credit) is probably the next highest priority -- again, you want to stay below 50% of your credit line. But keeping a balance up to the 25% or so range is perfectly fine, and depending on how your credit is reviewed, could be deemed positive, but it would depend largely on who you ask. Most credit card issuers go by score alone nowadays, but bank loan officers or premium CC issuers are known to actually analyze your habits and go beyond the score.

MyungChunHa

28-09-2007 12:06:31

Even though it's probably been discussed one hundred times in this thread, I feel as though I'm still confused.

1) Does your credit score go up because you have more credit card accounts open? Bascially if I were to open more credit card accounts, would that result in a higher or lower score?

2) Keeping all your credit cards at zero is a bad thing dmorris? What if I keep 4/5 credit cards at zero so I don't have to worry about paying any fees, and use one once a month and pay it off over time? That seems like the best way to build mine higher (730 something btw D ).

I want to keep all my credit cards at zero so I don't have to keep paying them money, but I want to open a rewards card so I can gain a little out of what I'm going to be spending anyways. I would think opening a new card and using that specifically would help me.

dmorris68

28-09-2007 18:28:32

1) It depends. Your credit score benefits from more [i57a5de9586]available[/i57a5de9586] credit. But applying for too much credit in a short period of time hurts your score. It is a balancing act, and you also have be extremely disciplined to have a lot of available credit and not use it. Most young people can't be trusted with a ton of available credit for very long, and then you find yourself screwed. I wouldn't be so hung up on it that I put myself at risk -- 730 is a plenty decent score (assuming a FICO/Beacon, but you didn't say which score it was), especially for a young person just starting out.

2) Re-read my posts. Again, to sum up Not a terribly bad thing, no, but depending on the type of scrutiny applied to your credit report by a potential lender, it could potentially impact things. Don't obsess over it though -- it's better for most people to pay their accounts off every month and risk the possibility of being dinged for not utilizing credit, than to risk using too much credit. That could have a much worse impact and take a lot longer to resolve, so it's probably best to forget I said anything and continue paying them off. This danged Devil's Advocate hat gets me in more trouble...

manOFice

01-10-2007 07:52:52

I was looking into getting a CC for JUST gas purchases.

Can anyone recommend a good card for this? Must be "good credit" or lower requirements.

GiftOrb

01-10-2007 08:18:44

[quote339366a150="manOFice"]I was looking into getting a CC for JUST gas purchases.

Can anyone recommend a good card for this? Must be "good credit" or lower requirements.[/quote339366a150]

Got this from [b339366a150]slickdeals.net[/b339366a150], but here is a link to a citi card.
It comes with a free $150 giftcard when you start using it, and 3 points towards future gifts for gas station use.

HERE[=http//citi.bridgetrack.com/usc/05/prof/100giftcard/default.htm?BTData=C02127E7460617259564F45B7A3A3ABA3949D9382F1FBF8F3F4C2F8F54B9&BT_TRF=253573&app=UNSOL&sc=6EBZE065&m=7CJJ7A5RM0W&langId=EN&siteId=CB&B=G&link=Consumer_85135384&ProspectID=733D59A4AE26461D8EAF643026837DA0]HERE

"you get a $100 gift card offer (10,000 Thank You Points) when you sign up for their Citi Professional Card. Turn off your pop up blockers (or use Internet Explorer) and click on Apply Now. Then close the window, a popup with a new $150 gift card offer will appear."

manOFice

01-10-2007 08:25:43

[quote9ac93f8cf7="GiftOrb"][quote9ac93f8cf7="manOFice"]I was looking into getting a CC for JUST gas purchases.

Can anyone recommend a good card for this? Must be "good credit" or lower requirements.[/quote9ac93f8cf7]

Got this from [b9ac93f8cf7]slickdeals.net[/b9ac93f8cf7], but here is a link to a citi card.
It comes with a free $150 giftcard when you start using it, and 3 points towards future gifts for gas station use.

HERE[=http//citi.bridgetrack.com/usc/05/prof/100giftcard/default.htm?BTData=C02127E7460617259564F45B7A3A3ABA3949D9382F1FBF8F3F4C2F8F54B9&BT_TRF=253573&app=UNSOL&sc=6EBZE065&m=7CJJ7A5RM0W&langId=EN&siteId=CB&B=G&link=Consumer_85135384&ProspectID=733D59A4AE26461D8EAF643026837DA0]HERE

"you get a $100 gift card offer (10,000 Thank You Points) when you sign up for their Citi Professional Card. Turn off your pop up blockers (or use Internet Explorer) and click on Apply Now. Then close the window, a popup with a new $150 gift card offer will appear."[/quote9ac93f8cf7]

Looks pretty good. Thanks, anyone have any other recommendations ??

MyungChunHa

01-10-2007 10:32:29

+kma dmorris

I think I'm going to get one rewards card and stick with it for the next 5 or so years. I'll ignore you as well and just pay off every month, can't really go wrong there. I'm satisfied with 730, it can only go up and I doubt I'll need a loan for another few years anyways.

Thanks man!

manOFice

01-10-2007 11:48:58

My wife signed me up for a toys r us / babies r us master card awhile ago

I was just checking info on it and check this out.. it says I would need excellent credit... heh I was approved for this btw...

ps. Tim... I signed up for the citi card and will hear from them in the mail..

Intro APR Intro APR Period Regular APR Annual Fee Balance Transfers Credit Needed
0%li 6 Monthsli 15.24%li Noneli Yesli [b33cac74738]Excellent Creditli[/b33cac74738]

sweeedfish

01-10-2007 11:57:25

This is a very good bonus card.

https//www.citicards.com/cards/wv/cardDetail.do?screenID=925

You get 6% back on gas, groceries, drug.

And then you get 1 cent for every mile you drive.

Redeemable for cash or thankyou points.

manOFice

01-10-2007 12:03:41

[quotebdd27cf2ee="sweeedfish"]This is a very good bonus card.

https//www.citicards.com/cards/wv/cardDetail.do?screenID=925

You get 6% back on gas, groceries, drug.

And then you get 1 cent for every mile you drive.

Redeemable for cash or thankyou points.[/quotebdd27cf2ee]

It says for 12 months, what happens after that?

Also on this card I read that your rewards have to be put towards like car maintance or lease etc if you want the true 6%

Maybe that BP card will work...

Can someone who uses credit monitoring websites offer a good website that offers first month free for me to try then 10 or less after that per month...

Kinda looking for something that will email me when the report changes..

Edit NM.. I just bought a subscription to myfico.com and found a coupon too ;) Very good tool

Kidd

01-10-2007 15:09:42

myfico rocks!

MyungChunHa

01-10-2007 15:32:22

I just found out that the score I was reading, 731, was actually my PLUS score not my FICO score. I know most banks use FICO, but other than that, is there really much of a difference. I feel like if my PLUS score is that high, then my FICO should be equally as high.

manOFice

01-10-2007 15:58:37

My fico isn't as high as I would like but I see exactly where I can improve that very easily.

dmorris68

01-10-2007 16:51:24

There isn't just one FICO score. Fair, Issac & Co. (FICO) contracts with different bureaus and calculate scores differently depending on their client. For example, Equifax uses FICO/Beacon. Experian uses FICO/Emperica and Experian PLUS. I believe TransUnion uses their own in-house scoring algorithm. There are actually several different credit scoring algorithms, and some lenders will compute their own scores rather than using bureau scores. There are also different FICO's for different lending purposes, such as one for mortgage loans and a different one for auto loans. So credit scoring across bureaus and lenders is quite different, such that your score can differ by 50 or even 100 points between them.

manOFice

01-10-2007 16:55:01

[quote945e9e3913="dmorris68"]There isn't just one FICO score. Fair, Issac & Co. (FICO) contracts with different bureaus and calculate scores differently depending on their client. For example, Equifax uses FICO/Beacon. Experian uses FICO/Emperica and Experian PLUS. I believe TransUnion uses their own in-house scoring algorithm. There are actually several different credit scoring algorithms, and some lenders will compute their own scores rather than using bureau scores. There are also different FICO's for different lending purposes, such as one for mortgage loans and a different one for auto loans. So credit scoring across bureaus and lenders is quite different, such that your score can differ by 50 or even 100 points between them.[/quote945e9e3913]

Whats considered a bad score?

dmorris68

01-10-2007 17:09:34

[quotebe0edaba2f="manOFice"][quotebe0edaba2f="dmorris68"]There isn't just one FICO score. Fair, Issac & Co. (FICO) contracts with different bureaus and calculate scores differently depending on their client. For example, Equifax uses FICO/Beacon. Experian uses FICO/Emperica and Experian PLUS. I believe TransUnion uses their own in-house scoring algorithm. There are actually several different credit scoring algorithms, and some lenders will compute their own scores rather than using bureau scores. There are also different FICO's for different lending purposes, such as one for mortgage loans and a different one for auto loans. So credit scoring across bureaus and lenders is quite different, such that your score can differ by 50 or even 100 points between them.[/quotebe0edaba2f]

Whats considered a bad score?[/quotebe0edaba2f]
Well, again, that would vary by scoring algorithm. But I think it safe to say that anything in the low 600's would be considered moderate risk to a lender. Below 600 would definitely be considered a "poor" score and a high risk. Some scores go as low as 350-400 or so, but I imagine it would take a LOT of bad credit, and probably unsettled bankruptcy, to approach a number that low.

Above 700, usually around 720 or so, is generally considered "good" or "very good" credit. High 700's and into the 800's is considered excellent. However I read recently that due to the subprime mortgage crisis going on right now, that mortgage lenders have shifted their scales higher, such that what used to take a score of 720 to get the best rates, now takes 760 or even higher. Of course that's a general figure, because (again) different scoring methods have different "sweet spots." I've seen my score vary by nearly 100 points between different scoring applications.

manOFice

01-10-2007 17:20:30

[quote1dd1e9e43c="dmorris68"][quote1dd1e9e43c="manOFice"][quote1dd1e9e43c="dmorris68"]There isn't just one FICO score. Fair, Issac & Co. (FICO) contracts with different bureaus and calculate scores differently depending on their client. For example, Equifax uses FICO/Beacon. Experian uses FICO/Emperica and Experian PLUS. I believe TransUnion uses their own in-house scoring algorithm. There are actually several different credit scoring algorithms, and some lenders will compute their own scores rather than using bureau scores. There are also different FICO's for different lending purposes, such as one for mortgage loans and a different one for auto loans. So credit scoring across bureaus and lenders is quite different, such that your score can differ by 50 or even 100 points between them.[/quote1dd1e9e43c]

Whats considered a bad score?[/quote1dd1e9e43c]
Well, again, that would vary by scoring algorithm. But I think it safe to say that anything in the low 600's would be considered moderate risk to a lender. Below 600 would definitely be considered a "poor" score and a high risk. Some scores go as low as 350-400 or so, but I imagine it would take a LOT of bad credit, and probably unsettled bankruptcy, to approach a number that low.

Above 700, usually around 720 or so, is generally considered "good" or "very good" credit. High 700's and into the 800's is considered excellent. However I read recently that due to the subprime mortgage crisis going on right now, that mortgage lenders have shifted their scales higher, such that what used to take a score of 720 to get the best rates, now takes 760 or even higher. Of course that's a general figure, because (again) different scoring methods have different "sweet spots." I've seen my score vary by nearly 100 points between different scoring applications.[/quote1dd1e9e43c]

Good info

+k

MyungChunHa

01-10-2007 17:46:49

[quote9ad50fa68a="dmorris68"][quote9ad50fa68a="manOFice"][quote9ad50fa68a="dmorris68"]There isn't just one FICO score. Fair, Issac & Co. (FICO) contracts with different bureaus and calculate scores differently depending on their client. For example, Equifax uses FICO/Beacon. Experian uses FICO/Emperica and Experian PLUS. I believe TransUnion uses their own in-house scoring algorithm. There are actually several different credit scoring algorithms, and some lenders will compute their own scores rather than using bureau scores. There are also different FICO's for different lending purposes, such as one for mortgage loans and a different one for auto loans. So credit scoring across bureaus and lenders is quite different, such that your score can differ by 50 or even 100 points between them.[/quote9ad50fa68a]

Whats considered a bad score?[/quote9ad50fa68a]
Well, again, that would vary by scoring algorithm. But I think it safe to say that anything in the low 600's would be considered moderate risk to a lender. Below 600 would definitely be considered a "poor" score and a high risk. Some scores go as low as 350-400 or so, but I imagine it would take a LOT of bad credit, and probably unsettled bankruptcy, to approach a number that low.

Above 700, usually around 720 or so, is generally considered "good" or "very good" credit. High 700's and into the 800's is considered excellent. However I read recently that due to the subprime mortgage crisis going on right now, that mortgage lenders have shifted their scales higher, such that what used to take a score of 720 to get the best rates, now takes 760 or even higher. Of course that's a general figure, because (again) different scoring methods have different "sweet spots." I've seen my score vary by nearly 100 points between different scoring applications.[/quote9ad50fa68a]
Yea thanks again dmorris, you know everything D

I don't think I'm going to worry about it too much now, I know that I should have good credit across the board because I've been paying off my debt like crazy over the past month. Should be all and well when I'm 30 and need a house.

theysayjump

01-10-2007 19:40:30

Do credit scores start at 0 or do they start at some other base score?

dmorris68

01-10-2007 19:42:46

[quote98f4e883a6="theysayjump"]Do credit scores start at 0 or do they start at some other base score?[/quote98f4e883a6]
They start at varying baselines depending on the scoring method used, but most start at around 350 or so as I recall.

tylerc

02-10-2007 12:41:55

I just got a credit report from Experian at GadgetCity, I have a 765 D and my score ranks higher than 78.47% of all U.S. consumers. It's in the "Excellent" category too.

manOFice

03-10-2007 08:28:02

After looking at my wifes credit info, what do these mean?? I know it's bad but just currious. It's for the same thing but different reports

Payment Status Bad debt & placed for collection & skip
Comments CHARGED OFF ACCOUNT

Payment Status Charged off as bad debt
Comments Profit and loss writeoff

And accouple things say Acct Status Closed and Acct Status open

For the same thing different reports... which is it!?

dmorris68

03-10-2007 09:45:50

A charge off is one of the worst possible status to have. It means an abandoned debt that was never settled. When a creditor gives up trying to collect on a debt, they write it off as a loss for tax purposes. That will remain on the credit report for SEVEN years from the date of last activity (the last payment, last contact with collection agency, etc.), and is a serious negative to her credit score.

As far as the closed vs open status, different reports often have different info. It's very common. Not all creditors report to all three bureaus, or not on the same schedule. Sometimes things fall through the cracks. This is why it's important for everybody to check their reports regularly, because I'd say 90% of people with an active credit report have SOME sort of discrepancy on their report, even if it's harmless. Such as a bogus former address, an account you never had or one that was closed out but not reported as closed, etc.

manOFice

03-10-2007 09:48:06

[quote5c4da603b1="dmorris68"]A charge off is one of the worst possible status to have. It means an abandoned debt that was never settled. When a creditor gives up trying to collect on a debt, they write it off as a loss for tax purposes. That will remain on the credit report for SEVEN years from the date of last activity (the last payment, last contact with collection agency, etc.), and is a serious negative to her credit score.

As far as the closed vs open status, different reports often have different info. It's very common. Not all creditors report to all three bureaus, or not on the same schedule. Sometimes things fall through the cracks. This is why it's important for everybody to check their reports regularly, because I'd say 90% of people with an active credit report have SOME sort of discrepancy on their report, even if it's harmless. Such as a bogus former address, an account you never had or one that was closed out but not reported as closed, etc.[/quote5c4da603b1]

So if one says open and one says closed for the same thing which is it? open or closed? And if it's closed what does that mean? The debt is paid?

CollidgeGraduit

03-10-2007 10:05:31

[quote269f66f56b="manOFice"]So if one says open and one says closed for the same thing which is it? open or closed? And if it's closed what does that mean? The debt is paid?[/quote269f66f56b]

[quote269f66f56b="dmorris68"]As far as the closed vs open status, different reports often have different info. It's very common. Not all creditors report to all three bureaus, or not on the same schedule. [/quote269f66f56b]

theysayjump

03-10-2007 10:39:24

[quote88e9a9dc78="manOFice"]So if one says open and one says closed for the same thing which is it? open or closed? And if it's closed what does that mean? The debt is paid?[/quote88e9a9dc78]

[quote88e9a9dc78="CollidgeGraduit"][quote88e9a9dc78="manOFice"]So if one says open and one says closed for the same thing which is it? open or closed? And if it's closed what does that mean? The debt is paid?[/quote88e9a9dc78]

[quote88e9a9dc78="dmorris68"]As far as the closed vs open status, different reports often have different info. It's very common. Not all creditors report to all three bureaus, or not on the same schedule. [/quote88e9a9dc78][/quote88e9a9dc78]

manOFice

03-10-2007 10:51:27

I get their different and they don't report on the same times scheduales..

BUTTTTTTTTT

If one says closed and the other says open... WHICH IS IT!! which one hasn't updated yet...

dmorris68

03-10-2007 14:09:22

Well, they're her accounts, so how can we know for sure?

I think it's safe to assume the account is closed. Because they start out as open, it's logical to assume if one says closed, then that was probably the last update. Most accounts cannot be re-opened after being closed, you have to open an entirely new account.

Closed is a normal status for paid-off fixed term loans (auto loans, furniture store loans, etc.) and for revolving or credit card accounts that have been closed out. Note that closed doesn't have to mean "paid off" however -- most credit card companies allow you to close an account with a remaining balance, and continue to make payments against the balance according to your normal payment terms. You just can't make any further purchases on the account. But typically when you see closed, it means the account is paid off and dead.

manOFice

03-10-2007 15:04:25

Wowww... I talked with citi who just denied me because of the wifes two missed payments over a year ago

So I called up BOA who I do my banking with and applied for a Visa Platium Plus not even expecting them to approve me...

Well I got an error on the page so I called up and talked to one of their specialist.

She was going over my credit report etc and she's like welllllllll

I can only approve this visa with a $1000 limit!!

I WAS LIKE WTF, HELL YEAH, haha

And then she said she can offer me a $1000 AMEX through BOA!

I have no intention of even spending anywhere close to that but hopefully this will help my credit

theysayjump

06-10-2007 21:36:04

Is it strange that my account has a balance of (for example) $100 but my minimum amount due is $0?

It's been like that since I got it, and I've used it a few times already. I know my minimum amount due is either 3% of the total balance or $15, whichever is greater, but shouldn't it reflect that as my bill updates?

I know I have 0% APR until next April, but I didn't read anything anywhere about no minimum amount being due.

dmorris68

06-10-2007 22:09:42

[quote98cceb3dda="theysayjump"]Is it strange that my account has a balance of (for example) $100 but my minimum amount due is $0?

It's been like that since I got it, and I've used it a few times already. I know my minimum amount due is either 3% of the total balance or $15, whichever is greater, but shouldn't it reflect that as my bill updates?

I know I have 0% APR until next April, but I didn't read anything anywhere about no minimum amount being due.[/quote98cceb3dda]
Your payment amount updates when your billing cycle rolls around, it doesn't update "live" as you use the card. Approximately 30 days from when you opened the account (or thereabouts, on whatever day your monthly billing cycle lands), they will calculate your payment due as of that date, along with any finance charges due.

theysayjump

07-10-2007 08:57:01

So if my minimum amount due (MAD) is due on October 20th, the MAD will update just before then?

gmario

07-10-2007 09:03:13

[quote9ec64db719="manOFice"]Wowww... I talked with citi who just denied me because of the wifes two missed payments over a year ago

So I called up BOA who I do my banking with and applied for a Visa Platium Plus not even expecting them to approve me...

Well I got an error on the page so I called up and talked to one of their specialist.

She was going over my credit report etc and she's like welllllllll

I can only approve this visa with a $1000 limit!!

I WAS LIKE WTF, HELL YEAH, haha

And then she said she can offer me a $1000 AMEX through BOA!

I have no intention of even spending anywhere close to that but hopefully this will help my credit[/quote9ec64db719]

My friend jordan got denied on a loan for a cellphone bill that he never paid, and also you can have good credit such as 650+ but still it all depends on the history since some people will still deny you an say you have "young credit". I also got a BOA credit card ) they offered me one a few months ago.

dmorris68

07-10-2007 09:56:50

[quote02a031ea63="theysayjump"]So if my minimum amount due (MAD) is due on October 20th, the MAD will update just before then?[/quote02a031ea63]
For Capital One accounts (at least mine) the minimum payment is calculated and posted on your billing date (when your statement is issued). Your due date is a few days before the NEXT billing date -- meaning the due date is almost a month after the last statement date. For example, with my Capital One account, my last billing cycle ended on Sept 26, when the statement was issued. The due date is Oct 22.

samz465

07-10-2007 10:16:12

When does your credit history oficially "start" ?

tylerc

07-10-2007 10:27:42

When you get a credit card.

dmorris68

07-10-2007 10:40:17

[quoteb577c6d821="samz465"]When does your credit history oficially "start" ?[/quoteb577c6d821]
Whenever the first creditor with which you have good (or bad) credit history reports to a credit bureau. Usually within a month or two of getting your first credit card, auto loan, etc.

Gigante

07-10-2007 11:30:02

[quotedc925467a6="samz465"]When does your credit history oficially "start" ?[/quotedc925467a6]

If you are starting college, your first experience might be a student loan. Student loans are a great way to start to build and will easily help you get a credit card with a creditor. All I had was my student loan and my first card was $2.5k from Citi.

manOFice

18-10-2007 12:07:16

I just called cap one about a CLI, and they hooked me up $500 CLI no questions asked! Very impressed

Gigante

18-10-2007 12:59:00

Chase, who has been only giving me $200 or $300 increase each time I annoy them for one, just accepted me for their card w/ a free southwest round trip, and they gave me a $4,500 limit. Not consistent at all. They denied me for a card in September... So moral of the story is, if it feels like they are being harsh or they deny you, don't give up.

manOFice

18-10-2007 13:25:39

[quote3d9c36c9b0="Gigante"]Chase, who has been only giving me $200 or $300 increase each time I annoy them for one, just accepted me for their card w/ a free southwest round trip, and they gave me a $4,500 limit. Not consistent at all. They denied me for a card in September... So moral of the story is, if it feels like they are being harsh or they deny you, don't give up.[/quote3d9c36c9b0]

I've been reading up on a lot of credit forums, it's helped me a lot just know how to do things etc

ClassAct

18-10-2007 20:00:43

Browsed through this thread a bit, just wondering on something (dmorris) during college and what not I was very bad with my credit cards, long story short fell behind on alot of card and 2 went into collections, I had about 7 cards, two went to collections.

I have payed off one of the collection agency's, the other one is about half way payed down.

I have payed off and closed 3 of the card, and have 2 open still that I am still paying off, I am no longer deliquent on any of the cards, just wondering how many years it will take before my credit gets at a half decent number

dmorris68

18-10-2007 21:05:23

[quote2174e51823="ClassAct"]Browsed through this thread a bit, just wondering on something (dmorris) during college and what not I was very bad with my credit cards, long story short fell behind on alot of card and 2 went into collections, I had about 7 cards, two went to collections.

I have payed off one of the collection agency's, the other one is about half way payed down.

I have payed off and closed 3 of the card, and have 2 open still that I am still paying off, I am no longer deliquent on any of the cards, just wondering how many years it will take before my credit gets at a half decent number[/quote2174e51823]
You're not alone, that's virtually an epidemic among college students, and it's been that way for years. I was in college before many of you were born, and I fell prey to the same thing. That's why I know so much about credit law and what it takes to clean up your credit -- I was where you are when I was young and dumb and full of... spit. ;)

There's really no way for me to give you a reliable answer. It would depend on the balances due, length of account history, and a lot of other stuff such as the scoring algorithm used.

The fact that you're making an effort to pay is about the best thing you can do. This will show responsibility, though late, for taking care of your debts. The absolute worst thing you can do is walk away from a debt and let it go to charge-off status (the point where the creditor just writes off the debt) -- many creditors consider that worse than even bankruptcy, which is about the next worst thing you can do.

Most derogatory credit information remains on your credit report for 7 years from the date of last activity, which basically means the 7 year clock doesn't start until you've paid off the debt in full and it is no longer updated with the bureaus. It will have an impact on your score for the entire time. However, once resolved (paid off), over time it will have less and less of an impact. Some creditors that look past the numeric score might even start ignoring it after a couple of years, if there hasn't been any other shaky history.

Provided you maintain current credit in a positive state, never pay late, don't max credit lines, etc., then your score will gradually improve within a year or so most likely -- it won't just stay at the lowest point for the whole 7 years. Just don't accumulate any more bad debt during that time -- 7 years to get spotless credit is going to seem like a long time, but it'll be over before you know it. Keep your nose clean until then and when that last bad item falls off your report, your score will literally shoot up over night.

manOFice

21-11-2007 09:47:37

BOA Amex just got a CLI up to 5k in only about 1 month of owning it, going from 1k to 5k, w00t

I would also recommend the 99/500 BOA Secured card to people trying to build up credit

theysayjump

14-05-2008 21:53:02

Since I got my first Capital One card back in September I got another card via Bank Of America in January (pretty much exactly the same as the Cap One).

I've had the Cap One's limit increased once so far, paid on time and always more than the minimum balance owed and I've run up hefty balances on both cards but they're always being paid off.

I just signed up for a Credit Report offer that actually worked this time (every time I've tried them in the past they never worked due to my insufficient credit history) and it looks like it's in good standing. I mean, it says that it is, nothing negative and I have a score of 717. Is that a good score? It's better than what I thought I'd have considering I've only had credit for the past 6 months or so.

Just wanted to thank everyone again who helped me out and gave me advice, it's very much appreciated!

samz465

14-05-2008 22:22:24

I think 717 is pretty good, but this may help as a better guideline
http//financialplan.about.com/cs/creditdebt/a/FICOCreditScore.htm

Gigante

14-05-2008 22:34:22

My current scores are 650 and I have more than 20k in cards TSJ, so I would imagine you could get more credit if you wanted. Don't apply for too much though or you will decrease score.

theysayjump

14-05-2008 22:47:02

I'm fine with my $500 on each card, it's more than I need or even want, but I'm sure (provided that I keep in good standing) that they'll up the limits anyway whether I want them to or not.

doylnea

14-05-2008 23:00:57

Congrats TSJ - that's a really good score, especially for someone with as young a credit history as yours!

Anyone want to suggest a 0% interest card? I'd love for the card to have a 0% balance transfer as well. I keep seeing the Citi� Dividend Platinum Select� card as one that I like the looks of.

TravMan162

15-05-2008 02:21:36

[quoteb3d8c1cf14="doylnea"]Congrats TSJ - that's a really good score, especially for someone with as young a credit history as yours!

Anyone want to suggest a 0% interest card? I'd love for the card to have a 0% balance transfer as well. I keep seeing the Citi� Dividend Platinum Select� card as one that I like the looks of.[/quoteb3d8c1cf14]

Yes! WAMU Platinum is awesome! 0% b.t, and the security and customer support is fantastic D

Capital one blows ass. After five years of carrying a balance, paying on time every month and being a generally great customer, I asked for a decrease from the 19.8% APR and they denied me and just let me walk instead.

They're idiots

tylerc

15-05-2008 06:06:48

I've had a credit card since I turned 18, which is almost 2 years ago now. I ran my score on Credit Check Total as an offer, and it came up with these scores from the 3 credit bureaus 765, 765, 740. Does anyone know why one bureau would be that much lower than the other two?

doylnea

15-05-2008 07:25:41

Because they use different methodologies, and consider data at different times. It's normal for there to be such a disparity.

However, I would recommend that you check the agency's report that rated you lower than the others, to ensure that there is no inaccurate information on there, weighing you down.

I presume at least one of your cards is one from your parents, in your name?

tylerc

15-05-2008 07:29:34

I had one of those where my mom and I shared the account since I was about 16, but I have 2 credit cards (Chase Rewards and Best Buy Reward Zone Mastercard) that are mine and mine only. I got the Chase Rewards right after I turned 18 (summer 2006) and the Best Buy card last summer. I never carry a balance and have never had a late payment.

doylnea

15-05-2008 07:39:28

That explains it - you're getting the benefit of your mother's (likely excellent) credit. FICO has done away with considering that in the future.

[quote22bfd7f784]A major change to the FICO� credit score formula was announced by Fair Isaac Corporation earlier this week. FICO scores will no longer factor authorized user accounts into their credit scoring formulas.

Consumers who are listed as authorized users on credit card accounts will likely see a significant change in their credit scores when this modification takes place later this summer.

For most consumers, this change will have a negative impact on their credit scores. Only consumers who are listed as an authorized user on negative accounts or accounts that have balances that are close to the credit limit will possibly see an increase in their credit scores.

Adding a family member or friend as an authorized user on an existing credit card account has long been used as a way to establish credit. Many parents added their children as authorized users in order to help them build their credit history.

However, credit repair organizations have also started using this system as a way to fraudulently sell authorized user account access to consumers with credit problems. This credit repair loophole was part of the motivation for the FICO score change.[/quote22bfd7f784]

tylerc

15-05-2008 07:41:44

Yeah, my parents have good credit, I should have a pretty good score of my own, even without that account, because I always pay it off on time, and I hardly use any of my line (between my Chase/Best Buy card I have a $8,500 line of credit, I don't know why).

manOFice

15-05-2008 07:58:07

Once I learned about credit and how to work the system right

I raised my wifes credit from 512 to mid 600's

dmorris68

15-05-2008 10:43:22

Yeah, 717 is a great score for someone starting out, but which specific score was it? There's FICO/Beacon used by Equifax, Experian has a different score based loosely on FICO, and Transunion has yet another. Because they score a bit differently -- a 717 on one might be a 690 or a 730 on another. I typically score slightly little better on Experian than I do Equifax.

In general terms though, above 700 is considered good to excellent. High-600's is fairly good.

EDIT Whoops, didn't see the last page of this thread, so I thought I was replying sooner. Question already answered, I guess. )

theysayjump

15-05-2008 20:04:08

It's 717 on each of the three bureaus.

Quadracer89

16-05-2008 10:53:00

I recently got my first credit card, a capital one card. 17.9% APR It's a bit high, but my parents refused to cosign for me to get one so I guess I gotta start from the bottom up. I never let my balance go above $200, that way I can pay it off full every month.

doylnea

16-05-2008 11:04:34

It doesn't matter if they co-sign - you don't get the benefit of their credit anymore.

manOFice

16-05-2008 11:16:59

[quotec8cf9af0fa="Quadracer89"]I recently got my first credit card, a capital one card. 17.9% APR It's a bit high, but my parents refused to cosign for me to get one so I guess I gotta start from the bottom up. I never let my balance go above $200, that way I can pay it off full every month.[/quotec8cf9af0fa]

When I started out, Cap1 was the ONLY place that would give me a CC, their a great starter card. It's now my oldest card

mnx12

16-05-2008 17:39:05

I've been thinking about getting an in-store credit card through Best Buy. I have no credit history, so do you know how easy it is to get approved? And about what the limit would be, since what I want to use it for is about $1200. Right now they have 6 months no interest, but i've heard that they used to do 18 months, so I might wait and see if they bring that back.

TravMan162

16-05-2008 17:44:21

[quote6559848ab3="mnx12"]I've been thinking about getting an in-store credit card through Best Buy. I have no credit history, so do you know how easy it is to get approved? And about what the limit would be, since what I want to use it for is about $1200. Right now they have 6 months no interest, but i've heard that they used to do 18 months, so I might wait and see if they bring that back.[/quote6559848ab3]

the zero percent is good, but make sure you pay it off in the six months or they hit you with all the accrued interest in one lump some. and it's going to be around 20% for you.

It was a real kick in the store when I realized my six months was up the next week and I couldn't do a balance transfer in time. Ugh. Goddamn fine print.

mnx12

16-05-2008 17:52:48

[quote163b359057="TravMan162"][quote163b359057="mnx12"]I've been thinking about getting an in-store credit card through Best Buy. I have no credit history, so do you know how easy it is to get approved? And about what the limit would be, since what I want to use it for is about $1200. Right now they have 6 months no interest, but i've heard that they used to do 18 months, so I might wait and see if they bring that back.[/quote163b359057]

the zero percent is good, but make sure you pay it off in the six months or they hit you with all the accrued interest in one lump some. and it's going to be around 20% for you.

It was a real kick in the store when I realized my six months was up the next week and I couldn't do a balance transfer in time. Ugh. Goddamn fine print.[/quote163b359057]

But I shouldn't have a problem being approved, and the limit will be high enough?

TravMan162

16-05-2008 18:12:05

they approve everyone.

literally.

it doesn't matter if you've been bankrupt seven times and are a convicted murderer

you'll have a BB CC.

sidenote it may actually matter if you've been bankrupt seven times and are a convicted murderer D

mnx12

16-05-2008 18:56:22

Cool thanks, +krma

Oh but I just scanned the site again and it said 18 months no interest, but you have to apply in store. Weird since I just went there yesterday and the little paper said 6 months. Should I go apply and then see what i'm given?

Would doing this and paying it all off before the 18 months help start to build my credit then?

TravMan162

16-05-2008 19:01:26

yes definitely. in fact, you may want to space out your payments so that on the 17th month or whatever, your last payment will be due. This way you will carry a balance for a year and a half and be building your credit in the process.

as far as the 6/18 goes, they may be running a promo. mine was six months, but it's not out of the question for a promotion to extend the 0% length of time. I would ask before you apply though, just in case, and just to cover your own ass D

mercuryeyes001

17-05-2008 13:36:04

ok this is a good and interesting thread. Thank you.

mnx12

17-05-2008 17:36:27

So I went in and was declined from Best Buy.....

TravMan162

17-05-2008 17:39:26

no way.

wow, they must have changed things with the economy the way it is...

they were giving cards to everyone.... everyone...

i guess you're going to have to go with the anti-christ capital one then.

do you at least have a cell phone plan in your name? I could be wrong but i believe that helps your credit, however it could be one of those things where it can only hurt your credit, but never help it......

manOFice

17-05-2008 18:00:45

[quote8a689e09be="TravMan162"]no way.

wow, they must have changed things with the economy the way it is...

they were giving cards to everyone.... everyone...

i guess you're going to have to go with the anti-christ capital one then.

do you at least have a cell phone plan in your name? I could be wrong but i believe that helps your credit, however it could be one of those things where it can only hurt your credit, but never help it......[/quote8a689e09be]

If you haven't noticed... it's much harder to get decent cc's lately, to much debt in this world.

TravMan162

17-05-2008 18:07:44

[quote11b2885e1b="manOFice"]

If you haven't noticed... it's much harder to get decent cc's lately, to much debt in this world.[/quote11b2885e1b]

who said best buy was a decent cc???

theysayjump

17-05-2008 19:15:24

[quote613204415c="TravMan162"][quote613204415c="manOFice"]

If you haven't noticed... it's much harder to get decent cc's lately, to much debt in this world.[/quote613204415c]

who said best buy was a decent cc???[/quote613204415c]

Best Buy.

x323smostwantedx

17-05-2008 19:50:08

Yeah I kinda disagree with you travman, I have 3 CC's (capital,citi,wamu) and some department store cc's, Ive made all my payments on time and most of the time pay the full amount I owe and I was rejected at Best Buy, no idea why (

TravMan162

17-05-2008 19:52:24

maybe you had TOO much credit available

x323smostwantedx

17-05-2008 19:53:29

[quotec4a3f02ae9="TravMan162"]maybe you had TOO much credit available[/quotec4a3f02ae9]
Watchu talkin bout willis?

KeithA

17-05-2008 19:53:47

x323, it could actually be that for your income level they consider you to have too much credit or too many open credit lines. Promptness of payments is a key indicator of credit worthiness, but they also look at things like your debt-to-available-credit ratio, the # of open credit lines, and of course, your income.

x323smostwantedx

17-05-2008 19:56:28

[quoteb07b9e1cc2="KeithA"]x323, it could actually be that for your income level they consider you to have too much credit or too many open credit lines. Promptness of payments is a key indicator of credit worthiness, but they also look at things like your debt-to-available-credit ratio, the # of open credit lines, and of course, your income.[/quoteb07b9e1cc2]
OIC, not that I do it but do they actually check your income or do they just go by what you put? So they see that I have too many accounts open right?

TravMan162

17-05-2008 20:01:40

that's what i was saying, i just didn't explain it very well.

yeah, they generally run a credit report and it will tell them your score, your infractions, what cards you have, what red marks you have on your credit, the total amount of credit line you have available, your outstanding balances, and they compare it to your income....... in 30 seconds or less.

But credit is something that i'm not sure anyone fully understands. there could be some totally obscure thing that you've never thought of that is causing you to be denied

x323smostwantedx

17-05-2008 20:05:10

thanks buff guy and keith

TravMan162

17-05-2008 20:12:25

i only helped you cuz you're excruciatingly sexy

x323smostwantedx

17-05-2008 20:17:13

[quote05d125a21b="TravMan162"]i only helped you cuz you're excruciatingly sexy[/quote05d125a21b]
Back at ya wink

ajasax

17-05-2008 23:05:18

Not sure if it's been mentioned in this thread yet, but excessive credit checks on your credit report can also be a bad thing. Although I think they are forgiving if you explain that, for example, you were shopping around for financing, etc.

mnx12

17-05-2008 23:36:36

So since Best Buy rejected me, I am told that RC Willey will always approve with no credit history. Only their tv's are a lot more expensive, and I doubt they have the one I really wanted...Anyone know of any other electronic store that is easy to get approved for?

Quadracer89

18-05-2008 10:33:32

[quotee650aa7de9="mnx12"]So since Best Buy rejected me, I am told that RC Willey will always approve with no credit history. Only their tv's are a lot more expensive, and I doubt they have the one I really wanted...Anyone know of any other electronic store that is easy to get approved for?[/quotee650aa7de9]

Eh, if I were you, I would wait on getting a TV on credit. I had a zero credit history when I applied to capital one, the accepted me right on the spot and I got my card within a week. They started me at a $500 credit limit and after 3 months, I have the option to boost it upto $750. You wont be accepted with most in-store cards until you have a major credit card in your own name. And I can almost guarantee you wont find a place that will give you a $1000+ credit limit on your first card.

mnx12

19-05-2008 13:44:18

Anyone know how easy it is to be approved by Amazon?
http//www.amazon.com/gp/cobrandcard/marketing.html?place=camp&inc=9018&pr=conplcc&plattr=24100508

theysayjump

12-03-2009 09:10:38

Bump. Thought this was interesting http//lifehacker.com/5168690/ten-credit-score-myths-dispeled-in-60-seconds

AdrienD1892

12-03-2009 10:10:35

[quote2abaa8e11c="mnx12"]Anyone know how easy it is to be approved by Amazon?
http//www.amazon.com/gp/cobrandcard/marketing.html?place=camp&inc=9018&pr=conplcc&plattr=24100508[/quote2abaa8e11c]

I have a chase card through Amazon and it rocks, but I have excellent credit so I might not be the best person to ask. Chase is also doing some dodgy things at the moment with APR.

There are lots of things that effect your credit and skimming the posts I've noticed no one mention "Debt to Income" ratio. If your debt (meaning your mortgage, Student loans, car loans, CC's is higher than your Income your credit goes down.

Best way to raise credit is to keep your cedit balance half of what your limit is. Meaning, never charge more than half your limit. If your limit is 1000, never spend more than 500. pay it off at the end of every month or if you can't do that, pay more than the minimum.

If you just made a large purchase IE house, car, boat, etc your credit will go down. Don't panic, it's just because you have no credit left, you just used it. It will go back up quickly.

If you CLOSE an account, your credit score will go down. Again don't panic it's only 2 points and very easy to make up.

If you plan to make a big purchase on finance (which will help your credit) make sure you know when you have to pay it all back. Take a look at your interest rate too. Most top tier's are between 0-10%. Anything higher than that and you're going to pay a lot in interest (unless you pay it all off every month) (Personally I think anything over 3% is high)

credit is very tricky but it's fairly simple to get it up. Just make sure you don't go delinquint and you'll be fine. I raised my credit from 620 to 740 in a little over a year. I run a free report (which you're entitled to) every year just to make sure nothing is open I don't know about or nothing is wrong. Just about all bills will raise or lower your credit. Cell phones, charge cards, utility bills, insurance...

Also, it's not common knowledge, but medical bills are by law, never able to show up on your credit. If you find one on your account, dispute it. Hospitals and Dr's offices are NOT allowed (for medical reasons, not vanity reasons) to send you to collections no matter what they say.

I used to work in the finance department at Dell, inc (the computer company) so I know a LOT about credit.

dmorris68

12-03-2009 11:53:12

[quoteef27e35eca="AdrienD1892"]There are lots of things that effect your credit and skimming the posts I've noticed no one mention "Debt to Income" ratio. If your debt (meaning your mortgage, Student loans, car loans, CC's is higher than your Income your credit goes down.[/quoteef27e35eca]
I've posted about it at length a few times. And it's not quite as simple as "total debt higher than income." Debt-to-Income ratios typically deal with debt payments (not total debt) compared to income on the same basis (i.e. monthly payments compared to monthly income). For most mortgages, they like to see your debt-to-income ratio at no more than around 35%.

In fact, income plays absolutely NO role whatsoever in a credit [ief27e35eca]score[/ief27e35eca]. It's not even a factor. Some lenders don't even require income info, they just take a score above a certain level as approved. Most will, however, consider score + income to decide on how much to offer you.

[quoteef27e35eca="AdrienD1892"]Best way to raise credit is to keep your cedit balance half of what your limit is. Meaning, never charge more than half your limit. If your limit is 1000, never spend more than 500. pay it off at the end of every month or if you can't do that, pay more than the minimum. [/quoteef27e35eca]
This is true and something I've pointed out before. Balance-to-Limit ratio is probably THE most important thing to keeping a high score (aside from avoiding the obvious negative events, of course).

[quoteef27e35eca="AdrienD1892"]If you just made a large purchase IE house, car, boat, etc your credit will go down. Don't panic, it's just because you have no credit left, you just used it. It will go back up quickly. [/quoteef27e35eca]
Secured property like real estate and cars don't impact your balance-to-limit ratio, because there is no open credit limit -- it's a fixed term loan. It also improves your score relative to revolving charge accounts, i.e. secured loans are considered "good" credit while revolving accounts are considered "less good" or higher risk. A big secured loan will of course impact your total debt picture, but paying it down doesn't linearly improve your credit score, like paying down an open revolving account like a credit card would.

[quoteef27e35eca="AdrienD1892"]If you CLOSE an account, your credit score will go down. Again don't panic it's only 2 points and very easy to make up.[/quoteef27e35eca]
True, because you're reducing your available credit. Best thing is to leave the account open, cut up the card, and forget you have it. The available credit will still be on your report and improve your balance-to-limit ratio.

[quoteef27e35eca="AdrienD1892"]Also, it's not common knowledge, but medical bills are by law, never able to show up on your credit. If you find one on your account, dispute it. Hospitals and Dr's offices are NOT allowed (for medical reasons, not vanity reasons) to send you to collections no matter what they say. [/quoteef27e35eca]
Huh? Point me to a source please. The law says they can't disclose the medical-related creditor out of privacy concerns (such as a collections from a cancer center, or a sexual reassignment clinic P ) but medical collections most certainly do go to collections and show up on your credit report. The bureaus have a generic "Medical" category they assign to the collection without identifying the creditor. And I know this not only from being familiar with the regulations, but from first-hand experience. Twice in the last 3 years I've had it happen to me after two different medical bills, among dozens incurred during a short timeframe, were transcribed with the wrong zip code. The bills went to another city across the state, they never bothered to call me about them, and I discovered both only after monitoring my credit reports. I immediately jumped on the phone and disputed the collections, they verified it was due to no fault of mine, and removed the collections from all of my reports. Monitoring my credit and staying on top of consumer credit law is something I've been doing for 20+ years now, and it has saved my bacon more than once.

manOFice

12-03-2009 12:39:14

capone rate jacked me to basically 30% APR

AdrienD1892

12-03-2009 12:51:55

[quote245b599d1b="manOFice"]capone rate jacked me to basically 30% APR[/quote245b599d1b]

Yeah me too when I had them when I was 18. They say "Low APR of like 2% fixed" then you get your statement and it's 29.9% But they DO give a card to almost EVERYONE.

I always call my Credit card companies and ask them to lower my rate. But USAA won't lower me anymore than 8% they say I'm the lowest tier they have so.. lishrugli I should ask my parents what their APR is. But since I never spend more than I can pay off I guess it doesn't matter.

I got a new discover from doing Christmas On Us and it gives 5% cash back on gas. And my Amazon card I've already gotten $50 on cash back from them. Pretty sweet.

dmorris68

12-03-2009 12:59:28

I think we'll see all of them raising rates, even on their good customers. 2 of my 3 have raised their rates on me over the past year, including Capital One (although not to the levels you guys are talking about, more like to 12% I think, it was 5.9% for years).

My newest Chase VISA though has a 9.9% rate with 1-3% cash back on purchases, just in the few months I've had it I've already racked up about $150 in cash back bonus. The wife has her own Discover card with I think a 14.9% rate and 5% cash back.

AdrienD1892

12-03-2009 13:03:00

[quote9bdf45c10c="AdrienD1892"]If you CLOSE an account, your credit score will go down. Again don't panic it's only 2 points and very easy to make up.[/quote9bdf45c10c]
True, because you're reducing your available credit. Best thing is to leave the account open, cut up the card, and forget you have it. The available credit will still be on your report and improve your balance-to-limit ratio.

I disagree with this. Don't ever cut up your card and forget about it. Then you have a revolving credit line out there that's just sitting. It will show credit lenders like banks when you apply for mortgages or cars that you have all this credit that's not being used. They don't like that anymore than people who over spend. Just close the account. It's only a 2 pt hit not that big of a deal.

[quote9bdf45c10c="AdrienD1892"]Also, it's not common knowledge, but medical bills are by law, never able to show up on your credit. If you find one on your account, dispute it. Hospitals and Dr's offices are NOT allowed (for medical reasons, not vanity reasons) to send you to collections no matter what they say. [/quote9bdf45c10c]
Huh? Point me to a source please. The law says they can't disclose the medical-related creditor out of privacy concerns (such as a collections from a cancer center, or a sexual reassignment clinic P ) but medical collections most certainly do go to collections and show up on your credit report. The bureaus have a generic "Medical" category they assign to the collection without identifying the creditor. And I know this not only from being familiar with the regulations, but from first-hand experience. Twice in the last 3 years I've had it happen to me after two different medical bills, among dozens incurred during a short timeframe, were transcribed with the wrong zip code. The bills went to another city across the state, they never bothered to call me about them, and I discovered both only after monitoring my credit reports. I immediately jumped on the phone and disputed the collections, they verified it was due to no fault of mine, and removed the collections from all of my reports. Monitoring my credit and staying on top of consumer credit law is something I've been doing for 20+ years now, and it has saved my bacon more than once.

you should dispute the bill based on medical reasons. I think the law has changed, to 7 years, but i do know that there is a law (I'll try to find it when I'm home tonight) that states medical charges (for hospital bills proceedures and such) cannot show up on a credit report and if they report it, it is not done legally.

I knwo this from two sources, one, becuase I used to work for an insurance company (I worked in claims and appeals) and two, because when a hospital tried to pull that crap on me and sent a collections agency after me (for a bill I never got in the first place) I said, "You can't report that, by law, that a bill is outstanding" and she said "no you're right I can't" They never sent me the EOB OR a bill and I'd asked a few times. Apparently $100 wasn't worth it to them becuase I haven't heard back. lishrugli

As far as you disputing the fact that after making a large purchase you don't have credit left, I should have worded that differently. There are companies that WILL say your credit is lower after making a large purcahse even if you have perfect credit (not score, credit, they're different). I know first hand that places like Dell, Apple, HP, Best Buy, and other retail places will decline you for a card even if you have perfect credit and just pushed a million dollar house. The reason is because you just purchased said million dollar house.

Also, if you're about to purchase a house/car/boat/etc lenders will tell you not to have your credit pulled, not to open a card, not to close a card because all this can effect your outcome of your loan.

Credit and credit scores are wonky at best. My report still has me living at a house I haven't lived in for 6 years...

manOFice

12-03-2009 13:10:13

If you search credit forums, medical bills are one of the most common delinquents on peoples credit reports...

AdrienD1892

12-03-2009 13:12:33

[quote4e7f838bd3="manOFice"]If you search credit forums, medical bills are one of the most common delinquents on peoples credit reports...[/quote4e7f838bd3]

Maybe the laws changed or it's state to state but I know in TN where I was working for the insurance company it was pretty common knowledge that they couldn't report it. Though I have heard something about now it being after 7 years they can. I'll have to find the direct law.

And just because it's being reported doesn't mean it's accurate. Most people don't understand ANYTHING about insurance OR Credit.

dmorris68

12-03-2009 14:09:42

[quotee6a2d55f44="AdrienD1892"]I disagree with this. Don't ever cut up your card and forget about it. Then you have a revolving credit line out there that's just sitting. It will show credit lenders like banks when you apply for mortgages or cars that you have all this credit that's not being used. They don't like that anymore than people who over spend. Just close the account. It's only a 2 pt hit not that big of a deal. [/quotee6a2d55f44]
I think it's more than 2 points, but for purposes of scoring it makes no difference whether credit is used and paid off, or never used at all. As I've said before, when a [ie6a2d55f44]human[/ie6a2d55f44] loan officer is looking over your credit history and making a decision, many want to see that you've used and managed credit responsibly by borrowing and paying back over time. But the score itself is only interested in available credit, not the frequency of activity.

My mortgage loan officer told me they had a customer who had spent the last several years opening every credit card he could find, and had a huge stack of them. The report ran for like dozens of pages, more than he'd ever seen in his career as a loan officer -- something like 200 credit cards or some ridiculous number. But this guy's score was huge, because when he got these cards he tossed 'em in a drawer and never once used them, and had virtually zero debt.

[quotee6a2d55f44="AdrienD1892"]you should dispute the bill based on medical reasons. I think the law has changed, to 7 years, but i do know that there is a law (I'll try to find it when I'm home tonight) that states medical charges (for hospital bills proceedures and such) cannot show up on a credit report and if they report it, it is not done legally. [/quotee6a2d55f44]
I didn't need to dispute it based on medical reasons, I already disputed it with the collection agencies and creditors who recognized the mistake and fixed it for me. So it's gone.

Perhaps it's a state thing where you lived, but it is NOT part of FCRA or FDCPA, and never has been federal law. Medical collections are in fact widely reported by credit bureaus, and they announce so in all of their marketing material.

Relevant Reading The truth about medical collection accounts and your credit reports[=http//www.creditbloggers.com/2006/05/the_truth_about.html]The truth about medical collection accounts and your credit reports

[quotee6a2d55f44] li Medical collection information must be masked on commercial credit reports by law. The FACT Act specified that medical collection data be blocked out on credit reports sold to lenders, credit card issuers, employers, etc. It's not hard to image the negative consequences of having a collection record with "Cherry Lane Mental Hospital for the Severely Deranged" on your credit reports! When businesses pull your credit report for the purpose of an application, the medical office name is blocked out and only the financial information remains.
li Medical collection records do appear on your personal credit reports. When you order your own credit reports, these medical collection records remain unmasked. This is so you can verify that the accounts are indeed accurate and can contact the appropriate business if needed.
li Medical collections remain on your credit report for 7 years. Period. Paying off a collection debt does not cause it to be removed from your report. Don't be bullied by collection agents telling you that payment will cause the record to disappear. You can read your rights under the Fair Debt Collection Practices Act online.
li Medical accounts do not appear on credit reports on their own. Only medical collection records for severely overdue accounts will be recorded on your credit history. A simple visit to a hospital or clinic will not be reported. [/quotee6a2d55f44]

Also here http//www.credit.com/products/debt/Collections-Crash-Course.jsp
[quotee6a2d55f44]Preventing collections

Because collection agencies buy such a wide variety of debts, debt collections are common occurrences. [be6a2d55f44]Medical collections are especially common because of policies that leave the consumer ultimately responsible for medical bills even if the insurance company was supposed to cover the expense.[/be6a2d55f44][/quotee6a2d55f44]
It wouldn't make much sense to wait 7 years to report it, because according to FCRA delinquent debt cannot be reported after 7 years -- that's the statute of limitations on bad credit reporting with the exception of some forms of bankruptcies, which can span 10 years. After 7 years from your last activity on the debt (last payment or whatever), the bureau must by law drop that item off your report. Which is why some people go to great pains to avoid even acknowledging or talking to a collection agent trying to collect an old debt -- doing so could restart the 7 year clock.

[quotee6a2d55f44="AdrienD1892"]Also, if you're about to purchase a house/car/boat/etc lenders will tell you not to have your credit pulled, not to open a card, not to close a card because all this can effect your outcome of your loan.[/quotee6a2d55f44]
Opening unrelated credit while car or house shopping will hurt your credit score -- any such inquiry for new credit will do so. However having multiple reports pulled in a short period for auto loans and mortgages will NOT count as multiple queries and hurt your score further. FICO and other scoring algorithms allow for rate shopping for a single purchase, so they roll all of those related inquiries up into one inquiry.

[quotee6a2d55f44="AdrienD1892"]Credit and credit scores are wonky at best. My report still has me living at a house I haven't lived in for 6 years..[/quotee6a2d55f44]
Currently, or as a historical address? They keep address history on file for virtually forever. Mine has addresses on me going back 25+ years, plus a few in states that I've never even visited, let alone lived in. I keep meaning to dispute those erroneous ones just to clean things up, but never get around to it.

mnx12

04-04-2009 19:03:09

I just applied at Bank Of America for a secured credit card and was denied. How does that even happen when you deposit your own credit limit?

SkatingCrippled

04-04-2009 21:23:01

[quote3a2e01c3e0="mnx12"]I just applied at Bank Of America for a secured credit card and was denied. How does that even happen when you deposit your own credit limit?[/quote3a2e01c3e0]

If you're looking to get your first credit card, get the Capital One Platinum card. It was my first card, and approval is pretty much guaranteed.

manOFice

05-04-2009 12:47:01

[quote50cde45c31="mnx12"]I just applied at Bank Of America for a secured credit card and was denied. How does that even happen when you deposit your own credit limit?[/quote50cde45c31]

yikes man, thats a good starter card too

my first was a cap one card, only company that would take me at first.

manOFice

07-04-2009 17:35:51

got a couple letters in the mail today, BOA rate fucked me on all my cards

slambam

07-04-2009 17:37:33

Yea my Dad got that from BOA too, I haven't though, yet.

mistertomlinson

07-04-2009 18:28:38

For anyone interested in their credit score, I don't recall this being mentioned. I found a site (creditkarma.com) that lets you check your score for free anytime and doesn't require signing up for a trial or entering credit card info. They pay for the service through ads and credit card offers. There are some pretty neat features like comparing your score to others in your age limit, average US consumers and even others using email addresses of the same domain. My score just went up 4 points in the last month! 8)

TryinToGetPaid

07-04-2009 18:49:53

+K for the site. (that's right. I am bringing it back)

mnx12

07-04-2009 20:38:25

Just did the Credit Karma site, and got a 648 score. That's not very good, but not so horrible that I should be denied a secured card, right? Lol

theysayjump

07-04-2009 23:31:37

[quoteea936f0d45="mistertomlinson"]For anyone interested in their credit score, I don't recall this being mentioned. I found a site (creditkarma.com) that lets you check your score for free anytime and doesn't require signing up for a trial or entering credit card info. They pay for the service through ads and credit card offers. There are some pretty neat features like comparing your score to others in your age limit, average US consumers and even others using email addresses of the same domain. My score just went up 4 points in the last month! 8)[/quoteea936f0d45]

Yeah it's a pretty neat site, I mentioned it in the other thread that someone made.

My score went up to 722 from 700 last month. D

mistertomlinson

08-04-2009 05:33:34

[quote2a24097d10="theysayjump"][quote2a24097d10="mistertomlinson"]For anyone interested in their credit score, I don't recall this being mentioned. I found a site (creditkarma.com) that lets you check your score for free anytime and doesn't require signing up for a trial or entering credit card info. They pay for the service through ads and credit card offers. There are some pretty neat features like comparing your score to others in your age limit, average US consumers and even others using email addresses of the same domain. My score just went up 4 points in the last month! 8)[/quote2a24097d10]

Yeah it's a pretty neat site, I mentioned it in the other thread that someone made.

My score went up to 722 from 700 last month. D[/quote2a24097d10]

Damn, that's quite a jump... and to think I was actually proud of my 4 point increase. (my score is 767, btw 8)... thanks again freebies for allowing me to pay off my debt.)

SkatingCrippled

08-04-2009 08:11:47

Thanks for posting that site. I do get quite a bit of variation from the three bureaus.

Fico- 704
Experian- 736
Transunion (creditkarma)- 753

mistertomlinson

08-04-2009 19:41:13

[quotec45664b519="SkatingCrippled"]Thanks for posting that site. I do get quite a bit of variation from the three bureaus.

Fico- 704
Experian- 736
Transunion (creditkarma)- 753[/quotec45664b519]

At 19? Not bad.