Building Credit Help??
03-31-2014, 03:04 PM
#1
Staging Lane
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Building Credit Help??
Hey guys, I am engaged and will be getting married in a little over a year. With that said, it will come house time before too long. I've decided to try and get a fourwheeler or motorcycle financed in around August. I financed a TV through best buy a year ago and payed it off in the 12 months never missed a payment or made a late one. Im hoping I will have enough credit to get one of those financed. I decided I will need credit soon so might as well try to build it with something I will enjoy. Any ideas or suggestions?
03-31-2014, 08:00 PM
#3
Best thing you can do is the following.
1) credit card from a major carrier (visa, MasterCard, etc)
2) finance thru a credit union/bank a car even if its only $3,000 for minimum of 2 years.
3) a four wheeler or motorcycle financed again thru a credit union or bank minimum of 12 months.
4) use your card but keep credit card balance less than 30% of the limit.
Worst things you can do
1) miss or be late on any payment ever
2) overdraft a checking account
3) finance thru a buy here pay here
4) never cancel or stop using a credit card
5) never pay off a loan prior to 12 months
1) credit card from a major carrier (visa, MasterCard, etc)
2) finance thru a credit union/bank a car even if its only $3,000 for minimum of 2 years.
3) a four wheeler or motorcycle financed again thru a credit union or bank minimum of 12 months.
4) use your card but keep credit card balance less than 30% of the limit.
Worst things you can do
1) miss or be late on any payment ever
2) overdraft a checking account
3) finance thru a buy here pay here
4) never cancel or stop using a credit card
5) never pay off a loan prior to 12 months
03-31-2014, 08:08 PM
#4
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I justwenrt through same thing u r a year ago
my banker told me to get 2 credit cards for a year keep a balance of around 100 dollars on each for a year. Basically buy something take 3 months to pay off and start over again. Pay all utility phone bills on time and use a credit union for truck cars motorcycles I financed a 2000 dollar truck for 2 years and put the 2300 to pay it off in a account and had it auto deduction for 1 year payed off rest. Talk to a bank about a home loan 1 year priorer to buying a house it will take time to find one in your budget and meet all qualifications of the bank. Mine required 1 year of check stubs. 6 months bank records of checking and savings. But talk to your bank they will tell u what to do. Good luck
my banker told me to get 2 credit cards for a year keep a balance of around 100 dollars on each for a year. Basically buy something take 3 months to pay off and start over again. Pay all utility phone bills on time and use a credit union for truck cars motorcycles I financed a 2000 dollar truck for 2 years and put the 2300 to pay it off in a account and had it auto deduction for 1 year payed off rest. Talk to a bank about a home loan 1 year priorer to buying a house it will take time to find one in your budget and meet all qualifications of the bank. Mine required 1 year of check stubs. 6 months bank records of checking and savings. But talk to your bank they will tell u what to do. Good luck
03-31-2014, 09:14 PM
#5
Bought my place in 08 I worked on credit for 3 years -
1. 2 cards credit cards limits of 3000 and 7500 and was told keep under half limit to build credit
2. I paid over min payment it can be 5 dollars and it's over the min. Which is a positive
3. Paid my truck off early
4. Income to dept is big deal they looked at for me I had around 10k then and asked for a 95k loan I got approved for 127000 and I only made at the time 45k - keep your debt low if you can.
5. Don't ask for your credit score- .1 point will be deducted everytime they look. I found out the hard way. I started at 740 at 23 years old. By the time I signed I was at 670. Idk what happened they must have ran my credit a lot.
1. 2 cards credit cards limits of 3000 and 7500 and was told keep under half limit to build credit
2. I paid over min payment it can be 5 dollars and it's over the min. Which is a positive
3. Paid my truck off early
4. Income to dept is big deal they looked at for me I had around 10k then and asked for a 95k loan I got approved for 127000 and I only made at the time 45k - keep your debt low if you can.
5. Don't ask for your credit score- .1 point will be deducted everytime they look. I found out the hard way. I started at 740 at 23 years old. By the time I signed I was at 670. Idk what happened they must have ran my credit a lot.
03-31-2014, 09:44 PM
#6
Every time they run your credit the points drop. If there are no new purchase after your credit has been run, it will drop again.
They view it the same as getting rejected.
Always pay more then the minimum as suggested above. Never pay The balance off before getting a statement. other wise it wont show up on your credit history. Only The debt shows up and Payment history after debit is incurred.
Be careful who you get credit from as some Companies and Stores don't report your history unless your delinquent. Good example is a tool Company's like Snap on, Mac. or Matco. I financed a Tool Box for 7K and it was not on my credit report when I went to buy a car. That's how I found out.
Use a Bank Or Credit Union to finance major items to insure you establish a credit history
I was told to maintain around 20% debt on my credit cards when looking for a house.
To low of debt and they figure your high risk and they wont make money off you. same if you owe to much.
Best thing I did was start at Sears with a $500 limit. I bought some tools made 1 payment and then I got an offer for another credit card with a higher limit and better interest. I applied right away and got accepted. I used it to buy gas for my car and other piddle stuff I might need.
They view it the same as getting rejected.
Always pay more then the minimum as suggested above. Never pay The balance off before getting a statement. other wise it wont show up on your credit history. Only The debt shows up and Payment history after debit is incurred.
Be careful who you get credit from as some Companies and Stores don't report your history unless your delinquent. Good example is a tool Company's like Snap on, Mac. or Matco. I financed a Tool Box for 7K and it was not on my credit report when I went to buy a car. That's how I found out.
Use a Bank Or Credit Union to finance major items to insure you establish a credit history
I was told to maintain around 20% debt on my credit cards when looking for a house.
To low of debt and they figure your high risk and they wont make money off you. same if you owe to much.
Best thing I did was start at Sears with a $500 limit. I bought some tools made 1 payment and then I got an offer for another credit card with a higher limit and better interest. I applied right away and got accepted. I used it to buy gas for my car and other piddle stuff I might need.
03-31-2014, 10:06 PM
#7
Weird... My Snap-On credit showed up on my report. Thank goodness I paid that thing off this Jan. it's been sitting under a cover for a looong while but hey, once I do have a nicer shop to put it in, I'll have a damn nice box I guess.
I've always sworn off credit cards but it looks like me only having larger loans on my credit report ( mostly 10K +) has actually hurt mine.... I need smaller revolving lines of credit from what I was told. I'm looking for a credit card now with no annual fees and decent interest. My credit isn't "bad" I just need to do some things to make it as good as it should be.
I've always sworn off credit cards but it looks like me only having larger loans on my credit report ( mostly 10K +) has actually hurt mine.... I need smaller revolving lines of credit from what I was told. I'm looking for a credit card now with no annual fees and decent interest. My credit isn't "bad" I just need to do some things to make it as good as it should be.
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03-31-2014, 10:33 PM
#8
Weird... My Snap-On credit showed up on my report. Thank goodness I paid that thing off this Jan. it's been sitting under a cover for a looong while but hey, once I do have a nicer shop to put it in, I'll have a damn nice box I guess.
I've always sworn off credit cards but it looks like me only having larger loans on my credit report ( mostly 10K +) has actually hurt mine.... I need smaller revolving lines of credit from what I was told. I'm looking for a credit card now with no annual fees and decent interest. My credit isn't "bad" I just need to do some things to make it as good as it should be.
I've always sworn off credit cards but it looks like me only having larger loans on my credit report ( mostly 10K +) has actually hurt mine.... I need smaller revolving lines of credit from what I was told. I'm looking for a credit card now with no annual fees and decent interest. My credit isn't "bad" I just need to do some things to make it as good as it should be.
Discover lets you earn cash back and Citi was there when Chase took over Washington Mutual and gave me the shaft.
Chase changed the Due date on all WAMU customers by something like 2 days and I didn't watch my statement close enough. As a result I had a late payment. They wouldn't wave it or do anything to help me. My account was in excellent standing and I did my banking with them. As a result I did a Balance transfer to CitiBank and haven't used Chase since for anything credit wise. I also don't keep much more than the minimum in the savings account So they can't make interest off my money.
They always try to get me to sign up for their newer cards and when I tell the tellers what happened and they see my Grandfathered card they realize there is nothing they can do. To this day I never got my late fee refunded and they have never even offered me a credit in an attempt to earn my business back.
03-31-2014, 10:55 PM
#9
Staging Lane
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Okay thanks for all the advice guys! So a credit card is a good place to start. I am 20 now, turn 21 in this upcoming September, I will be making about 40K a year starting in May. Not getting married until December 2015 so I have some time to save and build it up. I have the Best Buy credit card that has a $2000 limit. I put $1200 on it and payed it off over 12 months. That should have gotten me something going at least. Still have the card but don't really use it anymore. I guess I need to get a card with a higher limit from a company like Citi and use it for gas every month and pay it off or something like that. My plan is to save about $2000 or so and finance a motorcycle for around $6000 with $2000 down making it a debt of $4000 for 24 months. Something like that.
03-31-2014, 11:11 PM
#10
Okay thanks for all the advice guys! So a credit card is a good place to start. I am 20 now, turn 21 in this upcoming September, I will be making about 40K a year starting in May. Not getting married until December 2015 so I have some time to save and build it up. I have the Best Buy credit card that has a $2000 limit. I put $1200 on it and payed it off over 12 months. That should have gotten me something going at least. Still have the card but don't really use it anymore. I guess I need to get a card with a higher limit from a company like Citi and use it for gas every month and pay it off or something like that. My plan is to save about $2000 or so and finance a motorcycle for around $6000 with $2000 down making it a debt of $4000 for 24 months. Something like that.
Just don't pay off the balance too soon. Get a statement first and pay off just before the due date.
They say showing a small Balance will help when you apply for other lines of credit.