Credit

[Neejay]

How the hell do I build my credit up if no one gives you a chance to build it up?

Ive had a credit card with my grandma for over a year now with no late payments and being active every month. I applied for a credit card and it was denied basically because "I dont have enough credit". What else can I do to build it up?

My bank denied me a secured credit card ($500) because the place the credit card company is based is in Tenn. and the age there is 19 (Im 18 BUT I'll be 19 on september 19th).

Im all out of ideas.

[Rockenreno]

Hey, you have the same birthday as me! (but 2 years later)

Try applying for a different credit card. If you pay if off every month then interest rates don't matter to you. There's a lot of companies out there that want your business. Personally, when I was 18 I got a student credit card through my bank, limit of $500. Now I get at least 2 credit card applications per week from a bunch of companies. Just keep looking and something will pop up. You'll be fine as long as you keep paying on time

[SmithSR]

Co-signers. Get mom or dad to co-sign an auto loan or other large sum, then pay early, pay every time, pay above minimums. Every lender wishes every borrower was a perfect payer with perfect history and no late payments. They set a high standard and don't like giving money out, when the chances of getting it back are not great.

At your age, considering the risk factor for default, you need to be very careful with any money you borrow, and pay it back as if your life depends on it, because in many ways, it does.

[w1ngzer0]

Co-signers. Get mom or dad to co-sign an auto loan or other large sum, then pay early, pay every time, pay above minimums. Every lender wishes every borrower was a perfect payer with perfect history and no late payments. They set a high standard and don't like giving money out, when the chances of getting it back are not great.

At your age, considering the risk factor for default, you need to be very careful with any money you borrow, and pay it back as if your life depends on it, because in many ways, it does.

yep and if you can't do that. Banks have new credit programs where you put 500 in a savings account and make payments. By the end of the year you get all thoughs payments you made and the 500. Then they report to the credit people how well you did.

But don't get a credit card. Those things are garbage. I have had my $500 for 4 years now and hasn't improved my credit worth crap. Buying a car did though :oface

[rousie13]

Go to http://www.clout.com I got a card from them when I was 18 with a fairly high limit(~$1500) and I used that card for a year or so, then I got a Chase credit card with rewards. I also got some store ones when I bought stuff (labtop from circuit city, tools from sears, etc). Once those were payed off, I just cancelled them. I am now 20 with excellent credit and can get nearly anything (to an extent) on credit now. For example, I just got a loan for a used Toyota Tacoma and got approved in like 10 minutes and got one of the lowest interest rates possible for a used vehicle. Pay the cards off every month and try not to carry a high balance, and you'll get excellent credit too.

[Neejay]

Go to http://www.clout.com I got a card from them when I was 18 with a fairly high limit(~$1500) and I used that card for a year or so, then I got a Chase credit card with rewards. I also got some store ones when I bought stuff (labtop from circuit city, tools from sears, etc). Once those were payed off, I just cancelled them. I am now 20 with excellent credit and can get nearly anything (to an extent) on credit now. For example, I just got a loan for a used Toyota Tacoma and got approved in like 10 minutes and got one of the lowest interest rates possible for a used vehicle. Pay the cards off every month and try not to carry a high balance, and you'll get excellent credit too.

Did you get and offer in the mail, or did you apply on their sight? I couldnt find it on their website.

[rousie13]

Did you get and offer in the mail, or did you apply on their sight? I couldnt find it on their website.

Thats a good question. I honestly don't remember. Try calling them or emailing them to get an application or apply.

[vicki]

Are you in college? Once you start school, you'll start receiving CC offers up the arse. I'd look for one that has a 0% APR intro for x amount of months. Make sure you know when the intros end because you usually get raped with charges after that. Try not to carry a balance. (Some people think that you only develop good credit by carrying a balance which isn't true at all.) AMEX blue, Bank of America, Citi etc are all pretty good cards. Capital one is crap. The key is to apply for a student card. If you apply for regular ones, you'll probably get denied unless you have a fairly steady and substantial income. Even if they offer you a high credit limit, only accept 500-1k otherwise you risk getting in mucho debt. Good luck.

[574-240sx]

Yeah it sucks. I had a cosigner on my first loan and paid if off 18 months early.I recieved my second loan by myself. The second loan for two years I paid off in 7 months. I have almost perfect credit and still can't get a credit card. Oh well I guess I'll stick with my debit card. Nick

[rousie13]

I have about $5k in limits on 2 credit cards with a $0 balance combined right now. I applied for my first loan (other than student loans) and got it without a cosigner for the truck I just bought.

[Neejay]

Yeah, I'll look into getting a cosigner for a loan, and turn around and use that money to pay it off. I just applied for 2 student credit cards.

Applying for too many credit cards is the same as having too many people check your credit history right? (as in being a bad thing)

[SmithSR]

Yes. We see a pattern of a person looking for credit, and this is a small red flag. Somehow, it's a bad thing to go searching for credit, but you can't get credit without a history, but you can't have a history without first applying for credit. That's why it's good to get in on sure-thing loans with the parents, to establish some kind of history.

[Jesda]

I had four credit cards when I was 18. What a horrible spending temptation that was. What a horrible time I had paying it back.

-Jesda

[Cold_Zero]

How the hell do I build my credit up if no one gives you a chance to build it up?

Ive had a credit card with my grandma for over a year now with no late payments and being active every month. I applied for a credit card and it was denied basically because "I dont have enough credit". What else can I do to build it up?

My bank denied me a secured credit card ($500) because the place the credit card company is based is in Tenn. and the age there is 19 (Im 18 BUT I'll be 19 on september 19th).

Im all out of ideas.

Apply for a Shell gas card (doesnt matter what gas company) or a credit card at Best Buy/Circuit City. Make small purchases and then turn around and pay it off. Potential Creditors like to see revolving debt and how you have managed it.

I would stick to larger institutions that back the credit card. They typically see the value of getting a new young customer to market their services toward in the future. Do you have any student loans?

[rousie13]

I got a question. Do student loans hurt your credit? I have a few and my credit point thing is like a 743...so would it be higher or lower without student loans?

[Cold_Zero]

Typically, car loans, home loans and student loans in good standing are overlooked by creditors. They are the necessary evils of living in this country. As I said, Creditors really hone in on revolving debt. How many accounts you have with revolving debt, the balances and how high the limits are on them. It is not to say though, that they dont look at your FICO score and the income to debt ratio.

[vicki]

I got a question. Do student loans hurt your credit? I have a few and my credit point thing is like a 743...so would it be higher or lower without student loans?

No loan really hurts your credit rating. Not paying them back on time is what gets people into bad credit.

[Neejay]

Apply for a Shell gas card (doesnt matter what gas company) or a credit card at Best Buy/Circuit City. Make small purchases and then turn around and pay it off. Potential Creditors like to see revolving debt and how you have managed it.

I would stick to larger institutions that back the credit card. They typically see the value of getting a new young customer to market their services toward in the future. Do you have any student loans?

Im waiting now for the approval or at least for it to hit my student account. I filled out the FAFSA, and applied for a loan through my school.

[vicki]

FAFSA should have notified you of your financial aid package already. Hmmm. What school are you going to?

[Cold_Zero]

Im waiting now for the approval or at least for it to hit my student account. I filled out the FAFSA, and applied for a loan through my school.

The only reason why I asked is that lenders typically will use student loans to get new customers. Once they are in a system, other types of loans, credit and services are marketed to the borrower.

So you survived filling out your Student Aid Report? Waiting is the hardest part. A lot of Financial Aid Offices are busy right now (peak disbursement season) and some do not give out information on the status of your loans. What school will you be attending?

bud

[Neejay]

FAFSA should have notified you of your financial aid package already. Hmmm. What school are you going to?

Well, I just turned it in a couple of days before the deadline (I decided at the last minute that I could use the extra cash). I go to Clayton College and State University (Clayton State).

[Neejay]

The only reason why I asked is that lenders typically will use student loans to get new customers. Once they are in a system, other types of loans, credit and services are marketed to the borrower.

So you survived filling out your Student Aid Report? Waiting is the hardest part. A lot of Financial Aid Offices are busy right now (peak disbursement season) and some do not give out information on the status of your loans. What school will you be attending?

bud

Ah, makes sense.

[vicki]

The deadline was in April. I turned mine in the day it was due too. That's plenty of time for them to give you a decision and send you your package. I remember when I was a senior in HS, my main deciding factor was how much money I was getting since I got into all the schools I applied to. I know I got my package for this year already and my scholarships and loans already went through to the school. That's pretty weird. I'd call and check on the status.

[Neejay]

The deadline was in April. I turned mine in the day it was due too. That's plenty of time for them to give you a decision and send you your package. I remember when I was a senior in HS, my main deciding factor was how much money I was getting since I got into all the schools I applied to. I know I got my package for this year already and my scholarships and loans already went through to the school. That's pretty weird. I'd call and check on the status.

"The 2004-2005 School Year (July 1st, 2004 - June 30th, 2005):FAFSA on the Web, Renewal FAFSA on the Web, and applications must be submitted by midnight Central Daylight time, June 30, 2005."

I made the deadline bearly. I almost missed both the FAFSA and my school's deadline.

[Nismo31]

i need help. i dont have credit because ive been working off the books since i began working. it seems i have zero credit. does anyone know if i can go to a bank and a bring a notarized statement proving i make more than $450 a week working full time. where can i get a loan? anyone have any suggestions?? thanks.

[rousie13]

Banks are going to want paycheck stubs if you get a loan...just to prove you make what you say.

[Nismo31]

is there any other way around it? like a signed certified document from my boss?

[rousie13]

I don't think theres anyway around it. They want to see how much you make weekly and for a few consecutive weeks....so they can make sure you bring home enough to pay back the loan.

[vicki]

If you do that, you can get in lots of trouble for avoiding taxes. That's one of the downfalls of working under the table... no credit or financial record and the impossibility of getting approved for a loan.

Start off by opening a checking or savings account. Put a couple of hundred in every week. After a little while you'll have better standing with the bank and MAYBE they'd be willing to hand out a loan/cc. But expect a relatively high interest rate. What do you need a loan for anyway?

[Nismo31]

i need a loan for a car, i sold my 240, just havent changed my sig because i haven't been online in a while. It's a VW Jetta, 2001 w. 32k miles, loaded w/ black leather and 5spd..1.8T as well, kbb is 13k, im getting it for 8.5k. Also, I have over $5000 in my bank between savings and checkings.