Credit?

[Nekochanpurr]

Okay.. Sorry for a super stupid question... But.... Is there any other way to gain credit besides using credit cards? i HATEEEEEEEEEEEEEE using those things! But i want a house within the next couple of years.. And i don't got the figures to pay it all off at once in cash, LOL! So i'll probably need a loan or something? Anyway.. I thought i'd ask you girls (and guys!) with experience. You all always know what to say!

[snowflakebride]

There are a few ways...

Keep paying all of your bills on time.
Get a free credit report to make sure your credit is on track (if anything funny's on there it can make a big difference, such as unresolved hospital bills. Even if you think they're resolved, check anyway. Your score could say something different.)
If you have more than two bank accounts (I had opened one and closed my previous ones a few days later), that can also affect your credit.
Get a car and make the payments.

I know you don't like credit cards, but that's the easiest way. Hope this helps!

[WBandMe]

Yeah, I agree with the above. The two easiest ways are to consistently pay bills in full on time and to use credit cards. You just gotta use it like a bank card and not go overboard... if you have $100 in your bank account, that's the max you spend on your credit card... and just keep paying the bill in full...voila, credit rises... :)

[tortoisegirl]

Another good way is to buy something with financing, such as furniture. You can get a deal with 0% interest with their credit account, and make payments on it until it is due to start charging you interest, and then pay it off. Having a long credit history is as important as having good credit, I've been told. So, start as early as you can building credit history! It can be something as silly as charging one dinner out a month on your card and having an automatic payment set up.

[acidcookie]

Good advice given already, and I just want to point out that credit cards aren't evil, it's how you use them. I actually put all my purchases on a credit card so I earn cash back, and then pay it in full each month (actually a few times a month) so I never pay interest. To keep track I actually have a post-it in my checkbook where I subtract all my cc charges from my balance as though they are coming straight out of my checking account. This keeps me in check so I don't spend what I don't have. This, and always paying on time of course, is one of the simplest ways to build credit.

Other things that help:
-don't close old accounts whenever you get new ones--this shortens your credit history
-don't open too many new accounts at once--this makes you look risky and your score drops
-keep the ratio of current debt (like a cc balance) to credit available small (using your cards wisely and getting credit line increases can actually help with this)

[tortoisegirl]

The blue cash card from amex is awesome....I get hundreds back per year on my statement because we charge everything (and pay it off every month). Some people just don't like the idea. I find it's easier to deal with expenses though.

[Nekochanpurr]

I do have credit cards.. That i haven't used in YEARS.. This is because my paychecks are unstable week to week, so i don't feel comfortable using anything than what i got on me (usually my debit card). My car is signed on with both my mom and i, does that matter? Also, i use credit cards for Kohl's and stuff, cuz i can pay them off RIGHT after i use them... Does that count toward credit? Sigh. This is all so confusing to me. Right now we have NO debt, and i always pay my bills on time.
...And i don't know how to look up my credit score. o.o;
Thank you guys SO much for your help! I'm hoping to build my credit without the use of cards! I don't think it'd be a big deal if i had the same amount of hours each week, but between the changes each week and the small paychecks, credit cards seem like such a risk... since i don't know where i'll be at the end of the month..

[soontobemrs]

A mortgage broker told me to apply for a gas card, use it once to fill the tank and pay it off when the bill comes in - he said to do this for a few months and it should raise your credit score a few points.

[Ninedays9]

I've heard you have to make monthly payments instead of paying something off right away because then they know you are good at making payments on time.

I'm glad all these tips were posted because I need to build up mine, and I'm guessing FH does, too.

[lalaland13]

I understand being afraid of credit cards, but you are probably going to need them, even if you just make one purchase a month on them or something. Does the husband have a more steady stream of income? If so, get him to use the credit cards (if he isn't already using credit cards). I could be wrong, but I'd imagine that most people who would give you a mortgage are going to want to see you building up credit at least somewhat with a credit card.

And it does take a while. I got my first credit card a couple years ago, and now I have two. I'm not maxed out on either, not even close, but I also haven't paid all the balances out completely. I do what I can, though (I'm a poor journalist). And my credit score is about 670, which isn't bad for my age, I guess, but I'd definitely need it higher before getting a house.

If you do check your credit score, go to annualcreditreport.com. Do not be swayed by those evil freecreditreport.com commercials. They aren't free, and they sign you up for a service that you really don't need instead.

[SerendipityCrafts]

You might also see if you can get a small loan ($500 - $1000) for something that you already have the cash for. Make your payments on time or a few days ahead of time.

Every so often make an extra payment down on the loan - our bank manager noticed that we had done this on a loan and told us that it reflects well.

[Nekochanpurr]

Oh, these are good ideas! I should probably have Steve get one... He is scared to because he got one when he was 16 and bought a ton of cds off of it, lol. His mom kicked his booty and made him pay it off.. So, i think hes scared of getting one. But i have heard of them looking at hubbies credit before the ladies...
HM.. I've gotten great ideas! Thanks guys. *^^* Unfortunately, i can't check my credit yet.. Seems my name is kind of in limbo, lol! I'm in the middle of changing it. So um.. Hopefully next week. =/

[ChibiAiChan]

my hubby's score is in the 800s i think... thank u credit cards and amex =D

[Nekochanpurr]

What the heck is amex?

[acidcookie]

What the heck is amex?

(American Express) At least as I've always known it...

[Nekochanpurr]

But American express IS a credit card.. Heh. Alright Dani, you must explain.

[Jacklynn]

We have pretty good credit especially for being young, but it is mostly because we have $110,000 in student loans :) but we also have never missed a payment for our credit cards, car or anything else, or been late.

I would suggest buying a car like someone else said... assuming you can make the payments of course, haha you don't want to lower your score in the process of trying to make it higher. And use those credit cards wisely, Matt and I have too much credit card debt from being married, being full time students and only working part time for a year and still spending what we had when we were working more.

[Coreysangel]

Also something I've done is gotten a secured credit card that reported to all three credit agency and my credit score went up each month for paying on time When i was younger i was a victim of identity theft so every since then i been so cautious because its so hard to get your credit back so hopefully by the time we decide to buy a house it will be up to par

[Nekochanpurr]

I think Steve is going to get a credit card.. And we'll just use it for one thing.. Or something. =/ Haha, i just don't want to screw ourselves over.

[CaliLily]

Here's what we did...when the holidays came around and all the awesome Best Buy promos like 0% interest for 2 years we got the big screen we'd been lookin at for a while. WARNING: As a homeowner and a best buy card holder BEWARE that there is something called DEFERRED INTEREST. This means that you are avoiding this interest rate IF you pay off the purchase in FULL by the end of the promotion (2 years in our case). So basically we saved over $1,000 by paying it off before the end of the two years. Again, beware that even if you have $1 left they will add the whole interest you would have paid in those two years.
My second suggestion would be renting furniture if you are commitment phobic. LOL In all honesty you will pay SKY HIGH interest rates but you could get something short term, or even rent-to-own! Unless you make very large payments though you'll pay a lot to them in interest by the time it's yours though.
My third suggestion would be jewelery. Getting a jewelry store card is nice because you can finance anything over $100 usually! Start off with baby steps! Earrings maybe? Then once their paid off go get a pair of watches!
My #1 most important suggestion NO MATTER WHAT you decide is to ALWAYS pay more than the minimum amount due. Every single time, even if you can only do $5 more.

Creditors look at your debit/income ratio. Having a few thousand in savings is always important to get financed. Keeping balances low or paid off like you have been is always great. They like to see that you're using the same ones though. I wouldn't apply for more cards if you already have one. Just figure out what your percentage is and maybe negotiate on that with them. Let them know you'd like to build up your credit and would like to use their card more often! I would stick with the same card and maybe rent something small temporarily, just so you show an account that is paid in full and closed. Never ever close credit card accounts. Cut them up if you need to limit availability (you can always request another card) but the history that you have with those companies is what gives you a FICA score.

Like the other ladies suggested, go check your credit reports because I'd bet you have better credit than you think! Good luck! :D

[Nekochanpurr]

You made it SO easy to understand!!!!! O_O Thank you CaliLily!!!

What i think what we might do... We collect manga. For each its not very expensive... $10 each about. However, we collect a lot of different series, so.. I am thinking of just putting all of it on credit, paying it off at the end of the month.. And it would get me 10% days at borders because of spending a lot in one month. XD I'll have to run it by Steve... =/ I just don't want to go out of my way and get something we'd never get in the first place, or get something we wouldn't normally afford.. Because we wouldn't be able to afford it at the end of the month, either. ^^*

[KMS]

I saw this link and thought of this thread!

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CreditCardSmartsDyn.aspx?cp-documentid=7925343&GT1=33001

[NOTKT]

All these suggestions are very good! If you have anymore questions, just ask away! I work for a major Credit Card company.

[Nekochanpurr]

I saw this link and thought of this thread!

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CreditCardSmartsDyn.aspx?cp-documentid=7925343&GT1=33001

SAVED!! :D I'm reading it after work today.


NOTKT: Don't worry, i'm thinking of some questions to ask you!! Heh.

[f77g4]

Another thing too is that you can buy things like furniture and do equal monthly payments - like when FH and I bought our house last year we bought new furniture for the bedroom. I got a bedframe, boxspring and mattress at Sears and I am making 24 equal monthly payments and to do this I just had to apply for a Sears Card. So instead of paying $1200 upfront, I pay $40 a month for 2 years. I'm already over a year in so I have less then a year to go. FH did this with the big screen tv too and we may be doing it with a snowblower for this winter.

I hate using credit cards but they are good to have just in case (like today when I went to walmart and the debit machines were down but I could still use my Visa).

I seem to have really good credit for someone my age (24) so the bank tells me. I make sure all my bills are paid on time, I have a credit line at the bank which I make bi-weekly payments on, a student loan which I make bi-weekly payments on, as well as a car loan. I have a Visa, a corporate AMEX and the Sears card. And I was approved for a mortgage at the age of 23.

Good luck!

[Nekochanpurr]

Well, i just updated my two credit cards with my married name.. So those should come in within the next couple of days. I've got it so i can pay online and cr@p... I also have a Kohl's, JC Penny, and Macy's charges cuz i can pay those right after i use them, lol, for sales purposes.
Question! Do the department store credit cards help my credit? Even if i pay it exactly after i use it at the store? lol I've always wondered...

[f77g4]

hmmm - I want to say yes but I don't really know. I can't see that being very different then my sears card because I can also use it for other purchases too.

[Nekochanpurr]

Oh good, then i have used credit for a bit then.. Hehe. Maybe i will make Steve open a Target gift card.. That might be more comfortable for him, since he can pay right in the store. He should build up his credit, anyway, since they'll look at his before mine, right? =/

[SerendipityCrafts]

Question! Do the department store credit cards help my credit? Even if i pay it exactly after i use it at the store? lol I've always wondered...

Yes mam :) If you have all those cards and you have never missed a payment then chances are good that you already have an excellent credit score.

[Nekochanpurr]

Awesome! :D I'm going to try and check my credit score again in a few weeks, after everything is changed to my new name...

[NOTKT]

Yes, those are called PLCC, private label credit cards. They are the same, but you can usually only use them in that store.

Most of the credit cards people carry are not actually backed by Visa, MC or Discover. Companies like mine borrow the name and the symbol and stick them on their credit cards. An example of this would be like a Capital One or HBSC. The problem is that the companies are usually very different from each other. Don't assume that if you see a commercial about Discover cards, that your Discover card is giving the same promotion. Chances are they are not, because the company is not even affilitated with Discover, for example.

[Nekochanpurr]

Ohhh, that makes sense! Thanks. I believe some are and some aren't, though.. Because people pay their groceries all the time with Target gift cards, and Macy's was having a promotion about using their card out of the store or something.. This is getting confusing!

[f77g4]

Ok FH just had an appt at the bank today for him so I have a little more insight. If you have a credit card for a store and are doing the equal payment things I talked about earlier there are a couple things to consider. He is doing this for out TV and it was an instore credit card but it is through Citi-financial which is a lending service provider here so that comes up in his credit report. However, my Sears card does not come up in mine because it is through Sears and not a commericial lender. That's how I take it I guess.

[Nekochanpurr]

Thank you! Haha, this is why i'm so reluctant i guess... This is horribly confusing for me. But you are a lot better at actually speaking English about it, if you know what i mean.

[joraye]

Here's something I did (I skimmed the thread, so sorry if it's a double mention.)

I needed to get a little bit better credit after college, and I had a good job, just no credit history. I was working on my savings account, and probably had $800 saved up. I went to my bank (Chase) and requested to take out a $500 signature loan. My colleratal (sp?) was my savings account. I deposited my $500 they gave me into my savings account, and then setup 6 automatic payments for my loan payment to come out of my savings account.

Yes, the amount of interest I earned helped a little towards what I had to pay (I thought there would be no interest, since I had my savings backing it, but it was minimal) but it was a small fee for the increase in credit score I recieved. It allowed me to "buy" my car from my dad and take out the loan in my own name.

I'd talk to a banker before doing that, as it worked perfectly in my situation, but I also had one credit card since 2001, it may not help in your situation though.

HTH though!

[Nekochanpurr]

I didn't even know you could do that.. O_O

[acidcookie]

The only thing about dept. store cards is that they seem to hit your credit score harder when you open them. Don't know how consistently accurate that is, but I've noticed it. But this is a moot point for cards you already have. But in any case, opening new accounts knocks your credit score down a bit temporarily. Anything that is seen as "risky" in terms of borrowing money is what makes lenders nervous and will knock you back a bit.

[Nekochanpurr]

Ahh.. So having my store credit cards is seen as risky? Ah well, too late now i guess... Cuz it looks bad when you close an account too, right?

[WebLady]

I need to work on my credit from when I had to file bankruptcy (long story having to do with ex husband), but I don't want to have any more credit cards. I don't really have alot of money at the moment to be putting into any sort of loans or credit cards right now anyway.

I keep saying maybe I will try to get a gas card or something but I never do it. Not a good time for me, but I know it is something I will have to deal with at some point.

[acidcookie]

Ahh.. So having my store credit cards is seen as risky? Ah well, too late now i guess... Cuz it looks bad when you close an account too, right?

Well opening accounts in general is "risky" as far as credit actions but not to any point that you shouldn't do it. Of course you need to open accounts to use them and build credit. It's just always a little ding on your score that you build back up fairly quickly. You already have those cards so they're not hurting you now. I've just gotten the impression with my own accounts and all I've read that opening store cards hit your score a bit more than Visa/MC etc cards.

And yes, keep the accounts open! Especially the ones you've had longest. The longer your credit history the better.

[Nekochanpurr]

Oh, i see, i see!! Thank you. I think i'm going to start using one of my credit cards as a gas card... And let the other ones sit, saying 'lookit, i got credit, they let me open these!' lol! I'm not good at things once i start complicating them, so i think thats best... Unless there is a store sale. Heh heh.

I think i'm going to try and get Steve to get a Target gift card. Its been a long time since hes tried to get credit... And he'll probably be more comfortable knowing he can pay it off in the store..

[NOTKT]

Gift cards are gift cards anywhere, I'm confused. :( I have a Target credit card w/o the Visa symbol on it, which is the PLCC. It definitely shows up on my credit information.

Target is it's own bank, which is nice for them, but they still use the Visa symbol when people apply for the Visa card.

[Tadswife]

When I started to build up my credit, I did start with credit cards and purchused a care. I had no idea what my credit score was until DH and I went to purchuse our house. He was in the 800's I was in the 720 rage or something like that. I'm sure its much higher now. We were approved for our house on the spot and were told we didn't have to put a penny down because our credit was exellant! Our morgage broker told us he has never seen credit scores like ours, he was impressed :D And we got an awsome interest rate on our home. The ladies gave great ideas on how to move your credit along. Just becarefull because each time you inquire about your credit score it can hurt it. Atleast that is what I have been told. It all depends who inquries about your score.
You had mentioned you had a car with your moms name on it as well. Are you the primary name on the account or the co signer. If your the co signer that isn't going to help your credit much. Because if your mom is the primary holder of the account the majority of the credit will go to her. Just a thought. Sorry if that was confusing

[Nekochanpurr]

No, makes sense! I believe she is the the main name... All in the name of cheaper insurance! I'm sure it helps her as well, since she went through bankruptcy... TWICE. o.o;
Steve and i are exploring our insurance options at the moment, because when Steve tried to go on his own, they tried to charge him a butt load.. Even though hes past 25 and its suppose to go down!

And i didn't know that checking your credit score could hurt you! Its weird how many little things can... I wonder why though. =/ I'm still going to check it soon though, lol. I'm nosey and need to see how much i need to work up! :D I want a dang house... Someday!!

[SerendipityCrafts]

And i didn't know that checking your credit score could hurt you!

Checking your score too often can indicate that you are looking for credit - ie that you are desperate for money. Too many credit applications can negatively affect your score too.

It's better to have one or two cards to use (& to pay on time, before the due date etc.), than to have a whole wallet full of cards. It's quality vs. quantity :)

[Nekochanpurr]

Good stuff. Then i'm done getting cards. *^^* Now, Steve is totally seprate from this, right? Or is his score affected by me? Will him getting a card affect my score? i ask this because if i can build both our credit, i'd like to do it that way. =/

And debit cards.. No credit happiness, right? Because i use that thing constantly. lol

[SerendipityCrafts]

*^^* Now, Steve is totally seprate from this, right? Or is his score affected by me? Will him getting a card affect my score? i ask this because if i can build both our credit, i'd like to do it that way. =/

I am not sure if my score was affected but I was once denied an increase in credit, on a certain store card because of my XH's credit problems. The card was in my name only but our credit history was linked because we were married.

I am sure your laws are different from ours and they might also change from state to state so ..... I would recommend that you sit down with someone at your bank and ask all these questions again. At least that way, they can give you the real skinny as it pertains to YOUR situation.

And debit cards.. No credit happiness, right? Because i use that thing constantly. lol

Debit cards are fine ... ie the ones that are tied to your bank account; money comes out instantly; can't spend what you don't have type cards? These do not affect your credit score.

[Tadswife]

You metioned that your husband can't find insurance he can afford even being older then 25! Does he have past offenses that may affect the cost. Like speeding tickets, accidents ect.... You guys can combind your insurance it may be cheaper that way. I jumped on my dh car insurance once we got married but we did also purchuse our home insurance through the same compony so that helped lower it. I know on my own I was paying a butt load for insurance. It's insane the prices they can charge!:bbeek: And they do have 1st home buyer specials, in the market we have now you could pretty much name your price and rob them blind! Meaning you can get a nice house for a decent price. You do have utilities in your name right. Cause that will help to

[MrsDM]

Having credit cards is the way we have gotten high credit scores. In fact, just by purchasing roughly $100 (oops, sometimes more!) each month and then paying it off, we both have excellent credit scores. I've only had credit cards for 2 years, FH maybe 1-1 1/2 years. Also, just make sure you pay your bills on time, like your credit card bills!! :D

[Nekochanpurr]

Steve has had some boo boos when he was younger. Hes had two speeding tickets in the past... The cell phone bill is in my name, the DTE is in his, so... We don't have to pay gas/water/etc.

[spuls5]

I skimmed over the posts so sorry if most of this is a repeat.

Credit scores are calculated on various things. 35% is Payment History, so never be late on payments and have them go to default. 30% is based on Amounts Owed. 15% is length of history, 10% New Credit- if you have applied for any new credit lately it will affect your score, because it will also affect your average credit history. and 10% is Types of Credit used.

Go to www.myfico.com (http://www.myfico.com/) You can learn A LOT there. You can order your fico scores and find out where you are. There is also a forum on there and a special area for mortgage. People are very helpful if you need help. Go in anonymously and tell them your info as far as debt, scores and tell them what you want to do. They will help you with the best way to increase your score. You can even learn a lot from reading other threads.

You can increase your score by using your credit cards, but using them wisely. For people that carry balances on their credit cards you want to have under 9% utilization on your cards. If it's above 9% it shows heavy use and starts to get into the red area, plus it goes against the amount owed %. If it's under 9% then it will help.

oh and NEVER close a credit card just to get rid of it. Make it a sock drawer card if you have to. It can actually hurt your score by closing a cc. Because it can affect your credit history by removing a card and it also affects your score by removing the amount of money available to you.

This info is more for people who carry a balance on their cards and are working to pay them off. Depending on the balances on cards and how much you can afford to pay. Credit Card companies report the statement balance to the agency. Many will pay in full before the statement hits, that way the reporting balance is 0. If you can afford to pay more than the minimum then pay more before the statement date, then pay the minimum after the statement in order to not be late on a payment and you are paying the minimum on that statement, but in reality you paid more than the minimum. Make sense?

If you have $500 on a card and your statement comes on the 10th. If the minimum is $30 (I'm lazy to calculate real minimum, using simple numbers for example). If you can afford to pay $130 on this card pay $100 before the 10th, that way when the statement hits your balance is $400 and the $400 will be reported instead of the $500. Then when the statement comes pay the $30 minimum. So now your balance is $370 and the next month the minimum will go down. If its $20 and you can still pay an additional $100 on top of that pay the 100 before the statement then your reporting balance is $270, then pay the minimum to take balance now down to $250.

This is how I understand it anyway from reading on the forum. It's ridiculous how things are. You have to have good credit to even go to the bathroom anymore it seems. FH and I got cable tv and internet hooked up last week. They had to do a credit check just to give us an HD DVR box because it's an expensive box. You have to have good credit to even get the box. I was like you have to be kidding. I asked if it was a soft pull or hard pull on credit and she didn't know but thought it was a soft, but it's not one that will affect our score.

It's great to know your scores, especially when you are looking to get a mortgage loan. If you can find out your scores now then work on increasing them. It was frustrating at first when I was younger and couldn't get anything because I didn't have credit history. Well I couldn't even get a cc so how could I build up a history. I finally was able to get a card and get going. Things affecting my score right now is history, I don't have a long history. The length of my history is 5 years and it's still hurting it. I guess only time will help that. I know my scores are high but I want to get them higher in the next year or so when we will be going to look for houses.
Know your scores before going in for a loan. When you apply for a loan they will do a hard pull on your credit, this WILL affect your score. So you don't want unnecessary pulls on your credit when it's not going to get you anywhere.

[Nekochanpurr]

This is SUCH good info... Thank you SO much for such an in depth explanation!!! I'll have to check out that website and find out what i can there, too. I want to try and get ourselves awesome credit before attempting the whole house business.. Which will be years, anyway.. :D

[Ninedays9]

Ok, I have a question! I'm wanting to know which credit card would be the best for me to get. I've never had one. I'm a grad student, working part time at a job I've had for about a year now. Are there any that are best for "beginners"? I'm pretty sure the school does have its own, which I'm also pretty sure I wouldn't get denied for, but I think I'd rather have one that's independent of that. I think it's about time I build up some credit, which is why I'm asking... and why I'm very glad this topic was posted.

[MrsDM]

Ok, I have a question! I'm wanting to know which credit card would be the best for me to get. I've never had one. I'm a grad student, working part time at a job I've had for about a year now. Are there any that are best for "beginners"? I'm pretty sure the school does have its own, which I'm also pretty sure I wouldn't get denied for, but I think I'd rather have one that's independent of that. I think it's about time I build up some credit, which is why I'm asking... and why I'm very glad this topic was posted.

What I did when I first got my credit card was I went to my local lending institution and they all have information on credit cards that you can get through them. You can usually get like a beginners card or just a regular card with a low credit limit to start.

[MrsDM]

I saw this article on MSN today, thought it may be some help to you when deciding a card!

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/credit-cards-with-the-happiest-users.aspx

Personally, I had a Chase credit card, and I had horrible customer service. They over sur-charged me when I should never have been charged at all.

[Nekochanpurr]

My sister has had a lot of luck with American Express...

[spuls5]

Ok, I have a question! I'm wanting to know which credit card would be the best for me to get. I've never had one. I'm a grad student, working part time at a job I've had for about a year now. Are there any that are best for "beginners"? I'm pretty sure the school does have its own, which I'm also pretty sure I wouldn't get denied for, but I think I'd rather have one that's independent of that. I think it's about time I build up some credit, which is why I'm asking... and why I'm very glad this topic was posted.

I will look some up tonight, but if you have time and want to learn a lot go to myfico.com and read the forums.