First time building credit need help thanks!

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ctsv253
 
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First time building credit need help thanks!

Postby ctsv253 » Fri Jan 30, 2015 7:42 pm

So my girlfriend is brand new to credit, she has nothing on her file. I was wondering what are the best and fastest ways to build credit (yes i know it doesn't happen over night) as we have money saved up for a house and wanna try to buy together thanks!


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Postby CreditCardGuru » Fri Jan 30, 2015 10:18 pm

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ingramjuan
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Postby ingramjuan » Sat Jan 31, 2015 12:05 am

Possible a secured card?
CARDS:
Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

Gardening Since: June, 2015

Next Cards:
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Store Card: Lowes

OldMan
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First thing you might want to do,

Postby OldMan » Sat Jan 31, 2015 7:15 am

is pull her free annual credit reports and make sure that they're clean. If they are, you'll probably want to start her with a secured card first. I was in the same boat about a year ago and I started with a Cap One Secured. $49 deposit, $200 line of credit. After a few months of reporting, I applied for the Discover IT card, and then added the BCE card from Amex a few months after that. One thing to remember, if you have an Amex account, you should be able to add her as an Authorized User to help with back dating when she applies for her own.

After a year, (almost a year) I just had a lender pull and was sitting at a 740 on Experian. The biggest hits on my score are AAoA and Inq's.

Good luck and let us know how it works out for you.
My Wallet:
Discover IT - $4000;
AMEX BCE $12000;
Citi Double Cash - $6600;
CHASE AARP Visa - $5000;
Banana Republic $1200;
NFM - $20,000;
Sears (Citi) MC - $6000;

jcarte29
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Postby jcarte29 » Sat Jan 31, 2015 9:20 am

ctsv253 wrote:So my girlfriend is brand new to credit, she has nothing on her file. I was wondering what are the best and fastest ways to build credit (yes i know it doesn't happen over night) as we have money saved up for a house and wanna try to buy together thanks!


Assist her with getting her own secured card as the others here have mentioned, but is the house a near-future goal or down the road say, after engagement/marriage? House buying before then has the capability to cause a lot of red tape if things don't work out.
Portfolio:
CITI Diamond Preferred $10,500 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,950 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

thom02099
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Postby thom02099 » Sat Jan 31, 2015 9:55 am

jcarte29 wrote:Assist her with getting her own secured card as the others here have mentioned, but is the house a near-future goal or down the road say, after engagement/marriage? House buying before then has the capability to cause a lot of red tape if things don't work out.


+1 on this. Much depends on your timetable for buying a house. Conventional wisdom suggests that one NOT seek new credit for the 6-12 months before buying a house, sometimes even longer, depending on the mortgage broker. Mortgage companies want to see stability in finances, seeking new credit is not conducive to that. They will also pull both your credit reports (if available) both at the beginning of the process as well as just before closing.

If you're going to wait a year or more before buying a house, the advice to start with a secured card for her is sound. One or 2 secured cards for a while, then apply for one of the cards from a credit builder card issuer.
Retired, and in the process of retiring cards!
EQ = 850 EX=849 TU = 850 as of 07/2017

jcarte29
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Postby jcarte29 » Sat Jan 31, 2015 10:03 am

thom02099 wrote:+1 on this. Much depends on your timetable for buying a house. Conventional wisdom suggests that one NOT seek new credit for the 6-12 months before buying a house, sometimes even longer, depending on the mortgage broker. Mortgage companies want to see stability in finances, seeking new credit is not conducive to that. They will also pull both your credit reports (if available) both at the beginning of the process as well as just before closing.

If you're going to wait a year or more before buying a house, the advice to start with a secured card for her is sound. One or 2 secured cards for a while, then apply for one of the cards from a credit builder card issuer.



I'll add that in my personal experience when I was buying my house (in late 2009, closed on it March 2010) that the process went so much smoother because I spent the past 2 to 3 years re-establishing my credit (and paying off my car note at the time). When I applied for the mortgage, I already had 2 established (very small CLs) credit cards, a paid off car note, and no additional inquires and/or applications for new credit. I only made $26k at my serving job (thats right at the time all I did was wait tables) and had a decent score to secure my mortgage.

From there everything else since then has come much easier, 2 more cars (one traded on the other, at incentivized SUPER LOW APRs) and eventually 6 CCs. All because I took care of the mortgage (the most important) first. Best of luck and please keep us informed how it goes! It's a fun experience!!
Portfolio:
CITI Diamond Preferred $10,500 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,950 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

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InCreditWeTrust
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Postby InCreditWeTrust » Sat Jan 31, 2015 10:06 am

As others have mentioned avoid getting a new credit card 6-12 months prior to purchasing a home which requires additional finance. Getting a couple secured cards or entry-level credit cards is what you should consider, use them, pay the bills on time. The regular reporting by the credit card companies to the credit bureaus will help establish a credit history. I would recommend you should have these credit cards for over a year at the least and periodically check your credit score.

Another user asked a similar question about how to build up his credit and my reply to him is below, the information should help you.

InCreditWeTrust wrote:Keep in mind there are a number of factors that determine your credit score.

1) Credit Card Utilization % (General rule is stay less than 50%)
2) Derogatory Marks
3) Payment History (pay your bills on time)
4) Age of Credit History (The higher the age usually the better, this you have no control over*)
5) Credit Inquiries

The biggest thing you need to do is reduce your credit card utilization rate as others here have suggested. Second thing make sure to pay your bills on time. Overtime, you will see your credit score rise up. Note the first three factors have the highest impact on your credit score.


*Note a cancelled credit card's age stays on your credit report for several years.

samhradh
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Postby samhradh » Sun Feb 01, 2015 9:40 am

If you have a good credit history, I would add her as an AU on your oldest card accounts. You don't have to give her the cards. Once these accounts start reporting you may be able to skip the secured card route. I take it she's not a student? If she is - or even just taking a class at a local college in her spare time - you can look into student cards as they're easier to get. If she's not a student then some of the easier cards to try for are the Chase Slate (no rewards), Chase Freedom, and Discover it. Also explore local credit union offerings.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).



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