Really New to the World of Credit (Need Solid Help)

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CCGuy88
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Really New to the World of Credit (Need Solid Help)

Postby CCGuy88 » Sun Dec 30, 2012 6:43 pm

Greetings everyone on the forum,

I'm new to this forum and the world of credit (somewhat). I plan on making sure this year to come I have solid credit to get a house, and have everything in order.

Here's a brief history of myself:

- 3 years ago I couldn't even get a phone, they claimed I had no credit history, so I went and bought a car with a cosigner that had great credit. So far, I've made payments on time (not 1 month late).

- After the 1st year of paying the car, I found out the credit union were not reporting my monthly payments to the big 3. So, I made sure that was handled, and it's been about 2 years of my history being reported. Even through the course of the months I tried to another phone a year later, but they said the same thing again.

- So earlier this year, I called one of the big 3 (i believe equifax), and found out a company didnt file my insurance for the dentist, and report me. The guy on the phone told me the little credit I had was under delinquency, so I explained what happened, and they removed it. This was around feb-apr this year.


I haven't tried any soft/hard pulls in these months, and I'm trying to figure out what's the next step to achieving great credit? I have no student loans, the car loan is the only thing really tied to my name, and I pay that on time.

I'm guess I need to have a run down of my complete history up to this point first and see where things are exactly at? How can I do this?

Then if it still is not quite up to par, I should go to nearby credit union, and see if I can get a secured credit card? I'm guessing this is another way to build credit along with the car payments.


Thanks to anyone who can give me advice.


CCGuy88
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Postby CCGuy88 » Wed Jan 02, 2013 10:26 am

Anyone can help me out?

Robrus1
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Postby Robrus1 » Wed Jan 02, 2013 11:00 am

I wouldn't necessarily worry about your scores just yet, unless you don't mind paying for them. I would check your reports to make sure they are all accurate, and free of deliquencies. Assuming your report is in order, your local bank/credit union is a good place to go for a secured card. Bank of America and Capital One offer some good secured starter cards too. If you do get your scores and you are considered to have "poor" credit rating, you may wait about 6 months and let the car payments report, and then check again.
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CCGuy88
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Postby CCGuy88 » Wed Jan 02, 2013 11:10 am

Ok, would you suggest this game-plan (I'm open to any ideas or changes you may have):


1.) Go to Annualcreditreport.com and check my reports first
2.) Fix any issues if needed in the report.
3.) Get a secured credit card from a local credit union, etc, and put about $500 on it.
4.) Start a savings account at chase, and put $500. (I only have a basic checking account at chase, so I'm guessing do I need a savings account?)
5.) Wait and see in a couple of months where my scores are actually at?

Is it necessary to get a secured credit card if I'm already building credit with the car? Also, would it be wise to start a chase savings account?


Thanks for all the help!!!

silver6054
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Postby silver6054 » Wed Jan 02, 2013 12:29 pm

Not sure about 4) A secured credit card will certainly help, both as an additional trade line and also for credit-type mix part of the FICO score.

A savings account won't report to the CRAs, it may or may not help your relationship with Chase if you want one of their cards, but I think the impact is small. I would use the money you were planning to put there either as an additional amount on the secured card, or to get another secured card from another place.

It might take more than a couple of months to improve, you will need a few on-time reports from the credit card.

As an aside, when you said you couldn't get a phone, was this a landline phone, or from a wireless provider? I thought that the latter would give you one for a (sometimes large) security deposit.

CCGuy88
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Postby CCGuy88 » Wed Jan 02, 2013 12:50 pm

Oh, so the more secured credits you get, the better it will be if they are paid on time?

I'm thinking I should get one for now, and see how it goes? Should I pay the minimum every month, or pay it off? I'm only going to be using this for like gas, food, etc. So do you think I should keep it active for about 6-7 months, and see if I can get a real credit card?

As for the cell phone. It was an Iphone from AT&T. My credit was so bad they wanted $500 deposit + the additional $199.99 + 1st months payment (actually like 2 months on your first bill) + $35 activation fee, well over $800. So I saved my money up first for some months until I had enough for the phone, 3 months of payments and activation fee, and my friend let me use his grandfather account.

FutureBillionaire
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Postby FutureBillionaire » Wed Jan 02, 2013 1:35 pm

Good gracious. That's a lot for a phone.

I recommend secured installment loans in addition to secured credit cards. It shows a good mix of credit. You can use the money from the installment loan to pay something that you would normally pay for anything and then pay it back. Keep it open at least 6 months. You will see a boost to your credit.
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Robrus1
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Postby Robrus1 » Wed Jan 02, 2013 3:25 pm

CCGuy88 wrote:Oh, so the more secured credits you get, the better it will be if they are paid on time?



Don't go applying for a bunch of secured cards. They will most likely all have annual fees and you don't want a bunch of inquiries on your credit report right now. Apply for one and use it if you get it. Keep the balance low, especially before the statement comes out.
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CCGuy88
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Postby CCGuy88 » Wed Jan 02, 2013 6:31 pm

FutureBillionaire wrote:Good gracious. That's a lot for a phone.

I recommend secured installment loans in addition to secured credit cards. It shows a good mix of credit. You can use the money from the installment loan to pay something that you would normally pay for anything and then pay it back. Keep it open at least 6 months. You will see a boost to your credit.


Typically, how much can you get with an installment loan? I plan on establishing my business and paying for the llc cost, minor supplies, etc. Maybe I can get a small loan 4 months from now, and repay it off in full in less than 6-8 months?

Robrus1 wrote:Don't go applying for a bunch of secured cards. They will most likely all have annual fees and you don't want a bunch of inquiries on your credit report right now. Apply for one and use it if you get it. Keep the balance low, especially before the statement comes out.


I use chase, but do you know of any secured credit cards that:

Possibly waive the application fee
Possibly have a 0.00 annual fee (but I know usually this is not the case)

I'm thinking to go to a nearby credit union?

Thanks for all the suggestions everyone!

Robrus1
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Postby Robrus1 » Thu Jan 03, 2013 7:57 am

Yeah I'd try a credit union, or if you bank with Chase you may have a shot if you go in and see what they offer. All the secured cards I dealt with had annual fees.
Amex Platinum
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Credit Union 10K
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