Need to build credit, can someone help me w/ info?

I am 30 years old, never had a credit card but had bad credit due to old school loans which are all paid off now and removed from report.

I had some old hospital stuff too that I paid and has been removed.

Both of these are long gone.

I think the last I check out of the 3 important scores 2 were in high 600's and 1 was a bit over 700.

Thing is that I app'd for a CC card several times and was declined.

I talked to a friend of mine that is a bank manager and she said it's because the economy dip and that years ago everyone would have given me a card.

Dude, even Walmart declined me. Am I that bad?

Well, I really want to start building credit because I dont want the time for me to want to buy a house and be screwed.

Also I have a 30k car that I have been paying off for the last 6 years. It is done and paid with in 2/2011.

So I'm not going to really have anything that I'm paying for which I heard could be a negative.

Any suggestions are appreciated.

Thanks.

Try looking into getting a secured credit card. Basically your credit is limited to the amount at you give them initially, ie. $200 and that is your limit, 300, 400 and so on. Some of those secured credit cards also have the option of after a year or so switching that secured account to a traditional credit card. A good company to check out for this is orchard bank cards. They also have one that you can start your limit off at 200 or 300 (can't recall been a while since i checked it out) and you can add money towards it to increase your limit. They also have the option of switching to a traditional card in a years time or so. providing your make your payments on time and if possible pay more than the minimum. hope this helps you. Its not easy to rebuild but it can be done. good luck.

Here is the link to their home page..
http://www.orchardbank.com/

A secured credit card would be a good idea. I would join a credit union that offers them. That way you would earn interest on the money that you were using to secure the card and you could have money direct deposited from your paycheck to the account.

With a credit rating in the high 600's to low 700's you shouldn't have any issues. This is good credit. I wouldn't equate bad credit with not being able to get a credit card. If you have a car loan, you have good credit as long as you've never made a late payment.

Credit cards are evil. They can and will get you in finanical trouble more quickly than anything else.

Some C Cards will look at your bank accounts. If you have little or no money in checking and savings, that will throw a flag. Any late payment will also throw a flag. But these should reflect in your credit score.

If you must have a credit card, go to Sears, JC Penney or Macys and apply for one of their cards. They will usually give you one with a small credit limit, maybe $500. Buy something and make full payment EVERY MONTH that you buy something. Do this a few times within the first year. Don't make a late payment and by this time next year, you will probably be able to have a Visa or Mastercard.

But be forwarned, credit cards are bad, they will get you in trouble very quickly. I swore off credit cards about 10 years ago. I either pay cash for what I want or I utilize the 0% interest many of the stores are advertising.

Buy something on their dime. Believe it or not, this will also build your credit.

Good Luck!
Jim Smith

Pay your bills on time. :D Seriously, paying bills ups credit even if you don't have a credit card. When I turned 18, I got my first cell phone with beginner's credit and have been paying it on time ever since and my credit has gone steadily up. I don't have any other bills in my name (my BF's name is on all the others, haha) but I imagine if you have a few bills to pay that your credit goes up a bit faster.

The secured credit card thing I've heard is also a very good option.

I took Economics and I was told, get a regular credit card with a "low" limit, say... $500. When you have $500 dollars in your BANK account to blow, use the entire credit card. Then pay that sucker off immeditely with the cash you have on hand. This will build your credit so fast your head will spin. But you can only do this if you have the money on hand. :)

I would talk with a financial adviser.
I have good credit.. but its limited so I had troubles getting a $14000 car loan (I'm 24 and had to have a parental cosigner :\ ). The finance lady at the dealership said its easier to get a mortgage than a car loan sometimes.
She said banks like to see 3-4 trade lines open. Maybe a couple small loans that are paid off or almost paid off and a credit card thats used but no large outstanding balances. Your car loan is a definite plus.
If you're thinking of buying a house why not talk to someone to see how obtainable it could be for you? Perhaps they'd have some insight as to what you'd need to get to your goal.
Best of luck! Money and borrowing is a headache! lol

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Originally Posted by j_h_smith

Credit cards are evil. They can and will get you in finanical trouble more quickly than anything else.

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Saying credit cards are evil is like saying guns kill people. Credit cards are bad with irresponsible people who live beyond their means.

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If you must have a credit card, go to Sears, JC Penney or Macys and apply for one of their cards. They will usually give you one with a small credit limit, maybe $500. Buy something and make full payment EVERY MONTH that you buy something. Do this a few times within the first year. Don't make a late payment and by this time next year, you will probably be able to have a Visa or Mastercard.

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Yeah, but those store cards usually carry ridiculously high interest. Not an issue if you pay off every month, but will screw you over if you carry a balance. So just be careful with those type cards. Though if your credit score is that high, you should be able to get a CC, maybe not the best interest or highest limit, but should be able to get one regardless.

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But be forwarned, credit cards are bad, they will get you in trouble very quickly. I swore off credit cards about 10 years ago. I either pay cash for what I want or I utilize the 0% interest many of the stores are advertising.

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Just a different side of the coin - I actually use my card for EVERYTHING. Literally everything, if I can use my CC, I use it. I do this because I get 1% cash back on all purchases and up to 5% on certain purchases (things like gas, groceries, airline tickets and about a dozen other types of purchases).

I pay the balance every month, so I'm never charged interest, and there's no yearly/monthly fee for the cash back program. I usually end up getting ~$75-125 back every year which is essentially free money.

Though before I had a cash back card, I'd only use it for online purchases and stuff where you had to use a CC.

We just refinanced our house and i found out my credit score was 794 and my wifes was 786 and we dont even own credit cards. Never have. The only credit we have is our house 1 car and a motorcycle. It just takes time and you have to have a perfect payment record.

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Originally Posted by Blue Apple Herps

Saying credit cards are evil is like saying guns kill people. Credit cards are bad with irresponsible people who live beyond their means.

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And you think we're a responsible society when it comes to spending? Haven't been for a long time.

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Yeah, but those store cards usually carry ridiculously high interest. Not an issue if you pay off every month, but will screw you over if you carry a balance. So just be careful with those type cards. Though if your credit score is that high, you should be able to get a CC, maybe not the best interest or highest limit, but should be able to get one regardless.

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That's why I said to pay off the charges EVERY month. Personally I don't think he needs a credit card. With a credit score close to 700, I don't think a credit card is going to do anything but hurt the score, but if he has to have one, I know he can get one from the 3, I mentioned.

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Just a different side of the coin - I actually use my card for EVERYTHING. Literally everything, if I can use my CC, I use it. I do this because I get 1% cash back on all purchases and up to 5% on certain purchases (things like gas, groceries, airline tickets and about a dozen other types of purchases).

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Actually, if it comes down to it, I guess I do too. My Visa is a card tied directly to my checking account, so that when I pay for something using my card, it comes out of the checking account immediately. I don't know if it's a real credit card because there is no chance of me not paying off the balance. It's just a convenient way to be able to pay for things without having to go to the bank to take the money out of the account, then take it to the store to buy what I'm wanting.

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I pay the balance every month, so I'm never charged interest, and there's no yearly/monthly fee for the cash back program. I usually end up getting ~$75-125 back every year which is essentially free money.

Though before I had a cash back card, I'd only use it for online purchases and stuff where you had to use a CC.

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That's a good choice. Might as well make the CC work for you instead of against you.

Jim Smith

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Originally Posted by j_h_smith

And you think we're a responsible society when it comes to spending? Haven't been for a long time.

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No I don't think we're responsible at all. And it probably should be a little harder to get a CC than it used to be. However, it still boils down to personal responsibility, and if CC are used responsibly, they can be not a bad thing. That's all I'm saying.

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That's why I said to pay off the charges EVERY month. Personally I don't think he needs a credit card. With a credit score close to 700, I don't think a credit card is going to do anything but hurt the score, but if he has to have one, I know he can get one from the 3, I mentioned.

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I'm no expert, but I bet if he had a CC it could raise his score as he'd have more available credit. I know one of the factors is your credit/debt ratio. So the more available credit you have the higher the ratio relative to your debt. A higher ratio is better. Again, my major was biochemistry, not finance, but this is my understanding of it.

A CC can be useful for shopping online and things of that nature, though with Visa debit cards and the such, which aren't actually CC cards, I suppose they aren't really necessary.

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Actually, if it comes down to it, I guess I do too. My Visa is a card tied directly to my checking account, so that when I pay for something using my card, it comes out of the checking account immediately. I don't know if it's a real credit card because there is no chance of me not paying off the balance. It's just a convenient way to be able to pay for things without having to go to the bank to take the money out of the account, then take it to the store to buy what I'm wanting.

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Yup, this is what I did until several years ago. I had a CC for emergencies and the such, but would only use my Visa debit card for purchases. It was when I got offered the cashback program that I switched over to using my CC.

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That's a good choice. Might as well make the CC work for you instead of against you.

Jim Smith

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That's what I'm thinking! :gj:

But again, it's all about responsibility.

I'm 37 and I don't have a credit score...you're a better position than I am, trust me. lol

I'm going to be using an Orchard Bank secured CC to try to remedy that.

If you're worried about getting a house, don't. The bank will use an underwriter and you'll be find. As stated above, your new mortgage will become your credit and it will go WAY WAY UP!

Then when you sell that home (and it shows as paid off) on your score, it's scary what you could be approved for ;)

At least that was my experience. I lost my job for a year though, so my rating isn't quite so hot right now.

You can't get a home loan with 0 credit, trust me...lol
Bad credit is better than none at all.

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Originally Posted by WingedWolfPsion

You can't get a home loan with 0 credit, trust me...lol
Bad credit is better than none at all.

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Even with no credit you still have a credit rating. A student just out of college with no credit history can still have a credit score of over 500. I don't really know how this is possible, but it is. My oldest son graduated from college with about $20k in student loans. Of course he had Summer jobs, but never borrowed money. He had a checking and savings account, but nothing more. He was able to buy a 2009 Toyota Corolla right out of school with the new job. They offered him a $1500 College Graduate rebate too.

So, I'm not sure how you can have a decent credit rating without ever buying something on credit, but he's living proof.

Jim Smith

been building mine pretty good over the last 8 years ( say roughly) I been aproved 2x now for vechiles without a co signer. I gotten a lawn mower ( those 2-4k type zero turns) and i don't have a credit card ( just a bank card that works as a creditcard (but is still tied to my bank account) I don't really want one cause that a tempation I don't really want.

I agree get a credit cardthough a store you shop alot ( and do like said buy an item and them pay the card off asap) I just don't think it work for me since I have afixd income being disable and I know my money stays tight. at least for 3 more months when the more done.

Plus withthe current ecomony I think it gonig to be harder to get cards, and loans with all these new regulations the govermnet putting on card companies and others, but it still a good thing cause they just getting greedy at times.

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Originally Posted by Blue Apple Herps

Saying credit cards are evil is like saying guns kill people. Credit cards are bad with irresponsible people who live beyond their means.



Yeah, but those store cards usually carry ridiculously high interest. Not an issue if you pay off every month, but will screw you over if you carry a balance. So just be careful with those type cards. Though if your credit score is that high, you should be able to get a CC, maybe not the best interest or highest limit, but should be able to get one regardless.



Just a different side of the coin - I actually use my card for EVERYTHING. Literally everything, if I can use my CC, I use it. I do this because I get 1% cash back on all purchases and up to 5% on certain purchases (things like gas, groceries, airline tickets and about a dozen other types of purchases).

I pay the balance every month, so I'm never charged interest, and there's no yearly/monthly fee for the cash back program. I usually end up getting ~$75-125 back every year which is essentially free money.

Though before I had a cash back card, I'd only use it for online purchases and stuff where you had to use a CC.

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Seeing this post was like reading my own words.

Sorry, J H, but you're wrong. My credit report comes back with not enough info to create a credit score. I have NO credit score. The proof is in the report directly from the credit agency--that's what it said.

The student loans were responsible for the kiddo having a score. Anyone with student loans has a credit score, because a LOAN is CREDIT.

I have never had any student loans. I simply haven't bought anything on credit, never taken out a loan, etc.

What irritates me is that I think buying things on credit, and getting loans, is usually not a wise way to manage money. So, for being sensible, I am punished--I can't get a home loan, or any other sort of loan without a co-signer. I am ironically considered to be a WORSE risk than someone with bad credit.

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Originally Posted by Ladydragon

Try looking into getting a secured credit card. Basically your credit is limited to the amount at you give them initially, ie. $200 and that is your limit, 300, 400 and so on. Some of those secured credit cards also have the option of after a year or so switching that secured account to a traditional credit card. A good company to check out for this is orchard bank cards. They also have one that you can start your limit off at 200 or 300 (can't recall been a while since i checked it out) and you can add money towards it to increase your limit. They also have the option of switching to a traditional card in a years time or so. providing your make your payments on time and if possible pay more than the minimum. hope this helps you. Its not easy to rebuild but it can be done. good luck.

Here is the link to their home page..
http://www.orchardbank.com/

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This. The best thing to do is this, and go buy- say- food. Or, a drink at a convenience store. Small things you can pay off easy with it, and in no time you'll be on your way to good credit and a regular credit card.

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Originally Posted by WingedWolfPsion

Sorry, J H, but you're wrong. My credit report comes back with not enough info to create a credit score. I have NO credit score. The proof is in the report directly from the credit agency--that's what it said.

The student loans were responsible for the kiddo having a score. Anyone with student loans has a credit score, because a LOAN is CREDIT.

I have never had any student loans. I simply haven't bought anything on credit, never taken out a loan, etc.

What irritates me is that I think buying things on credit, and getting loans, is usually not a wise way to manage money. So, for being sensible, I am punished--I can't get a home loan, or any other sort of loan without a co-signer. I am ironically considered to be a WORSE risk than someone with bad credit.

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You are wrong. You can get a house, you're just dealing with the wrong bank. I got my first one with no credit and they used an underwriter to assess the liability with the loan. I don't know what your situation is, mybe they already know it's not worth having the load underwritten because they already assume you're a risk. And by that statement, I mean no offence, I just know for a fact you can get a home loan without any credit as long as your other ducks are in a row.

Since I have been through the process a few times now, check out this link. I only skimmed over it, but seems to be in order....

http://www.austinhomeloan.com/overview/underview.html

I bought and sold two houses before I turned 30. I used Wachovia for the first one (which I won't recommend) and I have my second with Fidelity Bank.

On a side note, I was blessed with having the same job for over 13 years and make fairly good money. When the underwriter looked at it, I was not a risk because I made 5x my mortgage payment a month and had no defaults on my credit (because no credit).

Now if you're applying for a credit card, it's completely different. But I assure you, either you picked a bad bank to seek a mortgage or you were assessed a liability before even going through the process.

Right now is also a great time to scoop up foreclosures. Find a nice one with little handiwork required and use an FHA. My neighborhood has a nice one, but I'm waiting for the price to drop another 30k and then I'll look into acquiring it. Though it's already a steal, I just don't want to sit on it for 5 years for hopes that maybe the market will start to return.

Anyway, good luck, I wouldn't just give up.

I'll keep that mind, and take a look around again. I don't have the advantage of having been in the same job for 35 years, though. I'm self-employed, and my business has only just begun to operate fully in the black. My husband is from Sweden and hasn't been employed for more than a few months (Ever since he got his work permit).
So, I don't quite look like the sure thing that you did. lol

That could play a part in it. I just wanted people to know that you can get a home loan if you have no credit. I will say I was very blessed, I did get a wakeup call when I was laid off last year though. Thankfully my company brought me back almost exactly a year later right when my unemployment ran out. That's when it really sucked to not have credit cards. I had no where to turn but my savings, 401k and family. If I had to go much longer, I probably would have lost my house. So that's another thing to think about if you don't have or don't want credit cards ;)

Sorry to hijack the thread, even though it's kind of related.