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

[N4S]

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.

[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/

[dsirkle]

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.

[j_h_smith]

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

[Alyvrae]

Pay your bills on time. 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.

[reixox]

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

[Blue Apple Herps]

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

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

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.

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.

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.

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.

[Darkice]

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.

[j_h_smith]

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

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

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.

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.

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).

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.

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.

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

Jim Smith

[Blue Apple Herps]

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

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.

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.

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.

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.

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.

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

Jim Smith

That's what I'm thinking!

But again, it's all about responsibility.