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

[WingedWolfPsion]

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.

[jfreels]

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.

[WingedWolfPsion]

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

[j_h_smith]

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

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

[mechnut450]

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.

[dsirkle]

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.

Seeing this post was like reading my own words.

[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.

[Teclis]

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/

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.

[jfreels]

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.

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.

[WingedWolfPsion]

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