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No Credit, Almost Worse Then Bad Credit! |
Mancill
6 Posts
Member Since: 01/07/2004
Chicago, IL
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Posted: 18:24 on 01-26-2004
I have a bad siuation. I have no real credit history and it's becoming a pain to get credit.
I had a $200 credit card in college but cancelled it once I ran into financial problems.
Since I've had an apartment and cell phone but neither show up on my credit report and no credit card company will touch me with getting a secured card.
I work FT make a nice salary for a 22 year old, no bills except phone, rent and car maintance but nothing major so I invest alot of money into my RE career, but I still need to get that score up.
What can some of you guys suggest.
Thanks
Mancill
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rajwarrior
1657 Posts
Member Since: 03/05/2003
Claremont, NC
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Posted: 19:07 on 01-26-2004
I'm surprised that no CC company will issue you a card, since they usually throw them out to just about everybody, even 18-yr old high school seniors.
You could invest in a secured card just to start your credit. If you don't want to do that, go to a smaller local bank that offers credit cards. Take with you a letter from your landlord noting your timely payment history, as well as a letter from your cell phone company denoting the same. Both can be easily verified by the banker calling. That should get you enough credit history to get a card.
Department store cards are usually even easier to get, and they too report your credit history.
Another method used to quickly build a credit history is to deposit funds in a local bank, for example $1000. Immediately use that savings account as colateral on a loan for the same amount. Take those funds to another bank and repeat. Make a couple of payments and then use the funds from the last loan to payoff the first, and use the released savings account to payoff the second. You'll lose a little money from interest but your credit will quickly improve. You can do this with as many banks as you want, but I'd suggest not going over three. Also, check with them all BEFORE doing, as some may not do it or may require more money.
Roger
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GWmson
73 Posts
Member Since: 07/20/2003
Saint Petersburg, FL
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Posted: 19:17 on 01-26-2004
I'll tell ya what my dad told me 20 years ago and it worked for me.
Walk into your local bank, preferably one you already have a checking/savings account with and deposit 1,000 into a CD. Then go ask for a loan of 1,000 with your cd as security. You should have no problem.
If you have no account, immediately open ONE checking and ONE savings account at one of these banks, (look for a bank that has free checking)
Take that 1k you have in your hand now and go do the same thing at another bank and on and on..
Your last stop that day is depositing that 1k of money in your savings account, your going to use that to help pay off them loans.
I figure do it 3 times with 3 different banks. Pay your monthly payments every 3 weeks and pay the balance off in 7 months. (make sure you don't have to pay a penalty for early payoff) Don't ever be late. Not ever. You may want to look into setting up direct deposit so you can make sure this never happens.
(These loans will cost you nothing but the difference between your interest rates of your cd/savings and your loan rate) and DO NEGOTIATE DOWN that interest rate on the loan, remember, it's a FULLY SECURED LOAN, They guaranteed their money and you can tell them that, if they don't want to cooperate with a low low rate, go to another bank.
Get yourself a low limit credit card, and use it like a check card, pay your balance every month in FULL.. Use it for small things like dinner out, or something like that but show that it's active and your a responsible user.
You might also go to a furniture place and buy a small item on credit. Be upfront with all these people. Tell them you really don't need the item or the money, but your trying to establish your credit can they help? Go buy yourself a nice little $100 office chair or something. Make sure they report to the credit agencys, ASK!
Within 1yr w/ a steady job and residence, you'll look like an A+ credit.
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GWmson
73 Posts
Member Since: 07/20/2003
Saint Petersburg, FL
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Posted: 19:18 on 01-26-2004
HA !
Raj beat me to the punch.
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Ruman
613 Posts
Member Since: 07/17/2003
Des Moines, IA
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Posted: 19:23 on 01-26-2004
Have you actually checked your credit? Your cell phone may not appear on your report but they can still be used for loan purposes. Usually only good if more then 12 months. If you can prove that you have lived in the apartment for over 12 months and paid on time, paid your cell phone on time, paid your past credit card fine, and have a full time job of over 3-6 months paying well, then I would see you being able to get a home loan. Now if you just started your job 2 weeks ago, got your phone a month ago and just moved into the apartment, you're going to have to wait. My brother got a house no problem with a full time job of 4 months and a car loan. Maybe he had a credit card too. I almost was able to get a home loan at 18 with four sources of good credit(not on my report) except that I could not prove my income since I was working for my mom even though I was making enough money. That was their only problem. Go for it and call up a mortgage broker, he'll be able to tell you if he thinks you can get approved in about 10 minutes.
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makingaliving
188 Posts
Member Since: 08/05/2003
Nashville, TN
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Posted: 19:30 on 01-26-2004
Sometimes, making an in person application can help. I know it helped me when I personally talked to a department store credit manager. He got me started with $250 in credit, which I used, paid, and used again. That was years ago. Might still work.
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houzin
5 Posts
Member Since: 05/20/2003
Country Club Hills, IL
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Posted: 19:37 on 01-26-2004
If somene you know has good credit and trust you. Ask them to to add you to there credit card account as an authorized user. (they must have had the account for 24 months to meet most lender credit requirements.
Inform them you do not want to use the card, you are only trying to establish credit and will promptly turn over any credit cards sent to you. Do this three times and you will have instant credit with good credit score.
Please be aware that the payments will count against you when you apply for your own credit.
After you have opened three account for yourself. Have them cancel you as an authorized user.
Matt
_________________
"When you get right down to the root of the meaning of the word "succeed"; you find that it simply means to follow through."
--F. W. Nichol
[ Edited by houzin on Date 01/26/2004 ]
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flacorps
569 Posts
Member Since: 10/01/2003
Land O Lakes, FL
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Posted: 20:43 on 01-26-2004
Apply for a Chevron card. If they deny you, they offer you a secured card.
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WheelerDealer
494 Posts
Member Since: 11/27/2003
Austin, TX
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Posted: 23:52 on 01-26-2004
Houzin.
Keep in mind that an authorized user does not carry the same weight as your own account, because you are not responsible for the bill. Also many creditors do not report an authorized user.
Take the same advice above but do it differently. Find someone you trust and they want to help you. Take one of their older accounts with excelent pay history and have them call the creditor and ad you to the account making it a joint account. ALL their history will go on your record too.
_________________
B.G. & Wheeler D. LLc Inc. and Trust
(A division of: Half Vast Enterprises)
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omega1
490 Posts
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Posted: 03:26 on 01-27-2004
GWmson, did you just repeat what the rajwarrior was saying? I see, he beet you to the punch... what the coincidence:-)
Department store CC are easy to get and they often count more then CC.
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WheelerDealer
494 Posts
Member Since: 11/27/2003
Austin, TX
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Posted: 16:40 on 01-27-2004
Maybe great minds think alike.
Nothing like seeing the same advice given multiple times. It must be good!
[ Edited by WheelerDealer on Date 01/27/2004 ]
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GWmson
73 Posts
Member Since: 07/20/2003
Saint Petersburg, FL
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Posted: 23:17 on 02-03-2004
hehe, I like the wheelerdealer thinks.
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flacorps
569 Posts
Member Since: 10/01/2003
Land O Lakes, FL
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Posted: 23:30 on 02-03-2004
Check the card issuer's policy of reporting authorized users. Some only do it for spouses, others extend that to blood kin ... the ones you want report any AU with no restrictions.
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GoingFor7Figures
24 Posts
Member Since: 10/07/2003
Fenton, MO
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Posted: 00:27 on 02-04-2004
Thank for asking that question b/c we're almost in the same boat. So I just learned alot from your question. I'm going to both of my banks and at one I'm gonna do the cd and the other a secured
loan.
Thanks everyone for your advice!!!!!!!!!!!!!!
Best luck to all. 
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