I just don't get how this works I guess. How can I build credit if no one will give me any. I thought with paying off my focus (about $8,000) I would have developed some positive credit. But recently found out I don't even have enough to get a credit card. I think the whole thing is stupid. I pay all my bills on time and I've never missed a payment on anything in my life. I have a steady job and I'm very responsible with money. But that doesn't seem to matter at all. It's bad enough I was completely ripped off when I got my focus. I way over paid and was charged 30% interest monthly! But I sucked it up because honestly no where else I went would even consider financing me, so what else could I do. Plus I actually had most of the money for the car so it only took me 8 months to pay off (I tried to do it slowly with $500 payments a month, I didn't want to go to slow because of the high interest they were charging me). Now all I wanted was a nice laptop and here Tiff was selling a nice brand new one and cutting me a great deal. All I fucking needed was half the money she was asking for and they denied my app. Which really pissed me off. I paid off an $8,000 car in 8 month, so do they think I can't pay them back $450. I could just wait and save up the money like I always do but that's why I don't have any credit now. I was raised by my grandparents who believed you never buy something until you've earned it. Which is a good way to live but not if you need to finance something. (incidentally this is also the reason I have no co-signers because they don't have any credit either)
____________________
Yeah, I punched a baby once, in anger. But in my defense the baby was being kind of a dick.
what are the reasons then for your credit denials? A good way to check this sort of stuff is to check some place like http://www.creditexpert.com you get a free credit report online for one month, and they give you your credit score and reasons that it may be low, work on those things and perhaps you'll at least have an idea what it is that you need. Mine is funny, I'm on the border between a Fair credit rating and a Good credit rating, the difference will be one year, by next year I'll have a Good rating just merely based on the length of time I've had credit. It's picky stuff, be careful who you apply through also, every time someone looks at your credit (when you apply) that goes on your report as a hard inquiry, too many of those can be a negative factor in your credit score.
One of the biggest factors in your credit score is how much of your available credit you are using. A person with no available credit gets a lower score than someone using 100 dollars of a 1000 dollar card. It also extrapolates further by scoring on a credit by credit basis. so If I have 10 cards using 10% of my available credit on each, I will have a higher score than someone using the same money figures on just one card. Basically, the system rewards you for carrying debt. Some of the score is paying bills on time, some is income, some is debt load, and a big 30% chunk is how much of your available credit are you using. If you want to raise your score, get a few credit cards and make a few small charges that you can pay off.
they told me I had insufficient credit history and they "felt" that if I maxed out the card (it had a $5000 limit) that my monthly income wouldn't be enough to handle it.
____________________
Yeah, I punched a baby once, in anger. But in my defense the baby was being kind of a dick.
I was told , to get depatment store cards. Like Macys, Filenes, Sears....they usuaully will accept most people, and its a good way the start getting credit.
so why don't they give you a lower credit limit? that doesn't make any sense. Who did you go through?
Credit is sometimes a mysterious thing, what TXFO says is true to a point, but if you have too many cards, or alot of credit that isn't being used, it might still be extremely difficult to get credit because the creditors will look at that as though you could at any time extend your credit on any or all of those cards. Good Credit is all about balance, having cards without balances can hurt you, having cards with high balances can hurt you, having too few or no cards can hurt you, having too many cards can hurt you. If their problem is simply you don't have enough history to have a $5000 credit limit start with something lower, there are plenty of reputable credit companies out there, and hell...if I can get credit, you can get it. Just don't expect to start off with a $5000 credit limit, maybe 1-2K to start, think of it as building a house, you gotta build your credit in the same manner.
My first credit card had a $200 limit and cost me a bunch in activation and annual fees, but when you don't have any credit and want to start building it you have to start somewhere.
Mr. Versatile wrote: One of the most ironic things about credit or borrowing money, is that in order to get a loan, you first have to prove that you really don't need it.exactly. I thought I was the only one that noticed that. I am trying to withdraw some cash from my 401k and I basically have to prove that I dont need the money while also proving that I do. I asked the lady on the phone that if I can show that my monthly income after bills is equal to the amount I want to withdraw, wouldnt that negate my claim of need? She seemed puzzled at first and then said no just follow the instruction. (dumbass) I dont get it but hey, its their system not mine.
I've done the following a number of times with guys who have no credit history in Canada.
Go talk to your bank manager. Just tell them that you want a credit card with a limit of 500.00. Give them a cheque for 500.00 to the CC account. Tell them that you just want to establish credit. As soon as you make a purchase on the CC then just make a payment in that amount to the CC. It'll take a few months and your credit line will just automatically start increasing.
Start using the CC to pay as many of your bills as you can.
I know it sounds wierd but don't think "normal" when you are dealing with financial institutions.
____________________
A man is not old until regrets take the place of dreams...John Barrymore
This was for a visa card through my bank. The lowest limit offered was $5,000. I've thought about using store credit to start building. It'll probably be my next try to get a laptop. I've seen places gives friends credit all the time and they all have little to no credit history. Or maybe some of those things we get in the mail about being pre-approved for credit cards. I usually throw them away but maybe I should look into one.
____________________
Yeah, I punched a baby once, in anger. But in my defense the baby was being kind of a dick.
That was your problem, going through your bank. Just go directly to one of the major credit companies like Citibank and I'm sure you'll get one. But, as you said, it's almost ALWAYS best to pay cash.
Also, having an occupation other than "evildoer" will help.
I know what u mean, dude. Credit terms suck, when we 1st started off, we had 2 scrape up $2,500 just 2 get a $9,000 car with no credit or any co-signers, but we made it. And yeah these terms r sooo retarded, just like how if u miss a payment on your car well, how the hell do u expect 2 have someone pay it without the damn car 2 drive. Stupid rules. Sorry dude, wish the best of luck.
Maxx, I would go through Capital One, or even Citibank or someone. Banks are tough, I just recently got some money from my bank but I've also had really good credit for almost two years now. See what you can do. This laptop doesnt seem to be going anywhere all to fast
____________________
It's not about what you have under the hood, it's about who you have behind the wheel...
Ya, a good way to build credit is to go to a jewelery store, like Kay Jewelers, and get a credit card there. Itll probably be like $250 limit. Buy yourself a nice watch for like 100 smackers, and pay it of monthly. Also, go to like Macy's and get another credit card there. They will give you a small credit limit right on the spot. Buy yourself some sort of cologne or a pair jeans, and pay that off monthly too. Thats how I started out. You build up from there.
I hear you on the credit thing. I think we've all had our run ins with them.
I have 2 dept. store cards and NO regular Credit Cards at this point.
I use my dept. store cards once or twice a year, just to roll a balance into them and pay them off so my credit stays active.
My I used to have a Macy's card - had to get rid of that due to the Ex husband & that was actually my first card back when the store in the Maine Mall was actually Jordan Marsh (I was 17 at the time...long long time ago!)
I kept this active and in good standing until I had to cancel it due to my divorce. I was at a $600 limit with it.
My others that I currently have, one of them is Victoria's Secret. They started me with a $500 limit right off the bat - instantly and in 2 years, I've climed to over a $1000 credit avail. limit. I NEVER buy that much and wouldn't. I hit it with $100 a couple times a year, but pay it off as soon as possible.
A BIG note on Dept. store cards - those interest rates average in the 20's, so be careful!!!!! Be sure you can pay off the amt. you charge asap or it's not worth buying on a card.
Sears is a good one, if you can get it...you can also get a Craftsman club card (not a CC, and it's free) and then you can get great deals on tools etc.
Do the small stuff first and work your way. All of these suggestions in this threads are excellent ones. Just don't bury yourself in fees and interest rate charges.
____________________ Get in, Sit down, Shut up and HANG ON!
To get my forst card I called a local bank (not one I was with) and they got me hooked with MBNA. I than later got a CC through AAA and it was also MBNA so I canceled my first card and combined the 2 cards. Watch yourself tho cause debt add up really quick. Also I knew a guy that had a CC through the bank where he had a checking account and when a payment was late they froze all his accounts and he did not know untill trying to use his ATM card on a saturday, he cleared it up on monday but it still caused a huge mess for the weekend.
....hehe...
