#1
Well I'm getting sick of being turned down for every store-specific credit card I apply for due to not having any credit so my question is, how do actually build your credit up? Is getting one of those insanely high interest rate cards really the only way to start your slow climb upward? Yes, I am completely ignorant on the subject. All I know is everyone is getting sweet payment plans on cool shit but me...

Oh, and just to get this out of the way early, I don't care what you have to say on the subject of credit cards being evil and such. I know if not taken seriously they can ruin your financial life.
#2
Get a checking account and make deposits/withdraws. Get a credit card and buy stuff + pay the bill on time.
█████████████████████████████████████████████
█████████████████████████████████████████████
Portugal. The Man »–
#3
Quote by jasonmetal love
Get a checking account and make deposits/withdraws. Get a credit card and buy stuff + pay the bill on time.


I have a checking account already and use a debit card for 75% of all my purchases. I suppose that doesn't really do anything though. So just making simple deposits and withdraws really helps?
#4
I got a credit card under my parents' name. It's just for emergencies and whatever, but I don't have to worry about paying it off and I build credit at the same time. And once I'm ready to get my own credit card I'll already have good credit. You should ask your parents about it.
Drop another coin in the slot, and I will tell you more...
#5
having no credit is almost as bad as having bad credit history because the companies have nothing to go check you with. stay away from credit cards. they are such a rip off. i bought about 8k worth of music gear and i was playing about £100 per month in interest alone. fortunately i have a nice family who helped me out.
#6
you need to get a credit card and buy stuff and make the payments, i suggest purchasing small things that you know you will be able to pay for.

EDIT: And do not listen to person above me. He was rtarded.
#8
Quote by Chak
You should ask your parents about it.


Oh believe me, if there's two people whom NOT to ask about financial situations, it's my parents...
#10
From what I understand, which is relatively little, just get your hands on a credit card, buy stuff, pay it off on time.
Quote by pmeg568c
oh man, seems as though i totally forgot about anal

My Gear
Fender American Deluxe Stratocaster
Fender Standard Strat
Boss ME-50 Multieffect
Fender Hot Rod Deluxe
#11
Quote by MisterChainsaw
how I built mine up is just taking your parents utilities and putting them in your name. They still pay it on time and it builds my credit up.


Except that's illegal if you don't have written consent and a valid reason for doing so.
█████████████████████████████████████████████
█████████████████████████████████████████████
Portugal. The Man »–
#12
STOP APPLYING FOR STORE SPECIFIC CARDS, THAT WILL RUIN YOUR CREDIT. What you want is a long history with a few cards. Get two cards, like a Visa and Amex. Then get two bank accounts, one savings, on checking, and keep them there. It takes five years to build good credit, and one week to ruin it.
Suhr Custom, Flaxwood Rautia or Grosh Tele thru
HBE Medicine Bawl Wah
Analogman BiComp
Texas Two Step OD
Fulltone Ultimate Octave/Fuzz
Boss CE-2
TC Nova Delay
SLO-100, 65 London or Bogner Shiva
Ask me about any of this stuff!
#13
Quote by jasonmetal love
Except that's illegal if you don't have written consent and a valid reason for doing so.



Not illegal, but as of September last year, the credit agencies stopped giving "credit" for joint accounts (like credit cards and utilities you share with your parents). There is no reason you can't put utilities in anybody's name you want, you will just probably need a security deposit.
Suhr Custom, Flaxwood Rautia or Grosh Tele thru
HBE Medicine Bawl Wah
Analogman BiComp
Texas Two Step OD
Fulltone Ultimate Octave/Fuzz
Boss CE-2
TC Nova Delay
SLO-100, 65 London or Bogner Shiva
Ask me about any of this stuff!
#14
Quote by happytimeharry
Well I'm getting sick of being turned down for every store-specific credit card I apply for due to not having any credit so my question is, how do actually build your credit up? Is getting one of those insanely high interest rate cards really the only way to start your slow climb upward? Yes, I am completely ignorant on the subject. All I know is everyone is getting sweet payment plans on cool shit but me...

Oh, and just to get this out of the way early, I don't care what you have to say on the subject of credit cards being evil and such. I know if not taken seriously they can ruin your financial life.

im not really sure but i have a GIC savings thing and the lady at the bank said that adds toward my credit rating or whatever. so probably showing that you can save and use money well will look good credit wise.
#15
Quote by handlerb
Not illegal, but as of September last year, the credit agencies stopped giving "credit" for joint accounts (like credit cards and utilities you share with your parents). There is no reason you can't put utilities in anybody's name you want, you will just probably need a security deposit.


You didn't say joint accounts. If you're not making a certain income that is plausible to pay for the utilities and someone looks into it, it's illegal.
█████████████████████████████████████████████
█████████████████████████████████████████████
Portugal. The Man »–
#16
Quote by handlerb
STOP APPLYING FOR STORE SPECIFIC CARDS, THAT WILL RUIN YOUR CREDIT. What you want is a long history with a few cards. Get two cards, like a Visa and Amex. Then get two bank accounts, one savings, on checking, and keep them there. It takes five years to build good credit, and one week to ruin it.


Sounds like a plan, but care to elaborate on how store specific cards ruin your credit?
#17
Quote by Raaaaar
having no credit is almost as bad as having bad credit history because the companies have nothing to go check you with. stay away from credit cards. they are such a rip off. i bought about 8k worth of music gear and i was playing about £100 per month in interest alone. fortunately i have a nice family who helped me out.



This guy is an idiot, ignore him. Credit cards are fantastic, you just need to pay them in full every month like somebody with a brain in your head. All they do is provide you an easy way to package your expenses into one bill, and defer payment for 3 weeks. If you miss ONE payment, it will reflect badly on your credit.

Bough 8k worth of music gear.... did you have 8k in the bank, what was your plan retard?
Suhr Custom, Flaxwood Rautia or Grosh Tele thru
HBE Medicine Bawl Wah
Analogman BiComp
Texas Two Step OD
Fulltone Ultimate Octave/Fuzz
Boss CE-2
TC Nova Delay
SLO-100, 65 London or Bogner Shiva
Ask me about any of this stuff!
#18
Quote by happytimeharry
So just making simple deposits and withdraws really helps?

As far as I know, no. If it did, your debit transactions would be building credit. Obviously they're not.

Quote by Chak
I got a credit card under my parents' name. It's just for emergencies and whatever, but I don't have to worry about paying it off and I build credit at the same time. And once I'm ready to get my own credit card I'll already have good credit. You should ask your parents about it.

I would not do this as a parent or child, simply for the reason that if the other party runs into financial problems, my credit can be quite damaged. However, if your parents have a FICO score of 800+, I wouldn't be too worried.

Quote by Raaaaar
having no credit is almost as bad as having bad credit history because the companies have nothing to go check you with.

True.
Quote by Raaaaar
stay away from credit cards. they are such a rip off. i bought about 8k worth of music gear and i was playing about £100 per month in interest alone. fortunately i have a nice family who helped me out.

Wrong. You should stay away from credit cards only if you have little financial sense. Credit cards are just find for building credit. The trick is to never pay interest. That means only spend what you can immediately pay back.


OP, if I was you I would get a credit card from your bank - most likely they'll have a "starter" card with a low credit limit (mine is $1000) that you can use. I would use it for large purchases you know you can afford - college textbooks, for example. The trick is to pay the balance off immediately, so you are charged no interest. If you always pay the entire balance every month, you'll never owe anything more than what you paid the store. There are "minimum payments" you can opt to make. Ignore them and pay the whole thing.

It all comes down to knowing your budget and how much you can spend. Banks love it when you overspend, because they make money off of your inability to manage your finances. Read a few personal finance books.

Quote by handlerb
STOP APPLYING FOR STORE SPECIFIC CARDS, THAT WILL RUIN YOUR CREDIT. What you want is a long history with a few cards. Get two cards, like a Visa and Amex. Then get two bank accounts, one savings, on checking, and keep them there. It takes five years to build good credit, and one week to ruin it.

Actually the amount you're allowed to borrow does factor into your FICO score. Therefore, the more cards you have, the higher your score. However, you won't get a score of 850 by getting 82214 credit cards, obviously. Source for this is Suze Orman, so take it or leave it.

-SD
Last edited by SilentDeftone at Feb 18, 2008,
#19
Yes gladly, store specific cards are not "credit cards" from the viewpoint of reporting agencies. Instead they are charge accounts, (not the ones that are basically VISA cards with store specific rewards, like Airlines, etc). They assume this means that you cannot afford to buy things at that store, and would prefer to finance your purchase through a 'credit' card. It not only raises you debt capacity, but demonstrates irresponsible spending habits.

One very important factor to your credit is longevity. A long history of paying a few credit cards on time is important. Any changes, such as opening closing of accounts, shows instability. Now, this isn't completely rational, I know, but on average the companies have determined that switching banks, new credit cards, etc has a negative correlation to credit worthiness. I'm sure you can read the details if you google it. Hope I can help.

Just to clarify, my advice is worth something. I graduated from a top 20 University with majors in Economics and Finance. My credit rating is 780.
Suhr Custom, Flaxwood Rautia or Grosh Tele thru
HBE Medicine Bawl Wah
Analogman BiComp
Texas Two Step OD
Fulltone Ultimate Octave/Fuzz
Boss CE-2
TC Nova Delay
SLO-100, 65 London or Bogner Shiva
Ask me about any of this stuff!
#20
You are right, however this law is in place primarily to target irresponsible parents you use their kids (minors) SS#'s because their credit is unworthy. If your parents are trying to build your credit, they can legally gift up to $10,000 annually tax free. However, if they are ever investigated, they have to prove that they gifted the money at the beginning of the year in a lump sum. The tax code is some 25,000 pages, where theres a will, theres a loophole that lets your kids earn a salary! All you need is a good tax lawyer @ give or take $300/hour
Suhr Custom, Flaxwood Rautia or Grosh Tele thru
HBE Medicine Bawl Wah
Analogman BiComp
Texas Two Step OD
Fulltone Ultimate Octave/Fuzz
Boss CE-2
TC Nova Delay
SLO-100, 65 London or Bogner Shiva
Ask me about any of this stuff!
#21
It's easier to never use them, my grandpa has never payed interest on anything in his life and he's living it up man
#22
Quote by handlerb
Yes gladly, store specific cards are not "credit cards" from the viewpoint of reporting agencies. Instead they are charge accounts, (not the ones that are basically VISA cards with store specific rewards, like Airlines, etc). They assume this means that you cannot afford to buy things at that store, and would prefer to finance your purchase through a 'credit' card. It not only raises you debt capacity, but demonstrates irresponsible spending habits.

One very important factor to your credit is longevity. A long history of paying a few credit cards on time is important. Any changes, such as opening closing of accounts, shows instability. Now, this isn't completely rational, I know, but on average the companies have determined that switching banks, new credit cards, etc has a negative correlation to credit worthiness. I'm sure you can read the details if you google it. Hope I can help.



Ah ok, that actually makes a lot of sense when you look at it like that. Thanks a million man.

Quote by SilentDeftone


OP, if I was you I would get a credit card from your bank - most likely they'll have a "starter" card with a low credit limit (mine is $1000) that you can use. I would use it for large purchases you know you can afford - college textbooks, for example. The trick is to pay the balance off immediately, so you are charged no interest. If you always pay the entire balance every month, you'll never owe anything more than what you paid the store. There are "minimum payments" you can opt to make. Ignore them and pay the whole thing.




Yeah, I'll definitely check to see if my bank offers some sort of "starter" card as you say. I have no intention of buying things I cannot afford in the first place, that's just common sense. I just don't like being looked down upon for simply not having any credit to speak of whatsoever.
Last edited by happytimeharry at Feb 19, 2008,
#23
*Makes Mental Note*
METAR KTIK 040043Z COR RMK TORNADO 1W MOV NE. EVACUATING STATION
#24
Quote by happytimeharry
Yeah, I'll definitely check to see if my bank offers some sort of "starter" card as you say. I have no intention of buying things I cannot afford in the first place, that's just common sense. I just don't like being looked down upon for simply not having any credit to speak of whatsoever.

The sooner the better, too. I'm 20 and a junior in college, and I see most of my peers using their parents' cards. Not only does this teach that mommy and daddy will bail you out when you overspend, but it doesn't even build the kid's credit.

I don't use my card much - gas, books once a semester, a few online purchases. Still, some is better than none.

Also, if you get multiple cards, don't max out one and not touch the other. Spread evenly if you can.

-SD
#26
I got a credit card and used it for stupid little things so that my bill was fairly small. After a while of doing this my credit actually looked pretty good.
#27
Oh, one more question. Do they pay attention to what kind of items are being charged on a card? For example, does making bigger purchases and paying them off make more of an impact than paying off multiple smaller charges?
#29
Quote by happytimeharry
Oh, one more question. Do they pay attention to what kind of items are being charged on a card? For example, does making bigger purchases and paying them off make more of an impact than paying off multiple smaller charges?

I'm pretty sure they pay attention to how much you're spending, but not what you buy explicitly. So if you want to go put Playboy on there, nobody will be watching.

I'm pretty sure maxing a card out is frowned upon, but never using it doesn't help you. It's a question of balance.

-SD
#30
Quote by SilentDeftone
I'm pretty sure they pay attention to how much you're spending, but not what you buy explicitly. So if you want to go put Playboy on there, nobody will be watching.



Psh, who pays for porn nowadays?


Anyway, I went up to my bank today and applied for one of their cards. I won't know if I got approved or not for another two weeks. I did get a free tool kit for applying though!

Oh, and the woman that helped me said that if for some reason I don't get approved, I can always sign up for a pre-paid Visa card. I wouldn't think one of these would really increase your credit, but I could be wrong.
#31
SilentDeftone offered the best advice, but one suggestion that hasn't been made yet is that if your credit card applications keep getting turned down then ask your bank if they offer secured credit cards. They're designed to solve the very problem you're having. Basically you make a security deposit and that deposit becomes your credit limit. If/When you cancel the card you get your security deposit back as long as your balance is paid up. Otherwise they deduct your balance from the deposit. That's how I started to build my credit. Once you have it for a year or two you can apply for a "real" credit card and, as long as you used your secured card wisely and built positive credit, you won't be turned down.
#32
Quote by happytimeharry
Oh, and the woman that helped me said that if for some reason I don't get approved, I can always sign up for a pre-paid Visa card. I wouldn't think one of these would really increase your credit, but I could be wrong.
Well, there you go. And yes, a pre-paid card is a secured card. They do go towards building credit and they exist to help people with no or bad credit build/re-build their credit rating.
#33
Well awesome, looks like I can finally start climbing that ladder. Thanks for all the great advice guys. I sometimes forget The Pit is actually full of intelligent people...
#35
somethign about paying your bills on time...i dunno what else
Quote by SteveHouse
M. Night Shyamallama

#36
lol...this is an awesome trick...just buy your credit

Get yourself a credit card..

get the billing info..take the credit card to the bank..

draw out your entire limit of funds....

go inside and buy a money order..add about 10 bucks to it

and send it off as soon as you get out...

check the status of your account...when the money is processed..

rinse and repeat until satisfied...it only costs you a few bucks to do it each time..

or deposit the money in a checking account you made just for the card..lol
pay the bill over the phone...that bogus account will have 20 bucks in it tops
anytime your not paying the bill..lol

that idiot computer just doesnt understand that youre paying the company their
own money..lmao
I bet Charlie Brown's teacher's name was Mrs.Hammett
Last edited by Washburnd Fretz at Feb 20, 2008,