rebuilding credit in these times

[b*saint]

Sucks. Im slowly finally getting my limits raised on my credit card. I fucked it all up when I was 20 when I had high debt and lost my job. After fixing it all by 23, its still wicked hard to repair it. Lesson - Dont fuck up your credit.

I need tips tho. Everything is paid up or off and I havent been late on a payment in over a year. I have a new credit card with a dirt low limit but no new loans. I can't even get a secure loan to rebuild my credit (tried it on getting a new motorcycle 4 months ago.) My credit score shows Im not past due with my cc or my installment loan which ends this year in Sept. After that I dont have much to add to my credit score but my credit card payments. I have another year before the credit card I settled on a few years ago doesn't affect new credit applications but that can't be the only thing slowing down my credit score from going up. I gotta be missing something.

The only thing I havent tried is putting a huge down payment on a loan application. Does this even help?

[pbr87]

Get a co-signer for a loan
/thread

[ck_taft325is]

5 lines of credit, that you DON'T have to use (and I would strongly recommend not using any but one) is a great way to rebuild credit.

My credit was non-existent but my wife's had credit since she was 18. I went from having none, to getting put on her credit card and having "31" months of credit to my name.

It helps, but I suggest the 5 lines of credit. Just so they see that 5 people are willing to "take a risk" on you with credit cards, gas cards, etc etc...


P.S.

r3v is not the best place to ask for credit card help... ;)

[mrsleeve]

Well how long have you had credit in general????


You need to USE your CC's. Use them, for everything you buy normally, on them and pay them off every month. PAY THEM OFF NO MATTER WHAT.

Next see if you can get a small like 1200 dollar personal loan, even if you have to put the money in a CD at that bank, and pay it off,

You just need to keep making good on your obligations like you are. The longer you have credit the better off you will get.

Dont feel too bad, most lenders have really tightened up the lending standards

[Restoman]

What are you building your credit for? Try buying with cash and no need for credit cards or credit.

[DREWHALL]

It helps to have credit though, not everything is cash up front.

[Il Duce]

how many e30s do you have? also- WICKED TITE YO

[DREWHALL]

Who?

[mrsleeve]

yeah cash is king, But credit is a very very useful tool, that affects everything, the better your credit the cheaper your auto insurance (bad credit/no credit will hurt your rates more than a ticket). Gets you better deals when you do need to take out a loan, allows you access to money for emergency situation that you may not have the cash on hand for.

What are you building your credit for? Try buying with cash and no need for credit cards or credit.

[Desaevious]

Wow, great topic. I'm building my credit fresh so perhaps I can get some opinions here. For example, I just got a credit card. Coming on 20 years old and in my 4th semester of college I figure its about time I build my credit. I just put $300 of books on my Citi Dividends card for college students (6 months no interest, no yearly fees) and I plan on paying it all off at once when I get the bill. Now would that be better for my credit or will paying the minimum payment better? Or splitting it into maybe 3 payments that are higher than the minimum?

I've asked my dad, a banker, and a few other friends who are in the same place I am...my dad goes the "pay it all off at once" route and has a credit score in the 800's. The banker and others say split payments that are higher than the minimum payment but not to prolong it so that I get interest. So financial gurus, who should I listen to?

[mrsleeve]

^^^^^^^^^^^^^^^^^^^^^6

USE it every Month and PAY IT OFF EVERY MONTH

[ck_taft325is]

^ What this guy said.

If you go the "pay it off slowly" route, do not, I repeat, DO NOT drag it out more than 6 months at a time. The wife and I have been building our credit as we're starting a business. (Note: Business Credit and Personal Credit are two VERY seperate entities) We make several substantial payments a year and pay them off over a 3 month period. To be 100% sure of paying these substantial purchases off, we always have the money in a seperate account ready to pay it all off if need be.

Again, 5 lines of credit are what banks/lenders/loaners want to see. Get 5. Don't use 5. But get 5. I personally have 3 credit cards, 2 with no monthly/yearly interest and 1 we use for said "substantial" purchase. Then 2 gas cards. One we use, one we don't. After only 31 + months of owning a credit card, we've got a great credit score and good habits when it comes to buying on a credit card. Good habits will save you a huge amount of heart ache and misery.

[Jean]

http://www.usdebtclock.org/

[Charlie]

What are you building your credit for? Try buying with cash and no need for credit cards or credit.

Most people don't buy a house with coinstar reciepts and singles.

-Charlie

[nrubenstein]

The credit bureaus like to see a small balance used. 5-10% of your limit. The big thing, though, is not to use very much of your credit capacity.

Also, you have to use your cards occasionally. My fico s 793, and I still had BoA decide to kill a credit card that I hadn't used in a while.