Best way to get credit

[alex]

If you don't really want a credit card then I would go with Amex even if you have to pay a fee. They are the only one you can get away with paying the balance off each month in full. Normally if you have a MC or VISA and you pay it off each month it does not help your credit rating unless it is for a large amount. CC companies make their money on the interest they charge you.

For me the AMEX requirement of paying in full each month helps me keep to a budget better. I am stilling paying off MC I got as in college. Believe me that is one thing I wish I never did even if it did help me get my car and house.

 

[JabbaJawz]

Also, you may be able to ask your mortgage person what steps you should take, what their requirements are, etc...

You gotta start somewhere - and there is definitely some place out there who will issue Jesse a card. When you get it, purchase small things on it and continually make monthly payments.

When I got my 2nd car I put a lot of money down and only financed $5,000. My Dad was the co-signer since it was my first big purchase. Shortly after I got the car I came into some loot and paid the car off. MISTAKE! When I went to buy a new car a year or so later they threw me the same 'not enough credit excuse.' When I had the 2nd car I should have just made consistent payments instead of paying it all off. It all worked out, though, because after searching around I finally dealt with Ford, who didn't give me any crap and financed me right away.

 

[Dymphna]

Re: Re: Re: Re: Re: Best way to get credit

Originally posted by watercolor23
No the guy told us it would not fall back on them...that is all. He told us, just because they were a co-signer...doesnt mean that they are all that liable.

He lied. Not only will it fall back on them, it'll ruin their credit too.

Get a new mortgage guy, you can't trust that one.

 

[Dymphna]

Originally posted by otter
Think its about time Rodd got his own opinion thread..If Trevor and Ken can have one, can't Rodd have one to address the lesser things in life???

 

[SxyPrincess]

My Dad also co-signed for me to get my second car. I was 19 at the time and didn't have enough credit. I had ONE credit card through Shaws that I had been making payments on for about a year.

I kept the car for 3 1/2 years, and when I went to buy my Accord, the guy at the dealership said "Wow, your other car didn't help your credit much!" I was never late or missed a payment for 3 1/2 years, and my Dad got most of the credit.

I have a few CC's, but I don't use them because I don't want to get myself in trouble. Instead, they sit in my wallet aging...

 

[JabbaJawz]

Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by cmcdanal
He lied. Not only will it fall back on them, it'll ruin their credit too.

Get a new mortgage guy, you can't trust that one.

Yep, he only said that so that he could suck your co-signer in. He's full of it. In regards to what you said above Watercolor, the co-signer can indeed 'let the bank take it', but it basically means they're defaulting on the loan too. Therefore, it ruins their credit. What a donkey mortgage guy, I'd never go back to him again.

 

[JabbaJawz]

Re: Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by laureng
suck your co-signer

 

[SxyPrincess]

Re: Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by laureng
In regards to what you said above Watercolor, the co-signer can indeed 'let the bank take it', but it basically means they're defaulting on the loan.

I know that if you purchase a vehicle, and later can't afford the payments and give it back to the bank, it goes against your credit as a repo. Might be the same for houses. :shrug:

 

[RoseRed]

Re: Re: Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by laureng

Cracking yourself up again Lauren?

 

[JabbaJawz]

Originally posted by watercolor23
he could easily get approved for $220 (wouldnt spend that much)

That's another thing to watch out for. We were approved for a crazy @ss amount of house, and I'd NEVER ever want that payment in a million years!! You can always get approved for more than you could actually pay, or would want to pay.

 

[JabbaJawz]

Re: Re: Re: Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by RoseRed
Cracking yourself up again Lauren?

Indeed!

 

[Dymphna]

Re: Re: Re: Re: Re: Re: Best way to get credit

Originally posted by cmcdanal
Get a new mortgage guy

We used Bob Caldwell at Financial Resources in Waldorf. He worked up the numbers a couple of different ways and got us a good deal. We already had credit established but I'm sure he can help you figure out the best way to get what you need.

Someone noted before, but it's worth repeating, If you apply for a bunch of cards in a short period of time, the multiple inquiries to your credit will look bad.

 

[watercolor]

Re: Re: Best way to get credit

Originally posted by laureng
That's another thing to watch out for. We were approved for a crazy @ss amount of house, and I'd NEVER ever want that payment in a million years!! You can always get approved for more than you could actually pay, or would want to pay.

Oh yes of course. Cause there is no way in hell I would want that kinda payment! But we were looking at spending around 145 at the max if possible for a starter home

 

[Heretic]

Originally posted by alex
Normally if you have a MC or VISA and you pay it off each month it does not help your credit rating unless it is for a large amount. CC companies make their money on the interest they charge you.

Sure it does, the ocmpanies make a percentage of whatever was charged to the card (from the store or gas station or whatever) This is why many places have a lower limit for using a credit card and why Master Card was being sued by Walmart recently.

I have never paid credit card interest and just using a credit card charging a few hundred a month a paying off has gotten me a credit line of over $8k per card (I have two) I got a $28k car loan in an hour and recently checked my fico score on myfico.com and was in the upper 5% (807)

I got my first credit card when i was a junior in college and its limit was $600, this was 8 years ago.

All you have to do to get credit is pay your bills on time

 

[watercolor]

Originally posted by Heretic
All you have to do to get credit is pay your bills on time

Well obviously that is not true.. because we pay the phone on time and such...and he doesnt have credit established

 

[Heretic]

I believe the only bill I get here in southern maryland that ever did a credit check was SMECO, I dont think the others report to any credit agency unless you default.