how should i build credit?

[noob with an RS 10+ year member]

ok, i need some advice, especially from you elderly successful people!//content.invisioncic.com/y282845/emoticons/tongue.gif.6130eb82179565f6db8d26d6001dcd24.gif i'm looking into saving up to buy a new car in a year but i think my credit might be a little messed up because i had a 2 thousand dollar debt with Cingular and i didn't pay it until two years later (by settling with the collection agency by paying half - $1,377).. well anyway i would like to start building my credit back up and don't know how.. can you guys list some ways please so i can get started.. i'd also like to start building credit for other obvious reasons that may be very helpful in the future but my main motivation for now is a car i really want! if getting a credit card is all it takes to build credit, where should i get the credit card from or where should i look into it at? i dont know much about rates or anything and dont know what to expect.. so please please PLEASE if you could help me with a great deal of info or ANY info i'd really appreciate it!

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[MikeofTulsa Moderator]

several diff options,

get a small credit card for say gas purchases and pay it off each month,

get a small loan from a bank and pay it off early or pay it each month

those are the 2 quickest ways to build up pos. credit. also paying off all old debt is a good thing also

 

[noob with an RS 10+ year member]

but will the bank loan me money regardless of my credit status?? even if i ask for a couple hundred dollars? i have a checking and savings account but haven't done much else with banking or asking to borrow money from the bank.. and the credit card idea.. where do i apply for a credit card and which one should i apply for?? the one with the lowest rate? are there any other figures i want to look at when applying for a credit card??

 

[Decipha 10+ year member]

keep an eye open... go for the big ones

also it helps to watch the dealer

teh hehe

 

[MikeofTulsa Moderator]

but will the bank loan me money regardless of my credit status?? even if i ask for a couple hundred dollars? i have a checking and savings account but haven't done much else with banking or asking to borrow money from the bank.. and the credit card idea.. where do i apply for a credit card and which one should i apply for?? the one with the lowest rate? are there any other figures i want to look at when applying for a credit card??

as for the bank, if you have collateral and no open collection accts against you they will generally loan you a small amount of money. as for the gas credit card or something like that. check at any gas station in your area, they should have an application for one. or you can go to visa.com or mastercard.com and see what they have available. but you definatly want to make sure you dont over extend yourself. another option is like a sears card or a best buy credit card.

 

[AcidicDreams 10+ year member]

that collection is going to hant you for years... I had the same problem... I eventually got a $200 credit limit card but if you are in a hurry go get a secured credit card... you give them $200 and you get a $200 credit limit.. after awhile if you are good with your payments they'll give you the money back and you'll build credit...

 

[MikeofTulsa Moderator]

that collection is going to hant you for years... I had the same problem...

7 yrs to be exact

 

[bigbangtheory 5,000+ posts]

Well I might be able to help a little bit. I went bankrupt over 4 years ago. I was over 65000 in debt and still living at home, so had too. Well when my bankruptcy went through, they told me that I should be able to apply for a small CC. So I went to capitalone and the approved me for a 500 dollar limit. It was up there in interest though, which sucks, but is helping. So I kept paying on it every month. Well ended up maxing that one out, EEK. So I got another one for 500 bucks, with low, low interest rate with the same company.(capitalone) So about 2 months went by on that and the raised my limit up to 1500 bucks on my first CC. What I did now was apply for another one with a higher limit and better interest so I can join the 2 of them. Still waiting back on that.

Anyway, when I went to get my new car, was worried about my credit not being good enough as it was pretty low, like in the 500's. They told me when I got my car, that my credit was almost at 700. So that helped out a ton with the CC's and paying them off each month.(Make sure you are always on time with those payments) So I went from a car loan of 6900 at 23% interest over 6 years, to a new car loan of 18700 at 6% interest over 5 years. Not too bad for having a bankruptcy. All I need is a few more pts and I will have what is considered good credit again.

I also have a house now, but that dont help me any, cause is in my parents name and I just pay them the monthly bills which can add up to around 1000/month. AHHHHHHHHHHHHHHH!

 

[noob with an RS 10+ year member]

ok guys, the only thing im really not firm about is the interest rate.. should i just apply for any credit card??? no right? am i just looking for the one with the lowest interest rate?? if interest is 7% does that mean for every dollar i spend on the credit card they add another seven cents i owe???

 

[azbass 5,000+ posts]

rob a bank

 

[hzsogood 5,000+ posts]

Im gonna open up a thread on credit scores cuz i dont wanna completely jump on your thread... But i just got a new (er) car and when i got my credit ran in december i was at a 620 ( bad credit past problems) Now just by what? 4 months im at a 644.. If you pay on time your golden.. My loan lady said i should gain 60-70 points in one year with no more bad reports and consistant on time payments

 

[Eugenics 5,000+ posts]

how old are you? and you still dont know this shit? how to build credit? you never learned that?

haha, you have as much credit with the bank as you do on ca.com

chump

.

 

[hzsogood 5,000+ posts]

how old are you? and you still dont know this shit? how to build credit? you never learned that?
haha, you have as much credit with the bank as you do on ca.com

chump

.

Was this towards me?

 

[Eugenics 5,000+ posts]

threadstarter

 

[Digital B 10+ year member]

To get a car.. you dont really have to have good credit, or any at all. Just downpayment, maybe a co-signer. I had no credit.. so I got a 99 Eclipse.. liked it.. but not really what I wanted with a co-signer. But, with no credit can't be to chosey. A year later, no late payments. Go to another dealership, they pay off my loan and I get a 03 Eclipse, In my name alone. And it about 2 years, this car will be gone for something new. Once you get a car, just keep all payments current and your credit will be awesome. CC's dont hurt either, as long as you're current. I also got a small loan in my name for 750 dollars just to pay it off and increase my credit. Alot of small things can add up, if you can manage your money.