Ways to establish credit...?

[billabongcr 5,000+ posts]

So, I went to th AT&T place, my parents are switching to Verison and i had planned on taking over my phone bill. We used to have a family plan thing, then the service went to crap so I was shopping around for the best price. So i walk in, the semi-hott freakishly tall supposedly wearing heels that i didnt see and my mom said the chick was wearing girl walks over to me and starts askin me about phones, which one i like..etc.

So we settle it, and i explain my situation and she starts lookin up my shit. I have no credit as of this point in my life, and one of the main goals of me taking over mybill was to start establishing myself, credit wise. So this chick looks up my info, and at&t wants a $500 deposit (that id get back after a year) plus my regular phone bill charges every month, since i have no credit. i think she used the term limited credit. But since I have such a high deposit the chick was gunna hook me up with the phone i wanted for free..etc.

I have no credit. I know this. I dont have bad credit, I just have no credit. But apparently, if you have no credit, they treat you the same as having terrible credit. Also im being told, paying your cell phone bill every month, whether im ontop of it, or 6 months behind, doesnt do anything to my credit. its not a means of building.

Well mommy is outraged. We get back to the car and shes like eff that, I'll keep you on my plan so you dont gotta fork out $500 and hope they dont drop you after 3 months for whatever reason they want and keep your loot. Ok.

Dad brought me up as, "if you dont got the cash for it, you aint gettin it". Not in a mean way, just as a if you cant afford it, save and wait till you can type deal. So everything i have, i own outright. My 4wheeler, my truck, and all my other little toys. I buy all my clothes myself, food, school books, etc. Everything cash in hand. (I still live at home, but I like being independant. Dont like my parents paying for my shit. Paying for everything i can, gas, insurance, maintainence all myself. But i still live at home, pumpin up the bank account to move out when i finish tech school. They offer me money for things, but I'd rather pay it myself. I feel guilty taking their money, they let me live at home free, so why should they pay anything else, ya know?)

So then we start talking. How can I establish myself? My new 4wheeler is in my name, maybe I could go to the bank and borrow like $1500 against it and pay it back over a few months, but then I'm taking a few hundred dollar shot on interest that id have to pay back. Correct? I want a new truck, but dont need one. Was gunna wait to buy one after i finished school, but even if i bought a new truck on credit tomorrow and made payments every month, something about it wont show up on my credit score for a year or something? All this shit confuses me.

So pretty much I'm asking, whats the best way to quarterback this thing. I still plan on paying cash for everything I can, so I have no debt, but one day will come when i want to buy a house, and i really dont think ill have a few hundred grand chillin in the shoebox under the bed. So I'd like to establish asap.

SHould I do the borrow against my 4wheeler/truck at the bank, pay it back over a few months, and just **** up the interest cost? Or is there a better way?

Thanks in advance.

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[icpurplepplalot 5,000+ posts]

get a low interest credit card, and pay for small things such as gas and food, and make sure you pay it off each month

 

[04_edge 10+ year member]

my parents co-signed for my truck, so me making the payments makes my credit go up, i wouldnt have been able to get a truck on my own...also, using credit cards without running them up, and consitently making payments on them will help as wel...

 

[Skip01 5,000+ posts]

Finance furniture...someone said this is really good...and they most of the time have like 6-12mo interest free

Or loans from banks...but mostly just get some history

I used to work for a car dealership and theres such a thing as weak high score...like you can have a great credit score but you dont have alot of history...like its easier for us to get someone with bad credit approved than no credit...its weird.....good luck

 

[Scoobydoo 5,000+ posts]

wow not gonna read that essay, but my advice is to get a gas card from mobil or whatever gas you use

some cards give you a % discount on gas as well so you are gaining credit and saving a little money as long as you pay it off every month

 

[billabongcr 5,000+ posts]

good deal. so the winner so far is, get a credit card, put my gas and daily expenses on there (that i know i already have the money for) and just pay it off at the end of the month?

interest charges gunna **** me? i think nothing about this, what are the good and bad interest rates now? should i go for a student card or something of the such, or a regular credit card?

 

[duece212 5,000+ posts]

get a credit card or two, take care of them and always pay them on time. Revolving credit (credit cards) make up a much bigger impact to your fico score than installment loans (car loan, etc). If you can get an installment loan ontop of credit cards the mix will help.

Also do some reading on http://www.creditboards.com

 

[bjfish11 5,000+ posts]

Finance furniture...someone said this is really good...and they most of the time have like 6-12mo interest free
Or loans from banks...but mostly just get some history

I used to work for a car dealership and theres such a thing as weak high score...like you can have a great credit score but you dont have alot of history...like its easier for us to get someone with bad credit approved than no credit...its weird.....good luck

Kinda funny story about financing furniture....

About a year ago, I bought a house (FYI, I didnt pay cash for it either LOL). Went to buy some furniture. They told me I didnt have any credit. //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

I found it kind of ironic I could get a loan for a house, but not a couple grand for furniture //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[billabongcr 5,000+ posts]

He hardly has enough credit to get a phone let alone getting a car //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

no doubt. for my age my bank account isnt too shabby, i have enough for a rainy day if i have unexpected bills come up, i just have no credit.

and apparently thats just as bad/worse than having bad credit.

 

[Scoobydoo 5,000+ posts]

if you pay it off every month there shouldnt be any interest charges

make sure you apply for a card with no annual fee

 

[duece212 5,000+ posts]

Kinda funny story about financing furniture....

About a year ago, I bought a house (FYI, I didnt pay cash for it either LOL). Went to buy some furniture. They told me I didnt have any credit. //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

I found it kind of ironic I could get a loan for a house, but not a couple grand for furniture //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

A house is much better collateral as opposed to some worn out furniture //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

Well atleast it used to be, before the housing market started eating a ****

 

[Skip01 5,000+ posts]

Kinda funny story about financing furniture....

About a year ago, I bought a house (FYI, I didnt pay cash for it either LOL). Went to buy some furniture. They told me I didnt have any credit. //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

I found it kind of ironic I could get a loan for a house, but not a couple grand for furniture //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

You sir we call a Boug...aka Bogus customer..haha j/k

Yehh, believe it or not, its easier for a first time home buyer to get approved for a loan than example furniture.....if ya dont pay they just take the house...cant really hide that B from the repo man and what not:laugh:

 

[bjfish11 5,000+ posts]

A house is much better collateral as opposed to some worn out furniture //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif
Well atleast it used to be, before the housing market started eating a ****

Well I guess I didnt think of it like that. The housing market in Wichita, is actually pretty strong. At least compared to the rest of the country right now....

 

[billabongcr 5,000+ posts]

so im feelin a credit card or two. do alittle shopping, but nothing i cant afford.

now, lets talk cards. visa, mastercard? whos got the goods.

i have a visa checkcard now, but im just now being told that dont do shit unless i dont have any cash in my accounts. if i do, even if i use it as credit, it pulls out of my debit account?