why can't I get a credit card?

[Flipx99 5,000+ posts]

+1
You just need to use the card occasionally so the issuing bank doesn't close it for non-use. Showing a balance on your credit report WILL hurt your score, pay it off every month.

Actually, I don't think so. The reports I see take a snapshot in time of your usage...so paying it off isn't necessarily visible. At the bottom, it will say something to the effect of "Pays as Agreed" whether you carry a balance or not.

For instance, if I charge $1,500 on a $2,000 limit and the "snapshot" catches it, it will lower my score due to debt/available credit....however if this "snapshot" occurs after I made my payment (and thus the balance is the charges accrued from the beginning of the period until the payment posts) then it may be more favorable. In any event, I ALWAYS have some balance on my card, I just don't pay any interest on it.

Nope, I honestly haven't. I'll admit I have very little real world experience with any of this (I'm only 20). Like I said, all I know is the stuff I try and learn. When they had that special on TV about credit stuff, they said while it may not hurt your credit score, when creditors look at your overall credit history, paying off your cc's every month, makes it look like you don't use them.

Go to that site I mentioned and look at your credit report. Post any questions and I will answer the best I can. What I know isn't from books or specials, but from trial and error....and talking to lenders. Different lenders care about different aspects of your credit report. Some lendors like few CCs and good payments on installments, other something different. There is no cut and dry policy (that I am aware of) unless the lender intends to package and re-sell the loans...AT THAT POINT your "score" matters.

 

[duece212 5,000+ posts]

im just wanting one to build my credit so in the next year or two I can buy a house (will probably be getting married inside 2 years) and it'd be nice to have a good line of credit. Me and my gf are good at saving money (between the two of us we have 30k in the bank (were 22 and 21), her house is paid off, she has a car payment and I have mine and utilities are our only bills per month. If I can't get a decent credit card, what are some other ways I can build my credit?

Get your credit reports and pull a fico score just so you know....then go to creditboards.com and research, seriously man. They have all the info you need there on what cards you might be able to get and if nothing then maybe a secured credit card just to start out with.

 

[illbmeubu 10+ year member]

so a score over 720 isn't worthless...agreed

no not worthless. but its crazy how everyone is so credit score driven. some feel that just because they have a stupid high credit score, they should be approved for anything they apply for, when there's much more than a credit score that goes into approval/denial.

 

[illbmeubu 10+ year member]

21 years old and her house is paid off? Jesus Christ, either houses are made out of cereal boxes in OK or you're talking about her parent's house.

or its a trailer.

 

[duece212 5,000+ posts]

Actually, I don't think so. The reports I see take a snapshot in time of your usage...so paying it off isn't necessarily visible. At the bottom, it will say something to the effect of "Pays as Agreed" whether you carry a balance or not.
For instance, if I charge $1,500 on a $2,000 limit and the "snapshot" catches it, it will lower my score due to debt/available credit....however if this "snapshot" occurs after I made my payment (and thus the balance is the charges accrued from the beginning of the period until the payment posts) then it may be more favorable. In any event, I ALWAYS have some balance on my card, I just don't pay any interest on it.

you just need to figure out when your credit card company sends its updates to the credit bureaus, pay your balance before that and your score will never take a hit for "utilization" on your credit cards.

 

[Flipx99 5,000+ posts]

people in the middle east don't buy homes, they build them

?

fully depends on the institution, type of loan, etc

this

true. in most instances though, that's the credit score number they are looking for. obviously higher is better, but if you don't have the flow of income, then a credit score means absolutely nothing.

The converse is true, however, if you have enough money, the credit score also means nothing.

lol, hell if I know

Usually, the bank will try to gain an equity share in the house. More to the point, the lack of free-flowing credit makes housing more affordable.

 

[Flipx99 5,000+ posts]

you just need to figure out when your credit card company sends its updates to the credit bureaus, pay your balance before that and your score will never take a hit for "utilization" on your credit cards.

I am not that concerned with it, but a person who was needing a high credit score (home / refinance / etc) should try to play that game. If it were me, I just wouldn't use the cards (or bare minimum) for 3 or 4 months prior to needing the loan.

 

[krainium 10+ year member]

Im 22, I make about 50k a year (gross) I have a truck loan for about 10k that i've never been late on (had it for about 5 months now, and paid off my first truck with a loan (for 3k). I've had my own cell phone plan and car insurance for 4-5 years now (since i finished h.s). When I apply for credit cards online I keep getting denied, and it seems all I can get is prepaid cards. Any help is greatly appreciated guys!!

Im guessing they wont give you one because of your new truck loan you have only had it for 5 months.

 

[traksta15 10+ year member]

21 years old and her house is paid off? Jesus Christ, either houses are made out of cereal boxes in OK or you're talking about her parent's house.

She lived at home til she was 20 (while working and going to school), saved her money and her dad gave her one of his boats (he's a millionaire) and she sold it (we have no use for a boat) and used the boat money to buy her house (around 50k) then remodeled it. It's not a cereal box lol, it's 1600 sq ft, 2 bed 1 bath, big yard, garage, etc etc. It's probably worth 85-90k.

What about a secured (it's the same as a prepaid card right?) credit card, would something like this help me?

 

[duece212 5,000+ posts]

I am not that concerned with it, but a person who was needing a high credit score (home / refinance / etc) should try to play that game. If it were me, I just wouldn't use the cards (or bare minimum) for 3 or 4 months prior to needing the loan.

Since I just refi'd my house and bought a car I just went OCD on making sure my cards didn't report a balance so I could keep my score as high as possible.

Now that the refi/car is done I could care less if a little balance reports every now and then, I have no need to finance anything in my foreseeable future.

 

[thegreatestpenn 5,000+ posts]

u don't get credit card pre-approvals in the mail?

my first CC was with Capital one, they approve EVERYBODY. from there I got a CC through my bank and so on. Hardest card to get is American Express so if ur getting denied by them don't feel bad.

 

[traksta15 10+ year member]

lol, oklahoma is one of the cheapest places to live in the u.s.

when you watch all those remodeling shows and "property virgins" on tlc, a 2 bedroom 1 bath goes for 400k where as here it's worth around 40k lol

 

[traksta15 10+ year member]

u don't get credit card pre-approvals in the mail?
my first CC was with Capital one, they approve EVERYBODY. from there I got a CC through my bank and so on. Hardest card to get is American Express so if ur getting denied by them don't feel bad.

when I turned 18 I got 2-3 a week, I was told to never use a credit card so I just shredded them. Now im 22 and i'd like to get one (im better with my moneys now lol) and I apparently can't.