How did you establish credit for the first time?

[SatCam]

I know keithy made a thread about this a while ago but here goes........

It's that time folks. I can get a credit score. I want to get a jump start on my credit so I can get a big boy credit card, get a loan or get an apartment (and then default on all these things or whatever people with credit do) within the next year or two. All joking aside, what's the best route to get a good credit score? I've heard either a loan from my bank, or a secured credit card. Secured credit seems like a scam (annual fees) while loans are too expensive (high APRs). I have the money to "invest" in these things, I just don't want to pay fees if I don't have to.

So, how did you establish credit for the first time and how long does it take to get a good credit score?

[Gvac]

The first credit cards I had were gas cards. They're usually easier to get and they generally have a low spending limit. Get an Exxon/Mobil card and a Shell card or something similar, and pay them off immediately.

Some department stores also offer low-limit cards. Pay them off ASAP as well.

I also had my parents co-sign a loan for a car for me when I was your age.

They all helped.

[outlawfrank]

You could also go through your bank, most offer a credit card that has a limit of your bank balance or at most of 400 dollars. Like Gvac, said pay that bitch off every month.

[grlNIN]

I started with a Capital One card. Every few months my limit would go up, it worked out pretty well for me.

My brother also put me as an authorized user to his cards and that helped too.

[IMSlacker]

My parents co-signed for my first car loan and my first apartment lease when I was 19. I also got a credit card. I didn't quite keep the credit card paid off, but I didn't ever make a late payment.

[drusilla]

when i was 14 i was given a credit card by my parents because i was going on a school trip to europe. i was told to never buy anything that i couldn't afford to pay cash for & if i fucked it up they would kill me. never fucking up your credit has so been drilled into my head for my entire life that i'm scared shitless to ever carry a balance over $1000.


but i got my own credit card when i started college & worked slowly with store cards. it just really built from there.

[SatCam]

thanks for the responses!:clap:


Do store cards have annual fees or just high interest rates? I dont have a problem with interest rates because I plan on paying on time......

[conman823]

I got a small card with a $500 limit. Then worked up from there. Fastest thing to build up your credit is to charge small and pay off fast. Also the car payment is a really good one.

Get a $500 card or gas card and go near to the limit and then lock it away and pay off as fast as possible (1 or 2 months).

Credit score is based on your total outstanding debt against what your total allowed (limit) debt is, the smaller the ratio the better the score.

I had a great credit score but last year I faultered a little, its amazing how a good score can be recovered with little effort, but people in the gutter can almost never recover.

Always remember credit is a double edged sword.

[MobCounty]

There are a couple tricks too.. If you have too many loans out or the potential to have too many loans out, your score goes down, and you apply for too many cards your score goes down. So don't go crazy trying to get cards.

Get one or two and use those. Keep the limits low so you dont seem like you may be at risk to over extend yourself.

[Gvac]

thanks for the responses!:clap:


Do store cards have annual fees or just high interest rates? I dont have a problem with interest rates because I plan on paying on time......

Most gas and store credit cards have no annual fee but a ridiculously high interest rate. PLEASE stick to your plan of paying on time and in full. You have no idea what kind of trouble you can get into by only making minimum payments.

[midwestjeff]

Here's the plan I am using, and I don't know if it is a good one, so any input would be appreciated.
I have a card with no interest until June '08. I have been using it and paying more than the minimum but not the entire balance since I got it. I put cash in an interest gaining account (no withdrawal penalties) equal to any purchases I make with the card. I am going to zero it out in May before the interest kicks in and get a new, no interest card and do the same thing. This seems like a perfect plan to me but I really know nothing about building a credit score. So, am I a retard?

[ralphbxny]

Goto your bank and get a secure card. You will pay 250 and they will give you a 500 limit work from there. Once you have 6 months of good paying you will get a credit increase and another sixx months they will be blowing you for credit....well maybe.

I was told only spend half your limit and pay it each month. Everyonce in a while if you have a small limit spend right to it and pay it off asap.

Good luck and dont fuck it up!

[ToddEVF]

Most gas and store credit cards have no annual fee but a ridiculously high interest rate. PLEASE stick to your plan of paying on time and in full. You have no idea what kind of trouble you can get into by only making minimum payments.

I know at my job we have to push credit cards. and yes the interest is pretty high. Sears has a 24.30% on a regular card and the same for bottom rung of their gold mastercard. . . but with the mastercard the top rung is 19.24%, which isn't much better.

[drusilla]

a huge tip would be to buy your christmas presents, or other things you need at one moment in time on your credit cards. then pay the bills off. my boyfriend needed a cosigner or his med school loans until he actually started to use the card & pay it off.

[drusilla]

PLEASE stick to your plan of paying on time and in full. You have no idea what kind of trouble you can get into by only making minimum payments.

gvac's on point! DO NOT FALL FOR ONLY PAYING MIMIMUM AMOUNT DUE!!!! you can get royally screwed that way. always try to pay it off or pay as much as possible.

[Snacks]

when i turned 18 i applied to citibank for my 1st credit card. i was approved for a $500 limit with no annual fee. that was a long time ago, capital one seems to be the best (now) for getting approved for a cc. the best way to build credit it to get a credit card and charge on it monthly. pay for things like a dinner or something 1 or 2 times a month and pay it off in full every month.

my advice is, if all you can get is a cc with a $25 annual fee (or up to $50) just do it. you need to start somewhere and building credit is worth an annual fee. after your first year they will wave the fee if you threaten to close the account because of the fee. if not then after a year you will have the credit to apply for a cc without an annual fee.

[Team_Ramrod]

Sometimes you have to get on your knees and start blowing who ever you can just to get that credit going. By that I mean you may have to bite the bullet and go with something that has annual fees and higher interest rates. Credit is a necessary evil and when just starting out we don't have the power when bargaining.

Once your credit is established and you do have some history you can start to get cards with no annual fees and you can negotiate your interest rates with the companies to a very reasonable rate.

[Jujubees2]

I started getting store and gas credit card offers as soon as I graduated from college. I eneded up getting two gas cards and one store card (I think it was Sears). I only used it when needed and paid it off in full each month. Withthin a year, I was offered a Visa and AMEX card and got them both but still paid them off every month.

We still pay off all our cards in full every month.

[jonyrotn]

i was 14 i was given a credit card by my parents because i was going on a school trip to europe.
Well LA DI EFFEN DA, Ms. Hilton....I'm 36 and my first trip to Europe hasn't even happened yet..The rich and elite get credit cards when they're 14 the rest of the world gets them between 18-21..
I can tell you for sure the BEST an ONLY way to improve your score is to pay your bills on time, never be late..You can become an authorized user on a reliable friend or relitive's Major credit card..Get your parents to co-sign a small loan with 12-24 payments, bank the money or let them hold it and make every payment on time..Halfway through the life of the loan, boom you have yourself an established credit score..If you were 14, rich and going to Europe, I'd tell you tell you to ask Daddy.. But that's alright it wouldn't make you a bad guy..

[drusilla]

poor you

[furie]

My first credit cards were a Mobile card and a mastercard.
i built my credit by using the cards sparingly and paying my charges on time.

[SatCam]

So I ended up taking a trip down to my local Bank of America today and the "Personal Banker" convinced me to open a student checking account and then apply for a student card which has no annual fee (as opposed to a secured card). Plus they gave me three free checks!!!!!!

[Gvac]

So I ended up taking a trip down to my local Bank of America today and the "Personal Banker" convinced me to open a student checking account and then apply for a student card which has no annual fee (as opposed to a secured card). Plus they gave me three free checks!!!!!!

Wahoo!! Spending spree!








(hope I didn't suck the fun out of this thread for ya)