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Starting out...





Srs2388
God I never thought buying stuff would be so hard when you are just starting out with zero credit!
Do any of you guys know about this?
I went to get a cellphone all together it was going to cost me $600!
I have over a G in the bank... I make a lot of money... why can't they look at at that and see that i can afford it easily... hell i could pay the monthly payment weekly.
... how can you build your credit up, if to do so you need to buy stuff through the bank.. but when they see the credit score so low they wont do it.
Evil or Very Mad it's so frustrating... i make enough money to do a few things but now i can't because i have never done anything with credit... Sad
Have you experienced this?
gh0stface
I think when I had my first credit card, I had something where my parents would somewhat co-sign. I'm not exactly sure how it worked or what the exact process as my mom did it for me back when I was a junior or senior in high school, but it helped build my credit that way as well.

From there on, just paying my bills on time.
Srs2388
ohhh get someone like my parents to co sign something?
I'll try that with a car... I should have the money for the down payment next week... but im going to pay as much off at once as I can.
That should help even more.
standready
I don't know your age. It is important to build your credit history and score. My parents co-sign my first car loan as a way for me to establish credit. When I turned 18, I applied for and got a credit card. Used the card and always paid it off in full when due. Never ever have carried a balance. World revolves around that darn credit score.
darvit
Yeah, I have a bit of experience with that. Sort of.

When we moved to the US, my parents [obviously] had zero credit, us being foreigners, and all.

We paid everything in cash: furniture, appliances, apartment, car, and got prepaid cellphone plans as well. Laughing

My uncle [a citizen who has been living here for n years now] co-signed with our first car. Everything, as the precious posters have said, is pretty basic: pay your bills on time, pay in full, get a clean record, and protect your identity. In a few months' time [approx. 6 months, in my dad's case], you'll be getting tons of those spammy credit card offers.

Oh, and I know a lady who offered $5,000 down payment for her car. The salesperson was desperate enough to do something about her case despite of her zero credit. Razz

standready wrote:

World revolves around that darn credit score.

Hell yeah. Neutral
missdixy
Yeah, my mom co-signed. It helps. Very Happy
rohan2kool
Srs2388 wrote:

I went to get a cellphone all together it was going to cost me $600!
I have over a G in the bank... I make a lot of money...


A person having a 1000$ in the bank earns quite a lot. But one who spends 600$ with 1000$ in his bank account, definitely spends way more than what he earns.
Kaisonic
Yeah, I just recently got my first credit card. It came out of nowhere, really - I applied for it on a whim one day after going to creditcards.com to find one that's right for a college student. I found one with Citi and applied almost as a joke - but lo and behold, two weeks later, I got my credit card in the mail, with a 1200-dollar credit line! To be honest, I was very surprised, having no credit established for myself. But, since I do have a job now and can easily afford what I buy with my credit card, I see no problem using the card to build up my credit. My mom keeps worrying that I'll be like her and my dad, and end up with hundreds to thousands of dollars of credit card debt. I keep telling them not to worry (I do have 0% APR for the first 6 months) but I realize one thing about this credit card that others do not - I need to actually have the money to make a purchase, even though I'm using credit, or at least know that I'll have the money once payment times comes around. It's really very simple - just use the card instead of my debit card, save up my money, and pay my creditor at the end of the month, avoiding finance charges (interest) (well actually, it's the middle of the month for me - I don't know why, apparently it varies). The only way to get into debt is to end up going on a shopping spree and making too many purchases, unaware that you won't be able to pay it back on time. I keep track of all my expenditures (you know the transaction record thingy that comes with checks? I use that for my credit card) making sure my balance never exceeds my checking account balance (or at least the expected balance at pay time).

You just have to be smart really, and once you get the ball rolling by finding a creditor that'll give you a card even though you have no credit, you should be good to go for life.
Aless
When I turned 18, I got a student credit card from Citi. They have lower credit limits so you're not tempted to overspend, plus it had really good interest rates & intro offers. Having that first credit card and spending a little (and immediately repaying that) is a great way to build good credit. I'd only use it for major purchases (like airline tickets) and then pay off the balance immediately. After 4 years of that, I was easily eligible for a nice American Express card, which I now use.
dz9c
gh0stface wrote:
I think when I had my first credit card, I had something where my parents would somewhat co-sign. I'm not exactly sure how it worked or what the exact process as my mom did it for me back when I was a junior or senior in high school, but it helped build my credit that way as well.

From there on, just paying my bills on time.

yes thats how i will be doing it very soon because i am asenior in high school and yea just pay your bills on time and you wouldnt have that credit problem!
jenice
It's not about the money you have, it's all about the credit. When I worked in financial services, we had someone that had trouble getting credit with us because he'd always used cash for everything. The man had enough money to buy his yacht in cash, but couldn't because he didn't have any credit.

If you're just starting out, get a started credit card. Buy everything with it, and make payments. If you're trying to make somewhat of a payment history, don't always pay it off every month. That won't always do you favors. Just pay a significant portion and keep up with your payments.

Sometimes getting small loans helps too. Any little thing, maybe even something to help with student fees or other costs, even if it's just $1000. Just something to help build up your payment history.

The thing that hurts people's credit that most don't think about, is if you've got too much credit or too much cash. You're a flight risk. Creditors want to see the history of payments there to prove that you're worth the risk to them.
SpellcasterDX
Yea, pretty much paying your bills on time, and having your parents co-sign to get you started will help start to build up your credit. I'm only 14, but I do know a little bit about credit scores and building it up. Razz
scotty
First Credit Card I ever got was an Amex. I wasn't even 18! It was linked to my parents account but apparently they didn't really care that I wasn't 18. Anyway after that I went to the Commonwealth Bank which is one of the biggest banks in Australia and got a Visa card. I like the convenience of not having to carry heaps of cash around all the time and having heaps of change. Plus I don't have to pay for the car at all (no card fee) and I get 55 days or something like that but I just pay the bill when it comes. As far as the one linked to my parents, that I just use for fuel because they get frequent flyer points for purchases whereas I get practically nothing in terms of rewards points. I also charge things I think they should pay for to it aswell which is handy:P
Vrythramax
scotty wrote:
First Credit Card I ever got was an Amex. I wasn't even 18! It was linked to my parents account but apparently they didn't really care that I wasn't 18. Anyway after that I went to the Commonwealth Bank which is one of the biggest banks in Australia and got a Visa card. I like the convenience of not having to carry heaps of cash around all the time and having heaps of change. Plus I don't have to pay for the car at all (no card fee) and I get 55 days or something like that but I just pay the bill when it comes. As far as the one linked to my parents, that I just use for fuel because they get frequent flyer points for purchases whereas I get practically nothing in terms of rewards points. I also charge things I think they should pay for to it aswell which is handy:P


If your grown up enough to have credit....don't you think you should also assume responsibility for the other things in your life? What do your parents have to pay for now that your an adult? What exactly do you think they "have to pay for"?? They paid all your life....when do they get a break?
TruPain
Credit is funny...

If you need it, you can't have it, and when you can have it, you don't need it...

To start out, the best way to get credit is to have someone you know co-sign a loan for you. This helps establish your credit.

There are high risk loans out there though, for people that are desperate to get credit. Expect to pay ridiculously high intrest rates though, and don't even think about paying them off early, otherwise you get penalized and end up paying more anyway.
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