Wow, that is very helpful to me Sean. That is defintely guide that I am going to follow. Thanks a lot for posting all that, it is incredibly valuable to me, and I am sure to others.
I do have one quick question, though: regarding getting 4-6 new cards every 6 months, is this true? Or should I just ask for a credit increase on the original 4-6? Seems like a lot to have, but I'm not too sure..
Thanks.
To answer your questions:
The number of cards you get is up to you. I like knowing that I can basically live for 10 years without a job if need be. I also like knowing I can increase my bankroll substantially to take advantage of offers when they come up. SOme people like to have $1000 in credit. Others prefer $500,000.
Being added as an authorized user will help your scores. Get added on two good cards 15+ years old and below 30% utilization and you'll have credit similar to what you'll have in 2-6 years following the above plan.
Myfico gives you your actual fico scores for $45.
Truecredit gives you estimates (Give or take 20-40 pts) for $15.
Applying for a mortgage gives you true scores for free but costs 3 inquiries.
And 1 credit card is very unlikely to put your scores over 650 unless you've had it for about 10+ years... I'd guess with one card, no missed payments, less than 2 years, and less than 20% utilization (balance/limit) score is about 650.
Sean
The number of cards you get is up to you. I like knowing that I can basically live for 10 years without a job if need be. I also like knowing I can increase my bankroll substantially to take advantage of offers when they come up. SOme people like to have $1000 in credit. Others prefer $500,000.
Being added as an authorized user will help your scores. Get added on two good cards 15+ years old and below 30% utilization and you'll have credit similar to what you'll have in 2-6 years following the above plan.
Myfico gives you your actual fico scores for $45.
Truecredit gives you estimates (Give or take 20-40 pts) for $15.
Applying for a mortgage gives you true scores for free but costs 3 inquiries.
And 1 credit card is very unlikely to put your scores over 650 unless you've had it for about 10+ years... I'd guess with one card, no missed payments, less than 2 years, and less than 20% utilization (balance/limit) score is about 650.
Sean
If you've been renting for four years, you have a solid credit base. You can use the rental owner as a reference, along with your utilities and other monthly bills. You can also have a co-signer on the loan, like your parents. They're credit rating and annual wages could help you get a lower rate/higher loan. I would not suggest a "friend." Never loan or get money with a friend. It's a sure way to lose a "friend."
If you're looking to buy a car, your bank can help with that. The idea of multiple credit cards is NOT a good idea. Getting one credit card, using it for a few purchases a month, and paying it off every month is the best way to go. If you have multiple credit cards, creditors will wonder why, because YOU DON'T NEED THEM.
The same holds true for checking your credit score regularly. Don't do it. Check it once--there are numerous Web sites that will check your credit for a nominal fee or for free. But your bank will do it to when you apply for a loan. Checking numerous times indicates to creditors that you believe it's going to change regularly--which it shouldn't unles you're missing payments.
Again, I'd suggest going to your bank and asking for two things: 1) A car loan or 2) A personal loan.
The second will be harder to get because they want to know what you want it for, and unless you have concrete answers and solid collateral, they'll question it. But if you just want to buy a car, tell them that. (If you don't make the payments, they can take the car. A personal loan makes it tougher to take back what you owe them.) A loan officer will help you determine how much you can get and how much it will cost per month for how many years. I'm not sure, but I think new car loans are about 8 percent right now. Obviously, your credit rating and annual wages will determine how low the interest rate will go.
It sounds like 1) for some reason you don't trust a bank, 2) you have something to hide or 3) you just have never looked into this before. If it's 1 and 3, you have nothing to worry about. Go to your bank and ask for help.
P.S. My credit score is nearly 800, own a house and a car, and use just two credit cards. Just so you know I'm not running you in the wrong direction.
If you're looking to buy a car, your bank can help with that. The idea of multiple credit cards is NOT a good idea. Getting one credit card, using it for a few purchases a month, and paying it off every month is the best way to go. If you have multiple credit cards, creditors will wonder why, because YOU DON'T NEED THEM.
The same holds true for checking your credit score regularly. Don't do it. Check it once--there are numerous Web sites that will check your credit for a nominal fee or for free. But your bank will do it to when you apply for a loan. Checking numerous times indicates to creditors that you believe it's going to change regularly--which it shouldn't unles you're missing payments.
Again, I'd suggest going to your bank and asking for two things: 1) A car loan or 2) A personal loan.
The second will be harder to get because they want to know what you want it for, and unless you have concrete answers and solid collateral, they'll question it. But if you just want to buy a car, tell them that. (If you don't make the payments, they can take the car. A personal loan makes it tougher to take back what you owe them.) A loan officer will help you determine how much you can get and how much it will cost per month for how many years. I'm not sure, but I think new car loans are about 8 percent right now. Obviously, your credit rating and annual wages will determine how low the interest rate will go.
It sounds like 1) for some reason you don't trust a bank, 2) you have something to hide or 3) you just have never looked into this before. If it's 1 and 3, you have nothing to worry about. Go to your bank and ask for help.
P.S. My credit score is nearly 800, own a house and a car, and use just two credit cards. Just so you know I'm not running you in the wrong direction.
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<HR style="COLOR: #fdde82" SIZE=1> <!-- / icon and title --><!-- message -->If you've been renting for four years, you have a solid credit base. You can use the rental owner as a reference, along with your utilities and other monthly bills.
Unless your landlord reports to the credit bureaus (Very unlikely since he would need 500+ accounts and pay fees) renting does nothing for your credit. I suppose you can get references, but banks check your score...
Whether you have 2 or 200 credit cards is a personal choice.
Sean
Unless your landlord reports to the credit bureaus (Very unlikely since he would need 500+ accounts and pay fees) renting does nothing for your credit. I suppose you can get references, but banks check your score...
Whether you have 2 or 200 credit cards is a personal choice.
Sean
I think Sean's guide is for the fastest method. To get to your credit score, i am sure it took A LOT longer than 2-6 years.
The reason I am asking this, by the way, is because I have never really looked into any of it before. I don't have anything at all to hide, and I do in fact trust the bank.
So the number of credit cards that you have shouldn't impact anything, correct?
I do have parents that I can get signed on with their credit cards that they have had for many, many years with no late payments, etc.
After doing that, my credit score should be sufficient enough to apply for a loan, correct?
Response:
So the number of credit cards that you have shouldn't impact anything, correct?
Not directly: Key is low usage compared to limit and length of credit history. You don;t want one 18 year old card and 27 3 month old cards- scares creditors that you signed up to run.
I do have parents that I can get signed on with their credit cards that they have had for many, many years with no late payments, etc.
After doing that, my credit score should be sufficient enough to apply for a loan, correct?
Maybe. Personal loans are much harder to get than credit cards, car loans, etc... Mortgages are easiest - backe dby property, car loans next - backed by car, Ccard next - they can turn it off... A personal loan, they are basically just giving you cash. You prob need a few years of good credit on your own.
Why do you want the loan so bad?
Sean
So the number of credit cards that you have shouldn't impact anything, correct?
Not directly: Key is low usage compared to limit and length of credit history. You don;t want one 18 year old card and 27 3 month old cards- scares creditors that you signed up to run.
I do have parents that I can get signed on with their credit cards that they have had for many, many years with no late payments, etc.
After doing that, my credit score should be sufficient enough to apply for a loan, correct?
Maybe. Personal loans are much harder to get than credit cards, car loans, etc... Mortgages are easiest - backe dby property, car loans next - backed by car, Ccard next - they can turn it off... A personal loan, they are basically just giving you cash. You prob need a few years of good credit on your own.
Why do you want the loan so bad?
Sean
there is a decent amount of incorrect info on here. goto www.creditboards.com and spend an hour searching and getting questions answered correctly instead of just listening to one person.
