Americanunsecured is not a bad site if you have a way to make more than 25%/year.
Years ago, I applied and was approved for $50,000 from them, but the deal was they would give me $43,500, keep $6500 as a fee and the interest rate was about 20%. I ended up turning them down as I also had offers from a couple of banks. They are not a bad company for someone willing to pay high fees for a start up business loan. They will fund when many others wont.
If you want to build your credit from nothing, here's the plan:
1. Sign up for paytrust.com or any other online bill payment system so you are never late. It is well worth the $12/month. Before paytrust, I probably paid 20 $30 late fees each year for being a day or two late. In 5 years with them, I've never had one.
2. If you have an older parent or friend with some cards with nice limits and have been opened for a long time, ask them to add you as an authorized user. When they get your card, they can cut it up. These cards will now report on your credit and increase your scores a lot. Make sure the cards you get added on have low balances/limits (Less than 30%). You can skip this step if need be, but this will save you 5 years.
3. Apply for 4-6 credit cards. Try the prime cards (Amex, Citi, BOA, Chase, Wachovia, Discover, etc) If you get turned down, get a few subprimes ones (HSBC, Orchard, Capital One - GMcard and Unionplus from HSBC will approve minimal credit.)
4. Open 4-6 store cards (Kays, VSC, Crown Jewelers will approve anyone. Home Depot and Lowes are also easy. Dell is fairly easy)
5. Use each card at least once/6 months and pay in full.
6. In 6 months, apply for 4-6 more cards and ask each card for a credit limit increas.
7. 6 months later, repeat. Repeat this process as often as you wish every 6-12 months.
8. At some point get an installment loan (Car, mortgage) Car can even be like $2000 but get a loan. Having installments help.
9. Once you have good credit, you can seek LOC, Personal loans, and business loans.
10. Sign up for truecredit.com $14.95/month. Check your credit every day. AFter 30-60 days, you'll start to see inquiries fall off Trans union and Equifax. They wont fall off Experian. Seems TU andEQ limit space for inquiries and your pulls (Which do not hurt your score) bump off the ones that do.
11. You can throw in credit unions at some point too. Penfed, Patelco, DCFU, Navy, and USAA are all very generous.
Pretty much everyone wants to see some credit to give you good limits and rates.
Good luck.
Sean
Intrinzik, what is your credit score?
700+ you can get loans. 600-700, take the steps above. Under 600, start repairing.
Sean
Intrinzik, what is your credit score?
700+ you can get loans. 600-700, take the steps above. Under 600, start repairing.
Sean
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
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.
<hr style="color: rgb(253, 222, 130);" 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