Q&A: Why is my credit not building?
Question by : Why is my credit not building?
For the past 4 years I’ve been renting apartments and have had utility and cable bills under my name. Just recently I tried applying to rent a house (nothing new for me) but when they ran the credit check on me it said that I have “no credit score”.
How can this be? In the mean time I plan on openning a credit card in my name ASAP to start building my credit from scratch, but is there any chance they got it wrong? And how can I fix it? I don’t get how I can have absolutely no score at all. Do I have to open a credit card before my other bills start counting towards my credit?
Please help!
Best answer:
Answer by SPIFIMAN1
Rent, utilities, cell phones, gym memberships, checking and savings accounts are not extensions of credit and do nothing to build score.
To build a credit score you must have either credit card (revolving) accounts or car, boat, home, motorcycle, furniture (installment) accounts that you have paid over time.
People that have never established credit, have not used it in several years or have such bad credit that their score is below 300 will always default to a 0 under the FICO algorithms.
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Categories: Credit Score Questions Tags: Building, Credit, Credit Score
I don’t want a credit card, and do I really even need one?
Question by BeachBoarder: I don’t want a credit card, and do I really even need one?
I’m 19 and most of my friends have credit cards. I told them I had no interest in getting one and they were like “but you need to start gaining good credit”.
I don’t really even get the whole concept of the credit card. When I buy something, I make sure I have enough cash for it and pay with that. It just seems much easier and I know that I definitely have the money and don’t have to worry about a bill later. If I want to buy something big, I save up for it.
So what’s the big deal?
Best answer:
Answer by teresathegreat
You need a credit card for certain things, like reserving a rental car or plan tickets. But you can use a debit card for most of these things as well.
Your friends do have a point – establishing a good credit history is important, and will be essential to you later on in life when you are ready to apply for loans or buy a house. Your credit history looks at how much money you are trusted with, and how responsibly you handle it.
So if you handle your credit card responsibly, it can benefit you in the long run. It’s best to think of a credit card as a debit card – you simply pay for the items at the end of the month instead of at the moment of purchase. If you pay the amount in full every month, you won’t have to worry about finance charges or interest, and you will build an excellent credit history.
So your friends have a good point – but I’d be interested to know how many of them really handle their credit responsibily, and how many foolishly carry a balance from month to month.
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Q&A: Are those credit “watching” agencies worth it?
Question by 1st year: Are those credit “watching” agencies worth it?
I opened a new credit card and they have a credit watching program that they monitor my credit and all that and let me know if something goes on with it. $ 50,000 in fraud insurance for $ 13 a month. is this worth it or are their better deals out there?
Best answer:
Answer by Reena
You are getting insurance for something that is covered.
Read the fine print on your CC agreement. What are the steps you need to take when you find fraudulent charges on your statement?
Immediately contact the CC company and dispute the charge.
You are not liable if you do it in a timely manner…
What do you need this insurance for?
They give you $ 50,000 in fraud insurance when the most they would have to cover is your credit card’s limit? Can you spend 50K on your credit card? No? Neither can the thief that is using your card….
Under what circumstances would you be paid $ 50,000? Ask them that question…
P.S. Letting you know that something is going on with it… Nice.. and then what? You will have to call the CC company and report it, right?
You would have done that anyway as soon as you opened the bill and saw charges that aren’t yours.
And you are paying $ 13 a month, billed to your credit card, for that service?
Not worth it…. the fraud protection is built-in in every credit card agreement… by law.
What do you think? Answer below!
Categories: Credit Score Questions Tags: agencies, Credit, Credit Reporting Agencies, watching
Do you have to wait at least 6 months to close a credit card?
Question by KitKat: Do you have to wait at least 6 months to close a credit card?
Ok. I’m easily pushed into things because I’m a quiet, good person.
I recently went to Chase and opened a new checking account to get a $ 125 incentive for opening it. I felt extremely uncomfortable when she kept asking too personal stuff. Like how much exactly I make each paycheck and exactly how much I have in my other bank accounts. There is NO reason why they need to know how much is in my bank accounts. So I refused to tell her, but got tricked into saying my paychecks, which isn’t a huge deal. She said she just wanted to know because of my rates. But she should just have asked for my rates, not my specific amount. Then she insulted me with saying my credit card from my bank is, lowest, 13% interest. When it is actually 8.99% interest. I would have to be dumb to get a card with anything above 9% interest charges.
She was being really rude and insulting. Saying that since I’m 19 my parents must pay for everything and my cell phone. That is the most insulting thing anyone could ever say to me. They haven’t even paid for my school lunches since before high school. Ever since I started baby sitting at about 13, I have paid for everything myself. And she would just keep talking and lying about my life.
Then she goes and says that I need overdraft protection. I’m not irresponsible. I NEVER use money I don’t have. So I don’t need it. And if I was a stupid retard who overdrafts, then I deserve to pay the fee! But she said “I have people come in here all the time saying it would never happen to them, but then it does. So I’ll get you signed up for it.” I told her clearly that I did NOT want that. She said it was free on the account. I said I didn’t need it. She walked away and came back and said “Ok, you are approved and will be getting your card in the mail in a few days.” I’m like “What are you talking about?” She was like “The overdraft protection is a credit card and if you go over the balance it will draft it over in increments of $ 50 to help protect you from the fees.” And I was like “But I said I didn’t want it. It will show up on my credit report as another card and I told you I didn’t want it. And it will hurt my credit score.” And she’s like “Oh, you’ll need it. And it won’t show up on your credit report.”
So I did NOT give her permission to open this credit card. I specifically told her no! And then she insults me continuously! And someone told me that if you close a credit card within 6 months of getting it, it hurts your credit score. I am trying to buy a car right now. I have a good credit score. But not “excellent” in this economy. And this will be the 3rd credit card on my report! And if you have 3 or more cards it hurts your score (or it’s more than 3, idk). My ex’s overdraft protection was that if he withdrew too much out of his checking, the amount would roll over from his savings. So that is what I thought it was and the way she explained it. But I just opened a checking, no savings. And after I told the banker NO to the overdraft, she still went ahead and opened it without my permission!!!
A- Will it hurt my credit score to close it within 6 months of opening it?
B- What can I do to get this lady in trouble for this? Write a letter to the head of the bank? I bet she just did it because she gets bonuses for opening new cards. That’s why I said no, and she still went ahead and opened it. I’m furious.
She had me sign a paper saying that I opened the Checking account and she said it was for my signature for the checking account file. Do you think she used this as the credit card she opened without my permission???
Best answer:
Answer by stephenweinstein
A. Closing a credit card within 6 months of opening it does NOT necessarily hurt your score, ESPECIALLY if you already have older credit card accounts. Closing a newer account and leaving an older one open can actually HELP your score.
Having 3 cards is not too many.
B. Yes, you can write a letter. No, I do not think that she will get in trouble, especially if you leave the account open, which is what they want. If you really want to hurt them and demonstrate to them that her actions are hurting them, then wait until you receive the $ 125 incentive and THEN close BOTH the credit card account AND the checking account, and send them a letter telling them that you closed both accounts because of what she did.
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Q&A: my first credit card tips?
Question by Sick MOFO: my first credit card tips?
What’s the best way to raise the so called “credit score”? Paying the minumum every month vs paying the balance off immediately? Does the amount you charge matter? And any other tips you may have. Thank you.
Best answer:
Answer by Jenyfer C
Keep a low balance that you make payments on, every month on time. Your credit score looks at timely payments, but also debt to credit ratio. Try to stay well below the limit. Most credit card companies review accounts once a year and may increase your limit.
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Categories: Credit Score Questions Tags: Card, Credit, first, Tips
Why is it so hard to get your credit score?
Question by : Why is it so hard to get your credit score?
I can get my credit report but it does not actually have my credit “score” included on it. I asked three different people at the bank I deal with for my score but have been told that they can’t just give me MY score, but if I were to take out a loan application, (at a fee of course,) I could get it that way. I don’t want to take out a loan for a fee to get something that belongs to me to begin with. Finally, one teller who has known me for a while jotted it down on a piece of paper and slipped it to me with an additional note saying not to tell anyone that she gave it to me.
Why is it so hard to get your credit score? After all, it is YOUR credit score.
Best answer:
Answer by the_chief94
I have heard this frustration expressed before, the first thing that I always tell people is that the credit report is actually the important document for you to be familiar with and maintain the integrity of. As long as you know what is on your credit report is accurate you should be fine. You can also familiarize yourself with how your credit score is calculated. More information on that can be found all over the web.
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Categories: Credit Score Questions Tags: Credit Score, Credit Score Explanation
How does declined credit card applications affect your score?
Question by Project EX: How does declined credit card applications affect your score?
Hello, i applied for 2 credit card applications within a week and got declined. This is because, i am 18, and only have 2 bank accounts with no credit on file. When i paid $ 15 yesterday to see my credit score, it reported as having “no score”. So i guess my declined accounts don’t count, expect for the inquiry right?
And say i do have credit, how much does a decline account do for a credit card.
Also 1 more question: What is the easiest card to get, ive tried:
1. Texaco
2. Best Buy
3. Bank of America
any ideas?
Best answer:
Answer by Mary F
Credit card declinations are not reflected in your credit report but a lot of inquiries can hurt your score. If I were you I would consider trying to get a credit card through your bank or try a local credit union. If you need to get a secured credit card where the amount of deposit you put in equals the credit line. Charge some small purchases but pay off the entire balance every month. You also want to show a payment as agreed history. My husband and I have superior credit (over 850 scores) He has limits of $ 25,000 or more on some of his cards. Believe me when I married him I was coming into the marraige with a Chapter 7 bankruptcy and by following this advice I am in Credit Heaven. Good Luck!!
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Categories: Credit Score Questions Tags: affect, Applications, Card, Credit, declined, Score
Q&A: How many points are taken off your credit score when you cancel a credit card?
Question by Janice: How many points are taken off your credit score when you cancel a credit card?
I have 3 different credit cards from my bank and I just learned that they will be charging annual fees for each one very soon. I have these cards only because one was first time card (no offers). The next one had point rewards and the newest one had cash back. How many points will I lose from my “credit score”? Is there a sequence of time I should be concerned about as well..Oldest vs. newest?
I have to cancel at least cancel one or two.
P.S. I am in good standing with all 3.
Best answer:
Answer by Judy
Closing accounts hurts your rating in two ways.
1. Closing your oldest account will wipe out part of your history.
Length of credit history is 15% of your FICO.
2. You will be reducing your overall available limit on your cards.
But if you are paying fees, close them. There are plenty of cards out there without them.
How long until they will start charging you? I would open a new credit card before closing my oldest account.
Remember for pristine credit scores never carry a balance. Pay your bill in full each month and get 800+ scores.
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Is it possible to get a mortgage with no credit?
Question by : Is it possible to get a mortgage with no credit?
My g/f are looking into buying a home of our own. neither of us have credit. we pay for everything in cash. we have 0 debt. no car payment nothing. we between the both of us we have been renting for about 3 years. we have never been late on a payment. with all this talk about “credit scores” and that it can save you thousands of $ $ $ if you know it, i am not sure how easy it is going to be to actaully get that much money loaned to us. we also will have a 10-15k down payment right off the start. oh i should also say we are both 21 also. so does anyone know if i can even get a mortgage?
Thanks guys
may i also add that we have been paying for rent via check. not cash. good lord.
one last thing. i dont want a credit card, or want to have a smaller loan for something like a car. if i want something i am going to pay for it in cash. but a house now that i need some help on. but cars and other things are paid for in cash. mine when i drive it off the lot.
also i have ran both of our credit scores at my bank. they both came up blank. nothing. nodda, no history. is that bad?
were both only 21 so we both dont have that long of a job history. but she has only had 2 differnt jobs in 6 years, and i have only had 2 differnt jobs in 6 years. neither of us have ever been unemployed. and we both work for big good paying companys.
Best answer:
Answer by homeschoolmom
Congratulations! You two sound like you have all your ducks in a row and have your heads on straight, not getting messed up in credit card debt.
Your best bet is to talk to a mortgage broker. You’ll be dealing with one when you apply for the mortgage anyway, so they can give you the low-down on your individual situation.
Yes, you can get a mortgage with no credit and a BIG down payment (like you have). All a credit score shows is how well you manage your money, and the fact that you have a combined total of $ 10-15k saved for the down payment tells the lender you can manage your money just fine (really, BETTER than folks who use credit cards to overspend).
Talk to the mortgage specialist at your bank or ask a realtor. They can recommend a mortgage broker. Just make sure you already know how much mortgage you can afford (principle, interest, TAXES AND INSURANCE) before you go. Use your current rent payment to guesstimate how much loan payment you can afford, then use an online calculator to find out how much mortgage that will get you. Add in the down payment and that’s how much home you can afford. Don’t let them tell you you can afford more – they get paid a commission based on the value of the home/mortgage – bigger home/mortgage=more pay for them. Only YOU know what you can afford.
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Categories: Credit Score Questions Tags: Credit, Mortgage, possible
Q&A: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
Question by mobyisaparrothead: I have bad credit – if I open a new business, can I apply for a credit card that has “fresh credit”?
I have bad credit history – if I open a business, and apply for a credit card, will they still pull my credit and still decline me, or will they issue a new credit card under the new entity (new business?)
Also, if they do issue this new card, will good credit history of payments ever be reflected to my personal credit history if the payments on time are done under the business name’s credit card?
Best answer:
Answer by annazzz1966
Business credit is just for the business entity and not for your personal use. Any credit opened in the name of the business will remain in the name if the business and not become a part of your personal credit history.
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Categories: Credit Score Questions Tags: Bad Credit, Business, credit card