Just a little thing.
- Thread starter Christopher Robin
- Start date
There isn't a distinction between bad and no credit. Sadly, we're all just an equation and a number result to the credit card issuers, provided by a company called Fair Isaac.
So, to them, having no credit IS a bad thing because you're an unknown risk. As far as they're concerned statistically, you're more likely to default than you are be a good little payer minion.
Start with a secured card, meaning you put a deposit on the card account, which you will receive back when you close the account, and make sure you make payments 100 percent on time. After a while, you'll be able to build enough of a credit score to qualify for an unsecured card.
Continue being a good little payer minion and someday someone will steal your identity too.
Too cynical? Sorry. Actually, not really. It's the truth after all.
So, to them, having no credit IS a bad thing because you're an unknown risk. As far as they're concerned statistically, you're more likely to default than you are be a good little payer minion.
Start with a secured card, meaning you put a deposit on the card account, which you will receive back when you close the account, and make sure you make payments 100 percent on time. After a while, you'll be able to build enough of a credit score to qualify for an unsecured card.
Continue being a good little payer minion and someday someone will steal your identity too.
Too cynical? Sorry. Actually, not really. It's the truth after all.
Technically, no score (not having any credit history), and thin file (having too little credit history to properly place or rank), are both better than *bad* credit... but, depending on whom you are going through for whatever it is you are doing at best that would only get you to the average rank. Some places will also recognize and make allowances if you are <= 19 years old. Because 19 and under generally do not have a whole bunch of credit history.
My suggestions, similar to what ThreadWeaver said.
1. Start simple with 1 or 2 basic generic credit cards that can be used anywhere with small limits, and use them regularly, and pay them off as best can each month.
2. I would also suggest for variety 1 store specific card, like a GE Moneybank card which is the parent backer for a number of store specific credit cards.
Be warned, be sure of where you are going through, as to get a credit card may well generate a hit on your credit report... too many such hits in too short a time and it will turn your supposed no or thin credit into bad credit. So do not go out or on-line one day and apply for a bunch of them, apply for and get one, wait a few weeks and get another, wait a few and get another, etc.... this will be a slow process.
Also, try not to use too much of the total credit. Meaning if you get 2 cards, and their combined limit is say 750, I would not use too much over 200 to 250 of it.
it will take a bit after the purchase of the first card, but the credit reporting agency bureau's will start reporting it.
My suggestions, similar to what ThreadWeaver said.
1. Start simple with 1 or 2 basic generic credit cards that can be used anywhere with small limits, and use them regularly, and pay them off as best can each month.
2. I would also suggest for variety 1 store specific card, like a GE Moneybank card which is the parent backer for a number of store specific credit cards.
Be warned, be sure of where you are going through, as to get a credit card may well generate a hit on your credit report... too many such hits in too short a time and it will turn your supposed no or thin credit into bad credit. So do not go out or on-line one day and apply for a bunch of them, apply for and get one, wait a few weeks and get another, wait a few and get another, etc.... this will be a slow process.
Also, try not to use too much of the total credit. Meaning if you get 2 cards, and their combined limit is say 750, I would not use too much over 200 to 250 of it.
it will take a bit after the purchase of the first card, but the credit reporting agency bureau's will start reporting it.
It would probably help to have some context on your situation. Big difference between an 18 year old looking to get his first card and a 45 year old man who is only now getting on to the grid.
Personally, I prefer a higher limit than $750, simply because sometimes you get blindsided by unforeseen expenses. I had soem decent savings that got invested in going back to school, and almost immediately after I got slammed with about $1700 worth of car repairs. That got made worse when my job screwed me out of my tuition reimbursement, which would have more than covered it. (Bastards)
In regards to credit, one way around having no credit is to get a co-signer on a loan, normally a parent, for something like a car. That lets you start building up credit without scaring people away with your bad or lack of credit.
Personally, I prefer a higher limit than $750, simply because sometimes you get blindsided by unforeseen expenses. I had soem decent savings that got invested in going back to school, and almost immediately after I got slammed with about $1700 worth of car repairs. That got made worse when my job screwed me out of my tuition reimbursement, which would have more than covered it. (Bastards)
In regards to credit, one way around having no credit is to get a co-signer on a loan, normally a parent, for something like a car. That lets you start building up credit without scaring people away with your bad or lack of credit.