Establishing credit
- Thread starter josmoloco
- Start date
Get a small loan, have dad co-sign. Put that money in the bank. use that money to make the payments, Pay it back on time. Never be late on payments.
Get a CC, get a cap of $500 on it so you don't get in trouble. Use it for gas only and pay it off every month so you don't have any interest.
the only way to build credit is you use credit.
Get a CC, get a cap of $500 on it so you don't get in trouble. Use it for gas only and pay it off every month so you don't have any interest.
the only way to build credit is you use credit.
Yeah, they won't unless you have a co-signer. My brother co-signed for my first loan.
Just save up for a house then
That is very true but guess what, you can pay cash all your life and never have any credit. Try to buy a house. Even the bank won't take 150k cash.
I co-signed my sons first car for 4500. He paid it off and never miss a payment. His second car, he got his own loan for 10.5k and I didn't have to touch it. He got as good as interest rate as I could. Now as long as he doesn't miss or late with any payments he should be able to get a loan for a house. He also uses a CC for gas with $500 limit and pays it off every month. Just one more way to build credit.
I tried to apply for a card' not a loan
do you have a bank account? savings?
When my Daughter got a job, we took her pay check and opened a checking account, and also got her a credit card, with a low limit. I told her buy anything she was going to buy anyway, on the card, and then pay the whole balance each month. Eight months later when she was looking at cars, she had a 745 credit score.
Yeah with 6k. I applied at my bank too
James
Staff member
Unless you have 6 or 7 figures in cash, you need to have credit. You can pay cash for pretty much everything except a house.
What I would suggest is getting a secured card and paying it off every month, doesn't cost you anything. One thing you have to watch out for though is your credit-to-debt ratio. This is basically your credit limit compared to your amount charged that month. Best practice is to keep that percentage in the single digits. This gets tricky though when you only have a $500 limit, that's a whopping $50 a month you could charge to it. One way around that though is making a payment before your billing cycle closes.
We buy houses for cash all the time.
Try a Credit Union if you haven't already.