So... I need to get a good credit history going

[Aaviel]

Not on a credit report its not. For example I use Amex for just about everything and make 4-5 payments/mo. All my credit report shows is the balance at statement date. THATS IT. It doesnt show utilization in between payments, nor does it show how many or how much in payments were made. The ONLY thing a credit report shows is the balance at statement cut off date. THATS IT.



Me too



Then you have absolutely nothing to add to the thread, since FICO's and credit reports are what we're talking about.



Well, sort of. Due dates as reflected on your statement are irrelevant for reporting purposes. You would nee to find out when your statement or cut off date is, which is typically a couple of weeks before your due date, and before the statement is cut. So if your statement date is the 23rd, and you PIF on the 22nd and resume charging on the 24th, your credit report will show a zero balance regardless of activity. If you always did this, it would appear on your credit report that you arent using your card.

What YOU see on your credit report is not exactly the same as what an issuer sees. The thread is about getting a house, which is not just dependent on your FICO score. I don't look at individual credit reports, I look at the data supplied by the bureaus. Looking at an individual report will do nothing to help me analyze credit decisions.

 

[JMapleton]

Any secured card from a major bank should be fine. Avoid those scammy ones with the huge fees.

 

[CLite]

Not on a credit report its not. For example I use Amex for just about everything and make 4-5 payments/mo. All my credit report shows is the balance at statement date. THATS IT. It doesnt show utilization in between payments, nor does it show how many or how much in payments were made. The ONLY thing a credit report shows is the balance at statement cut off date. THATS IT.

My TransUnion Credit Report begs to differ regarding showing "amount paid". Maybe it's a difference between Chase-Visa & AMEX reporting? However even a MACYS card I had eons ago shows the "amount paid" category.

 

[NutBucket]

What YOU see on your credit report is not exactly the same as what an issuer sees. The thread is about getting a house, which is not just dependent on your FICO score. I don't look at individual credit reports, I look at the data supplied by the bureaus. Looking at an individual report will do nothing to help me analyze credit decisions.

In a way it does. A loan officer is going to look at the report itself to determine monthly debt payments. They have no way of knowing whether you pay your cards in full every month unless they are provided with statements.

 

[JMapleton]

My TransUnion Credit Report begs to differ regarding showing "amount paid". Maybe it's a difference between Chase-Visa & AMEX reporting? However even a MACYS card I had eons ago shows the "amount paid" category.

To get the "Amount paid," they just subtract your original balance with the current balance. They do not maintain transaction history or payment history.

Credit agencies only have the information the creditors give to them, nothing more, and they do not transmit payment information.

 

[CLite]

To get the "Amount paid," they just subtract your original balance with the current balance. They do not maintain transaction history or payment history.

Credit agencies only have the information the creditors give to them, nothing more, and they do not transmit payment information.

In the screenshot I took my 11/2013 balance was $1,814 my 12/2013 balance was $336 and the amount paid was $14,257. The math does not work there.

Also the "amount paid" precisely matches the payments I sent to the credit card.

It is rather obvious my creditor is transmitting payment information.

 

[Aaviel]

In the screenshot I took my 11/2013 balance was $1,814 my 12/2013 balance was $336 and the amount paid was $14,257. The math does not work there.

Also the "amount paid" precisely matches the payments I sent to the credit card.

It is rather obvious my creditor is transmitting payment information.

Thank you for posting this. As I said, the credit bureaus have this info and have recently started reporting it out (going back two years). The transactor vs revolver distinction is an important risk splitter.

 

[Aaviel]

In a way it does. A loan officer is going to look at the report itself to determine monthly debt payments. They have no way of knowing whether you pay your cards in full every month unless they are provided with statements.

You honestly think every credit decision is made by a human being? Do you know what kind of compliance nightmare that would be?

 

[OCGuy]

My TransUnion Credit Report begs to differ regarding showing "amount paid". Maybe it's a difference between Chase-Visa & AMEX reporting? However even a MACYS card I had eons ago shows the "amount paid" category.

Just because it was reported to the bureau does not mean it is included on hard-pulled reports.

 

[Aaviel]

I've already said multiple times that this data is available to issuers as well. Just because whatever you do doesn't use it doesn't mean it's not available.

 

[NutBucket]

You honestly think every credit decision is made by a human being? Do you know what kind of compliance nightmare that would be?

I'm sure not every decision is. I just know my lender discussed it with me.

 

[Aaviel]

I'm sure not every decision is. I just know my lender discussed it with me.

So, you have second hand knowledge from an agent... I actually work as an analyst doing credit policy. Some lenders that are less profitable may use less info but we don't. They also aren't as profitable.

 

[NutBucket]

But in the end I don't really care about the mechanics of it as long as I can get the loans I want. Don't be a deadbeat and it won't be a problem.

 

[zCypher]

I don't know anyone that needed to start with secured card simply for not having any history. I do know plenty that needed secured card to rebuild credit after having a BAD history which is a much different thing.

You don't need much to be approved for a basic unsecured card. Just holding a steady job and having a monthly cell phone bill that reports to credit bureau is likely enough. I know that was pretty much my situation when I got my first card, which was a $500 limit soon extended to $1700 within the same year.

Bad credit - much different scenario that will take more effort/discipline.

 

[TridenT]

Applied for the secure card. Just 'cause.... and they said it would take 2-10 days for a decision. :|

 

[TridenT]

I got rejected for both. Secured credit card declined me because my income was too low.

What the fuck? Fuck VISA.

 

[tortillasoup]

What did you report your income as?

 

[compuwiz1]

I got rejected for both. Secured credit card declined me because my income was too low.

What the fuck? Fuck VISA.

Join a credit union and ask them if you pledge your paycheck, can you get a loan for an equal amount?
A credit union loan secured by what you deposit does report to the credit bureau.

Also find a credit union that offers a secured card. Stay away from these big banks.

A good credit union is all you need. I don't understand why people mess with big banks with all their fees.

 

[Red Squirrel]

What's the difference between secured and regular card? I got a standard Visa when I turned 18 and had zero income. The limit was 1k if I recall, maybe less. It was enough for me to be able to put web hosting and domains and other stuff on it so I did not have to bum my mom's card anymore.

I would go see a credit union and try to get whatever standard card they give. You'll probably get approved that same day, and just have to wait for the physical card to come in. I recently switched everything from RBC to a local credit union, best thing I ever did. Way lower mortgage rate too. My credit line was pretty much approved right on the spot, I was surprised at how easy everything was. Everybody should use credit unions. So much better. Mine is a co-op too, so they do profit sharing.

 

[88keys]

With a secured credit card you pay a security deposit for your line of credit. If you want a $1,000 credit limit, you pay a security deposit of $1000, and if your card is cancelled ue to non payment, the deposit is applied toward your balance and the cc company sends you the remainder.

When I had bad credit, I started with a secured card, and worked my way up from there.

Obviously a secured credit card isn't going to be a magic wand to fix your credit woes. You'll actually have to go through and find all of your past dues, and deal with them accordingly. You'll also want to keep a record of your payment and make sure the stuff comes off of your history when it's supposed to. Fixing bad credit can be a major pain, luckily my debts were pretty managable for me so I got mine straightened out pretty easily compared to what some people have gone through. But remember this is something that takes patience. If you won the lottery today, your credit would still take several years to straighten out simply because of how long negative reports stay on your record.

You'll also want to keep your balance at 50% or less of your line of credit. If your credit line is $1,000. You'll want to keep your balance under $500.

Here is what I did to start repairing my credit.

I figured out what I spent per month on gas and groceries (which was $400/month for me). Multiply that by which came to $1200 and took that amount and applied it to a security deposit for a line of credit of that same amount.

And I would just spend it on gas and groceries and other things I need, and I would always stay under that %50 threshold with a nice $200 buffer in case of a rainy day (or an $800 buffer in case of disaster), and I'd pay the balance off every month.

When I started my FICOs were between 425-450 which is pretty bad. When I bought my new car in November 2012, my credit score with the dealer 694, and my FICO scores were in the 680s.

Been making steady payments since then so I should be over 700 by now, but I haven't checked since then.


Nowadays, I just keep things simple. I have one credit card for emergencies, and the other one is for everything else. I don't always pay the entire balance off in a month anymore since I use it for large purchases, but I generally make damn sure that whatever I buy can be paid off within 6 months or less, and usually try to shoot for 3 months if I can.

 

[Herr Kutz]

What's the difference between secured and regular card?

With a regular card, the bank lends you its money. With a secured card, you let the bank lend you your own money and will likely pay fees for the privilege.

 

[DrPizza]

I got rejected for both. Secured credit card declined me because my income was too low.

What the fuck? Fuck VISA.

Huh? Wow, I guess I knew a lot less than I thought about secured cards. I thought secured credit cards were basically equivalent to a pre-paid debit card, except with more fees.

 

[angminas]

If you get a card, PAY IT OFF when you get the statement every month.

Don't get in the habit of keeping even a small balance on it as there is no long-term benefit to doing so. Some people say your score will be better if you do, but that's a bunch of bull crap.

Keeps them from cancelling your card for no good reason when you pay it off. I've had it happen.

 

[boomhower]

Huh? Wow, I guess I knew a lot less than I thought about secured cards. I thought secured credit cards were basically equivalent to a pre-paid debit card, except with more fees.

No. You give the bank money and that is the limit for the card. Fees vary by lender but if you go with a decent one their won't be any other than interest if you carry a balance. The card works like a credit card and you don't add money to it, that is just their incase you default on the payments.

I got rejected for both. Secured credit card declined me because my income was too low.

What the fuck? Fuck VISA.

Visa has nothing to do with it, it's whatever institution you applied with. Visa is just the network.

I don't know anyone that needed to start with secured card simply for not having any history. I do know plenty that needed secured card to rebuild credit after having a BAD history which is a much different thing.

You don't need much to be approved for a basic unsecured card. Just holding a steady job and having a monthly cell phone bill that reports to credit bureau is likely enough. I know that was pretty much my situation when I got my first card, which was a $500 limit soon extended to $1700 within the same year.

Bad credit - much different scenario that will take more effort/discipline.

Cell phones don't report to the credit bureau unless you default, your payments will not help your credit.

 

[NutBucket]

I remember having to put down a deposit years ago when I first got a cell phone. I had no credit history at the time. Utilities typically need one too for that scenario.