ideas on how to rebuild my credit

[three33]

im 21 right now....i owe one company some money on my record but other than that its just nothing....i was wondering if anyone had any ideas on how to rebuild my credit....any and all ideas are greatly appriciated....thanks

[freakin]

Just carry a small amount on your credit card, $500 and keep giving them a little over the minimum payment each month.

[Def_3]

Originally posted by freakin
Just carry a small amount on your credit card, $500 and keep giving them a little over the minimum payment each month.

if someone has credit problems, chances are they DONT have a credit card

[freakin]

Who knows if he has one or not?!....I had some credit problems a few years ago, and still had a credit card. That was exactly how I fixed it.

[roopi]

Originally posted by freakin
Just carry a small amount on your credit card, $500 and keep giving them a little over the minimum payment each month.

Instead of paying just over the minimum pay off the entire balance. Don't carry a balance on your credit card.

If you can't get a credit card get something like a gas card, visions card, future shop card, bay card, etc. and just use it occasionally and pay of the balance in full each month.

[pinoyhero]

If you do have a card don't pay the minimum evry month, pay the whole damn thing off!

[freakin]

Originally posted by pinoyhero
If you do have a card don't pay the minimum evry month, pay the whole damn thing off!

You'll get a better credit rating making payments then just paying it off.

[max_boost]

Also remember, it takes time to build up your credit. Have you ever accessed your credit report before? You can retrieve it at equifax or transunion.

Some simple stuff to follow, only apply for credit when you need it. For example: You want a credit card, don't apply to 5 different banks hoping one will accept you. For the most part, banks don't know your exact financial situation and one way for them to assess you is to find out if you are seeking credit. Those who are constantly seeking credit is deemed to be a risk, oppose to those who aren't. Everytime a bank accesses your credit file, it shows on there. So if you got rejected by Royal Bank, and try to apply with Bank of Montreal, there is a good chance BMO will reject you as well or ask you questions pertaining to Royal Bank. Know what I mean?

Learn to save your money. Even if your credit file isn't up to par, if you show the bank you have some assets, it'll help you when you apply for a loan.

Don't carry too much debt. It's easy to spend, hard to pay off.

Get a steady, good paying job.

Again, over time your credit will build.

[Weapon_R]

Originally posted by pinoyhero
If you do have a card don't pay the minimum evry month, pay the whole damn thing off!

I've always thought that steady, consistent monthly payments (higher than the minimum) were the best way to use credit cards to build credit.

[Phats]

Originally posted by freakin


You'll get a better credit rating making payments then just paying it off.

Try explaining yourself, people will be more inclined to believe you if you give a good reason instead of just saying that it is so.

[max_boost]

I'm 22 and I have $1400/month in car lease payments, why would the bank trust me? Because I have assets, 0 debt and one credit card for $5000 that I don't even use I basically followed what I outlined above to improve my rating. I've been working at it for the past 4 years, my goal is to reach the 850pt rating from Equifax (highest rating). I'm almost there Mind you, you have to at least have a decent paying job to borrow and spend.

[max_boost]

Originally posted by Weapon_R


I've always thought that steady, consistent monthly payments (higher than the minimum) were the best way to use credit cards to build credit.

It doesn't matter if you pay it off in full or the minimum or more than the minimum. The key is to not default on any payments, period.

[freakin]

Originally posted by Phats


Try explaining yourself, people will be more inclined to believe you if you give a good reason instead of just saying that it is so.

awww, I need facts? hehe

Here's how it was explained to me by a CIBC rep. when I missed a couple payments last summer and had them jack up my intrest rate as a result.

What I was told was that the credit card companies are more interested in people that will carry a balance because it means that they're constantly getting intrest payments. If you pay off you're balance right away, then they only get a small amount of interest. It's still money to them, but they want more. At the same time they don't want some deadbeat who they're going to have to chase down for payments (ie, me when I lost my job). It was suggested to me that I bring my balance down to a small amount and make a little more than the minimum payments. The minimun payments are mostly interest with only a small amount going to the principle. That way I'm not doing the bare minimum, they're getting paid and it appears on paper that I'm taking care of things responsibly. That is their ideal customer.

I just carried a $500 balance, set up my internet banking to make a $50 payment every month on it and forgot about it.

I didn't have any problems taking about a sizable loan a couple months ago, so I'd say it's working.

It's shitty that it's costs you money to do it (that's why I only carried a small balance).....but it does work.

[freakin]

Originally posted by max_boost
It doesn't matter if you pay it off in full or the minimum or more than the minimum. The key is to not default on any payments, period.

That is VERY true....missing payments will fuck you and fuck you hard.

In retrospect, I suppose my explaination is more for re-building credit, not obtaining it.

[max_boost]

Originally posted by freakin


That is VERY true....missing payments will fuck you and fuck you hard.

In retrospect, I suppose my explaination is more for re-building credit, not obtaining it.

Equifax has a credit rating system between 300-850. Everyone's credit rating falls between there.

When you say rebuild credit, you have to do things so your rating increases. KNow what I am saying? Obtaining credit is a way to rebuilding credit, it shows you can be trusted and the ability to repay a loan. Isn't that rebuilding?

The only thing you can really do right now is to make all the required payments on your credit card and not default.

[BebeAphrodite]

It's 300-900...I just sent for my report the other day.
As for paying just the minimum, I don't agree with just paying the minimums. That basically means that you may be responsible but you're not able to repay it. So your credit rating will not go up if all you can do is pay the minimums. Building credit has a lot to do with debts/assets/capacity, etc.. (wayy too lazy to go into it)... it's not just about paying off minimums each month.

As for a way to rebuild credit, check equifax.com and pay for a credit report, they'll give you tips on how to increase ur rating. You will have to answer some questions to verify it's you and I think it was 22 bux or something.

[Khyron]

Take out a small personal loan (500-2000) dollars, put it in a bank account and pay it back over a year.

Khyron

[GTS Jeff]

hmm i fail to see why making payments just above minimum every month would be better than just paying it off it full? it just shows that ure a poor chump.

the way i build my credit is simple. i just use my credit card on a regular basis (usually charge $500/month to my visa) then i pay it all off every month. ive got 3 credit cards. they all started at $500 limit from when i was 18. now, 3 years later, all 3 have had their limits automatically bumped to over $5000. im sure if i apply for a loan, i can get another 10000 of unsecured credit, plus more if i cancel a couple cards (which i could do, since i only keep them around to build credit).

actually, credit cards are kickass cuz they are just as convenient as debit, except theres no stupid limit of the # of transactions u can do every month. plus they allow u to do shit over the net.

[DUBBED]

^^^ Do you carry a balance now or are you continuing to pay it all off at the end of each month?

[max_boost]

Originally posted by DUBBED
^^^ Do you carry a balance now or are you continuing to pay it all off at the end of each month?

It depends how big the purchases are

Also, sometimes Credit Card companies issue promotional rates which are far lower than the traditional 18.5%.

Example: Awhile back I was offered 1.9% interest over 6 months so I took out $5K. Interest payments were less than $8/month and I had 6 months to pay it back, which I did.

It's almost like free financing, can go buy a bodykit or do whatever the hell you want