ARRRGGGHH, someone help me get some fucking credit

[Metaltastic]

I got my first credit card this time last year, and even though I've perpetually paid WAY more than my minimum payment every statement, I still can't get a motherfucking credit increase/new credit card. They always deny me because of the length of time (or lack thereof) I've had a credit card, as well as the fact that my balances are often high (when I get charged a measley $8 or so per month for having a high balance, it's hard to resist!).

So last week I paid off more than half of my balance, so out of the pitiful $750 credit limit I have, I have $400 free ($350 balance, IOW, wouldn't want you guys to hurt yourselves figuring that one out ). And I STILL just got denied for a musiciansfriend card (mostly cuz of the time issue, which is infuriating, cuz I have no control over it), and when I applied for a Sweetwater card, they said they couldn't immediately approve me cuz the app. needed "further review," which I'm pretty sure is still a kiss of death. So basically, does anyone know any really shady places with super high interest rates I can apply that might actually approve me? I'm very confident in my ability to make my payments, so I'm willing to take the chance of having super-high late fees/APR/etc.

 

[STINNETT]

I would suggest paying off your balance completely, and then the next few items that you intend to buy - buy them with your credit card, but pay off the entire balance with your next payment. In other words, don't buy something with the card unless you're prepared to pay the entire balance immediately.

That will improve your credit standing.

 

[Skinny Viking]

you can try something like a department store card ... Sears maybe. They usually have less stringent credit requirements, its not something you're likely to abuse and if you get in the habit of buying a couple small things a month on it will help kick up your rating slightly. Just be careful because the fact that you've applied for two other sources of credit in a short period of time can actually HURT your credit rating/score a little. Another good idea would be if you go to any bank and try opening a small line of credit or get a personal loan for maybe like $1000 ... you might need a co-signer but if you can do that and pay it off over the next 6 -8 months even if you had a co-signer it will bump up your credit score and you may start getting those wonderful offers in the mail sooner than you think.

Another good rule of thumb is while its good to pay above your minimum requirement each month, you don't want to pay too much over. Another thing that affects your credit rating is if you are considered a "good customer" ... that is to say, not just someone who pays on time/early and also pays the required amount plus extra but also someone that "they" can make a little money off of (finance charges) ... if they make almost no money off of you because you pay off your balances too quick, they don't consider you as good a customer as someone who pays on time but over a slightly longer period of time. The point is they want to make money, it helps your rating but you need to be patient because improving your credit score is a relatively slow process at 1st and you just have to play the game

You DON'T want to pay off balances immediately each month, not at 1st ... you are trying to ESTABLISH credit and improve your score, not maintain it. Not that it matters but by doing the above methods, I kicked up my credit score from like 400 to 800 over a couple of years and it was only about 6 months later that I started getting pre-approved offers with not so bad % rates in the mail.

Good luck!

 

[DevilJaw]

well there are slow and faster ways of getting a good credit status. the slowest of course being credit cards, at a minimum have 2 open accounts for 3 years and that should get you in the good status.

but if you dont want to wait that long. you can get a small loan or line of credit for ~$3000, this is around the minimum at most banks. this will boost your credit status very quickly in most cases provided you can pay it off very quickly.

but one account open now like you have now is not going to get anyway fast.

but once you get a good credit status, payment options like Bill Me Later are actually much easier to get than most credit cards. i would like to get a musicians friend card just because they have the big selection of the good stuff, but ive been dealing with the other guys that do split payments.

 

[Loren Littlejohn]

My woman has never had loans in her name. Has one credit card (visa) and charges everything for the month on i, has done so for a year, always pays the full balance. She gets points for cool shit as well doing that.


I have a car loan (24% bullshit but I had no choice at the time I needed a car), a student loan (under 4%) and I have had one card 6 years ago (cards suck I think that one was 18% or so). I lost my job and defaulted on the card, but paid the balance eventually, it's still on my report though even though it shows a 0 balance.

Her fico score: 830.
Mine: 633.

Sucks, because I want to refinance the car BAD. But every time I try I end up being denied due to not making enough a month (they want to see $1800 min a month). I always fall short around $400. When we get married the car is going and we are snatching up a new one at a better interest rate.

 

[grywolf627]

As Skinny Viking said...go for a department store card, especially Sears. They're usually easy to get. And generally, once they just issue you a card, you'll be able to get better offers from Visa and the like.

 

[LydonB]

just watch out for the interest rate on department store cards. They can be upwards of 22% interest. So make sure that you can always pay off the balance.

 

[Genius Gone Insane]

This is the best way to build your credit in your situation: Get a secured credit card with the highest limit you can afford and buy everything you can with it and pay it off immediately.

edit: ***if you can

 

[Wolfeman]

I don't recommend doing this, but but it worked for me. I got a ton of high interest rate cards when I turned 18 for no good reason. I got into some bad situations financially and maxed out all the cards I had, started missing payments, getting fees added on, etc.... Once I got myself out of the hole, I paid all of them off, and canceled them all. About a year later I applied for another card(after learning my lesson) and got approved for a very good Capitol One card with a fixed low interest and no fees. They gave me a limit of $20,000 also, when all those other ones I had were only like $300. My credit score is now next to perfect, even with the negative remarks from the early ones I had charged off.

So, like I said, I don't recommend doing it that way, but it worked for me.

 

[egan.]

My first card was a capitalone card and they gave me a dangerously high limit -- straight out of college w/ no job, income or savings.

 

[JBroll]

Another good rule of thumb is while its good to pay above your minimum requirement each month, you don't want to pay too much over.

Only if you really love paying twice the interest over the long run... paying interest is to be avoided wherever possible. If someone tried to tell me otherwise I would literally disregard every other word out of their mouth, unless there was some seriously badass justification for paying that much more interest.

Something to note... your credit is hurt when you apply for a card and they make the credit inquiry. Just be patient and don't be so eager to get your ass in debt, not too much else you can do.

Jeff

 

[hoehlentroll]

americans and credit cards
just save your money untill you have enough to buy sth.
if you don't have money, don't buy anything.

 

[Pot]

"just save your money untill you have enough to buy sth.
if you don't have money, don't buy anything."

Agreed!!

 

[abyssofdreams]

americans and credit cards
just save your money untill you have enough to buy sth.
if you don't have money, don't buy anything.

disagree. credit cards are very useful. especially within the net

 

[hoehlentroll]

but only to profit from the good € compared to $. for buying inside the eu, it's useless - at least for me.

 

[Metaltastic]

Thanks for the info guys, there sure is a fucking song and dance one seems to have to go through to get good credit! Hoehlentroll, I won't deny, I am intensely eager, and the fact is, why should I just save my money for something when I can finance it and pay it off in small increments, often for a fee of like $100 over like a year and a half? The way I look at it is: let's say I have the money right now, and there's something I really want, BUT, if I wait like a year, I know it'll be $100 cheaper. Fuck that, I want it now! So that's my credit card logic.

I think I'm gonna try and get a loan/personal line of credit at my bank; that didn't occur to me, but it makes sense that they'd be more lenient with giving it to me cuz it's not a license to spend over and over like a CC is. Thanks dudes!

Oh, and you think 22% is high - the current APR on my Chase card is 25%, and that's down from what it was originally! But since my limit is so low, having a balance of $500 comes out to like a $10/month fee, so I can live with that.

 

[Skinny Viking]

Only if you really love paying twice the interest over the long run... paying interest is to be avoided wherever possible. If someone tried to tell me otherwise I would literally disregard every other word out of their mouth, unless there was some seriously badass justification for paying that much more interest.

Something to note... your credit is hurt when you apply for a card and they make the credit inquiry. Just be patient and don't be so eager to get your ass in debt, not too much else you can do.

Jeff

Thats why I also mentioned that if he tries applying for too many things in a short period of time it can hurt his credit score ...

also, while I said he shouldn't pay too much over each month, I didn't give any actual formula as to how much it should or shouldn't be. I guess as an example, if his minimum payment per month was $100 and he had the means to pay $300 a month on it comfortably, he would be better off paying something like $175 ... yes depending on the interest rate it can add up to essentially throwing a little money away, but you're gonna do that regardless when you're trying to build up your credit score. And it doesn't have to be THAT much money.

As a side note, I have 3 credit cards ... I pay no more than 6 - 8% finance on any of them plus once every year I apply for 2 new cards who always offer me 0% for at least 12 months on purchases and balance transfers and no transfer fee ... bounce everything over to the new ones, close out the old accounts and enjoy 12 (sometimes 14) months of no interest ... why? because my credit is almost flawless, only thing holding my rating from being absolutely perfect is my actual level of income which, while not bad at all, is not enough to pull me up those last few points

 

[hoehlentroll]

Hoehlentroll, I won't deny, I am intensely eager, and the fact is, why should I just save my money for something when I can finance it and pay it off in small increments, often for a fee of like $100 over like a year and a half? The way I look at it is: let's say I have the money right now, and there's something I really want, BUT, if I wait like a year, I know it'll be $100 cheaper. Fuck that, I want it now! So that's my credit card logic.

you don't have to explain yourself. It's just intersting for me to find out cultural differences in this forum. That's something I really enjoy

 

[Skinny Viking]

you don't have to explain yourself. It's just intersting for me to find out cultural differences in this forum. That's something I really enjoy

Hahahaha yeah it seems something that Europeans have a hard time understanding about us sometimes. Trust me I know, my wife is from Berlin and I still have to have these credit conversations with her sometimes

She gets it .... but she doesn't hahahaha

Cheers!

 

[beyond dead]

I don't recommend doing this, but but it worked for me. I got a ton of high interest rate cards when I turned 18 for no good reason. I got into some bad situations financially and maxed out all the cards I had, started missing payments, getting fees added on, etc.... Once I got myself out of the hole, I paid all of them off, and canceled them all. About a year later I applied for another card(after learning my lesson) and got approved for a very good Capitol One card with a fixed low interest and no fees. They gave me a limit of $20,000 also, when all those other ones I had were only like $300. My credit score is now next to perfect, even with the negative remarks from the early ones I had charged off.

So, like I said, I don't recommend doing it that way, but it worked for me.

all the people i know with high credit limits have made all the wrong decisions with credit cards. they will keep letting you get further in debt, and prefer to let you max it out. they know they will get the payment eventually after charging an insane amount of interest. this is how credit agencies rate you on credit... by how much they can make off you