765 - 799 score but no credit history

[blakeem]

I actually didn't have a savings account for years because I would spend everything so fast and wasn't able to keep money in it (car and electronics/computers are expensive) so I was always almost check to check. I got a big raise not long ago with more to come along with stock options (It's a fast growing start-up) so it was time for a change.

I have the difference deposited automatically into a new savings account. Moving and problems with my car ate up most of this so I don't have much saved besides the money in my RothIRA that I won't touch. I have enough for a down payment but I'd need to save a few more months if I want to pay cash and I hate waiting while my car falls apart. If I wasn't so worried about my car I'd just save and pay cash like I normally do and I'd likely buy used.

The company I work for does the website for the dealer and my boss is good friends with the owner so they can get me a good deal on a new or used motorcycle.

My mom did offer to co-sign on a car loan but this is only because she doesn't want me riding a motorcycle as to be expected from mothers. It may be a good idea but I'd prefer to go it alone, I don't like the feeling of owing someone.




Here is one of the reports I got back from a rental before I updated my address, after updating my address the next one came back with a 799 score but I need to dig to find it but it's no different besides higher score and no address mismatch.

CreditLink® Corporation
CL Advantage® Credit History
 

Identity Integrity:
Current address mismatch.
All Data Returned.
Exact SSN match.

Summary of Accounts:
POSITIVE: 1 NEGATIVE: 0 PUBLIC RECORD: 0 COLLECTION: 0

Risk Factor
TransUnion FICO Score: 773
Amount owed on accounts too high
Amount owed on revolving accounts is too high
Length of time accounts have been established
Too few accounts currently paid as agreed

Public Records
Type Amount Filed Paid Plaintiff
No public records reported

Collection Records
Creditor Opened Closed / Paidout Orig Bal / Current
No collection records reported

Payment History:

Name Acct Type Payment Rep Date Payment Patter n Payment Status
CHASE Credit Card 25 07/13 111111111111111111 Pays as agreed

Creditor Records:
Name Acct Open Balance Hi Credit Past Due Status
CHASE 04/02 1286 7288 0

Consumer Statements
No consumer statements reported
Inquiries
Agency Date
CREDITLINK 08/15/2013
End of Report
This report is furnished to you pursuant to your Service Agreement and in compliance with The Fair
Credit Reporting Act, and is based upon your representation that you have written authorization
from the consumer and a permissible purpose to obtain the report. The information in this report
was obtained from sources deemed reliable but the completeness and accuracy are not guaranteed.
There are Federal requirements if you Decline or Conditionally Accept an application based
on the information your receive through screening. There may also be additional requirements
imposed by your local jurisdiction. Compliance with Federal and other jurisdictional requirements
is your responsibility.

[09Lexie]

Please redact your name from your report. Thank you

[SnackTrader]

That report shows all your AU history from what I can tell. That is a good start.

Anyway, I think your first mistake was going for a lease from Honda since leases are generally reserved for a certain credit profile. You would likely find approval (although at a high interest rate) from a credit union, or through dealer financing. Dealer financing works like this: the dealer will push your name through a bunch of banks until they find a lender that will approve you. Since that could result in a number of inquiries, it would be preferable to receive financing directly from a bank or credit union. Please remember: you may be offered a loan with a 10%+ interest rate, but it may be worth it to build credit history. That is your decision.

I suggest trying to get away from your mother's assistance, but if it is absolutely needed having her co-sign your loan (make sure your name is on the note and that you r payments will report on your credit report) wouldn't be the worst idea. You wouldn't owe your mom, you would still owe the lender, but she would become liable for the payments if you failed to pay.

Keep working on this! You're doing well so far. The auto lending Boards within this forum might be able to help more - we are just the credit card geeks over here.

Some more ideas for you: once the car/motorcycle thing is all figured out, you should start working on getting your own credit card. You will be able to start in a variety of ways, but your credit is borderline for any unsecured cards. Your options could include a secured card, or a low level unsecured card. Come back for some advice at that time and we would be happy to help give more advice on that topic.

[09Lexie]

As Snack pointed out, the cc history is reporting. The 111111etc indicates reporting and the Date Opened is clearly stated. The dealer may have meant that your history solely as an AU is insufficient for a lease. Also, Chase usually wants individual rev credit card history.

You might qualify for a purchase with a significant downpayment but a lease would be a stretch.

[Crashem]

That was helpful.

OP,

Can you give me your short term credit goals again?

XXX in XX months/years

e.g. Auto Loan around 30k in 2 months

If there are no specific goals in mind, but just that you want to build up your credit.  Let me know as well.  I would highly recommend you build up your credit profile if you think you can responsibly use credit cards.  It will be needed for larger ticket items in the future such as auto loans and mortgages.

[blakeem]

Short term I need something to drive. The credit union had a 10.99% motorcycle loan but I don't want to try if I'd be rejected. It would be paid off in under 6 months so the interest won't bother me too much, auto repairs and parts would likely be more than the interest in that time.

Long term I'd like to save to get a house at some point in the future so I definitely want to build my credit history.

Motorcycle is around $5k total and I could put about $1.5-2k down.

[blakeem]

I'm thinking it may be best to just buy used/cheap from a private seller and try to get a small cash loan from my mom. I could then get a credit card that I'm sure I would be approved for and build my credit that way.

What credit card would be best for this? I have had too many checks on my account lately and don't want to be rejected. It doesn't seem worth the risk of trying for a credit union loan and I'd rather pay my mom the interest.

In the past I've always got a loan from her for my school or first car. I did have 0% interest Newegg card at one point and put a bunch on it as well as lending to a friend but that was years ago and I don't think it was a normal credit card.

[blakeem]

It seems a secured credit card is a good way to go. Perhaps I could try to get one though Mission Federal credit union?

I still need to do more research, I don't know much about secured cards or what I'd be eligible for.

[JustinNguyen]

I added my brother to my 10 years old CC, just AU and he never have credit before.  It showed AU on his CR. He app'ed for citi and Amex and got instant approved for both with amazing CL. Try both of them and come back here tell me the result. 

[blakeem]

She said she would add me as an AU on the card but I've read mixed things about what this would do and if it's even possible. It sounded like they would need to close out the current account and re-open it because I'm already on the card. I will call Chase for details and update with what I learn here.

I only wanted a credit card/loan for a motorycle so if I can pay for it other ways I could just build my credit history over time by myself. I don't forsee needing credit for a while so I have time on my side.