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12-30-2012 08:03 PM
This question had been ask so many times in this forum but i suggest you should do a search all over the board then should see some similar thread with your situation.
1. Establish a savings account with a credit union that offers secured loans (make sure rate is not more than 3% above the savings rate) and secured credit cards.
2. Deposit $500 to $1000 into a savings account.
3. Take out a "secured" personal loan. This is a good addition to mix as an installment loan.
4. When you get the loan check (the money you borrow), deposit it back into savings.
5. You now have doubled your savings balance (example: you deposited $1000, then borrowed $1000 which you deposited into savings giving you $2000). The amount of interest you collect on $2000 should be equal to or higher than the interest they charge you for the loan on $1000....so essentially you are not out (of pocket) any cost to build your credit with this loan.
6. Ask for a secured credit card. If they won't approve initially, ask again in 6 months.
7. Once you obtain the secured credit card, only use it for items you PIF each month (don't accrue interest)
8. Pay off the loan at 12 months.
9. At 12 months ask to unsecure the card.
10. You have established to great credit references and credit TL's and built a relationship with a solid credit source....credit union.
11. During the course of the year above, continue working on the repair side of your credit.
12. You may also obtain other builder card such as CapOne or Orchard to add an addition TL and CL.
13. After you pay off the loan to the credit union, continue to make regular deposits to saving, just like you were still paying the loan off. This is a financial habit that you need to continue, and it gives you your emergency fund and savings that protect against unforseen events which can take you by surprise (and hurt your credit if you are short on cash).
Remember you might need 3 credit card and 1 mixed loan for possible fico score. 2 credit card + 1 store card + mixed loan.
12-30-2012 08:04 PM
I got it from Credit Karma, i know it only does Transunion but dont all 3 credit bureaus report almost the same number? If not then nvm. I'll get again in 6 months, sorry about that!
Credit Karma doesn't give an actual FICO score. Only "myFICO" can give you a real FICO score (unless some lenders use FICO and send you it in the mail with the reasoning for denial, less than favorable terms, etc). In 6-7 Months from the time you opened the Capital One Journey card, buy your FICO score from here if you try it before that time they will say they can't generate one yet.
12-30-2012 08:13 PM
Wow thats one of the best advice I've heard so far!
12-30-2012 08:23 PM
There's a lot i could comment on, but I will only comment on the secured card part.
You already have an unsecured Cap1 card, no need to take a step backwards. IOW, no need to get a secured when you already got a unsecured.
When your Cap1 hits at least 6 months old, and you still want another CC, that would be the time to app. But for another UNsecured, not a secured.
12-30-2012 11:14 PM
04-01-2013 10:03 PM