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New Visitor
Posts: 1
Registered: ‎10-29-2009
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Re: NO Credit AT ALL, Who to apply with?

I would advise him to get a store card at a store he likes or is mulit-purpose (i.e Target, Wal-Mart, Home Depot etc) They usually apporve easier than credit cards and it willhelp built credit...and since its a store he will go back to, there's no reson to cancel the card, which will help establish credit history too!
New Member
Posts: 3
Registered: ‎10-27-2009
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Re: NO Credit AT ALL, Who to apply with?

Hi KMF,

 

A good mix of credit improves the score, so the auto loan is going to help a lot. Here are some things to keep in mind while applying for the car loan:

  1. Make sure not to get tempted into buying a car you can just barely afford. Such a car would not allow you to create a rainy day fund. And cars do depreciate, so the less money you put into them at the time of purchase, the better.
  2. Car loans are not as "forgiving" as credit cards. There's no luxury of a minimum payment if things are going really badly. So you need to save up about 4 to 6 instalments in your bank account. In the event of a job loss, you won't be sweating over the car loan. (Same deal with mortgage. Today I have 15 months of mortgage payments in a savings account, in case I lose my job.)

 

2 cc's are not enough, in my opinion. You need to get one more; preferably a store card. But buy the car first; then you can apply for that cc.

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