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New to Credit Cards

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Anonymous
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New to Credit Cards

I have ONE $2,000 student loan that is being paid off but it only reports to equifax. As such my equifax fico score is 697. I am not able to get fico scores for experian OR transunion because I have no other open accounts/loans/credit cards. I have no missed payments or anything like that lowering my score. One of the recommendations is to add a credit card as I DO NOT HAVE ANY CREDIT CARDS. I will be using it ONLY to be raising/obtaining a fico score. I have a couple questions..

1. I see the Orchard Bank Mastercard that says it reports to all three credit bureaus.. thats appealing to me.. are there any other credit cards (available to those with little or no credit) that reports to all three credit bureaus?

2. I plan to make a couple small purchases with it and pay it off RIGHT away. Is the best way to do this once a month or should i do it less often?

3. I am going to be purchasing a used car ($30-35,000) as soon as january but could be as late as summer. Will opening this credit card now actually lower my score or do you think it will stabilize by that time?

Remember i have no credit score from 2 of the 3 bureaus and I have one at 697.

Any help you can provide would be a great help!!

Message Edited by rollindts on 08-25-2007 03:16 PM

Message Edited by rollindts on 08-25-2007 03:16 PM

Message Edited by rollindts on 08-25-2007 04:48 PM
Message 1 of 8
7 REPLIES 7
Anonymous
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Re: New to Credit Cards

bump
Message 2 of 8
Anonymous
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Re: New to Credit Cards

If you're only wanting to obtain a FICO score for now, you could get a Crown Jeweler account.  They do not do a credit check so you'll have no inquiries and they do report to all three CRA's.  You have to make a purchase before they begin to report but they have several items at a low cost that you can pay off with the minimum payment in 2-3 months.  Once that account begins reporting then you'll have a score and as it raises, you can then try to get a CC.
 
You may also look into getting a secured credit card but make sure they don't report it to the CRA's as being secured.  Eventually, a secured card can be converted to a non-secured card.
 
You can go to www.whogavemecredit.com, and get a general idea of which CCC's pull EQ in your area and apply for a regular credit card outright.  You may get a very low limit because you don't have any revolving debt experience but at least it will get you started.  Don't go crazy and keep applying if you receive a denial or two because you will just keep piling up inquiries.  If you can't get an unsecured card after a couple of attempts, then the secured route will work just as well. 
 
Just a couple of suggestions.
Message 3 of 8
Anonymous
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Re: New to Credit Cards

I have BOA secured card and it does report as secured. It does not make any difference if it reports secured or not secured it would still help establishing credit. Fico does not know the difference between secured or unsecured.
 


Message Edited by ashabbir1 on 08-26-2007 07:07 AM

Message Edited by ashabbir1 on 08-26-2007 07:09 AM
Message 4 of 8
Anonymous
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Re: New to Credit Cards

A secured credit card is the way to go.  It doesn't matter credit score wise whether the card is secured or unsecured.  I secured card is loaded upfront so, for example, you would pay $500 to load a secured credit card.  You already have paid the card upfront and you would use it until the balance is depleted.
 
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Message 5 of 8
Anonymous
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Re: New to Credit Cards

what kind of score can i expect from trans union and experian if i sign up for a secured card or credit card (with a low credit limit and zero balance - no negatives)..

and when would it show up?

Currently they have NO information on me (as they stated - so i was unable to get a score from them).
Message 6 of 8
Anonymous
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Re: New to Credit Cards



rollindts wrote:
what kind of score can i expect from trans union and experian if i sign up for a secured card or credit card (with a low credit limit and zero balance - no negatives)..

and when would it show up?

Currently they have NO information on me (as they stated - so i was unable to get a score from them).

In order to start building your score, you need to use the card so the CCC can report activity to the CRA. Letting it sit with "0" bal will not help. FICO likes to see credit management. Just keep your util low and PIF each month. Example $25 bal on $500 card would be 5% util (25/500 = 5%). The people on here with more expertise than me say that 1-9% util is best for building your score.
 
Some CCC report the acct to the CRA right away, but you would have to wait for a statement cycle to have any kind of bal reported. Since I am still learning, I am not sure how fast your score would rise. Anyone else have any info on this? 
Message 7 of 8
Anonymous
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Re: New to Credit Cards

thanks - so if im understanding you correctly i shouldnt pay the balance off right away? Would purchasing items and paying for them once i get the statement be the best way to build the credit?

anyone got any ideas what score id start at once it starts reporting activity?
Message 8 of 8
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