Still stuck with NO credit...

[msensa]

Nobody will say yes to us without a score.  There is still nothing to report, so there is never going to be a score.  How in the sam heck are we supposed to rectify this??  And with all the trouble in the financial sector, I do not see a light at the end of the tunnel.

NO car loan, NO credit cards, NO loans.  NOBODY approves us, not Lowe's or BestBuy...we can't even get approved for OD protection line of credit at the bank we've used for over 2 years.

I just don't know what to do.  Would a pre-paid card help, or does anyone have any ideas?  I know that everything is changing rapidly--I've kept my eyes and ears on the news--and I feel like we are just going to continue to be left out of the credit world.  And we really need to get a score for a mortgage.

feeling hopeless...

[Anonymous]

You mention an ongoing relationship with a bank for 2 years. You might try asking them about getting a starter CC. If they aren't helpful, most of us have had good luck with local CUs. I started with a $300 secured CC from my CU about 20 years ago.

I was in the same boat then, but it quickly goes away once you take the first step.

[Anonymous]

Maybe a secured card that reports to the credit agencies.

[Anonymous]

You're not at all hopeless. You're actually the "risk" that mortgage companies are looking for. The FICO score is based on debt and how you repay it. You need a company that does manual underwriting rather than stapling a number to your forehead for being responsible for avoiding debt.

Manual underwriting is the way our parents did stuff. If they could afford the mortgage, they got it. If they couldn't, they didn't do it. They look at your income and obligations, and they do it the way it was done long before FICO scores existed.

Try going to [link removed] I'm pretty sure they'll be able to give you some guidance without asking you to take out credit cards to improve your scores. That's not going to help you anyway. It would take years of incurring debt then paying it to bring your scores up to an "acceptable" level. LOL.

Congratulations for staying out of the debt mess. You really don't need a FICO score to have a life.

Message Edited by Timothy on 10-01-2008 07:15 AM

[cw81]

I think some of the earlier posters suggestion to  join  CU and get a secured  card is the best way to go.  You can also  get a secured loan  against  a  CD if you choose to.  I did that at  my CU    You will then have  revolving and installment loan credit and that will help  build up score

On a different  note  getting  a CC  doesnt  mean  getting in debt  Jade  if  PIF  and not carry a balance  you  will not necessarily be in debt.

[cadavis0609]

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JadeComputerGeek wrote:

You're not at all hopeless. You're actually the "risk" that mortgage companies are looking for. The FICO score is based on debt and how you repay it. You need a company that does manual underwriting rather than stapling a number to your forehead for being responsible for avoiding debt.

Manual underwriting is the way our parents did stuff. If they could afford the mortgage, they got it. If they couldn't, they didn't do it. They look at your income and obligations, and they do it the way it was done long before FICO scores existed.

Try going to [removed] I'm pretty sure they'll be able to give you some guidance without asking you to take out credit cards to improve your scores. That's not going to help you anyway. It would take years of incurring debt then paying it to bring your scores up to an "acceptable" level. LOL.

Congratulations for staying out of the debt mess. You really don't need a FICO score to have a life.

---

!? It looks like you might be a DR person. It may not be absolutely nessescary, but it sure does make life easier. This may be the way our parents did it but failure to adapt is failure to survive. You absolutely need to be able to leverage your credit to work for you and if you have none, you're stuck to the few mortgage companies who can offer you whatever rate they want, because there will be no banks competing for you. Also, I think you might be confusing the words "Debt" and "Credit" as well. Your FICO reflects nearly every aspect of your life and I think this is a misguided statement in todays world, so I respectfully beg to differ.

Message Edited by cadavis0609 on 09-30-2008 08:56 AM

Message Edited by Timothy on 10-01-2008 07:16 AM

[Anonymous]

Thanks for the pointed comment but I did graduate and I'm well aware of the definitions of the words "debt" and "credit," and I'm not confusing them.

A FICO score does not reflect "nearly every aspect of your life." It does not reflect how you rear your children, how you treat your spouse/significant other, how well you do your job, or anything else that matters much. It's purely a reflection of how well you handle debt. We live in a very debt-oriented society, and look where it's gotten us.

Mortgage companies that do manual underwriting don't typically get you "stuck." They're typically responsible lenders who won't put you in a mortgage you can't afford, whether that means today or five years from now when your ARM adjusts.

Avoiding debt isn't "failure to adapt." Some people, like me, and many bankers, actually admire people like that. I guess I haven't adapted, but as far as I can tell, I'm still surviving. There are tens of thousands of people out there right now who adapted to the credit-driven markets lending money to anyone who could prove their heart was still beating. I still have my house, and many of the people who "adapted" have already lost theirs.

[Scamp]

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JadeComputerGeek wrote:

A FICO score does not reflect "nearly every aspect of your life." ... It's purely a reflection of how well you handle debt.

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Errr, no, it's a reflection of how well you handle CREDIT. 

Debt is not required to obtain a good FICO score.

[Scamp]

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msensa wrote:

Nobody will say yes to us without a score.  There is still nothing to report, so there is never going to be a score.  How in the sam heck are we supposed to rectify this??  And with all the trouble in the financial sector, I do not see a light at the end of the tunnel.

NO car loan, NO credit cards, NO loans.  NOBODY approves us, not Lowe's or BestBuy...we can't even get approved for OD protection line of credit at the bank we've used for over 2 years.

I just don't know what to do.  Would a pre-paid card help, or does anyone have any ideas?  I know that everything is changing rapidly--I've kept my eyes and ears on the news--and I feel like we are just going to continue to be left out of the credit world.  And we really need to get a score for a mortgage.

feeling hopeless...

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Hang in there - the suggestions above to talk to your bank and/or CU's about starter or secured cards are excellent, definitely look into those options (it worked very well for me, starting over with nothing at all on my reports).

If you have a Macy's nearby or shop online at all, you might give them a shot - people starting in a place similar to yours have had success getting approved by them.

Good luck.  Keep your chin up - you'll get a foot in the door SOMEwhere! 

[MidnightVoice]

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JadeComputerGeek wrote:

 I'm pretty sure they'll be able to give you some guidance without asking you to take out credit cards to improve your scores. That's not going to help you anyway.

---

Getting credit cards will help

JadeComputerGeek wrote

It would take years of incurring debt then paying it to bring your scores up to an "acceptable" level. LOL.

One does not need debt to bring scores up.  Free loans from CCCs will help, and can also reduce mortgage rates, house insurance rates, car insurance rates etc.