How long til 650?

[Anonymous]

This question isn't concerning my personal credit, but my little brothers'. He's 20 and has yet to use a stitch of credit or have any utilities etc..

Taking into account how horrible my credit is as of late, we decided to write/film both my credit repair progress and his building credit from scratch. 

I have already listed why my credit is horrible in another thread as well as a question about the status of my credit, but this post isn't about that...

The plan is... Assuming we have the cash readily available (we do), we intend on opening 2 secured credit cards with $600.00 each as the deposit, we also intend on levereging two of my $1000.00 CDs to secure financing for two installment loans. The plan is to set the installment loan payments to be deducted monthly from the secured cards, and use automatic billpay to pay the revolving balance on the cards with a savings account set up with the money from the installment loans. The loans that will be secured by the CDs are only 1% over the CDs bearing interest rate, So aside from losing the CDs interest+1%, we will break even at the end of this experiment.  

The question is... How long should it take to develop a credit score, moreover, one that is not sub-prime, we are shooting for a 640-660, (needed to secure financing on P2P networks).

For the little cost involved, we will recoup those funds by skipping 3 friday nights out on the town .... Please do offer advice and/or opinions and suggestions as this event will be documented and aired on our websight within the next year. Thanks ahead of time for the suggestions!

Dustin

[Anonymous]

Seriously? Does noone have a clue as to how long it might take to achieve a loanable credit score? The file will be pretty straightforward.. 2, 0 balance cc's and 2 installment loans... Thats it! Someone has got to have a reasonable estimate as to how long its going to take to establish a score?

[MarineVietVet]

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@Anonymous wrote:
Seriously? Does noone have a clue as to how long it might take to achieve a loanable credit score? The file will be pretty straightforward.. 2, 0 balance cc's and 2 installment loans... Thats it! Someone has got to have a reasonable estimate as to how long its going to take to establish a score?

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I'll admit I don't have a clue. There are too many variables. I don't see how anyone can make an educated guess but there are some sharp folks here who maybe able to help you.

Your brother will not have any score at all for at least 6 months.

In order for a FICO® score to be calculated, a credit report must contain these minimum requirements:

• At least one account that has been open for six months or more
• At least one undisputed account that has been reported to the credit bureau with in the past six months
• No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased).

Sometimes patience is your best tool in getting a score and keeping a good one.

Good luck to you and your brother.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

[Jazzzy]

I'd have to agree with marienvietvet. It is impossible to give you a good guess on timeframe.

There are many, many moving parts to a FICO score. You and your brother will have different timeframes. He is building...you are re-building.

I don't have a problem with your plan. Some will tell you not to go out and spend money on an installment loan you don't need just to build a FICO score. I understand your desire to do this though. If FICO score is a priority to both of you right now, and you see it as worth the investment, then go for it. I like your plan of reallocating Friday night money. You're thinking in the right direction.

Has your brother ever tried to get credit before? He may not need a secured card...but I've read in these forums how difficult it can be to get a start when you have absolutely no credit established. Secured may be the fastest way for him to go.

Do you guys have a family member who might add you as authorized users on an older credit card? That could give each of you a bit of a boost. Ultimately you need to build your own credit, but it doesn't hurt to have help from a family member. Being an authorized user on a card with some age...and no balance...can help you get started. The owner of the card doesn't even have to have cards issued to you, but it can still report for you.

I wish you luck on your journey. It will be interesting to write and film the process. It can be a frustrating process...and it takes lots of patience.