New Member
newbee25
Posts: 2
Registered: ‎10-09-2012
Need help building credit, the right way! Please help!
[ Edited ]

Im 30 Yr old and the only outstanding credit I have is my car loan which is through my credit union, and another 5,000 loan which is through my credit union.

That one is almost paid off, with a thousand dollars oweing. Im trying to get my score up to get approved for a house but I have no credit, no credit cards. I need to build some credit but how???

Established Contributor
jamie123
Posts: 927
Registered: ‎03-22-2012
Re: Need help building credit, the right way! Please help!

Welcome to the forums!

 

First off, a couple of questions.

 

What are your scores? Have you pulled your reports from annualcreditreport.com?
 Do you have any baddies on your reports?

 

A few suggestions:

 

You need to have 3 credit cards to maximize your scores. I would suggest that you apply for a credit card with your credit union and a GE credit card from a place you shop at, perhaps a Walmart card if you shop there. For my suggestion of your third card I would like to know what your scores are.

 

And yes, you do have credit. Your car loan and your personal loan count as credit. You just don't have any credit cards yet.



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 701 12/8/14
Goal Score: EQ 720+
Take the FICO Fitness Challenge

New Member
newbee25
Posts: 2
Registered: ‎10-09-2012
Re: Need help building credit, the right way! Please help!

First thank you,

 

My credit score was 580 when I just recently had it checked. My fico score on here is 623. So I should apply for a credit card from my credit union and then a store? When I do whats the best way to use those cards to build my credit? I have never owned a credit card.  

Established Contributor
jamie123
Posts: 927
Registered: ‎03-22-2012
Re: Need help building credit, the right way! Please help!

Wait!....You forgot to mention that YOU USED TO HAVE CREDIT AND FORGOT TO PAY YOUR BILLS!

 

Your scores are pretty bad and you will have a VERY hard time being approved for new credit!

 

You need to pull your reports from annualcreditreport.com and tell me what kind of baddies are on your report.

 

You need to post in the REBUILDING CREDIT forum and learn how to write PFD (Pay For Delete) and GW (Good Will) letters to have all the baddies removed from your report.

 

Just adding new credit at this point won't do much for your scores. You need to have the bad information removed first. It really isn't difficult to do and becomes pretty easy after the first one.



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 701 12/8/14
Goal Score: EQ 720+
Take the FICO Fitness Challenge

Regular Contributor
Tran92
Posts: 217
Registered: ‎09-25-2012
Re: Need help building credit, the right way! Please help!

jamie123 wrote:

Wait!....You forgot to mention that YOU USED TO HAVE CREDIT AND FORGOT TO PAY YOUR BILLS!

 

Your scores are pretty bad and you will have a VERY hard time being approved for new credit!

 

You need to pull your reports from annualcreditreport.com and tell me what kind of baddies are on your report.

 

You need to post in the REBUILDING CREDIT forum and learn how to write PFD (Pay For Delete) and GW (Good Will) letters to have all the baddies removed from your report.

 

Just adding new credit at this point won't do much for your scores. You need to have the bad information removed first. It really isn't difficult to do and becomes pretty easy after the first one.


He didn't mention anything along those lines. He said he never had a credit card. Lol 

TU 746 (10/13)
GOAL: 750+






Regular Contributor
Tran92
Posts: 217
Registered: ‎09-25-2012
Re: Need help building credit, the right way! Please help!

newbee25 wrote:

First thank you,

 

My credit score was 580 when I just recently had it checked. My fico score on here is 623. So I should apply for a credit card from my credit union and then a store? When I do whats the best way to use those cards to build my credit? I have never owned a credit card.  


If approved for those two cards make sure to report one of the card at a utilization of 1-9%. Keep doing that and you should see a difference in your credit score. Gardenn for at least 6 months before trying to app anywhere else. 

TU 746 (10/13)
GOAL: 750+






Established Contributor
bettercreditguy1
Posts: 760
Registered: ‎02-11-2012
Re: Need help building credit, the right way! Please help!

Do not fear! My son did not have any credit cards, only two car loans, and no personal loans. At age 28 his TU, EQ, EX  scores were all the same at 817, lender pulled. He found his scores out when getting pre approved for a home loan. Good luck. You probably will have no problems obtaining any Major Branded CC you want.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience