I would look into getting a secured card and letting it age for 6-12 months if you can afford the wait so you'll have a FICO score and a better chance at better rates!
Hi Kvennard -
In order to have a true FICO score calculated, you must have the following:
- 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).
If you meet all such requirements, a score can be generated. Despite your account going 90 days late, it should still report for approximately 10 years, and the negative remarks will go away 7 years after the date of their first delinquency. You obviously do not have an open account.
Cable bills, car insurance, cell phones, rent, etc. do not report to the credit bureaus unless you go delinquent and they report a collections account.
Without a credit score, no lender is going to lend you a car unless it is a buy here/pay here situation where they pick the car and just kill you on interest charges. With a co-signer and a LARGE down payment, you may have a shot, but not a big one. Thin files are bad, no files are even worse.
If I were you:
1. Open a secured credit card with a local credit union (usually have lowest fees).
2. Pay your balance off every month, in full (prior to statement date for maximum FICO score).
3. Pay cash for any car you or going to buy (just wont make sense for you to finance with no credit).
Over time, your score will grow and you can add starter unsecured credit cards and watch your FICO shoot on up. Like you said, it is not an over-night thing... obtaining solid credit takes a minimum of 3-5 years to really show your worth, but that 90 day delinquency will bring your score down for a while if it is still reporting.