Building credit from scratch

Anonymous · ‎10-08-2009

Hi everyone, Im asking this question for my brother...

He has no past credit of any kind but has 2 current open CC -

Capital One $500 CL opened in May 2009-no lates. He uses this one often but recently started paying down to 16% util before it reports and

Macy's $100.CL opened in August 2009-no lates. He has purchased small things at Macy's and PIF every month.

He wants another card but does not want to waste inquiries on creditors that wont lend to people with new credit. Any suggestions? He is considering a secured card from a CU but wants other options as well. Thanks!

pattycake · ‎10-08-2009

These cards are pretty new. My advice is to have him continue to use these responsibly, then wait until April/May to get a secured card through a CU.

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749

Anonymous · ‎10-09-2009

Thank you pattycake!

MarineVietVet · ‎10-09-2009

@Anonymous wrote:
Hi everyone, Im asking this question for my brother...

He has no past credit of any kind but has 2 current open CC -
Capital One $500 CL opened in May 2009-no lates. He uses this one often but recently started paying down to 16% util before it reports and
Macy's $100.CL opened in August 2009-no lates. He has purchased small things at Macy's and PIF every month.

He wants another card but does not want to waste inquiries on creditors that wont lend to people with new credit. Any suggestions? He is considering a secured card from a CU but wants other options as well. Thanks!

I agree he just needs to wait a bit. Be sure he continues to have only one of the accounts report a balance each month and try to keep the util on that card at < 9%. Let that balance show on the statement and then pay in full before the due date to avoid any interest charges. The other card needs to be paid in full before the statement posts each month so that a balance of zero always reports.

Good luck to him.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Anonymous · ‎10-10-2009

Thank you Marinevietvet! Me being ignornat of creditworthiness, made some bad choices in my credit past. I have learned alot from these boards and making a slow but sure comeback, but I wish I had someone when I was young to give me the knowledge about credit BEFORE I made these mistakes. I want him to stay on the right path with his credit so as I learn I want to be able to share what I learn with him. Thanks again.

pattycake · ‎10-10-2009

@Anonymous wrote:
Thank you Marinevietvet! Me being ignornat of creditworthiness, made some bad choices in my credit past. I have learned alot from these boards and making a slow but sure comeback, but I wish I had someone when I was young to give me the knowledge about credit BEFORE I made these mistakes. I want him to stay on the right path with his credit so as I learn I want to be able to share what I learn with him. Thanks again.

Well, sister, you are in like company, as we have all done the same. Each and every one of us has had our issues and had to rebuild, that is why we are here!

Congrats for finding this board - it's never too late to get it right!

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749

Anonymous · ‎10-10-2009

Pattycake-

You always have positive kind words of wisdom to say no matter what the subject is. Thank you for your knowledge, professionalism and humor!

MarineVietVet · ‎10-10-2009

Well, sister, you are in like company, as we have all done the same. Each and every one of us has had our issues and had to rebuild, that is why we are here!

Yep

Anonymous · ‎10-12-2009

Hello Doitrightgirl,

I am a 19 year old college student and I started building my credit during my first year in college. To date, I have the following cards: (in order of approval)

1. Citi Student Card - $1,000 credit line opend 7/08 with a $700 CL

2. Macy's - $1,000 credit line opened in 3/09 with a $100.00 CL

3. CapitalOne - $1,500 credit line opened in 3/09 with a $500 CL

4. Victoria Secret - $680 credit line opened in 3/09 with a $300.00 CL

5. Discover - $500.00 credit line opened in 4/09, should get a CLI this month

6. Bank of America Student - $700 credit line opened in 4/09 should get a CLI this month

7. State Farm Student - $500 credt line opened in 4/09 should get CLI this month

8. Hooters MC - $500 credit line opened in 4/09 should get CLI this month

I only carry a small balance on my Citi card because it has the lowest APR and I mix up my usage on my other cards to keep them active. My next goal is to have a AMEX card in a year or so. By reading everything on this forum, it helped me to establish and keep my credit in good standing. I am so grateful for this forum!!!

I had the same question when I was starting out and some people told me that I would not get a Discover card and I did after I had 6 months of established credit, so it really depends on the creditor...

Good luck to your brother! I hope this helps a fellow newbie!

Anonymous · ‎10-12-2009

WOW! Thats great! He has 2 cards and one 6 months old at the end of this month, no lates. I will pass along the info. These boards are great, I have learned so much and not just for me, but for my family we well! Thanks!