Fresh start credit Building

[Anonymous]

Hello all,

Quick thank you to anyone in advance for the tips or help!

Quick info im 21 yrs old, 0 credit history at all so starting with a clean plate. Ive read countless articles and tips and tricks on how to properly start. Im scared by the thought of where to begin and how to start off running and stay ahead down the road. If anyone knows and good articles or webistes to help please link them if possible! Please share any tips or reccomendations!

[K-in-Boston]

@Anonymous  welcome to the forums!  Starting off with a clean plate isn't too common around here, but it's always great to watch the progress.  Best advice I can give is to figure out what your credit goals are, take things slow, and be very methodical about your credit choices.  Just because you can be approved for a credit card doesn't always mean you should get that card, for instance.

Are you planning to purchase a car or home in the next couple of years, or are you just interested in finding the best rewarding credit cards for either cash back or travel purposes?

[snickerpedia]

hmm...i would love to start with a fresh slate!!! it would be so much fun...

i suggest you read, read, read, these forums and you can build yourself a NICE credit profile depending on what you are looking for!

[Anonymous]

Welcome - if you're looking for a website to learn from, congrats - you found it. You won't find a greater concentration of firsthand credit knowledge anywhere else.

As @K-in-Boston mentioned, identifying your near-term goals for the next few years is the first step. Most people your age looking to establish credit would do well to start with a couple of cards, use them wisely and in six months you'll generate a FICO score from each of the three major bureaus. From there you could add a third card, and then decide your next credit need. Three cards is the minimum ideal number for scoring purposes as it allows you to show balances on less than half your cards.

Adding an installment loan helps scoring via credit diversity. Search out the SSL Technique here to see how to get an easy installment loan reporting.

Youll probably start with either a secured card or, if you are taking classes, a student card such as the Discover IT Student card. If you need secured cards, look at Discover or Citi, or if you have military history yourself or in your family, join NFCU and get theirs. Don't just add cards because you can - all the ones I mentioned can graduate into keeper long-term cards.

Finally, three bits of advice that will form the foundation of your credit life:

• join a credit union and foster that relationship. It will be invaluable throughout your life 

• never, ever miss or be late on a payment, ever, even by an hour. Plan ahead so all payments are made on time. This is crucial. A single misstep will haunt you for years.

• Credit is a marathon, not a sprint. Take your time, educate yourself here by reading and asking questions. Apply strategically for credit products that will serve your lifestyle and do so when your profile is optimized to do so. You can learn all of that and so much more on this forum.

Welcome, and avail yourself of the absolute mother lode of info at your fingertips here. Starting fresh with this site as a resource could not put you in a better position to absolutely kill it in the credit world

[Anonymous]

You're in a great position in my opinion. I was where you were about ten years ago and am very happy with how things turned out for me thus far (outside of some student loans but that's just a fact of life these days sadly).

As others have said, starting slow and methodical with a plan of where you'd like to end up is a good idea. Secured and student cards will likely be available to you. Depending on your income, if you already have a locally based bank and some income, they may be willing to offer an unsecured card as well. If your goals are strictly credit card based, get an idea of what categories you spend your money in most. If you can target cards that reward those categories in six months to a year after you've established some credit, you'll be doing well for yourself. 

[Anonymous]

First create a myFico, Experian, Equifax, TransUnion, CreditKarma and WalletHub account.

Second, pull your free credit report from "ONE" of the big three credit bureaus and see where you stand, as you might not have any cards, or loans, but there might be a cellphone bill that's reported to your profile, as was with my wife(Verizon).

I stated "ONE," because you don't want to pull all three credit reports at one time.

Instead, I'd stagger them, meaning, pull TransUnion first, wait four to five months, pull Equifax, wait four to five month pull Experian. That way you are geting an accurate picture of your credit and not overlapping, which is a waste, especially for somone in an outstanding position like yourself.

Then, I'd decide on your needs, wants, goals and agenda, then I'd read message boards from all over the web, starting wih myFICO, Reddt, Experian, CreditKarma and WalletHub, just to name a few.

Plus, I'd get me a nice cup of coffee or a bottle water and a small snack, sit down and watch a ton of YouTube videos.

Then, I'd start visiting card issuers websites and reading up on what they have to offer, as well as terms and conditions.

Most get their beaks wet with secured credit cards or student cards.

You'd notice that as soon, as you type "Best Secured Credit Cards" in your Google search bar, you will instantly see that most will say the best secured credit cards are:

1. Discover iT Secured

2. Capital One Platinum Secured

3. Citi Secured.

4.  OpenSky

I beg to differ.

Personally, I would go into a Bank of America branch and apply for their unsecured Cash Rewards Platinum Plus Visa, as BofA would run your credit for the unsecured version first, and if decline, there's a high chance you'd be approved for the secured version instantly.

I say go into the branch, because in my experience, I was declined online for the unsecured version twice(three months apart), so the third time I did so sitting across from a banker, who had a "credit anayst" on the line and it took all of thirty seconds for me to walk out of BofA with a hold on $300 in my BofA checking and four days later I had the card in hand.

I said this nearly three years ago and I stand by it today, that the Bank of America Cash Rewards Platinum Plus secured credit card is the absolutely best secured card on the market and here's why:

1. When I obtain the card nearly three years ago, it came with a $150 Cash Back Reward for spending just $500 in 90 days(3 months). It actually went up a month after I obtained it to $200 Csh back(Sadly, i was locked into the $150 Cash Back Offer).

2. At that time, it had quarterly 3% cash back categories, but three months later, it allowed "YOU" to pick your 3% category, as well as obtain your standard 2% Cash back on groceries/wholesale stores and 1% back oneverything else.

Three weeks after getting the card,  I satisfied my $500 spend and received the $150 Cash Back, plus, my standard 3%, 2% and 1% Cash Back for a total of $187.00.

The great thing was, as soon as I knew I satisfied thir $500 Spend, (while in the mall) I actually call card sevices and they verified my purchases while I waited on hold for about three minutes, returned and told me, " Mr_________, We've verified your purchases and your Cash Back of $187.73 at your request will be deposited into your BofA checking account in 3-5 business days."

This was a Sunday, the money was in my BofA checking on Tuesday night, Wednesday morning.

I've made so much money in cash back over the last 2.5 years, that's I truly should be paying taxes on my cash back...joking, never!

Bank of America gets a bad rap and as someone who has been with them since they were called Nations Bank, to be honest, justifiably so, but they have changed and are running down their competitors like Capital One, Dicover, Wells Fargo and more. They still have a ways to go to challenge AMEX or Chase but at least they are in the arena, so to speak.

Don't know how long it's going to last, but the ride is extremely fun!

BTW, I don't work for Bank of America, it's just that when you run into good business, one tends to want to yell it to the world.

[sjt]

Welcome to MyFico!

Others have mentioned getting a secured card. Some secured cards that I like are State Department Federal Credit Union, Bank of America, Discover, and Citibank. All have a potential to graduate. You might also look into a Capital One unsecured Card. You can see if you pre qualify on their website.

I also recommend looking into local credit unions to join.