advice please

[Anonymous]

Is there anything I can do to increase my credit score without getting a credit card? I have had most of the old collections removed. What remains are well over 3 years old. I have been advised by several mtg companies that removing these last few things would make no difference to my score. The score estimator on here said the same thing. My scores are Eq-618, Ex-597, Tu 498 (this was as of Feb 2010) I am hoping they have improved a bit. My goal is to buy a home so I need that 620 mid score.  Both mtg co. and the myfico say a credit card would bump up my score but here is the deal, it would have to be a secured card and besides the fact that I despise credit cards all together I hate secured cards even more. I am 41 years old and have never owned a cc and never really want to. Debit cards are as close as I get. So is there anything else I could do that might give my score a boost? Don't say pay my bills on time because there have been no lates in over 3 years and NOTHING new on any credit report in over 3 years.

[Anonymous]

A LOC of a credit union or a small personal loan from a CU would be my advice. Possibly buy yourself a new dining room set in anticipation of your new house and make the payments to your loc. That will through in a new account, and it won't need to be used monthly to generate a score as a credit card would.

[Anonymous]

Without a cc, aka revolving accounts, you're really holding your score down.  You have no utilization!  Utilization is 30% of your score.  I understand your position and I have a friend with a similar position....but it really comes down to this:  how much are you willing to hurt yourself / raise your interest rates by not playing by rules that you have no say in?

[Anonymous]

You can get a Line of Credit from your Bank or CU.

You can open revolving credit with places like Dell , Tire stores.   I recently bought a camera from Dell, they opened a closed accout for me.   Then I returned it and ended up with a large balance that show PIF. 

If you get a secured CC and only use it for some mothly recurring bills, it will add a lot to your credit score and some convenience to your bill paying.

[Anonymous]

I can understand needing to show some kind of credit but with scores of 618,598,500 no one will give me a credit card. I don't have the extra money to get a secured card plus the fact that I have heard really awful things about them.  I have tried in the past to do financing at stores and such and I am always turned down. I stopped trying about a year ago so that my score would go up.  I don't have a bank or cu that would give me any kind of loan.  Any other ideas?

[Anonymous]

Secured card from either a bank you do business with, preferably a cu, or orchard. That will help immensely.

[RobertEG]

Bottom line is that, until you establish a sound revolving line of credit, your FICO score wont respond much.

i know that you abhore CCs.  But that is a major factor in evaluation of your credit score and is a necessity for score improvment.

What revolving credit lines, and their timely showing of payments, tells a creditor is that you can manage discretionary credit.

FICO is not an evaluation of your credit-worthiness, it is an evaluation of your ability to obtain, and timely pay, existing accounts.

If you accept the need to establish revolving credit, I would turn first to my local credit union, build an account with them, and then avail yourself of their CC offers.

Go to the web site of the National Federation of Credit Unions (NCFU) and find a CU that you are eligble to join.  Dont first apply for a loan, just for membership by making the minimum deposit to a checking or savings account.  Then build on that.

Turning to lower-end, secured balance cards, such as HSBC/Orchard, may also be abhorrent, but their high interest rates should not deter you if you conscientiously PIF each month.  Then the interest rate means nothing.  You only have to endure their annual fees.  But you must start establishing revolving credit.

[Anonymous]

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@Anonymous wrote:

I can understand needing to show some kind of credit but with scores of 618,598,500 no one will give me a credit card. I don't have the extra money to get a secured card plus the fact that I have heard really awful things about them.  I have tried in the past to do financing at stores and such and I am always turned down. I stopped trying about a year ago so that my score would go up.  I don't have a bank or cu that would give me any kind of loan.  Any other ideas?

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Well if you don't have the extra money to get a secured card, then you're going to have to save up to get one, consider it it be similiar to saving money as if you were going to put it in a savings account.

There is nothing awful about them.  I started with a secured card from Public Savings Bank.  I fronted the minimum balance to open one which is $200.  They report to all 3 major credit bureaus monthly, they have online account access etc...You won't get denied as they do not base approval off your credit score/history.

I'll be really honest with you, the last time I opened a credit card was 4 years prior before opening the secured card with public savings bank and my score literally jumped 50 points with all 3 bureaus because I finally had some sort of open line of credit, even though it was small line of credit.  I did not charge more than 20% monthly and paid it in full every month.  I basically used it to purchase 1 tank of gas every month.

[Anonymous]

In the credit card forum is a sticky, I think, of BK-friendly cc companies by score needed to qualify.  It's also in Noah's .sig (where has he been?).  You can also check whogavemecredit.com and search by credit score to see who is likely to give you credit. 

[happy0510]

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@Anonymous wrote:

I can understand needing to show some kind of credit but with scores of 618,598,500 no one will give me a credit card. I don't have the extra money to get a secured card plus the fact that I have heard really awful things about them.  I have tried in the past to do financing at stores and such and I am always turned down. I stopped trying about a year ago so that my score would go up.  I don't have a bank or cu that would give me any kind of loan.  Any other ideas?

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Hi Daisy,

I would have to disagree with this 1million%.

I was in your exact same situation.  I was ONLY able to build my credit after getting an Orchard secured credit card.  It was for $200 and my score went up 50+ points once it reported and has gone up little by little since then.  I was able to add 2 more cards with that history.  My secured card went unsecured after 1 year and they upped my CL to $300. I am also able to get regular CLI on that card that I have a balance of $0 on.  The only thing I charge to that card is my monthly netflix bill which is $18. 

Also, regarding not having the "extra" money.  How do you plan on paying your mortgage and preparing to cover unexpected expenses that come with homeownership? 

Happy