Credit experts - credit rating question

[ON D BIT]

you dont need credit to live your life. you need money and income to live your life. at a young age i would be much more worried about finding a quality career(that you love to do) and building loads of cash!

the average credit card/car payments in america today is $2400 every month! and yet $1000 every month for 20 years will equall 1 million dollars. 3.5 million for 30 years. 10+ million in 40 with at under 900 a month.
if you invest 900 every month from age 25-65 you will end up with over 10 million dollars!

secondly you do not need credit to rent an apartment. any nit wit can see, that with no debt a 2k take home pay can pay 500 a month for an apartment!
same thing with a mortgage. one can afford a 1k mortgage with 3-4k take home and no debt!

debt has gotten me into trouble over the years, and i am one of the lucky ones. my mistakes will only cost me around 10k in extra payments toward that billion dollar industry! dont make the same mistakes i did!:bash:

 

[Ry_Trapp0]

i already have a good job lined up(electrician with the IBEW/union, awesome pay!), and, just from watching my sister and parents, i know what not to do. but good credit definately doesnt hurt either, so i would like to keep my credit high to fuel my (what i can tell will be)addiction to cars. i plan on getting an 05' stang within the next couple years, a turbo kit, and some road course suspension bits and keeping it as the weekend driver. i really want good credit to keep the payments low. both my sister and my parents have filed bankruptcy, so i know exactly what not to do, lol.

 

[Stanley]

Save your money and either put a ton down on it or pay cash for it. They will give anyone a car if you put over half down.

 

[YesterdayAgain]

debt is negative no matter how, where, or why

That part is completely false. As stated above, having too low credit utilization is absolutely worse than having, say 24% utilization.

 

[cobraracer46]

Debt is one of the factors used to calculate a credit score, so if one has no debt, then his or hers credit score will go down. I personally am not a blind sheep that lives my life by the FICO score because I carry no debt.

 

[NyteByte]

A lot of interesting info in this thread, even though it conflicts with each other.

 

[ImShakn]

you dont need credit to live your life. you need money and income to live your life. at a young age i would be much more worried about finding a quality career(that you love to do) and building loads of cash!

the average credit card/car payments in america today is $2400 every month! and yet $1000 every month for 20 years will equall 1 million dollars. 3.5 million for 30 years. 10+ million in 40 with at under 900 a month.
if you invest 900 every month from age 25-65 you will end up with over 10 million dollars!

secondly you do not need credit to rent an apartment. any nit wit can see, that with no debt a 2k take home pay can pay 500 a month for an apartment!
same thing with a mortgage. one can afford a 1k mortgage with 3-4k take home and no debt!

debt has gotten me into trouble over the years, and i am one of the lucky ones. my mistakes will only cost me around 10k in extra payments toward that billion dollar industry! dont make the same mistakes i did!:bash:

All the $500 apartments near me are for Section 8 and have maximum income requirements. A $1000 monthly mortgage will get you ~$200k house (with 20% down) and you will be hard pressed to find anything >1500 sq ft on .25 acre of land and will likely need some work.

These days, everything is tied to credit. Apartments (and even houses for rent) generally require a credit check, and as a landlord I won't rent to someone that has no credit history without a co-signer that does have good credit. Employers are even checking your credit history as part of the hiring process. By not establishing good credit, you are limiting the places that you can live and work.

You do speak the truth about saving money instead of paying towards interest, but it is possible to have credit available and not carry a monthly balance. If you are carrying a balance then you are living beyond your means. That is the trap that many people get into...they treat that available credit as available cash.

 

[sikklightning04]

These days, everything is tied to credit. Apartments (and even houses for rent) generally require a credit check, and as a landlord I won't rent to someone that has no credit history without a co-signer that does have good credit. Employers are even checking your credit history as part of the hiring process. By not establishing good credit, you are limiting the places that you can live and work.

You do speak the truth about saving money instead of paying towards interest, but it is possible to have credit available and not carry a monthly balance. If you are carrying a balance then you are living beyond your means. That is the trap that many people get into...they treat that available credit as available cash.

This is an SUPER post, great info, 100% accurate.

I have a question for you guys, im 19, I have a Citi Credit card, I have a low limit, everymonth i max my card and PAY IT OFF IN FULL. Am i developing credit in the right fashion?

 

[ON D BIT]

These days, everything is tied to credit. Apartments (and even houses for rent) generally require a credit check, and as a landlord I won't rent to someone that has no credit history without a co-signer that does have good credit. Employers are even checking your credit history as part of the hiring process. By not establishing good credit, you are limiting the places that you can live and work.

You do speak the truth about saving money instead of paying towards interest, but it is possible to have credit available and not carry a monthly balance. If you are carrying a balance then you are living beyond your means. That is the trap that many people get into...they treat that available credit as available cash.

first off the landlord that would rather sign the 730 with 10k in debt with no savings and 2k income before the 0(no score) with zero debt and 2k income with 10k in savings is just plain stupid!

2nd to create a fico score you need to carry a monthly debt regardless of if you pay it off each month! now as i said before i was the one they could not get. never buying anything if i could not pay for it. paying everything off at the end of the month. for 6 years it worked great. and it still got me! was it worth the 10k in interest i am now paying?

i already have a good job lined up(electrician with the IBEW/union, awesome pay!), and, just from watching my sister and parents, i know what not to do. but good credit definately doesnt hurt either, so i would like to keep my credit high to fuel my (what i can tell will be)addiction to cars. i plan on getting an 05' stang within the next couple years, a turbo kit, and some road course suspension bits and keeping it as the weekend driver. i really want good credit to keep the payments low. both my sister and my parents have filed bankruptcy, so i know exactly what not to do, lol.

third, thats just how bankruptcy begins. buying crap that you cant pay for! if you do have the good job like you say, it will not take long to pay cash!

 

[ON D BIT]

This is an SUPER post, great info, 100% accurate.

I have a question for you guys, im 19, I have a Citi Credit card, I have a low limit, everymonth i max my card and PAY IT OFF IN FULL. Am i developing credit in the right fashion?

going into debt is never the right way!

and the guy was full of it! there are lots of people in this nation that live thier life at 0!

 

[sikklightning04]

There isn't anything in that post that says going into debt. I only quoted the part i felt was best. IF that post was a steak, i cut the fat off his NY strip. haha

But you didn't answer my question, am i going about this correctly?

 

[ON D BIT]

There isn't anything in that post that says going into debt. I only quoted the part i felt was best. IF that post was a steak, i cut the fat off his NY strip. haha

But you didn't answer my question, am i going about this correctly?

to get a credit score one needs to go into debt! thats it. thats the big mystery. debt is buying things you can not afford. credit is the way to pay for things you cant afford.

 

[sikklightning04]

I understand, Thank you.

 

[ArthurJGuy]

For the people asking how to build credit that dont have it.

When I had no credit, I hit up orchardbank.com and got a $250 secured credit card.

I got it, maxxed it, paid the minimum payment for 6 months.

Then I paid it off, waited a month, and went down to the ford dealership.

They said you have a 720 FICO... I said... I want that one.. That was the end of the story.

That was 3 years ago, car is still in my garage.

 

[Traffic_Cone]

This is an SUPER post, great info, 100% accurate.

I have a question for you guys, im 19, I have a Citi Credit card, I have a low limit, everymonth i max my card and PAY IT OFF IN FULL. Am i developing credit in the right fashion?

To be honest you are doing it the wrong way, if you were using say only 35% of your CL then that would be one thing but since you are maxxing it out then no. Remember even though you pay it off every month when it comes time for your statement to cut that reports and when it shows your maxxed that's what get's reported...even though its paid in full that alone will just pay's on time on your three credit score's. Highly recommend reading those quick tip's I gave on page 1, if you have any specific question's lemme know.

-Josh

 

[Traffic_Cone]

how would you suggest i go about building credit? i dont have any right now. what cards would you suggest i apply for?

If your in college/school apply for student cards, give them time to age/ give you decent credit line's. Once this happened call to do a product change so it will not longer be a student card but rather say a mile's or rewards card of your choice. Student card's are always bottlenecked by tiny CL's compared to other's hence the card change.

 

[sikklightning04]

To be honest you are doing it the wrong way, if you were using say only 35% of your CL then that would be one thing but since you are maxxing it out then no. Remember even though you pay it off every month when it comes time for your statement to cut that reports and when it shows your maxxed that's what get's reported...even though its paid in full that alone will just pay's on time on your three credit score's. Highly recommend reading those quick tip's I gave on page 1, if you have any specific question's lemme know.

-Josh

That makes sense and all, but my maxing it and showing that i can pay if off everytime i get my bill, dosen't that show them that I have plenty of money and pay my bills on time? IMO I think it would help the same as making payments, if not more?

 

[Traffic_Cone]

Well on your credit report it's Paid as Agreed, it also shows utilization...for example if it shows $350(Bal)/$1000(CL) then your good because that's no more then 35%. Rather then every month it showing $1000(Bal)/$1000(CL) which equate's out to 100%...it will still show you paid but as you can see your overall debt to income/utilization is high.

-Josh

 

[sikklightning04]

oh, i understand. That actually makes a lot of sense. But how would they know my income?

 

[ON D BIT]

That makes sense and all, but my maxing it and showing that i can pay if off everytime i get my bill, dosen't that show them that I have plenty of money and pay my bills on time? IMO I think it would help the same as making payments, if not more.

no, it tells creditors that you can not control your spending. having little to no debt plus savings(consistent) is the best way to gain access to credit.

you are lending 100k for a young couple to purchase thier first home. who would you lend your money to?

1. they bring home 4k a month. owe 35k on thier cars. have 25k credit card debt. savings/checking accounts 200-4k on a weekly basis. have a credit score of 690.

2. they bring home 3k a month. have no debt. savings/checking accounts have 40k and increase every month. have zero credit.

now what couple is the greater risk to loan your money to?