N/A credit score.

[BigFatMatt]

^^ bro you're a dealer, you should know about the best way to build credit quick since it can help you get that sale! I used to sell street bikes for a living and we used it all the time.

I'm telling you dude, AUTHORIZED USER, it worked for me and it'll work for you. I went from NQA (no qualifying accounts) to having great credit pretty much overnight and I used it to buy my first house.

Read the article on credit karma that I linked in my previous post.

 

[50stangpower]

Yes, only debt I have is my house and daily driver truck. I pay with my credit card for EVERYTHING. I pay my balance in full on my statements due date every month. I have not paid a dime of interest, get 1.5% cash back, and have a fantastic credit score. Is this that hard to comprehend? Some people should not spew information if they are not competent to comprehend it.

 

[CO Mack]

Like On D Bit said, find a place that does real underwriting.

My goal is to have your credit score, not the one I have.

 

[BigFatMatt]

Like On D Bit said, find a place that does real underwriting.

My goal is to have your credit score, not the one I have.

Ask him to add you as an authorized user to his credit cards, then you'll have his credit!

LOL I've said it three times in this thread but I don't think anyone is listening. Oh well, whatever works for you guys. I just figured the OP was looking for information on how to go from no credit to good credit in a matter of days.

 

[thehunterooo]

I have a score of over 720 at 26 now. At a minimum just get credit cards and do not use them. It is that easy. Most do not charge a yearly fee so you can just open the account and never use it. If you do like some on here for example you can rack in the points and rewards while paying every off the balance every month.

 

[bglf83]

I do not think you need a bunch of credit cards.

We do use 1 credit card in my household, it's a Hilton Amex. It gets paid off monthly and we get Hilton rewards for free stays and perks. My credit score is 800+, we also have a car loan and a mortgage.

I did not get the credit card to build my score, its main purpose is protecting our money, people can wipe out your bank account pretty fast with all this identify theft crap. I would suggest never using a bank\debit card because of that.

 

[CO Mack]

Ask him to add you as an authorized user to his credit cards, then you'll have his credit!

LOL I've said it three times in this thread but I don't think anyone is listening. Oh well, whatever works for you guys. I just figured the OP was looking for information on how to go from no credit to good credit in a matter of days.

I paid cash for my GT350. I'm not a financial moron, the opposite actually.

Honestly the advice I see here for how to build credit is bad. That takes time, if he wants to close a deal soon he is better off NOT opening anything. With an N/A score, a bank that aren't a bunch of idiots knows how to put that deal together. If your credit is all new, your score will suck, a low/middle credit score is worse for underwriting than an N/A.

 

[13COBRA]

I paid cash for my GT350. I'm not a financial moron, the opposite actually.

Honestly the advice I see here for how to build credit is bad. That takes time, if he wants to close a deal soon he is better off NOT opening anything. With an N/A score, a bank that aren't a bunch of idiots knows how to put that deal together. If your credit is all new, your score will suck, a low/middle credit score is worse for underwriting than an N/A.

I agree.

 

[CO Mack]

~

 

[CO Mack]

I'm sorry, but that's your personal view of how it works. There's a difference between perception in almost every case. You are also basing all of your personal view on the fact that you believe all forms of credit to be inherently bad. That's simply not always the case.

Here's how it works and is reported.
1. You have a Visa card with a 5000 limit
2. You put $30.00 on your card for a tank of fuel bringing your limit down to 4970
3. You pay that $30.00 before your statement date on or around the 25th
4. Because you paid this off prior to statement date, you did not incur interest
5. CC company reports at the end of the month 0% utilization and on-time pay

In this situation you are building credit by doing nothing but making an extra payment for your card purchases. This extra payment only happens once for all payments on the card before the statement date and can be setup as an auto-draft.

If you've chosen a no fee card this cost you $0.00 and maybe a minute or two of your time. For that fee you get fraud and purchase protections, build a credit score that keeps you out of situations like the OP's, possible percentage returns on purchases, lower insurance rates, reduced or removed setup fees for utilities etc.

I know you don't like that game and that's fine, it's your prerogative. I agree it is a game and it's stupid, but if you don't play the game, you make sacrifices in other ways, like the OP is doing now. If you want to call it debt for your own rationale, that's fine, but if the OP had been doing that all along, he'd still not have paid a dime to a bank and he wouldn't be posting here wondering how the heck he's going to get the mortgage he needs on a house purchase.

It is not opinion, it is fact. Credit Cards make consumers spend more.

https://www.nerdwallet.com/blog/credit-cards/credit-cards-make-you-spend-more/

I spent over $1 million with AMEX (lots of that was business travel). I used to think ballers rolled with the Centurion card. Now for me balling is a stack of Benjamins in my wallet and no ****ing banks owning my paychecks.

 

[13COBRA]

It is not opinion, it is fact. Credit Cards make consumers spend more.

https://www.nerdwallet.com/blog/credit-cards/credit-cards-make-you-spend-more/

I spent over $1 million with AMEX (lots of that was business travel). I used to think ballers rolled with the Centurion card. Now for me balling is a stack of Benjamins in my wallet and no ****ing banks owning my paychecks.

So you just carry cash around?

How much do you typically carry, and what's your reasoning?

 

[Never_Enough]

I don't understand how people go through life without applying for any credit cards or installment loans before their first major purchase. Then expect they will have a great credit history and are shocked when they don't.
It doesn't matter how much money you make or have in the bank. A cash purchase doesn't get reported.
I've bought motorcycles I could have paid cash for, but instead I finance them and pay them off in a few months. Eat a $100 in interest and reap the benefits.

This

 

[Never_Enough]

So you just carry cash around?

How much do you typically carry, and what's your reasoning?

This is SVTP, they carry 7 figures daily.

 

[CO Mack]

So you just carry cash around?

How much do you typically carry, and what's your reasoning?

Is this where I also point out a Glock is part of my EDC? LOL

Depends on where I'm going and what I'm doing. When I bought my F250 I had a LOT of cash on me because I'd always wanted to do that, subsequent cars I just stroked a check (much to finance's relief). I have a personal CC and a corp CC as well.

I've done both. I acknowledge the rewards game is there, and I've played it hard. I also acknowledge that the brain works different when you slide plastic vs when you pay cash, and I spend less money and think about money less with a mostly cash system and not a bunch of bills to worry about. I've never got myself into trouble with debt BTW, I have an exceptional credit score. But I'll be more excited about the house being paid off and having an N/A...

 

[13COBRA]

Is this where I also point out a Glock is part of my EDC? LOL

Depends on where I'm going and what I'm doing. When I bought my F250 I had a LOT of cash on me because I'd always wanted to do that, subsequent cars I just stroked a check (much to finance's relief). I have a personal CC and a corp CC as well.

I've done both. I acknowledge the rewards game is there, and I've played it hard. I also acknowledge that the brain works different when you slide plastic vs when you pay cash, and I spend less money and think about money less with a mostly cash system and not a bunch of bills to worry about. I've never got myself into trouble with debt BTW, I have an exceptional credit score.

How much do you carry on a daily basis?

 

[CO Mack]

How much do you carry on a daily basis?

Just $100-200.

EDIT- I don't really have a typical day to leave the house though, hence my first answer. I work at home.

 

[BigFatMatt]

I know this thread is a few months old, but I want to bump it anyway since no one even looked into the advice I gave.

OP, did you ever buy that house? Were you able to build your credit in time to get the loan?

The advice I gave is GOOD advice, anyone who says otherwise has no idea what they are talking about because I'm speaking from PERSONAL experience.

CO Mack, you want to act like a baller... do you have a reason why it would be a bad idea for the OP to get his fiance to add him as an authorized user to her credit card?

13COBRA, what about you? I'm very surprised you are a car dealer and have no idea how it works to be added as an authorized user.

Y'all seemed to shit on my idea but I know it works because I used it to buy my first house. The OP here is in the exact same boat I was in, but y'all tried to tell him it was a bad idea without giving him any reason.

So, OP, ever buy that house?

 

[Black2010]

Lower interest rate is paying more for something than you would if you paid cash. It's not hard to understand.

Which is why the banks make so much money.

You really should stop now as you are showing that you really only think you know how banks and CC companies make money and how you come out ahead by not using credit.

Some of a CC's best clients are the ones that don't revolve their credit. They equal a 0% risk of default (collections cost tons of money for companies) but yet they get to collect their fees from the stores/vendors.

What people are trying to explain to you is that you save money by using credit and paying it off vs revolving. Not revolving equals no interest but using the credit gives you points/cash back not to mention larger purchases can be used interest free for a set period of time for which you can gain interest income off of those funds if invested properly.

You are OVER simplifying a much deeper concept. But what do I know, I've only been in corporate finance for 14 years now.

 

[ON D BIT]

You really should stop now as you are showing that you really only think you know how banks and CC companies make money and how you come out ahead by not using credit.

Some of a CC's best clients are the ones that don't revolve their credit. They equal a 0% risk of default (collections cost tons of money for companies) but yet they get to collect their fees from the stores/vendors.

What people are trying to explain to you is that you save money by using credit and paying it off vs revolving. Not revolving equals no interest but using the credit gives you points/cash back not to mention larger purchases can be used interest free for a set period of time for which you can gain interest income off of those funds if invested properly.

You are OVER simplifying a much deeper concept. But what do I know, I've only been in corporate finance for 14 years now.

What do you know? You make money on corperate finance! If you did not make money revolving debt you would be out of a job. The people that use debt pay your salary. I'm guessing it's pretty substantial too.

 

[Black2010]

Actually most of our profit come from subsidies, boost in origination on higher profit items (services and warranty for example) and End of Lease from those that Lease (business sector).

In the current market consumer lending is not all that profitable and is very risky due to losses and fraud unless you only deal with prime customers. With the fair lending act we now have to spoon feed consumers on how stupid it is to make min monthly payments which actually has reduced the amount of revolving lines that actually revolve (actually helpful legislation). My finance specifically is captive so we're more a tool for sales then considered a profit center all be it we do bring profit to the P&L.

Now AMEX, MC, VISA etc makes a fair chunk of money even from customers that don't revolve due to their fees (think paypal for us). Every-time you use your CC the place you just bought from gets charged a fee. Depending on volumes and negotiation power those fee's can be pretty high. Been years since I've even looked into those figures but they used to average in the 3% range. May not sound like much but take 3% of everything bought on a MC and you start to see the $$$.

For me specifically, I don't need a credit card but I do prefer to use other peoples money than my own. I.E. I charge nearly everything and then pay the bill in full every month. Cost me absolutely nothing since I don't revolve but I'm netting easily $500-$750 a year in cash rewards a year not to mention the added benefits of holding my money in other avenues. Let's also not forget about the consumer protection that comes with buying with a CC. Get something that isn't as described or non-functional and the company wont accept a return. Credit card company will charge back the company and give your money back. It's free insurance against your purchases.