How to Build Good Credit?

[Alf]

I would like to apply for credit cards so I can afford games at Steam. Be game rich!

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Messaggio originale di Hellraiser:

Messaggio originale di SnakeFist:

In order to be aproved you have to have a decent credit score. If not they will deny you for having to low of a credit score xause yes they will check it to see if you are a bad risk. Also having no credit history os also bad and they won't lend you money cause you need to have a higher credit score to approve you. So baiscly you have to have credit to get credit if you have a low score or no credit score then you don't get the credit card. So your going to ask how can i get credit if they won't give it to mewell thatis where the catch 22 comes in to play.

My friend just told me how to start credit without having a credit history. You can perform the shopping cart trick where you pretend to buy something online and an offer will show up to apply for a credit card which is not a hard inquiry but a soft which the bank can't see much information on your credit report.

"Why Is This Useful?

There are three main reasons as to why you might find this trick helpful:

Help to build your credit when your credit is bad. Because they don’t do a hard pull on your credit report, they will not be able to see if you have any bankruptcies on file or other derogatory items. Typically lenders feel more comfortable loaning to people with bad credit that have received credit from other lenders, as this allows the borrower to show that they are capable of making on time payments and might have turned over a new leaf."

How to Qualify for Credit Card without a Credit History[www.doctorofcredit.com]

But you said you have no income so how are you going to pay it back? If you default on it and it is a big amount they can sue you to get their money back you can't use their money for free and not expect to pay it back. Plus you have to be 18 to get a credit card cause you are entering into a contract with the issuing bank that you will make your payments on time every month. If you miss a month the late fee can be anywhere from 20 bucks to 50 dollars and that will add up quick the longer you don't pay. Don't listen to your friend he knows nothing how credit works and is feeding you false information.

[-V-]

Yeah, collections are BAD.
Repossesions are BAD.
Voluntary relenquishment is BAD.

[-V-]

It's important to have at least 1 or 2 credit cards in case of emergencies, as well as to build credit.

Ways to improve your credit score:
Have open credit accounts that have been open longer than 10 years.
Have no credit inquiries (that's when they "run" your credit)
Maintain a low balance on your credit cards (less than 20% of your available credit).
Have no late or missed credit account payments.
Make regular payments (don't just have the card and never use it)
Don't have too many accounts (more than 10)
Don't open new accounts, as it will decrease the average age of your accounts.
Don't close your accounts for the same reason (a mistake I made a few years ago-- I paid off all my debts and closed half my accounts and my score dropped by 50 points because)

Be aware that often when a card company says "No interest for x months!" they fail to honor it. Read your fine print and get it all in writing so you can fight them over it.

[Alf]

Messaggio originale di SnakeFist:

But you said you have no income so how are you going to pay it back?...Don't listen to your friend he knows nothing how credit works and is feeding you false information

Yeah, but I only have video games to curb my loneliness. I doubt they will sue me for anything lower than a few hundred dollars; it's not worth the lawyer fees to sue me.

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Also when you fill out the form and your in the usa they will ask for ssn and income and alot of other stuff if you lie on it and provide false information that is fraud and you can go to jail for a while.

[-V-]

Messaggio originale di Hellraiser:

Messaggio originale di SnakeFist:

But you said you have no income so how are you going to pay it back?...Don't listen to your friend he knows nothing how credit works and is feeding you false information

Yeah, but I only have video games to curb my loneliness. I doubt they will sue me for anything lower than a few hundred dollars; it's not worth the lawyer fees to sue me.

I once got a collections letter for $15.38. Don't bet on it.

Also, "soft" inquiries are still inquiries and will still show up/impact your score.

[Alf]

Messaggio originale di -V-:

Messaggio originale di Hellraiser:

Yeah, but I only have video games to curb my loneliness. I doubt they will sue me for anything lower than a few hundred dollars; it's not worth the lawyer fees to sue me.

I once got a collections letter for $15.38. Don't bet on it.

They're just using the fear factor.

[Plaid]

call up the credit companies and say "plus rep"

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Messaggio originale di -V-:

Messaggio originale di Hellraiser:

Yeah, but I only have video games to curb my loneliness. I doubt they will sue me for anything lower than a few hundred dollars; it's not worth the lawyer fees to sue me.

I once got a collections letter for $15.38. Don't bet on it.

Exactly when they want their money they want their money and USA collection agency's add their own collection fee's on to it so it's higher then what you owe.

[Hamzer the Conqueror (of lands)]

That is a horrible idea...

[-V-]

Messaggio originale di Hamzer the Conqueror (of lands):

That is a horrible idea...

Basically. If you can't afford to buy games on steam, you probably can't afford to pay off the credit card bill for the games (+21.75% interest)

[Sir Dookface McFerretballs]

Live life credit free.

Everything you buy with a credit card is automatically 15%-25% more expensive than paying with cash.

Credit is for dumb people that don't understand life is better when you live within your means.

[↑↑↓↓←→←→BASelect]

Messaggio originale di -V-:

Messaggio originale di Hamzer the Conqueror (of lands):

That is a horrible idea...

Basically. If you can't afford to buy games on steam, you probably can't afford to pay off the credit card bill for the games (+21.75% interest)

Plus any late fees.

[Cassidy]

you should not spend money that you dont have yet........ what if you cant pay it back

[-V-]

Messaggio originale di Sir Dookface McFerretballs:

Live life credit free.

Everything you buy with a credit card is automatically 15%-25% more expensive than paying with cash.

Credit is for dumb people that don't understand life is better when you live within your means.

Or for people that plan on buying a new car or house, wish to rent an apartment, apply for a job in any financial services field...
While it is true that you do pay more if a balance accrues, you can avoid those interest charges by paying the balance off immediately.
It's impossible to go through adult life with no credit. Or at the very least, extremely difficult.