Young People Orders

[UCF w00t]

Originally Posted by The_Blur

Basically, the conclusions that I'm drawing here are that I should have a card with a small balance that I don't pay at the end of the month. I shouldn't let that balance get very big so that the interest doesn't hurt me. Paying the interest every month is what buys me a good credit rating and improves my score.

I don't think that's the best way. Pay off your monthly charges each month. This doesn't mean pay the entire thing off to $0, but pay what's due. For example...
Let's say your bill is due on the 15th. You get your bill around the first of the month.

So January 1st you get your bill for november 20th - december 20th. It's not due til Jan 15th. Let's say your bill is $300. But since you've been buying stuff still, your balance is $400. Pay just the $300, not the whole $400 before Jan 15th. My CC company calls the $300 the "statement ending balance". If you do that, you'll still have a revolving balance but you won't have any interest or other charges.

At least that's what I've always done and makes sense to me and has worked out well for me.

[card21doc]

Originally Posted by speedbroker

I disagree with the whole zero balance not being reported. I keep a zero balance on several lines of credit and my score has continued to go up. I have triple score advantage and a score of 810. Yes, almost impossbile to get but achievable..

When I started I got a collateral loan for 3K. In addition, I saved up a larger down payment for my first car and took a first time buyer's program. They rip you off but your credit score will shoot up FAST. Your best bet is to save up a minimum of 20% down and have a trade in for this current economic situation. If GMAC will take you go with it and just pay an extra 100-200 a month in principal payments.. Again it will be painful in the begining but you will show a very positive payment history and shoot your score upwards.

GMAC for all intents and purposes is out of retail financing right now. The only financing available is with a 700 credit score and financing invoice or less, NO EXCEPTIONS. Hopefully this will change in the coming months, but that's the way it is for right now.

As for "ripping you off," how is giving you a loan when virtually no one else will "ripping you off?" Without a history the lender is taking a bigger chance. They deserve a higher reward. They will charge you a little higher than "A" paper, but not a lot. It's not like they are charging you secondary rates of 20+%. They are going to charge 6-7% insead of 5-5.5%. Hardly a "rip off."

As far as the credit cards go, I would have the cash to pay them off at any time, but leave a balance on them that can be tracked. You want at least $1500 minimum. The interest you pay is a small price to establish a 700+ credit score, and the benefits will accrue from there.

[Zabo]

So the GM College Grad Program got scrapped? Either way, Cosigning works wonders. I've talked to my local dealership and they were willing to work with me on it since I was a Western Grad and they have good ties with the university. I plan to cosign the car and purchase mine with my mother (and her 'maro) on the same trip.

Honestly, I think that'd get us some good deals.. XD But keep it up, Blur. See if you can get anyone in your family to help you cosign. This means no hoops, because all they are there for is a backup if you can't pay on time. I just happen to have parents that love the Camaro as much as I do and want to cosign.

Plus this will probably me my last car for a long while.

[Cleric]

www.creditboards.com/forums


answers to all your credit questions

[littlecammi]

Originally Posted by The_Blur

Will it help me to have a co-signer that is my age if it is simply not an option to ask my parents or grandparents to co-sign?

Anyone who co-signs a loan for anyone but their own son or daughter is an absolute fool. And even parents should avoid co-signing for anything like a new car loan. You need to completely forget buying a Camaro for now.

[The_Stache]

Blur... Just some advice from me.. to well.. everyone...

As you have noticed everyone has thier "different" ways of building good credit, getting great loans...

My advice is go to a professional, Go talk to a financial adviser, one that you can trust. If you sit down and he preaches at you and doesn't make you feel comfortable, leave. One of his/her first questions should be "what are your financial goals".

An appointment with a decent financial adviser is anything from free to about $75 and believe me when I say its worth it.

[Camaro_Corvette]

I was in the same boat you are in until about May, around the 17th... when I got married. Now I got housing bills, car bills, insurance bills, unexpected bills, bills, bills, bills, and they never end. I haven't checked on my credit rating yet, but i think I will be doing it sometime in January, hopefully I will have a job by then. Until then, I can only dream about my camaro:(

[Cleric]

Originally Posted by diarmadhi

Blur... Just some advice from me.. to well.. everyone...

As you have noticed everyone has thier "different" ways of building good credit, getting great loans...

My advice is go to a professional, Go talk to a financial adviser, one that you can trust. If you sit down and he preaches at you and doesn't make you feel comfortable, leave. One of his/her first questions should be "what are your financial goals".

An appointment with a decent financial adviser is anything from free to about $75 and believe me when I say its worth it.

I would like to add a note on to this.

Make sure to know what type of advsier you are sititng with. Most are about investments and not credit. For example, income is not included in your credit report or score. It has no factor what so ever.

I would recommend the forum that I posted a few back as a great place of people who really know the credit industry and follow it.

[R1Ecko]

I just finished up my degree in Business Admin and one of the last classes i took was in Business and Personal Finance and the one thing my professor, who is actually a finance manager for his real job, said is the most important thing about credit is that you MUST have some sort of revolving credit. If you pay your bill down to $0 dollars it will NOT increase your credit because it shows that you are only paying off what you buy. In normal terms that makes it look like you are scared to make a LARGE purchase which can be paid off on time, but over an extended period. That is what is important to creditors, not whether you can pay off some movies and gas purchases every month. Yes, a gas card or small student card will help but you do definitely need a revolving balance. Also some utility bills or rent history in your name will do wonders when your sitting down at the dealer table.

[Cleric]

Originally Posted by R1Ecko

I just finished up my degree in Business Admin and one of the last classes i took was in Business and Personal Finance and the one thing my professor, who is actually a finance manager for his real job, said is the most important thing about credit is that you MUST have some sort of revolving credit. If you pay your bill down to $0 dollars it will NOT increase your credit because it shows that you are only paying off what you buy. In normal terms that makes it look like you are scared to make a LARGE purchase which can be paid off on time, but over an extended period. That is what is important to creditors, not whether you can pay off some movies and gas purchases every month. Yes, a gas card or small student card will help but you do definitely need a revolving balance. Also some utility bills or rent history in your name will do wonders when your sitting down at the dealer table.

uhh utility bills and rent are not recorded on a credit report.

There is a compontent to your credit score that measures your mix of credit (CC, LOC, store cards, mortages, loans, etc.) but it is rather complicated. Paying down your balances may or may not affect your score. It depends on your individual circumstances and report.

[The_Blur]

Originally Posted by littlecammi

Anyone who co-signs a loan for anyone but their own son or daughter is an absolute fool. And even parents should avoid co-signing for anything like a new car loan. You need to completely forget buying a Camaro for now.

I'm clearly seeking advice here, so it wouldn't be a good call for me to disregard this opinion, but I can't drive this car forever. My car is well over 100k miles, and it must be replaced. As a car enthusiast, my interest in the Camaro is unique and good reason to get one. Instead of blowing my money on clothes, TVs, and expensive nights out, I will be focused on purchasing the one hobby I hope to pursue in the near future.

This is where the experience, responsible crowd will argue, "Don't blow your near-empty bank account on a car." I'm not going to do that. As I said, I need a car, and I like a specific car. I also have a deadline. I don't know when it will happen, but this car will die. It will die soon. Buying a new car may seem reckless to many fiscally responsible individuals, but I'm not one to consider trading cars every 3 years responsible. This Camaro will be carefully maintained in my garage for many years. We're talking decades, folks.

In other words, it just makes more sense for me to buy the 1 car I get over the next several years now and pay it for 72 months than to spend my down payment on a $5k beater that will perform exactly the same as my current car. My car, when I took possession of it, was work $5k in the KBB. It has been undesirable and frustrating for someone who cares about cars, politics, and music. Many people have hobbies ranging from stamp collections and model-building to flying planes and fishing. My hobby only requires that I buy a car, keep it clean, and occasionally spend a fraction of its value on maintenance and minor performance parts.

I know that many of you will agree with the quoted post. I would agree if it were anyone but me. The problem, however, is that I know what financial insecurity is and what it does to families. I have experienced hard times and mistakes that to this day affect the way that I live, and those mistakes were not mine. Without any more specifics, I'm sure you can understand that financial security is very important to me. Without that, I can make my future family suffer, lose my friends, and lose my self-respect. That is not who I am.

I will buy this car. If it takes me 72 months to pay it off with high interest at the expense of my diet and wardrobe, I will still buy this car. It just makes the most sense to me to get something that doesn't infuriate me every time I get behind the wheel as a replacement for this miserable reminder that someone screwed me out of what was my future.

I apologize for the rant, but I want to make it clear that my lifestyle is not the reckless one that some of my peers live. While I have a very humbling post-collegiate pay rate, I intend to make as large a down payment as possible in the next 2 years on this machine, and I'll be damned if I don't get it in 3.

[Inspector 17]

Originally Posted by NVMY68SS

WRONG!!

Don't pay off the balance every month. Do a search for yourself or go talk to your bank and get better financial info. Paying off your balance doesn't show anything or help your credit. You need to show that you can use it and have some revolving credit going and make the payments on time. Recent reports have said it actually hurts your rating by paying them off every month.

I do agree with never missing a payment. That's the most important thing.

You are wrong NVMY. Do some research.

Read the following:
http://www.myfico.com/CreditEducatio...YourSCore.aspx
http://articles.moneycentral.msn.com...eIn5steps.aspx

Carrying a balance has little or nothing to do with your credit score. Companies look at your overall ability to make payments responsibly as well as your debt to equity ratio. That's what really important. They don't generally even look at your current balance. They care more about the total credit limit that you have because that's how much you COULD owe if you wanted to charge it up to the max.

Blur, in the end, just be responsible with your money and don't over extend yourself.

[zebra]

Originally Posted by The_Blur

...I can't drive this car forever. My car is well over 100k miles, and it must be replaced... I don't know when it will happen, but this car will die. It will die soon...

it must be in terrible shape or built poorly if it has to be replaced this soon. my truck has 145k miles and runs & drives perfectly. the explorer i drove before it had 207k miles when i got rid of it & it still worked fine. just treat it right & it'll return the favor.
i know how bad post-college work can be. i graduated in may, got paid $1450 for the whole summer, and have been out of work since the end of august. so unfortunately, i'll be waiting a while for my Camaro, too.

the suggestions about the low-interest cards seem like one of the best bets to build credit right now. that's what i've done for the past 4 years (just paying my phone bill) & that's helped me build good credit. i'd suggest to work on credit for as long as you can hold out, then when it's time to get the car, shop around til you find the most reasonable loan offer. hope this helps some.

[LS3SSRS]

Originally Posted by card21doc

As far as the credit cards go, I would have the cash to pay them off at any time, but leave a balance on them that can be tracked. You want at least $1500 minimum. The interest you pay is a small price to establish a 700+ credit score, and the benefits will accrue from there.

so, just out of curiosity, my credit score was around 740-760 can't remember, about 6 months ago when i got approved for a mortgage... now since then, i've had a balance of 1000~2000 on my credit card, but have been paying off 500-1000 per month... so my balance hovers around 1000. now would my credit have gone up, or down? i always thought since i'm not paying in full each month it would work against me, but reading what others have said here, it's actually beneficial to me?