Young People Orders

[FenwickHockey65]

And pay the bills IN FULL. That's how they'll screw you over, never pay the minimum payment, always in full.

I think I'm going to get a GM Extended Family Card, the same ones my parents have.

[NVMY68SS]

Originally Posted by camaropete

Blur, as others have said, just be absolutely sure you pay it off every month. Especially don't miss a payment, EVER!

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.

[Sean_W]

Something that hasn't been mentioned here is that you think you don't have good credit. How do you know if you havn't checked. Go to annualcreditreport.com and look it up. You might be surprised at what you find. Pay the extra $7 and get your actualy credit score. I can't tell you enough what it really means to take your credit report into your own hands. I started doing this a few years ago and my score is in the 700-750 range (started in the 600's). I even had things removed that shouldn't have been there.

Hope this helps,
Sean W

[FenwickHockey65]

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.

Yeah...but if you only make the minimum payments, the interest starts piling up.

[EllwynX]

A Co-signer will probably be required if you have little to no credit history.

Your interest rate would partially be affected by the credit score of the co-signer.

My score ranges from 705-775 depending on which of the 3 bureaus you check. Hopefully when I go to finance my Camaro they'll use the higher one. LOL Though I'm sure $15000 down will help their decision.

[Mr Twisty]

I would NEVER have a credit card if it meant carrying a balance to up my credit rating. I would go to the bank and borrow $100 on a signature note and pay it back the next month tho.

[EllwynX]

Originally Posted by MisterCamaro69

I would NEVER have a credit card if it meant carrying a balance to up my credit rating. I would go to the bank and borrow $100 on a signature note and pay it back the next month tho.

Carrying SOME balance from month to month actually improves your credit score. Paying it of every month doesn't.

Retaining a balance, but making steady payments shows your responsible. If you pay it off every month then it's just reported as a zero balance and they have no idea if you're responsible, or just haven't used it.

[UCF w00t]

What I've always done is pay off the amount of the bill (one month's purchases) but at the time of payment, there's already more stuff on it from the following month. Therefore, my balance hasn't been $0 since I started. And since I pay off the bill from the previous month in full, I've never been charged any sort of interest or anything. I think that's what everyone is suggesting but using different verbiage.

Using this method, my credit score is a lil above 800.

[IRONMAN/SS]

some dealers have a grad program, where although you dont have credit they still give you the opportunity to finance a vehicle, because your a recent college grad. if they dont have that try to get someone (that is willing) to co-sign for you.

[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.

A co-signer, if I can find one, will improve my ability to buy a Camaro because it will lower my rates. If I get a co-signer, I have to pick from very few options. What sort of benefit can I get from having a co-signer that has a similar credit status? 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?

[card21doc]

If you have absolutely no credit and no derogs on your bureau (charge offs from Blockbuster, the phone co, overdrafts at your bank, etc.) you may still get a loan. If you have graduated from college and are working in the field of your major, you may acquire a loan from an understanding local bank/credit union. The rate will not be the lowest, but it shouldn't be too high, either. On a tiered system A,B,C,D; it should be a B tier.

If you have a good co-signer, that would be the easiest way to go.

If you acquire a credit card or 2, that may help; but it doesn't show that you can handle $30-$40,000 over a period of time.

Without a cosigner, your college degree (with absolutely no derogs) is your strongest link if you are working "in your field."

The F&I person at your dealership may be able to help. This is one thing they get paid for, and they should have contacts at LOCAL banks and credit unions. Too often, the big players in the banking business only look at your credit bureau score. If the F&I person won't or can't help, then pursue the issue locally yourself. It"s not easy but it can be done.

In case you are wondering, I've been doing financing at a dealership for over 20 years. If you have any more questions, I'll try to help.

PS: GMAC had a college grad program as outlined above. Unfortunately, right now they are more or less out of the finance business, but that could change.

[card21doc]

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.

A co-signer, if I can find one, will improve my ability to buy a Camaro because it will lower my rates. If I get a co-signer, I have to pick from very few options. What sort of benefit can I get from having a co-signer that has a similar credit status? 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?

A cosigner has to have good credit and the ability to afford your loan. A close relative is much preferred. A cosigner with little or no credit is not acceptable to the bank.

[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.

[diddiyo]

I only got my CC about 14 months ago and have never missed a payment. My $-limit right now is four times the amount I was initially given. I haven't checked my score yet tho. I guess I will have to do that when the time (down payment) is right. I'm planning on putting down 40% - 50% so I hop that will help a bit.