I need some advice for building decent credit , First off i have paid cash for every thing for years . I went to the my bank of 4 years thrusday to see about taking out a loan to do some home vech repairs, and even though i have never bounced a check and had a least a 500 dollar min balance they wouldnt acccept a loan application lack of credit refences . so does anybody know a good card company that can build credit? i searched online and am very lost thanks

 

Sounds like you own your home f&c and vehicles are paid for. Those would establish ability to pay on time if you happened to be making payments. But really, I'd look into more banks in your area; there is little reason to be loyal to any one bank in this day and age. I'd make the phone call rather than email; tell them that you're also interested in moving your accounts to their bank too. You might also contact Discover. Another thought to possibly explore would be a home equity loan; it's secured debt and I'd expect rates to be pretty attractive.

 

It doesn't matter where you have a card; they all report. Apply for a couple of dept. store cards or even better, a performance parts store if any of them have a CC. Keep a small balance on it and keep making payments and most importantly; pay the bills on time.

Many factors affect your credit rating. Late payments; Bankruptcy; bills sent to collections; Amount of credit you have been given; Amount of available credit left from what you've been given.

Having 5 CC's with a total limit of 5000.00 and never having a balance owing may not necessarily be beneficial because it doesn't show ability to pay bills. On the flip side; having 10 CC's with a total limit of 50,000.00 and all are maxed out shows some possible inability to pay debts off even though you may have never had a late payment.

 

I had bad credit for years. I finally decided that I was going to change that. What I did was to find a card company that offers a secured card. I scraped together a couple hundred bucks and sent the application back. A few weeks later, I got a card. It only had a $150 on it, after my app fee and all. It sort of sucks that they charge for those things, but when you are in a bad situation, you pretty much have to pay to get out of it, and it takes time. Anyway, I used the card and paid it off each month- except for a few bucks I'd carry over to the next month. It seemed to work. I got an offer for an un-secured card from Capitol One not too long after that. I kept that one for a long time and then got a second one from another company. They were both for $300 at first, but Cap One will raise your limit after 6 months if you pay on time. I figured a grand on the two credit cards combined was about enough to get me a hotel and some auto repairs on the road, if necessary, so I didn't try to get the limits raised beyond that point. (guess I'm a little gun-shy, and didn't want to get into trouble again)

The thing that has helped more than anything else is buying a house. My wife and I just bought a house and suddenly my mailbox is full of credit card offers. (I shred them, nowadays, I don't need any more credit cards).

Stu

 

I did the same thing as stu37d and after a few years was able to buy a home and now I have a high credit rating.

 

Do you have any ties to the U.S. Navy? Vet. Retired, contractor, relative, dependent, or exdependent, etc. If so join their Credit Union and forget the banks.

 

Navy Federal Credit Union is tougher to get a loan from than a bank. I've been a customer for 16 years and I have yet to get a loan from them. Funny thing is, I know a kid that is less than 2 years in the navy that had no credit at all and got a loan from them recently... ironic?

 

I would go and ask them why you didn't get the loan. Couldn't get a loan out of a bank that I'd done business with for years. Even though I out right owned my home. Had an overdraw line of credit that they used for their own benefit, IE would take a week to clear a local payroll check on a local bank, then they would cha ching my checking account with overdrawn charges. Only thing they wouldn't loan me money on was a new house construction loan.

 

I have never had any credit. Never had the parent thing to get mine going. As time and a few bad situations went by my credit was junk. After falling off a roof and losing everything (except 165000 in bills) we (wife and i) filed bankruptcy. Didnt want to but it was better than be garnished for 12 years. But we cant even get a secured card or better yet we cant get a secured loan even when we had nore money to put down then we were asking for. And ill answer the ? thats going to come up here. No we do not have anyone that will help us, family wise. Its just that way between our families. WE did get a loan a few years back at a small town bank for my truck. Payed it off twice and we have had several loans since then only to find out they dont report credit and other banks wont deal with printed records thing. We even reaffirmed our loans with that bank when we filed bankruptcy. And now they wont even talk to us. Ive filled out more 50 credit card offers and nothing. And everytime you get denied your credit gets even worse,At least thats what oiur lawyer told us.

 

Get a small loan with your vehicle as collateral. After a couple of payments are made you will have credit. A secured credit card (you give the bank $500 and they give you a card with a limit of $500) works also. This is the best credit problem you can have, you have been too responsible with your money.

 

I got a mastercard through the bank my uncle works at. He got me the application and sent it in. Started me out with a $300 credit limit. After about 6 months I was at $500. I get card apps. about everyday now in the mail. My aunt did the same thing. She's 48 years old and just got a card this past year.

 

Why not just save up the cash to do it? It sounds like you're already good at saving and paying cash for things anyway.

There is no need to have credit or to build credit.

 

First question: have you pulled a credit bureau lately? I'm guessing there's some derogatory info left over from the BK that's hurting you. Don't assume it's all being reported correctly- odds are, it isn't. There could be leftover judgements/collections that were taken care of in the BK, but aren't being reported as such. There's a lot of ways to deal with that yourself (no need to pay money for "credit repair" when you can write the letters yourself).

On the bright side, bad (or no) credit means you can't buy things you don't need with money you don't have to enrich banks that you don't know.

 

If you are used to paying off loans early.....that hurts too. If a bank lends you money and you pay it off in 3 months, they don't make any money off your loan. They lose the interest charges on the balance of that loan.
I use a debit card for most stuff and did away with my credit cards.