Rednecktastic

Another thread got me thinking about this and what a commercial banker told me a few days ago. So I'm just posting this as a PSA I guess.

I'm pretty young and having a finance degree I've figured out the way to pay stuff off right so I don't catch much interest... I haven't bought much or anything 'big ticket'. I have financed 3 cars, a credit card with a zero balance for as long as I can remember, a couple other cards I've had for emergencies that I've shut off since I never used them, not much in student loans I pay on time and some other little stuff here and there.

You'd think that is perfect right??


Well when I asked if it was possible to get a line of credit for a company I've opened that will require it within this year she said that even though my score is near 800 it would be hard to unless I have more activity on my credit. This includes me having ran one business account at that bank before and having 2 other checking accounts besides the new business one.


I was kinda suprised when she told me to get a couple more credit cards and run them up 25-50% and pay the minimal payment on them for 6 months then pay them off. I guess that registers as something on your credit that I can't figure out . She said I need to show activity.




But anyway I guess I need to get a Discover and American Express and get to work buying some clothes and goodies for my truck. How do I find good rates on these I can lock in?

chaikwa

NO! Like that other thread, (and at the risk of sounding like a broken record!), look at what Dave Ramsey has to say about it. There are banks that do not use the FICO credit scoring system and actually look at YOUR record. That's what you need to find IMO.

chaikwa.

Rednecktastic

LOL, actually I need to find a bank that only looks at my FICO because I haven't had much on my credit as far as history goes according to that banker.


Oh I have an ATV financed as well I just bought last Sept but haven't bought much since then.

boostjunkie1

If you have a credit score you are in Debt .......... That is right! I know all about the debt because I am in it BIG TIME ......... Dave Ramsey is a great teacher and a fellow Co-Worker has been working his program for about 2 years and is debt free .......... That would be real nice........

dslpwr81

Well, I'm 27 yrs old with a 780 credit and have ran into the same issue before. About 4 years ago, my credit score was 710 and I had a house, a boat, NO credit cards, and a loan for my furnace. No missed payments ever. My debt to income was exceptionally well, but when I went to purchase an 05 Dodge in 2005, my bank was only going to give me 8% intrest on it for 60 months and I said no way. Both of my loan officers said the same thing. Acquire a credit car, maybe two and ALWAYS keep them under 50% and just make minimum payments to keep my account active. So, I went out after I passed on the 05 Dodge and picked up a $500 limit credit card and a $5000 card. I put $1500 on the $5000 card (new toy) and ALWAYS use the $500 card. Buy something, make 2 payments on it to pay it off, then use it again. Sure it cost me an extra few $$$, but not much. After 6 months, my credit started climbing. Its a pretty stupid system if you ask me, but apperantly you shows you are responsible to have a line of credit and know how to manage your money properly. You know, you don't max them out. It worked for me. After the one year of using the cards, I went and bought my 06 Dodge through the dealer at 0% intreset and had a credit score of 750. Not a bad jump for one years worth of using the credit cards. Sorry for the long post.

Redleg

Even if you're responsible and know how to make payments on time, Murphy doesn't always cooperate. Heck I thought I was secure with 14 years with my dept. This is the 3rd layoff threat and 2nd time we have been stuck with furlough (layoff) days.

AnotherDaveRamseysupporter

Fronty Owner

I guess that is why I hadn't had any problems with getting credit for a while...

I have given a few cards a sever workout...
I run thru almost $20,000 on a card with a $10,000 limit one month. I was making payments everytime I flew thru the US.

roughstock

I'd find a new bank.

dslpwr81

I don't agree with what they do, but I'm just stating that it works. I believe that this system of how to acquire good credit is what gets people into trouble in the long term. Tell'n people to go get credti cards. Just doesnt' seem right.

Rednecktastic

Totally agree man. I guess you can fool the system though if your clever.


I'm probably gonna get an American Express and Discover card and do what she said and just keep the money aside to pay them off after 6 months.

Rednecktastic

Oh and instead of buying junk on it maybe I'll finance part of the 12valve I want instead of paying cash... And then pay it off quick.

Dodgezilla

I have never missed a payment in my 20 or so years of having a credit history. I still can't get to an 800 on my score. Mine all are within the 740-760 range. I never have a problem getting money if I need it though. I have a couple pages of line items on my reports and every one says "Paid in Full" but my debt to income ratio is what keeps my score down...

MikeyB

Same here. I'm at the point in life that I don't care what my FICO score is anymore and I only have a mortgage now. Which is good since I will have a daughter going to college in a couple of years. I hate being a slave to the banks, and ESPECIALLY the credit card companies.

MikeyB

megacabdad

Bad credit can be better than no credit...

Debt to owe ratio is the bottom line when it comes to borrowing money from lending institutions.

I just purchased a new mortgage...

And it was 2 months of pure .

My credit is spotless and debt to owe is next to nothing, along with a lot of credit history as well...

tool

If you have to go this route of taking on credit cards, why not buy ASSETS with the credit instead of just useless consumer junk like clothes or toys for your truck?

That way you have some of the things you allready need anyway, you just happened to pay a little higher interest to get them.

(Ok, WAY higher interest)