So... i've pretty much bought everything my whole life with cash. Was raised with the mentality of if you can't pay cash for it, you can't afford it.


Now, because of that, I'm pretty much fucked when it comes to trying to buy a pickup or anything.


I'm being told that loans on things such as motorcycles or snowmobiles won't build credit and that you have to purchase something large like a car or pickup to actually build your credit.

I just want to hear it from some of you who deal with this kind of shit (Alex-7 p'haps?) whether or not that is the truth.

Anything you finance will build your credit providing the lender reports to credit beauros (of which there are three in the country). As far as motorcycles ect. you would have to find out if Honda for example (if you financed it through them) reported your loan. otherwise, it really doesn't mean anything.

In my experiance, when banks are looking to lend money to someone, they like to see consistancy and stability. and they like to look at the past two years, lines of credit such as credit cards that have been open for atleast two years with no late payments are exelent.

I'd say if you are looking to buy something big like a truck and really have no credit at all (but atleast not bad credit) and you don't have someone to co-sign with you (even if you have a co signer you will still get credit for the loan) you should wait for a couple years. Get credit cards gas cards sears cards ect. they are all exelent. don't leave big balances and make your payments every month.

We have a second chance or "rat loan" program where I work and it requires a HUGE down payment and the intrest rate is fixxed at 24 percent. Believe me that is nothing you want to get involved with.

The truth is, if you can't pay cash for it, you really can't afford it. but you gotta play the game sup. a good credit score will save you lots of money in the end.

Credit cards aren't an issue, I've had one for going on three years now. But it rarely, if ever, gets used. And when used, paid in full every month. :dunno:

Oh well, guess I'll go talk to the bank this afternoon then.

Have them pull your credit report. They should do it for free.

You might be in better shape than you think.

Good luck.

Good luck.
Thanks.

This really isn't that important, its just for another toy. I have people trying to pressure me into a new pickup, but mine still runs good enough and I would rather buy something that I can have paid off in less then a year.

Maybe a day late and a dollar short, but here's my two cents for ya bro. I've worked for Citibank North America (was 4 years ago tho) in their fraud investigations department, as well as their credit management department for over 3 years, so my insight should help ya out. If you have really no credit in your name, here is one of the fastest ways to build credit (if you went to the bank and they said you don't have enough credit for a loan or something).

Get another credit card (you stated you've had one for 3 years or so, that is a great start, especially if you have never had a late payment), or two if possible. Set those up for automatic "pay in full" status from your bank account. Only use them for gas or small charges over $40.00. After a few months, you'r credit will look MUCH better than what it started off as. reason being:

Credit card companties report you as one of two types of payer: Transactor or Revolver. Trannies as i reffered them as (only because im like that) pay their balances off in full, and revolvers revolve a balance. Simple enough. If you revolve a balance on your card, it looks like you are spending beyond your limits, as you can't pay it off, and are considered a "risk" to the credit companies. So in turn, they report you as a revolver/balance or revolver/high balance (depending on your balance). However with the trannies, the cards are always paid off in full, every month, no interest, no nothing. So when reported tot he bureau (equifax, trans union or experian) it shows up as transactor. That in turn shows that you can manage and handle your money, as well as be trusted with the responsibility of paying the balance off in full. When the load officer pulls the report, they will look at one of two things. Your credit limit, your payments, and finally, any past due amounts. If they see that you ahve balances of like $50.00 here and there, and paid off, they won't even question it. Well they may, but me myself, when I saw that a person had paid off their balance for the last 7 months, i'd think to myself that this person is very responsible, and can trust them to not stab the company in the back if i open them up another credit card or increase their credit limit by a couple grand.

Essentially, to build your credit and look great to the next loan officer that pulls your score, just get 2 cards, and only charge what you can pay off every month, and do that cycle of charging and paying off the card for about 6 months or so (credit builds, but it takes time, doesn't happen overnight as you may know). Wait a year if you can, that way you have some solid ground ot stand on. Make sure that you don't pull your credit anytime inbetween, because bureau pulls are detrimental to your score, regardless what any car stealership says. "Oh it won't hurt your score, it's just a quiry on what your score is, we're not interested in the history so it won't hurt it." That's pure shit there, trust me on that. Those folks will lie to their mother if they had to, so your credit is nothing to them.

I wish you the best of luck with whatever ya wanted to buy, and if you need anymore advise, just ask. I'm not here often, but if you need someone's honest advice, just post. If Alex doesn't get to it (or someone else), I will.

Have a parent cosign.

Have a parent cosign.
they don't want to cosign unless its for a pickup :wiggle:

credit card helps BUT

most likely your credit score won't be great, since you don't have a record of lots of debt with lots of consistent payment

(aka a car or even better, a house)

Too much debt is BAD. even with consistant payment.

Nobody should have more that two credit cards. Even when kept with low balances the posibility to encure their perspective debt is a negative factor.

Too much debt is BAD. even with consistant payment.

Nobody should have more that two credit cards. Even when kept with low balances the posibility to encure their perspective debt is a negative factor.

define 'too much.''

just about every homeowner in america has a few hundred thousand dollars in debt.

define 'too much.''

just about every homeowner in america has a few hundred thousand dollars in debt.


Homes are generaly a different story. it is possible to have perfect credit without owning a home.

Too much depends on how much money you make of course. Get your DTI ratio above 50% and you're fucked.



Edit:
dti on a monthey in/out basis that is.

Too much debt is BAD. even with consistant payment.

Nobody should have more that two credit cards. Even when kept with low balances the posibility to encure their perspective debt is a negative factor.

Too much debt is bad, agreed. However, 2 additional card that will aide in nipping up the credit score isn't detrimental to building credit. Now if it were a $45,000.00 card and he transacts $10,000 a month, then yes, I would view that as a risk in the eyes of a loan officer. However seeing that someone is trying to build their credit with a small balance payoff wouldn't be viewed as a risk, but as responsibility.

At least in my eyes, as no two loan officers/credit managers are the same. What I may see as opportunity some may view as risk. Great tips from ya none-the less tho!

regardless what any car stealership says. "Oh it won't hurt your score, it's just a quiry on what your score is, we're not interested in the history so it won't hurt it." That's pure shit there, trust me on that. Those folks will lie to their mother if they had to, so your credit is nothing to them.



:wiggle:

That's funny and true.

I have an inocent looking piece of paper to sign that permits me to pepper someones credit app. all over the state :firedevil

Just take in your last two paychecks and be able to say you have worked at the same place for a while. Anything else is just Frosting.

Is it true having two healthy banking accounts helps your credit?

Not really, it does look better to a bank when it comes time to approving the loan if you are between tiers you may be able to get a better rate.

I did finance for a couple years at a mazda dealership and i will tell you this, if you score over 700 you are in good shape if you are over 730-750 you are an automatic approval for nearly all banks. anything below 600 is where you start really looking at high APR's.

Best way to build credit is with a vehicle loan, but it doesn't have to be a car or truck if you buy a motorcycle make the payments over 2 years and pay it off (if you can afford too) after the 2 years. Banks love seeing 18 months or more of credit history paid on time, everytime. Especially if it is as expensive or more expensive than what you are trying to buy.

As far as credit cards go, if you have em great, but dont get more than 3, any more than that, especially if you have high limits can hurt you because banks see that as a possible "postal" scenerio (you basically freak out lose your mind and run up $40,000 in credit card debt).

Hope that helps.

Make sure that you don't pull your credit anytime inbetween, because bureau pulls are detrimental to your score, regardless what any car stealership says. "Oh it won't hurt your score, it's just a quiry on what your score is, we're not interested in the history so it won't hurt it." That's pure shit there, trust me on that.


I have no credit, I will get a card in a month or so, probably a student credit card in order to build credit. Now this quote got me wondering, When I was looking for a job The place that hired me checked my credit, did that damage my credit? I had zero at the time. The recruiter claimed it was to check to see if anybody else was using my Social security number, it think thats bullshit, I think he was just trying to decide if Im responsible (and I am).

talk about back from the dead, shit.