let's talk about credit

[golfcart]

I recently pulled my credit report after trying to get a couple of various credit cards and being denied. I found some old debts (utility bills totaling ~$200) from about 4 years ago that I must have aquired while I was moving around alot. I will be paying these off in full this week. The only other things on my report are inquiries. I have no loans or credit cards. I have always used a debit card to buy things and that doesn't do any good as far as credit goes.

Can anybody make any recommendations on how to build up some positive history on my report? I am ok with doing a secured credit card as long as the fees aren't too high and they report to the credit agencies. I haven't looked into it a whole lot yet, but most of the secured cards look like they suck for the most part.

Is there any other companies that I can do business with to gain some positive feedback other than taking out a loan? It makes me sick that so many companies do a credit check in order to buy a service from them yet they don't report any positive feedback at all. I think anybody who does a credit check should be required by law to post both positive and negative marks on a credit report.

Any tips, pointers or links would be greatly appreciated. I'm tired of getting turned down for things that I would have no problem paying for

[brandon184]

Definately get a credit card and use it. As long as you make your payments on time, you shouldn't have to endure any heavy fees or interest and you'll be building up credit.

Have some patience, as good credit won't come in a day.. Especially when you've had debts in the past that are showing up on your report.

[Gomer]

you need to get and properly maintain some form of revolving credit.

dunno how to do that when yer credit is poop tho. Maybe there are companies that help w/ this.

[sao95]

i read somewhere, (i looked for the link but couldn't find it sorry) that alot of times if you pay them off and then contest it will help as they have a deadline to reply to the contestation and many places don't have the manpower or time, so you win....

[golfcart]

I'm not too worried about it being "poop" as I'm fairly certain I can get the 2 negatives removed after they are paid off. I plan on disputing them as soon as they are paid off. As far as I can tell, I forgot to disconnect phone and gas service in an apartment I lived in and the new tennants used it until it was shut off. I have no proof of anything so I am just going to pay the bills. Not very responsible I know, but life was very hectic at that point in time. I'm looking to just put it behind me If and when those are removed, my report will be a clean slate except for a few inquiries.

[vass0922]

If you have a decent income you can get something like american express blue. Mine is only 9.99% interest or something like that with zero annual fees or other BS charges. Also unlike normal AMEX you don't have to pay off the full amount every month

Get a good card buy some stuff and make minimum payments for awhile.
Paying the total off all at once will serve no purpose at all. Credit card companies don't want you to pay it all off because they don't make any money off of that.

Get a good credit card
Low interest
NO Annual/monthly/transaction fees
FIXED interest.. none of this variable stuff

Good luck, its a lot of work bringing up your credit

[golfcart]

Thanks vass I think the hard part is going to be getting an unsecured card in the first place. I suppose it may be possible after my report is clean, but I have a feeling I will just be turned down again. Another reason I'm trying to do this is because I currently drive a used car that I paid cash for and it has 230,000 miles on it. It runs great, but I know it won't last forever. I plan on financing my next vehicle and I really don't want to deal with the bad credit / high intrest companies. I'm not looking to change things overnight. I figure I have a year or so before I will need to make any big purchases. Anybody have any good experiences with any secured cards or other revolving credit accounts that are easy to obtain?

[jkrohn]

A good way your build your credit, but costs some cash.

If your credit card offers cash advances, take them, max it out. Then put that money back in the envelope and mail it back as the payment. This should cost around $5 for ever $100 but is a way to get your credit up if you can't get anything else going for ya.

Jkrohn

[daveleau]

Why do you need credit? May seem like a strange question, but people really don't need credit except when buying a house. This guy (link below) has a great daily radio show on finance and being debt free and how credit is not only not necessary, but how it is detrimental to financial growth. He stresses not being a slave to the creditors and to living on cash only. You'd be amazed how much money you'd have if you didn't have payments by working and spending intelligently.
http://www.financialpeace.com/
While it is a radical idea in today's way of life (although this is the advice that your grandparents used and lived by) in the US, it is a very good idea and worth a look.

[Gomer]

You need credit to secure an apartment. Credit will affect your ability to obtain a loan for a new car. Some insurers are beginning to look at credit also.

people really don't need credit except when buying a house

What do you do when you go to buy a house and have poor credit?