Lets tlk about credit.

[Dr. Narcisse]

Take care of your credit in your 20s brehs

 

[My neck and my back]

1st things 1st... You dont NEED credit, dont ever forget that.

break it down for us breh

 

[Towlie]

break it down for us breh

Unless you're paying cash, you'll need it.

 

[intruder]

It's not complicated. Pay what you owe as agreed and you'll be fine.

Current FICO score= 734

 

[Regine Hunter]

nigerian asking about credit?



must be 419

Spoiler

 

[KOOL-AID]

. The best thing for starting a line of credit is obtaining a credit car from a credit union. Get a card with a low credit limit of like 200 dollars something you can pay off fast. Since you have not opened up any line of credit you have a 0 rating; which is not bad, it just means you have not started to credit.
The messed up part is when you open up a line a credit; that also lowers your credit score, so you have to be careful when you decide to open something up.

why a union instead of bank, what is a secured credit card and how does it differ from a regular one. Explain this credit limit, and I've seen people tlk about percentiles 30% or below when using a credit card....oh and how does payment wrk, is it a monthly bill, and what is it based on??

 

[old_timer]

there are 3 credit reporting agencies: transunion, experian, equifax
they each have their quirks and idiosyncrasies
we can worry about the details later

when you apply for any type of credit
(or sometimes when you apply to rent an apartment, etc.)
they "pull" 1 of your credit reports
and make a decision about you based on that

the 1st step is to see what is listed on your reports
go to https://www.annualcreditreport.com/
it is FREE- no need to come out of pocket
the federal government makes them do it for transparency reasons

just ask for 1 of your 3 reports
then look at it
does it contain any bad information?? wrong information?? etc.
if so, you need to do some repair
that's a whole other discussion- much depends on the specifics
if it is clean, then ask for the other 2 reports
make sure they are also clean

while we are at it- there is ChexSystems Consumer Report
that is where all bad/bounced/hot checks get reported
many banks won't let you have an account if you are in chexsystems
go here
https://www.consumerdebit.com/consumerinfo/us/en/freereport.htm
fill out a request and make sure you are clean

(there are also places to check if you have warrants and other problems
but that is beyond what you asked)

so let's assume everything is good (3 credit reporting agencies + checksystems)
now you need to start building your financial empire
you mention a debit card
so i assume you have a checking/savings account
that's good, but make sure it is free (no monthly fees)
if not, go find a credit union with free economy checking
i can clarify what i mean as necessary

so let's say you are clean and have a checking account
time to build real credit
i suggest you pick out your favorite 3-5 retail stores
list them here if necessary
i can tell you which have good "store" credit cards
like, target or home depot or jcpennys or chevron gas station
those are all easy to get
the key is to get that 1st store card
it can only be used at that store
use it once a month, pay it off when you get the bill
and in a 6 months you will be ready for next step

key point- you shouldn't be paying monthly/annual fees for anything

 

[old_timer]

why a union instead of bank, what is a secured credit card and how does it differ from a regular one. Explain this credit limit, and I've seen people tlk about percentiles 30% or below when using a credit card....oh and how does payment wrk, is it a monthly bill, and what is it based on??

credit unions are more accommodating to poor people
they are not under pressure to create big profits like a bank
so they can charge lower fees and lower interest rates
banks offer special products that cater to richer people
why would a poor person use a bank?? i don't know!!

a secured card is where you put up a deposit (let's say $500)
they give you a credit card with a $500 limit
but there are typically also monthly fees and so forth
a normal credit card does not require a deposit and can come without fees

a credit limit is how much you can charge
you can't go over the amount of the limit
lets say you already charged $175 and have a $200 limit
then you try to charge $50 more?? you will be declined

credit cards can have different interest rates
anything from 0% to 30% interest (or more)

you get a statement each month with your charges
it lags your actual purchases by about a month (give or take)

each statement will have a due date (similar to an electric bill)
you have to make a payment by the specified date or you are late
then they charge you extra fees

the amount to be paid is the amount you owe
however, they will let you pay less- as little as 2%** of what you owe
(**i think federal laws changed that, though)
so if you owe them $100, you can pay $2
the problem is that $2 will be almost all interest
so next month you still owe them $100

keep in mind that credit card companies exist to make a profit
those fees and interest payments are how they make money
but it is entirely possible to use their services responsibly and not pay anything

 

[Ninjaz In Paris]

I *WISH* I had good credit... there are so many benefits...

But unfortunately I have one thing thats more powerful then Credit...

... it's just that I need a LOT of it in any situation in order to negate the credit...

 

[mannyrs13]

What you need to do is start with just one card. Don't go overboard. If you have a bank account, ask them if you qualify for a card. Usually a $500 limit is the starting limit. Stick to one, I made the mistake of getting too much and it hurt me later. Use it like you don't have it. Only for important things. Like if you got a car, use it for gas and then pay it off. Don't waste it on foolishness. Keep the balance low. Then after some time they'll raise your limit and your score will go up. Check out quizzle.com. I keep up with my score on there. Rest of you guys can check it out. When you get good credit, they're gonna keep sending you offers. Throw them all away. Worst thing is getting in over your head and owing thousands for no reason. Stay on the right course since you're young and you won't end up like some of us that waited till their mid to late 20s to fix their credit. And stay away from debt consolidation. That goes for everyone.

 

[muzikfrk75]

Several people have mentioned a secured credit card.

DO THAT shyt.

Helped me repair my credit big time.

 

[Orange cream shake]

its a dumb system really..

make 1000 good payments on something but let 1 bill slip or some shyt and all of a sudden you a liability

example: my credit used to be A1 (its only decent now) but I got pulled over one time and I was moving, I told the cop DONT send the ticket to the address on my license, send it to the address im moving to. It was a bull shyt ticket anyway, he pulled me over for a "no right turn on red light" but there was no sign that said that (he said cause it was a construction zone is why there was no sign really just sounded like a bored rookie cop gettin his kicks off fukkin with people cause once the construction was done theres still no sign that says it there )

anyway this fakkit ass cop sends the ticket to the address I moved from so I never received it, but the state/county sure know how to find me at the address I told him I was moving to when its in collections

and in california once a ticket goes to collections, you cant fight it

so anyway at the time my credit was amazing, but because of that ticket (and now a few other things ) to the credit bureaus im a piece of shyt despite the years of on time payments

I hear this all the time working in that industry. you shoukd have followed up. no one is gonna take your word and send a ticket to an address they cant verify.

 

[Bunchy Carter]

why a union instead of bank, what is a secured credit card and how does it differ from a regular one. Explain this credit limit, and I've seen people tlk about percentiles 30% or below when using a credit card....oh and how does payment wrk, is it a monthly bill, and what is it based on??

@old_timer answered all the questions. check out bankrate.com http://www.bankrate.com/credit-union/. There is a sections about credit cards and interest rates; with credit unions you will have a better interest rate as opposed to a regular bank. Also, when you pay you bill on time and you barley carry a balance on your credit card; credit unions will lower your interest rate down faster than a regular bank. Maker sure you kept your credit score high because when it's low; you can even get a loan for a candy bar.

 

[Panther]

...Technically you don't............

but com'n son you ain't gona do shyt in life if you don't got decent credit.

you can pay cash for a majority of things and be fine

 

[Panther]

break it down for us breh

Some people seem to believe that the credit score is almost as important as oxygen and water. Most of that stems from the fact thatwe’ve been beaten over the head with the importance of the credit score since we first learned the difference between a $10 bill and a $5 bill.

But it’s simply not true. Can you really live without a credit score? Absolutely—and it’s actually easier than you’d think. It just takes some foresight, planning and maybe a little patience.

The credit score myth is tangled up in almost every part of our financial lives, but there are a few areas that seem to come up over and over again. So, here are the top three questions we get about how to live without a credit score:

How do I rent an apartment?
Most apartments will work with you if you can provide first and last month’s rent, as well as a security deposit. Ask them up front about their process and what type of information they’ll need. If they want a credit score and you don’t have one, simply tell them that you’ve never gone into debt and you use cash. Get a rental history referral from your previous landlord. If it’s your first time renting, you might have to look around for a little bit. But you’ll be able to find someone to work with you.

How do I take out a mortgage?
If you don’t have a credit score, you should focus on one thing—making sure youhave a large down payment. If you’ve never gone into debt, that shouldn’t be too difficult, right? Without a credit score, the down payment, as well as your job and how long you’ve been employed in that line of work, are big factors.

You’ll also want an outstanding history of rental and utility payments. Look for a mortgage company that uses a process called manual underwriting, sometimes called “non-traditional credit” or “no credit score” lending. And whatever you do, don’t buy a house until you’re ready. That means you’re out of debt, you have a 3–6-month emergency fund, and you have a good down payment. Of course, you could always just pay cash for a house!

What if an employer wants to see my credit score during the interview process?
This is a growing trend, but it mainly affects people in the financial industry—banks, mortgage brokers, investment companies and so on. Again, the key here is to learn their process up front and explain why you don’t have a credit score if they ask you about it.

Remember, these answers only apply if you have no credit score. If you have a badcredit score, that’s a different situation entirely.

For renting, offer to put an extra month down if you are getting resistance from the property manager because of a bad score. For a mortgage, be patient, rent for a while, and save up even more to put into a down payment.

Our culture will tell you otherwise, but it is possible to live without a credit score. Sure, sometimes it might be annoying because of the way so many people have become addicted to the credit score. But seriously, it will never be as annoying as having a huge pile of debt!

Tired of putting up with FICO? Have you considered how different your life story could be without it?Check out these stories from people like you who are changing their lives by making the decision to live without debt!