NoSoup's Guide to Obtaining and Maintaining Excellent Credit - Page 2 - Tilted Forum Project Discussion Community

NoSoup · 01-09-2007, 09:16 PM

Quote:

Originally Posted by cadre

This is a great thread, I learned alot so far. So do I have the credit card thing right? That being that the secured credit cards basically use an account with a set amount of money as collateral but you can't use the money in the account. Then unsecured credit cards don't have collateral?

Exactly right

Quote:

Is it easier to get approved for a secured credit line and if so, would you suggest going through the same bank that I already do my banking with?

Yes, it is much, much easier to get approved for a secured credit line - especially a secured credit card. Although I wouldn't recommend blindly signing up for a card simply because that's where you bank, I'd certainly take a look at the term of the cards they offer - providing they are acceptable, it may be the most convenient option. However, if they are going to charge an annual fee, I'd suggest you get a card elsewhere.

Quote:

Also, do things like cell phone payments affect your credit score? If so, is it a big deal if I pay mine two or three days after it's posted or does it matter?

Cell phone payments, utility bills, ect will not effect your credit in any manner except in two exceptions.

1) They pull your credit report (typical when opening an account)
2) You get so delinquent in your payments that you are sent to collections

Quote:

Thanks for all your help!

No Problem - if you have any more questions, please just let me know!

Xazy · 08-12-2008, 10:40 AM

From my understanding there has been a lot of changes in the way they calculate credit score now. Having several types of credit help (car loan, credit card, mortgage etc...). Being a co-signer on someone else card now no longer helps as much as it did, since people would literally sell their good score make you a co-signer with no real authority for 3 months then sell your spot to someone else. I no there was other changes, just do not recall them all offhand.

Redlemon · 02-23-2010, 12:40 PM

Quote:

Originally Posted by NoSoup

It is good to have many accounts with no balances
False - Having many open accounts will actually reflect negatively on you. Potentially Lenders look not only at your current balances, but the actual amount you can borrow at any given time

I have a Citi credit card I haven't used in years. They just informed me that I'll now have a $60 annual fee, unless I charge at least $2,400 in a year. I was considering canceling it, but I was worried about the impact on my credit. It appears my worry was misplaced, based on your myth. Thanks! (Correct me if I'm wrong, please!)

Cynthetiq · 02-23-2010, 12:53 PM

I do wonder what the recent CARD act will do to this guide and what will need to be updated.

kutulu · 02-23-2010, 03:01 PM

Screw Citi. If you haven't used it in years then you don't need it. You could get around it by just using it and paying it off but I don't think Citi's actions should be rewarded with the merchant fees from $2,400/yr. Consumers need to send the credit card companies a message that actions like that won't be tolerated.

DDDDave · 03-02-2010, 02:07 PM

Actually, this is the way credit used to be. You paid for the right to access the credit line.

I don't see anything wrong with it. If you want the credit access, you pay the fee. If you don't, just cancel the card.

NoSoup · 03-08-2010, 07:23 AM

Quote:

Originally Posted by Redlemon

I have a Citi credit card I haven't used in years. They just informed me that I'll now have a $60 annual fee, unless I charge at least $2,400 in a year. I was considering canceling it, but I was worried about the impact on my credit. It appears my worry was misplaced, based on your myth. Thanks! (Correct me if I'm wrong, please!)

Incidentally, I just got that same notice, and I just cancelled my account. Providing you have other long term trade lines open, it should have a nominal impact, at most.

Redlemon · 03-08-2010, 08:09 AM

I have enough credit line in my other cards, so yes, it should be no loss. I already cancelled it, but I greatly appreciate your approval of my action.

My wife got a different message from Citi; they were merely dropping her total available credit, not adding an annual fee. I guess she uses that card occasionally, then.

Cynthetiq · 03-08-2010, 10:46 AM

I wonder how much of this advice will be changing as the laws and processes update.

Merlocke · 03-08-2010, 02:31 PM

Hi NoSoup,

Just thought I'd revive this thread with a bit of a more complex question. I took a real estate training course awhile back and they presented us with a sort of strange method to up our credit scores within a shorter time frame called the "passbook method".

Basically it works like this:
1) Open a bank account with $1000 (any bank will do)
2) Wait a few days, then arrange a meeting with bank manager to set up a secured loan.
3) Use the savings account $1000 to secure the Loan, and then take all of the cash from the loan.
4) Find another bank
5) Repeat from step 1 5-7 times.
6) Pay the interest payments on all open loans for a few months.
7) Take the money you've received from the last loan, and use it to systematically pay down all of the loans earlier than the allocated timeframe.

Although it's a pretty hefty procedure, and will no doubtly cost a few dollars to implement (but they're tax write offs if done through a business account I presume). Would this procedure work in increasing somoene's credit score over the long run provided they don't fail to pay back the loans within the allocated time?

Techincally it should show on their credit bureau as 5-7 loans paid off in full and early.

What are your thoughts on something like this? Would it work?

~M

Xerxys · 03-15-2010, 02:27 PM

Quote:

Do A Total Background Check On Yourself

from The Consumerist by Ben Popken

Now you can know what Big Brother knows about you and get access to the same dirt everyone from your boss, landlord, insurance agent, to your favorite casino has on you. Here is a comprehenisve list of websites and phone numbers for most of the "specialty" consumer reports, like your employment, rental, and check writing history. Be sure to check them out and correct any errors, before a crisis hits.
Employment History Reports
The Work Number
ChoicePoint (866) 312-8075
Acxiom
Abso
Tenant History Reports
ChoicePoint (877) 448-5732
First Advantage SafeRent (888) 333-2413
Tenant Data Services
RentBureau
UD Registry (818) 785-3905
Auto & Home Insurance Claim Reports
ChoicePoint
Insurance Services Office (ISO) (800) 627-3487

Credit Bureaus Reports
Equifax
Experian
Transunion
Innovis
Payment Reporting Builds Credit (PRBC)
Full File Disclosure/Personal Information Reports
ChoicePoint
LexisNexis

Check Writing History Reports
ChexSystems (800) 428-9623
TeleCheck (800) 835-3243.
Shared Check Authorization Network (800) 262-7771 Fax: (800) 358-4506
Health History Reports
Medical Information Bureau (MIB) (866) 692-6901

Prescription Drug Purchase History Reports
Ingenix MedPoint
Milliman IntelliScript

Social Security Statement
Social Security Administration

Purchase Returns History Reports
Retail Equation

Gaming Patron's Credit History and Transaction Data
Central Credit

Other Reports
TeleTrack

Utilities & Telecommunications Reports
National Consumer Telecom and Utilities Exchange, Inc (NCTUE) Call 1-888-201-5643 for reports
(Thanks to Bob!)
SOURCES:
Do A Background Check On Yourself [Consumerist]
[Consumer Reports]
[PrivacyRights]
[Bankrate]
[Listergeant]
[MyFico Forums]
[CreditBoards]

Lindy · 03-15-2010, 05:40 PM

Quote:

Originally Posted by Merlocke

Hi NoSoup,

Just thought I'd revive this thread with a bit of a more complex question. I took a real estate training course awhile back and they presented us with a sort of strange method to up our credit scores within a shorter time frame called the "passbook method".

Basically it works like this:
1) Open a bank account with $1000 (any bank will do)
2) Wait a few days, then arrange a meeting with bank manager to set up a secured loan.
3) Use the savings account $1000 to secure the Loan, and then take all of the cash from the loan.
4) Find another bank
5) Repeat from step 1 5-7 times.
6) Pay the interest payments on all open loans for a few months.
7) Take the money you've received from the last loan, and use it to systematically pay down all of the loans earlier than the allocated timeframe.

Although it's a pretty hefty procedure, and will no doubtly cost a few dollars to implement (but they're tax write offs if done through a business account I presume). Would this procedure work in increasing somoene's credit score over the long run provided they don't fail to pay back the loans within the allocated time?

Techincally it should show on their credit bureau as 5-7 loans paid off in full and early.

What are your thoughts on something like this? Would it work?

~M

So much of a person's credit score is based on their credit HISTORY OVER TIME that there is really not much that you can do to raise your score or establish a high credit score in a short time. History is given much more weight than recent behavior --especially if there is bad history.But it IS quite possible to wreck a good score in a short time, and this scheme has the potential of a cascade of things going wrong. I wouldn't want to try this

unless I had about ten thousand cash on hand to be able to cover things if something went wrong.

Lindy

Xazy · 11-03-2010, 07:18 AM

There are a few things you can sometimes do to quickly improve your score.

First if you remove debt you can request for them to recalculate with the new data.

Second if for instance you have late payments on your discover card (over the past 7 years) especially if they are recent, if you close that account it does not affect your score as much. It still will be a negative but open account late payments affect your score more then closed accounts.

Very important thing to do, keep your oldest card, credit history is huge factor, this is a long term thing. Use it so they do not close it on you. Maybe just once a month once every 2 months, but use that card!

cdwonderful · 11-03-2010, 10:30 AM

thank you soooo much. I just went the secured cc route, had no idea about the 50% or that is shows up as paid as agreed with no amt. useful info. My problem is not the negative credit, but the no credit history. Thanks again from an old guy just trying to be a good credit citizen.....

Xazy · 11-03-2010, 10:47 AM

Bank accounts count for credit history, not a lot but it is a start so get a checking and savings account. Whatever credit card you have the oldest one keep it forever it (with no blemishes ever on that one) WILL increase your score over time.

Get a joint account credit card, will help piggyback you as well to getting a higher amount you can owe. Not authorized signer but a joint account. Now to explain why this is important if your credit limit is 500 and you spend every month 200, you are using most of your potential credit, giving you a low score. If you spend 200 and your limit is 25000, then you will have a higher score since you are using a smaller percentage of your available credit. You do not want to cap out your card more then 30% the value.

Every year I try to get a credit increase on my cards, if they ask may I run your credit, decline, that means you have reached the most they will most likely lend you and it will just give you a credit hit.

Do not have companies check your credit unless you need to, every hard inquiry affects your score!!

And if you really need to boost your score for whatever reason, and willing to spend some $ for it, get any short term installment loan you can, since having different types of credit help as well.

02-23-2010, 12:53 PM	#44 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	I do wonder what the recent CARD act will do to this guide and what will need to be updated. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

03-02-2010, 02:07 PM	#46 (permalink)
DDDDave Addict Location: Sarasota	Actually, this is the way credit used to be. You paid for the right to access the credit line. I don't see anything wrong with it. If you want the credit access, you pay the fee. If you don't, just cancel the card. __________________ I am just a simple man trying to make my way in the universe... "Go confidently in the direction of your dreams. Live the life you have imagined." - Thoreau "Nothing great was ever accomplished without enthusiasm" - Emerson

03-08-2010, 08:09 AM	#48 (permalink)
Redlemon Devoted Donor Location: New England	I have enough credit line in my other cards, so yes, it should be no loss. I already cancelled it, but I greatly appreciate your approval of my action. My wife got a different message from Citi; they were merely dropping her total available credit, not adding an annual fee. I guess she uses that card occasionally, then. __________________ I can't read your signature. Sorry.

03-08-2010, 10:46 AM	#49 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	I wonder how much of this advice will be changing as the laws and processes update. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

03-08-2010, 02:31 PM	#50 (permalink)
Merlocke Location: Canada	Tougher Credit Question Hi NoSoup, Just thought I'd revive this thread with a bit of a more complex question. I took a real estate training course awhile back and they presented us with a sort of strange method to up our credit scores within a shorter time frame called the "passbook method". Basically it works like this: 1) Open a bank account with $1000 (any bank will do) 2) Wait a few days, then arrange a meeting with bank manager to set up a secured loan. 3) Use the savings account $1000 to secure the Loan, and then take all of the cash from the loan. 4) Find another bank 5) Repeat from step 1 5-7 times. 6) Pay the interest payments on all open loans for a few months. 7) Take the money you've received from the last loan, and use it to systematically pay down all of the loans earlier than the allocated timeframe. Although it's a pretty hefty procedure, and will no doubtly cost a few dollars to implement (but they're tax write offs if done through a business account I presume). Would this procedure work in increasing somoene's credit score over the long run provided they don't fail to pay back the loans within the allocated time? Techincally it should show on their credit bureau as 5-7 loans paid off in full and early. What are your thoughts on something like this? Would it work? ~M __________________ -=[ Merlocke ]=-

08-12-2008, 10:40 AM	#42 (permalink)
Xazy People in masks cannot be trusted Location: NYC	From my understanding there has been a lot of changes in the way they calculate credit score now. Having several types of credit help (car loan, credit card, mortgage etc...). Being a co-signer on someone else card now no longer helps as much as it did, since people would literally sell their good score make you a co-signer with no real authority for 3 months then sell your spot to someone else. I no there was other changes, just do not recall them all offhand.

02-23-2010, 03:01 PM	#45 (permalink)
kutulu Junkie	Screw Citi. If you haven't used it in years then you don't need it. You could get around it by just using it and paying it off but I don't think Citi's actions should be rewarded with the merchant fees from $2,400/yr. Consumers need to send the credit card companies a message that actions like that won't be tolerated.

11-03-2010, 07:18 AM	#53 (permalink)
Xazy People in masks cannot be trusted Location: NYC	There are a few things you can sometimes do to quickly improve your score. First if you remove debt you can request for them to recalculate with the new data. Second if for instance you have late payments on your discover card (over the past 7 years) especially if they are recent, if you close that account it does not affect your score as much. It still will be a negative but open account late payments affect your score more then closed accounts. Very important thing to do, keep your oldest card, credit history is huge factor, this is a long term thing. Use it so they do not close it on you. Maybe just once a month once every 2 months, but use that card! __________________ Now, a clever man would put the poison into his own goblet, because he would know that only a great fool would reach for what he was given. I am not a great fool, so I can clearly not choose the wine in front of you. But you must have known I was not a great fool, you would have counted on it, so I can clearly not choose the wine in front of me.

11-03-2010, 10:30 AM	#54 (permalink)
cdwonderful another passenger Location: Youngstown, Ohio	thank you soooo much. I just went the secured cc route, had no idea about the 50% or that is shows up as paid as agreed with no amt. useful info. My problem is not the negative credit, but the no credit history. Thanks again from an old guy just trying to be a good credit citizen..... __________________ Never try to teach a pig to whistle it wastes your time, and annoys the pig.....

11-03-2010, 10:47 AM	#55 (permalink)
Xazy People in masks cannot be trusted Location: NYC	Bank accounts count for credit history, not a lot but it is a start so get a checking and savings account. Whatever credit card you have the oldest one keep it forever it (with no blemishes ever on that one) WILL increase your score over time. Get a joint account credit card, will help piggyback you as well to getting a higher amount you can owe. Not authorized signer but a joint account. Now to explain why this is important if your credit limit is 500 and you spend every month 200, you are using most of your potential credit, giving you a low score. If you spend 200 and your limit is 25000, then you will have a higher score since you are using a smaller percentage of your available credit. You do not want to cap out your card more then 30% the value. Every year I try to get a credit increase on my cards, if they ask may I run your credit, decline, that means you have reached the most they will most likely lend you and it will just give you a credit hit. Do not have companies check your credit unless you need to, every hard inquiry affects your score!! And if you really need to boost your score for whatever reason, and willing to spend some $ for it, get any short term installment loan you can, since having different types of credit help as well. __________________ Now, a clever man would put the poison into his own goblet, because he would know that only a great fool would reach for what he was given. I am not a great fool, so I can clearly not choose the wine in front of you. But you must have known I was not a great fool, you would have counted on it, so I can clearly not choose the wine in front of me.