A little long story, but definitely helpful. I hope!
I recently moved to Connecticut from Vancouver Canada last Sept 2006. I have zero credit history as far as the US of A is concerned.
I tried applying online right away and obviously I got denied.
So I opened a checking and savings account with Bank of America... Thinking that will start a history or some sort.
Then I did some internet searching and found out that I have to have a credit card ( whether it's a store card or a major one like VISA/MC/Discover/AMEX etc) to actually start day 1 of my credit report and score.
Surprisingly, when I applied on the phone Jan 2007 I got approved for a CHASE Platinum VISA with an initial CL of 500. 0% for 12 months on all purchases then 23.99% after the promo period.
I used it right away, but made it sure I never go over 200 bucks even though I have 500 CL. I made sure I paid all my dues a week before the due date... I allowed some mailing time even though I'm using electronic Billpay from B of A.
Come March 2007, I tried applying for a store card BananaRepublic Card ( GE BANK) and I got approved for a 300 CL. I did this to add another "REPORTER" to the credit bureaus!
Again I used it but never over 100 bucks.
After six months... Using those 3 in 1 credit reporting agencies on the net for a fee... I got my score... It started as 648...630 627 from Transunion, Equifax and Experian.
Although part of the history says it's still a short one and that I won't get the best deal in card application.
Then I went back to bank of America since I have a checking and savings account with them... Originally I was applying for a "secured card" but the account officer said that she'll try the unsecured one first if it's ok with me. I said yes... And I was approved for a VISA Platinum Plus with 700 CL APR 0% for 6 months then 18% after...
It's not the best offer but that's ok, since I walked in thinking I'll be getting a SECURED card.
I did the same style as with my other cards... Used it right away but not over 300 bucks, no late payments etc.
after a month I got receiving pre-approved cards from orchard, first premiere, capital one etc... I read the fine print and never bother with those charging an annual fee, account activation fee etc..
I don't want to add another card... Unless it's a really good deal... But still every week I get those pre-approved cards platinum MC/VISA etc..
Then came February 08 and I got this getmyVisa.com pre approved WAMU VISA with a promised CL up to 7500..
No annual fee. APR 0% up to March 2009
I tried it online and it's true after 30 -60 sec I got a decision CL of 3000... Wow! The highest ever! And I am eagerly waiting for my card.
My credit score... To the best of my knowledge is around 600-640... I never reached more than 680.
So my advice to people starting or rebuilding... PATIENCE.
PAY on time... Don't spend more than 30% of your credit limit. Check your Credit Score at least 3 times in a year.
Thanks for your time. I hope I was able to help even a single Soul =)
Comment Title: Congratulations From MEHLANIon 2008-02-06
That was textbook right there on how to build credit. You did it!
Comment 4
Comment Title: Thanks For The Feedback Guys! From MarkRiverson 2008-02-06
Hi guys! I'm glad my experience can be useful to many people especially to those who are starting to build or rebuild their credit history. =)
Comment 5
Comment Title: Thanks Mark From Hjm331on 2008-02-06
Mark, that was a great story that you provided us with. I believe that if we put all of our heads together and share experiences and knowledge, we can all have great credit as long as we listen to each other and use our credit wisely.
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on 2008-02-06
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You know what your doing and yes I agree Thank you for your story and yes it helps many.
Mr. VoiceGuy, Thanks for all of your wonderful advice. It worked. I have my utility rate down to about 15% right now. As soon as all of my payments hit the bureaus, it will go down to about 9%....
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