What Do You Begin With?

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Replied by FrankN on topic What Do You Begin With?

Great to hear and glad you are building credit. One thing to make sure of though is not obtaining a loan just to build credit, especially if the interest rate is high. I would also recommend applying for a credit card and spend around 10% of your expenses on it each month. Make sure you pay off your credit card in full each month, and this will be a great way to build credit.
4 years 3 months ago #16
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Replied by Wanderer on topic What Do You Begin With?

Your building credit which evolved into a nice line of credit is a great way to build! New approach to me and seems a good way to develop credit payment habits! Nice work MIKEJ :)
4 years 3 months ago #17
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Replied by MikeJ on topic What Do You Begin With?

When I started building my credit, I belonged to a small credit union. Since I had my paycheck direct deposited to them, they allowed me to get a small, $200 starter loan and recommended that I take a few months to pay it off. After I paid it off, they gave me another loan for $400, followed by an $800 that eventually became a $2,500 line of credit.
4 years 3 months ago #18
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Replied by FrankN on topic What Do You Begin With?

They do have a calculated model on how your credit score is initially started. It can increase (and decrease) rather quickly based on payments and history with loans, credit cards, etc.
4 years 4 months ago #19
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Replied by Curry on topic What Do You Begin With?

They should start consumers in the middle of the field so as to give them a fighting chance. Starting at either end of the spectrum doesn't seem fair.
4 years 4 months ago #20
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Replied by Medi on topic What Do You Begin With?

It does take 6 months before the credit score is updated. I originally thought we would start at zero too, but then I read that the most common credit-scoring models start at 300. We also wouldn't get so low unless our credit history is really bad. I think I started somewhere in 600.
4 years 4 months ago #21
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Replied by Wanderer on topic What Do You Begin With?

Generally lenders submit updates to the bureaus on a monthly basis. Some lenders submit credit bureau updates the last day of the month even though statement cutoffs occur other times of the month. Some lenders will submit updates on payoff of large balances so it can be a little hit and miss.
4 years 7 months ago #22
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Replied by FrugalFran on topic What Do You Begin With?

patse wrote:

FrankN wrote: That is good to hear PATSE. Make sure you continue paying off your debt and your score will continue to improve.


Thank you! How often does your credit score get updated? Is it every month or more often? I am paying things off on time every month now.


That's an interesting question, Patse. I didn't think the credit score went up until something was paid in full, but that may be incorrect. Even if you aren't paying loans/credit cards off every month, will the credit score go up after several on time payments?
4 years 7 months ago #23
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Replied by patse on topic What Do You Begin With?

FrankN wrote: That is good to hear PATSE. Make sure you continue paying off your debt and your score will continue to improve.


Thank you! How often does your credit score get updated? Is it every month or more often? I am paying things off on time every month now.
4 years 7 months ago #24
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Replied by FrankN on topic What Do You Begin With?

That is a good idea, and it should definitely help her build credit.
4 years 7 months ago #25
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Replied by Moneyes on topic What Do You Begin With?

Interesting answers, thank you. It sounds like the best bet would be a store card then. I might get the daughter one when she's 17 and established with a job.
4 years 7 months ago #26
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Replied by FrankN on topic What Do You Begin With?

I agree, beginning can be difficult. Having a parent co-sign is a good way to help young people build credit.
4 years 8 months ago #27
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Replied by Breakinger on topic What Do You Begin With?

They do make it difficult for people who are just starting out. I started with an auto loan that my mom co-signed and without her, I don't think I would have known where to start. Now I've moved on to getting accepted for credit cards and other loans all on my own, but it has taken some time.
4 years 8 months ago #28
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Replied by FrankN on topic What Do You Begin With?

That is good to hear PATSE. Make sure you continue paying off your debt and your score will continue to improve.
4 years 8 months ago #29
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Replied by patse on topic What Do You Begin With?

FrugalFran wrote: I know some people who started with a co-signer and moved on to having their own credit after a while. Personally, I started with store cards and worked my way up to major credit cards.


I started with a store card and an auto loan (my mom co-signed). This really bumped up my credit score. I now have some store cards and two major credit cards. I'm looking to buy a new car too so hopefully my credit score will land me a low interest rate.
4 years 8 months ago #30