credit cards?

[daywane]

I still do not get the banking anymore.
I am stumped.
credit score 700
started at 0
last year I took my 1st loan
$1,000 for a cow. Yep. I ate a cow. well 1/2 of one
I had to get a cosigner. (mother)
paid off in nine months.  time was for credit score to go up.
score rose to 500
I purchased a 2000 dodge caravan 3,000
borrowed 5,000 cosigner again (mother again)
loan down to 3,099
still I can not get a credit card.
I get offered a prepay card. At a cost of 25.00 annually
Now what is the logic in that?
I am not like most. My house is free and clear.
I am dept free except for utilities.
I make 50,000 to 52,000 a year.
I would think the banks would love to talk to me.
but nope. I fill like I disgust them.
Rude as can be.
I am about to start looking into another bank. I have been with my bank 15 years.
I do not see them as helpfull to me at all

[danny_galaga]

The fact that you are debt free goes against you for a credit card. They want useless people who can just manage to scrape together the interest 

But seriously, I am surprised you can't get one through that bank. It's sorta 'beginners' debt. I say go for it and ditch the bank. I did that, coincidentally over a credit card issue. Was sad for me, because I had been with them since I was 11, which at the time was more than half my life. Like you, about 15 years. I remember going into the branch with my mum to open the account. But as I said to the manager in a letter (unanswered, which just re affirmed my decision) there's no point staying with them for 'aulde lang syne' if I don't get any service from them.

[ChadTower]

If your old troubles are within the last 7 years then they still matter.  Bad credit card reports don't roll off until then.

[spoot]

I was sorta in the same boat awhile back.  No job for two years wiped me out and nuked my score down to like 580.  I got a card from Orchard Bank to the tune of like $75.00 a year (had to restart sumwhere).  I billed all my monthly bills to it and paid it off at end of month every month.  They dropped the fee the first year.  Continued to use it for cable bills and other misc stuff. 

Bought a house two years later.

[HaRuMaN]

Try becoming a member at a local credit union.

[dextercf]

this makes my mind boggle.
How do this work?

[TopJimmyCooks]

Why do you want a credit card?  If its for ease of buying, use a bank debit card on a small separate checking account.  If you really want a loan, you can borrow via a home equity line on your free and clear house and you will get a much better rate.  Your on-lot car payment probably won't get reported to the credit bureaus as a transaction unless you default.  A HELOC or an annual fee credit card, or a few promptly paid store credit cards will do more for your score than the small personal loans. 

A word of caution on the HELOC: I really only like them to use to improve the house that's the collateral for the line.  i.e. you borrow $5000, fix up the house, it's worth $10K more on resale, etc, so its easy to pay back if you have to move.  don't get a lien on your house just for a car or a pinball machine. 

I recommend Dave Ramsey's book total money makeover.  Some of it is a little over the top (taking a night job delivering pizzas, letting your credt score go to zero) but overall its great and his program helped me get out of debt and start saving. 

[Donkbaca]

Credit cards are WAY better than debit cards, in my opinion.  First of all, credit cards give you points. Second of all the fraud protection is way more convenient on a credit card.  If a credit card gets hacked, they usually will just send you a new card and its no big deal, if a debit card gets hacked, your bank account gets frozen until they sort it all out.  I never use my debit card, credit card is the way to go.

[SNAAKE]

The fact that you are debt free goes against you for a credit card. They want useless people who can just manage to scrape together the interest  

 

you need at least one CC for fraud protection and stuff. keep a debit card for emergency but dont use it unless you have to. I dont trust ANYONE with debt cards.

[RayB]

Dawayne, there is no logical reason to be loyal to a bank. Apply for a card where they offer you the best interest rate.  What they care most about isn't your credit score but how much you make. Call and apply over the phone.

[TopJimmyCooks]

@PBJ: They look at debt to income and other factors if they're smart, not just credit repositories or Fair Isaac score.  Your pinball machine to income ratio may be off!

Credit cards are WAY better than debit cards, in my opinion.  First of all, credit cards give you points. Second of all the fraud protection is way more convenient on a credit card.  If a credit card gets hacked, they usually will just send you a new card and its no big deal, if a debit card gets hacked, your bank account gets frozen until they sort it all out.  I never use my debit card, credit card is the way to go.

Going to respectfully disagree with you there.  It is much more likely that people will damage themselves by living beyond their means, paying high interest on crap they want but don't need, than it is that they will be victims of ID Theft or fraud.  As I mentioned, use a debit card that is a separate account from your primary, with transfers into it as needed.  Then, in the highly unlikely event it is cleaned out or frozen, you're not jacked up.  and you're not paying principal plus 100% over the life of a loan. 

If you use a credit card for fraud prevention, are you paid up or just forking the monthly minimum plus $50?  (Rhetorical question)

[dextercf]

you need at least one CC for fraud protection and stuff. keep a debit card for emergency but dont use it unless you have to. I dont trust ANYONE with debt cards.

This is the about as opposit as you could get, as to how the situation is up here in Norway
Everyone uses debit cards, and CC are for online shopping..

[Donkbaca]

I have had credit cards and debit cards stolen.  Replacing a credit card is MUCH less of a hassle. 

[Jammin0]

My debit card account gets hacked every once in a while and it is pretty much just as easy to get it taken care of as a credit card.  My bank always reverses the charges, sends me a new card in a few working days, I change my online passwords and continue on as normal.  Now when my paypal account got hacked, that was a different story.  Somehow they froze my bank account and had over $2000 tied up in their system for almost a month.  Needless to say I don't like paypal anymore.

[TopJimmyCooks]

My debit card account gets hacked every once in a while ....... Now when my paypal account got hacked, ..........

I have had credit cards and debit cards stolen. . . . .

You guys are sticking your things in the wrong holes.

[pinballwizard79]

Apply for a credit card online, they are good to have for trips (hotel, car rental, flight rewards & cash back stuff).

If you cant get approved for a credit card on the internet no bank will help you. Banks do not lend their own money so making friends means nothing since those lines are backed by investors with specific terms (refered to as underwriting guidelines). The banks do not have enough working capital to lend vault money any more! Americans spend more than they save, therefore there is a shortage of savings to lend!

However I will say the only winning move is not to play - when it comes down to true borrowing via credit cards 

I dunno about the HELOC idea, I bet its nice to have a house title free of liens & no payee clauses on your insurance form.

FYI: You need at least 3 accounts & some patience. There is plenty of info on the internet about how to raise your credit score. Pay your stuff on time, dont utilize more than 35% of your limits, dont apply for everything under the sun & avoid new lines of credit for a while + let your other stuff age (old credit = score).

Good luck: Long link to Google fixed.

[Jammin0]

Shady ATM in Mexico and a few shady online purchases.  Like I say though, if my bank backs me, why not risk a good deal?
[/quote]

My debit card account gets hacked every once in a while ....... Now when my paypal account got hacked, ..........

I have had credit cards and debit cards stolen. . . . .

You guys are sticking your things in the wrong holes.

I have had credit cards and debit cards stolen. . . . .

You guys are sticking your things in the wrong holes.
[/quote]

You guys are sticking your things in the wrong holes.
[/quote]

[ark_ader]

Be liquid and buy gold.

Credit cards are for chumps.

[Donkbaca]

Gold isn't liquid, you need to convert it to cash for it to be useful.

[Donkbaca]

yeah, not to mention that from an investment standpoint its crippled due to the fact that it doesn't pay dividends so essentially you are banking purely on future appreciation.

[lilshawn]

back on topic...

even though you have "good" credit, it's still bad... and here's why:

when you want a loan or need to finance a vehicle etc... they look at 3 things: how long you have carried your debt for... how your repayment schedule is... and what your income to debt ratio is.

the "credit score" is something credit card companies scam you into believing.

i have a "credit score in the mid to high 300's and have no problems at all getting a loan/credit card/financing... and here is why:

I make my payments on time. (keep this VERY IMPORTANT fact in mind... if you are a day late on your payment, it gets reported to the credit bureau as 30 days late. they have 3 slots for late payments 30 days, 60 and 90+ so a day late, is a month late, now reads as a missed payment.)

paying off credit cards as soon as you charge them up is okay, but they also want to see you carry some debt. personal loans and financing from vehicles etc... paying off big chunks of the loan in advance is actually BAD. you need to prove yourself worthy by making your payments for the duration of the loan. paying off the last little bit is okay, but you don't want to get halfway through a 5 year loan and pay off the balance. it will act negatively. they see it as a "windfall" payment. often banks will simply mark the loan as simply repaid. other banks will question the loan. also, don't get a loan to pay another loan... that looks REALLY bad and is, in some places, illegal.

being broke is okay. it shows you are able to handle and control your money. having a fu#$ton of money, but needing a loan doesn't look good. they question whether this person has some sort of gambling addiction or something going on.

the credit bureaus also keep track of who looks into your credit...if a whole bunch of banks and financing companies look into your credit in a short amount of time (say about 2 or 3 months time), you look like you are fishing. that is bad. stay low, you only want to try for new credit twice, maybe 3 times a year MAX. showing disinterest into maxing out your credit load will show you can handle without it. not needing credit, looks REALLY GOOD to creditors. that's when you pounce.

you want to get better credit, it takes time, patience and knowing what they are looking for.

[ark_ader]

I make my payments on time. (keep this VERY IMPORTANT fact in mind... if you are a day late on your payment, it gets reported to the credit bureau as 30 days late. they have 3 slots for late payments 30 days, 60 and 90+ so a day late, is a month late, now reads as a missed payment.)

Sorry, but no.  Companies do not put anything on your credit report if you're a day or so late.  People would get pissed off, close the account, and move the debt elsewhere.  It's bad business.  Perpetuating that myth is good business, though.

I'm sorry PBJ but it is true your credit gets dinged if you make a late payment. 

I had this come up when I was buying my first house. 

Not only did they said I made a late payment, they also told me when and where.

Now I make sure my payments are always on time, especially when you are buying your second home.

Keep away from credit cards.  If you do not have the money in your hand you cannot spend it. 

No point saying that your job is safe  as bad things do happen.

Nice to see BofA  charging for having a debit card, so it seems you would be richer not having any card.

One of the reasons why we are so much in a mess, and if you have bad credit just make sure your employer doesn't know. 

[Donkbaca]

Who cares of your job isn't safe?  If you can't pay back your debt, that is what bankruptcy is for.  geez man, I don't get you  "scared of debt" people. 

[Hoopz]

I'm sorry PBJ but it is true your credit gets dinged if you make a late payment.  

Nope, it doesn't.  Being a day or week late has zero effect on your credit score.

EDIT:  Stupid effect v. affect....

[TopJimmyCooks]

I'm sorry PBJ but it is true your credit gets dinged if you make a late payment. 

Nope, it doesn't.  Being a day or week late has zero affect on your credit score.

Correctamundo.  30 days late means the bill was paid on the 31st day to the 59th day.  If your credit repository reflects otherwise, i suggest you challenge it. 

however, you should treat it like this is true and pay your ---steaming pile of meadow muffin--- on time, or else you'll be in bankruptcy court with Mr. Donkbaca. 

[Donkbaca]

I'm far from bankrupt, thank you very much.  Just hide your money under your mattress while the smart people in the world utilize leverage to limit their downside risk.

[fallacy]

why do you have to get a credit card through your bank?

[pinballwizard79]

lilshawn you do not have a 300 credit score brother, dont be so tough on yourself lol

Tri-merge FICO scores range from 300-850 & 740+ is where you want to be.

Here, read this government FannieMae PDF. This is the grandfather of all debt, the force behind our entire country's growth (yes, if it werent for the government printing fake money to lend indirectly to us via banks/investors none of us would own ---steaming pile of meadow muffin---). https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf is my gift to all those who like to borrow money & comnplain as if it's a right to have things NOW that are not actually yours (borrowing 101... thats not your house/car!)  

I've looked at prolly 6,000-7,000 credit reports in my lifetime (apx 2,000 sets of tax returns & asset statements too) so if you guys ever have questions just send me a credit card payment via paypal  


EDIT: You can go your entire life paying everything 29 days, 23 hours, 59 minutes & 59 seconds late & never have a single late on your credit report.... but pay ONE day late on a intro 0% CC offer & bend over bitches! It wont hurt your score but it will hurt your wallet.

Dwayne, getting a credit card from your bank is so 1987! You can do better than that I assure you.