Comments on: How to Build Your Credit History with Tradelines http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 06:04:27 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Nick Burton http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-331314 Nick Burton Sat, 14 Nov 2009 21:39:18 +0000 http://www.bargaineering.com/articles/?p=4637#comment-331314 This is possible if you have a clean credit report with almost nothing on it. When you insert 1-2 tradelines on a credit report with 0 history, it's almost automatic that you receive a score anywhere from 750-800. It's once you start adding other tradelines with balances near the credit limit and other various negative items that will keep your score in the 600s or lower. This is possible if you have a clean credit report with almost nothing on it. When you insert 1-2 tradelines on a credit report with 0 history, it’s almost automatic that you receive a score anywhere from 750-800. It’s once you start adding other tradelines with balances near the credit limit and other various negative items that will keep your score in the 600s or lower.

]]> By: Nick Burton http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-331313 Nick Burton Sat, 14 Nov 2009 21:37:13 +0000 http://www.bargaineering.com/articles/?p=4637#comment-331313 This is a great article. You are telling users how to establish a credit score. One tedious thing about building your credit score is time. It takes a long time to establish good accounts with over two years of history, which is a main factor when being approved for loans. Though time can present a problem for people who are in a tight schedule, there are other alternatives (though you have to pay some fees) to building your credit score much quicker. This is a great article. You are telling users how to establish a credit score. One tedious thing about building your credit score is time. It takes a long time to establish good accounts with over two years of history, which is a main factor when being approved for loans. Though time can present a problem for people who are in a tight schedule, there are other alternatives (though you have to pay some fees) to building your credit score much quicker.

]]> By: Dan http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-315761 Dan Tue, 21 Jul 2009 03:54:07 +0000 http://www.bargaineering.com/articles/?p=4637#comment-315761 Jim, Where did you get the info that "It’s generally believed that to get a score of 750, you need two lines of credit with 24 months of consecutive on-time payment." I have been told it takes much longer than 24 months of solid history for a score of 750. I hope I can get up to 750 but just curious... Jim,

Where did you get the info that “It’s generally believed that to get a score of 750, you need two lines of credit with 24 months of consecutive on-time payment.”

I have been told it takes much longer than 24 months of solid history for a score of 750.

I hope I can get up to 750 but just curious…

]]> By: Morgan http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-310835 Morgan Mon, 06 Jul 2009 15:32:17 +0000 http://www.bargaineering.com/articles/?p=4637#comment-310835 Another great way to get your credit history started, especially in this tight credit market is if you're a member of a credit union. Anyone can join some credit union and there's probably one in your town. The thing to do is get a line of credit on your checking account, which is technically an unsecured loan. If you spend money that's not in your checking account, money is released from this line of credit. You can pay it back in monthly installments, or do like I do and pay it back that day... I check my account online frequently and just simply move money from my savings account to my checking account. There's no overdraft fee and I'll pay (at most) pennies in interest if I forget to pay it off that day. I hardly ever use it, and it doesn't cost me a dime (unless I forget) and it's improving my credit score! Another great way to get your credit history started, especially in this tight credit market is if you’re a member of a credit union. Anyone can join some credit union and there’s probably one in your town.

The thing to do is get a line of credit on your checking account, which is technically an unsecured loan. If you spend money that’s not in your checking account, money is released from this line of credit. You can pay it back in monthly installments, or do like I do and pay it back that day… I check my account online frequently and just simply move money from my savings account to my checking account. There’s no overdraft fee and I’ll pay (at most) pennies in interest if I forget to pay it off that day. I hardly ever use it, and it doesn’t cost me a dime (unless I forget) and it’s improving my credit score!

]]> By: Damon Day http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-308109 Damon Day Sun, 28 Jun 2009 09:41:09 +0000 http://www.bargaineering.com/articles/?p=4637#comment-308109 One great way for young people to jump start their credit score is referred to as piggy backing. I did this when I was in college. I had my parents add me as an authorized user on two of their cards. That basically gave me instant good credit. Now of course I know if that was the only thing I had a lender could see through that, but couple that with two other small balance accounts in good standing and I really had a good start. A few years ago fico changed how authorized user accounts were scored so that people could not do this anymore. The main reason was to combat fraudsters that were actually selling positive trade lines. No Joke, there were companies, that for a fee would add you as an authorized user to some account. Fico didn't like this very much and cut it off. However recently I read that Fico has changed it back and being an authorized user on a positive trade line will have a positive affect on your score again. So if you are trying to boost your score and you have a good friend or family member willing to add you as an authorized user it might just give you a nice little bump. Of course the family member doesn't even actually have to give you the card so you don't have the ability to spend their money :-) One great way for young people to jump start their credit score is referred to as piggy backing. I did this when I was in college. I had my parents add me as an authorized user on two of their cards. That basically gave me instant good credit. Now of course I know if that was the only thing I had a lender could see through that, but couple that with two other small balance accounts in good standing and I really had a good start.

A few years ago fico changed how authorized user accounts were scored so that people could not do this anymore. The main reason was to combat fraudsters that were actually selling positive trade lines. No Joke, there were companies, that for a fee would add you as an authorized user to some account. Fico didn’t like this very much and cut it off.

However recently I read that Fico has changed it back and being an authorized user on a positive trade line will have a positive affect on your score again. So if you are trying to boost your score and you have a good friend or family member willing to add you as an authorized user it might just give you a nice little bump. Of course the family member doesn’t even actually have to give you the card so you don’t have the ability to spend their money :-)

]]> By: Bri http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304288 Bri Sat, 23 May 2009 23:48:54 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304288 Paying cash isn't always the best way. On a small scale, I use my Discover card for all of my purchases because I get between 1% & 5% back on everything. On top of that I can save up my rewards for gift cards that can even double that reward at store I frequent. Why pay cash when I can make money off paying with my credit card? I pay my balance in full each month so not only am I building a positive credit score I get to make interest off my money while it's in the bank AND make my bonus rewards off the credit company. Similarly, for larger purchases if you can qualify for a low interest loan it could be more beneficial to invest your money in a high-yield account rather than paying cash for it. Paying cash isn’t always the best way. On a small scale, I use my Discover card for all of my purchases because I get between 1% & 5% back on everything. On top of that I can save up my rewards for gift cards that can even double that reward at store I frequent. Why pay cash when I can make money off paying with my credit card? I pay my balance in full each month so not only am I building a positive credit score I get to make interest off my money while it’s in the bank AND make my bonus rewards off the credit company. Similarly, for larger purchases if you can qualify for a low interest loan it could be more beneficial to invest your money in a high-yield account rather than paying cash for it.

]]> By: Bri http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304287 Bri Sat, 23 May 2009 23:40:34 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304287 It isn't always most beneficial to pay with cash. I always have the money sitting in a bank account, but why pay cash when I can get between 1%-5% cash back for buying things I was already going to buy? I pay my balance in full each month, plus I can save my rewards up for gift cards ro stores I frequent that multiply my bonus. It isn’t always most beneficial to pay with cash. I always have the money sitting in a bank account, but why pay cash when I can get between 1%-5% cash back for buying things I was already going to buy? I pay my balance in full each month, plus I can save my rewards up for gift cards ro stores I frequent that multiply my bonus.

]]> By: Bri http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304286 Bri Sat, 23 May 2009 23:35:42 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304286 Another oversight, where do you live while you're saving this money up? Sinking money into rent for 10+ years seems pretty ridiculous to me when you can be putting the same amount towards actually owning property. Another oversight, where do you live while you’re saving this money up? Sinking money into rent for 10+ years seems pretty ridiculous to me when you can be putting the same amount towards actually owning property.

]]> By: ike http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304282 ike Sat, 23 May 2009 22:45:06 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304282 Thank you guys for all the useful comments. I am new to this system and getting all these shades of ideas is enriching to me. My question I have never owed a credit card and thus have no credit history. Will it affect my records if apply for one and i am denied. Basically will the fact that i was denied credit on my first or second applications affect negatively my future ratings when i finally get one? Thank you guys for all the useful comments. I am new to this system and getting all these shades of ideas is enriching to me.

My question
I have never owed a credit card and thus have no credit history. Will it affect my records if apply for one and i am denied. Basically will the fact that i was denied credit on my first or second applications affect negatively my future ratings when i finally get one?

]]> By: Splendor http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304113 Splendor Wed, 20 May 2009 18:16:08 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304113 My first credit card came with a free t-shirt in college too! :) My first credit card came with a free t-shirt in college too! :)

]]> By: C.J. http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304026 C.J. Tue, 19 May 2009 22:00:00 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304026 That is a valid example, and I agree. I just was hoping the overall message wasn't saying that you need good credit or even credit at all because we dont want young people who are ignorant to finances thinking that credit is how you purchase "things". Agree? That is a valid example, and I agree. I just was hoping the overall message wasn’t saying that you need good credit or even credit at all because we dont want young people who are ignorant to finances thinking that credit is how you purchase “things”. Agree?

]]> By: Jim http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304004 Jim Tue, 19 May 2009 18:03:12 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304004 Many places outside of lenders rely on your credit score, like whenever you need to rent anything (apartment/house) because they're essentially "loaning" you whatever you're getting for the rental period. Many places outside of lenders rely on your credit score, like whenever you need to rent anything (apartment/house) because they’re essentially “loaning” you whatever you’re getting for the rental period.

]]> By: C.J. http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-304003 C.J. Tue, 19 May 2009 18:02:00 +0000 http://www.bargaineering.com/articles/?p=4637#comment-304003 Why would you need good credit if you paid with cash, like everyone should? Why would you need good credit if you paid with cash, like everyone should?

]]> By: eric http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-303993 eric Tue, 19 May 2009 17:11:30 +0000 http://www.bargaineering.com/articles/?p=4637#comment-303993 Don't let the anti-credit crowd get you down Jim (it seems to be an ever-growing force these days.) Personally, I'm quite happy about how I got my first credit card. Decided to do the proper research without anyone telling me to and found a good card (actually turned out to be one of your recommended ones...score!) Never paid a finance charge and earned hundreds of dollars of rewards from it actually. Maybe that's why I'm not so bitter about credit. :) Don’t let the anti-credit crowd get you down Jim (it seems to be an ever-growing force these days.)

Personally, I’m quite happy about how I got my first credit card. Decided to do the proper research without anyone telling me to and found a good card (actually turned out to be one of your recommended ones…score!) Never paid a finance charge and earned hundreds of dollars of rewards from it actually.

Maybe that’s why I’m not so bitter about credit. :)

]]> By: Jim http://www.bargaineering.com/articles/how-to-build-your-credit-history-with-tradelines.html/comment-page-1#comment-303988 Jim Tue, 19 May 2009 16:50:47 +0000 http://www.bargaineering.com/articles/?p=4637#comment-303988 12% seems a bit of a rosy expectation given our market performance, anything you had a year ago in your account earmarked for savings lost 40% of its value... granted it will eventually return but expecting 12% seems a bit pie in the sky. You have a bad year and your plans are thrown out of whack. Inflation also eats into your gains, all the while you're not enjoying <strong>your</strong> home, but someone else's that you're renting. 12% seems a bit of a rosy expectation given our market performance, anything you had a year ago in your account earmarked for savings lost 40% of its value… granted it will eventually return but expecting 12% seems a bit pie in the sky. You have a bad year and your plans are thrown out of whack. Inflation also eats into your gains, all the while you’re not enjoying your home, but someone else’s that you’re renting.

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