[Deathmore]

Hey everybody I'm trying to buy a new Camaro and after much thinking I decided I'm going to go with the 2SS. The problem is I have absolutely no credit history. I'm 20 years old and have always lived a Cash only lifestyle, I don't even have so much as a phone bill in my name(Prepaid all the way). Worked out well except now I'm trying to get below a 4% interest rate, otherwise it just doesn't make Sense to get the 2SS which is what I really want. I will have at least $10,000 to put down on the $40,000 2SS but I still really need to build my credit up. What besides just charging everything I buy and paying off could I do? Also I would like to buy the car in the next 6 months so I need to do it fast.

[Swacer]

Thats quite the situation that many of us having leaving college at 20-21 years old. (25 yrs old myself now)

Really, one easy way was to have some school loans to your name and start paying for them immediately. (Been paying for some time now...Bucknell wasn't cheap sadly lol)

If you didn't go to college, or your parents were gracious enough to cover it for you, you're going to need to take some loans to your name.

A credit score is largely based on your debit to income ratio. Since you have no debt, and nothing outstanding, there is nothing to tell a bank that you're "trustworthy" for payments.

You could start with a credit cards, but the interest rates on them can be ridiculous. Start with small items, $1K here, $1K there. You "can" pay them back quickly, but that doesn't do much for your credit score. The faster you pay back, the less it helps yoru score. I know that doesn't make sense, but thats really how it works.

You could try with the credit cards, or you could try personal loans. You could go to a bank/credit union, and take out a small personal loan (say 5-6K). Pay it back slowly over the next year. That will boost your rating.

Additionally, get off that damn pre-paid phone. Verizon/AT&T (whatever you use) will run a credit check, and if you pay your bill monthly, that will also help.

Moral of the story is, you won't be able to get a credit rating worth a damn quickly. The rating scale doesn't work that way.

I'd say if you want a good rating, you're at least a year away. Some people can rush it in 6 months, but then your score will be in flux and could drop.

Additionally, 4% isn't bad, I got my car with $15K down with an excellent credit score at 3%.

[mattsfirstSS]

I'm only an expert because I've done everything wrong possible but I have to say that nothing with credit moves any where near as fast as you want it. 6 months Im afraid is a tall order to build credit history.

You need to look like someone who is trustworthy and lives within their means, this person however rarely needs credit...

Easiest answer, find some one with great credit and convince them to love you and then use theirs, thats what I did

[Sir Nuke]

The Title of the thread......You can't do it......its a matter of time, banks load money based on your credit HISTORY, and 6 months worth of history isn't going to do much for you, but its a start.

[babytiger]

To answer your question, have your name added to the credit card of someone with STELLAR credit. It will still take a year or so to see a noticeable improvement.

[Rock36]

http://www.creditcards.com/credit-ca...score-6000.php

Credit history is 15% of your FICO score. You need decades of credit history to fully max out this portion.

About the only thing you can do in the short run to improve your credit score is to pay down/pay off any existing credit card balances you may have right now, but you say you are doing good on that and not carrying any debt.

Unfortunately only lots of time, a good payment history, and low debt-to-credit ratios are the only ways to get really high scores.

[PalmerGA]

I'm afraid you are not going to be able to "establish a credit history" in six months - not starting from zero anyway. Your best bet is to find someone with excellent credit to co-sign your auto loan to keep the interest rate down. As you pay off your loan month-by-month, you will establish a credit history. As others have said... it takes time.

My better half was the same way when we bought a house. She had zero credit history - always paid cash like her grandpa did. Fortunately, she had been renting a house for years and had lots of solid utility bill history. The loan officer told us when we started the mortgage process "even a BAD credit history makes it easier to get a loan than no credit history". Good luck!

[SSBlack]

Yeah, it takes years.

Like some of the others said, I had to get a co-signer on my first car.


If you can't find a co-signer, buy a beater (financed) to establish credit.

Jewelry stores are good places to establish credit. Go buy something for your lady, or future lady.

Don't be late with payments on anything.

[BowtieBelle]

As everyone has noted, there isn't a way to build credit "fast".

[midnighter]

Get credit cards, get in debt, pay on time. Thats how you can begin to establish credit. Just know how much is enough, you can get in debt over your head and fall into the credit debt trap.

The only fast thing you can do right now is get a co-signer.

[USMCSSGT-RET]

35% of your credit score is payment history - simply making your payments on time every month on all debts you have.
30% is your debt to credit limit ratio - compares what you owe to your combined available credit.

That being said, the fastest, cheapest, and easiest way to build credit is with a credit card. You can get a $1,000 credit limit, use it every month for small purchases, like $10 purchases, and three or four days later, pay it off. You won't accrue any interest and when the credit card company reports to the credit bureaus, they'll report that you made your payment on time (the 35% factor) and that you owe $0 (the 30% factor). Those two things will help your credit faster than anything.

There are other factors involved such as credit length, inquiries, and types of credit used. But the two factors I mentioned above comprise 65% of your FICO score.

Let me know if you have any other questions - I'm an Accredited Financial Counselor as well as an MBA (also working on a MS in Finance).

[CamaroSkooter]

Be.....


...credible?

[GoldCartridgeGamer]

Originally Posted by USMCSSGT-RET

35% of your credit score is payment history - simply making your payments on time every month on all debts you have.
30% is your debt to credit limit ratio - compares what you owe to your combined available credit.

That being said, the fastest, cheapest, and easiest way to build credit is with a credit card. You can get a $1,000 credit limit, use it every month for small purchases, like $10 purchases, and three or four days later, pay it off. You won't accrue any interest and when the credit card company reports to the credit bureaus, they'll report that you made your payment on time (the 35% factor) and that you owe $0 (the 30% factor). Those two things will help your credit faster than anything.

There are other factors involved such as credit length, inquiries, and types of credit used. But the two factors I mentioned above comprise 65% of your FICO score.

Let me know if you have any other questions - I'm an Accredited Financial Counselor as well as an MBA (also working on a MS in Finance).

This is how I started when I first started college (19 years old). I got a credit card with a decent interest rate (never had to used it yet) and pay it off every month. I started out with just using it for gas then started using it for other purchases. Now I use it for everything in case of a compromise ever happens it doesn't affect my bank account, just my credit card. After about a year or so I then financed a car in my name and had a decent down payment (the dealership and creditors were very surprised how much I had), make all the payments on time, and pay more than the minimum payment. I now, at the age of 23, have a high credit score. I am on my second car financed in my name and credit score is still good. Looking at getting a house in the next 6 months and feeling very confident because of how much I have saved as well as my credit score.

To get a good credit score takes work, time, and smart financial choices in life. Also, get off that pre-paid phone as someone else said.

[Envy]

It's almost impossible to finance anything without a phone number in your name with some payment history. Creditors look at those with no phone as EXTREMELY high risk because the number you give them might not be good tomorrow. So if you're serious...Step 1 is get a phone. And then...if you have your sh*t together as you describe...and a dependable job history...you should have no trouble getting someone to co-sign a car loan for you.

Personally...I can't imagine going into debt for 30K at your age for a car...but that's just my