poind Posted June 4, 2003 Share Posted June 4, 2003 A secured credit card is not "paying to get credit". It is providing collateral in case you miss a payment or something. It's not lost funds--the money is still yours (even earning interest?), just acting as "insurance" for anyone who provides credit. You'll actually need to **use** a card and prove you can make payments to establish true credit. Just having the card does nothing--it's actually repeatedly saying "trust me, I'll pay this back" and then actually doing so that does. If you can't come up with the minor funds and purchases/payments to build credit on a secured card, there's no reason anyone's going to give you credit for anything larger anyway. Student loan payments can establish credit, and sometimes car dealers can be a bit more lenient as they have clear collateral (the car itself) if you miss payments. If you'd never use a card yourself, you can get someone else to authorize you as a user on their card, even if you simply hand the card back to them and never touch it yourself. As long as they make payments for their use and everything, you benefit from the credit yourself (though it's sometimes noted on your own report you were simply an authorized user and you don't get *quite* the same benefit of things being your own individually-developed credit). Unless you get a co-signer or can prove steady income or something, you're almost certain to have to provide collateral in some form. Sounds like you need a secured credit card, even if it means you essentially have to do the equivalent of putting $100 or something in an interest-bearing account. Again, it's *not* paying for credit--the money technically remains yours. Link to comment Share on other sites More sharing options...
DrunkenMaster Posted June 4, 2003 Share Posted June 4, 2003 A tip for the *ahem* future: If you have a job, buy a big ticket item ... (for me it was some part of my tuition), make regular large payments on it. Not only looks good, but it also keeps a lot of the debt load off so you don't get nailed for interest. And keep your job - I *cough* - quit and had to catch up on some payments after. Not good. Don't splurge either. Use the CC responsibly. A friend had bought a 52" TV on his and still owes years later. Stupid. Added: On a regular basis, buy groceries... etc, almost EVERYTHING you can afford that you HAVE to buy on your CC when you have the funds to pay it right back from your savings account. This should rack up a lot of good credit. Link to comment Share on other sites More sharing options...
Cowpie Posted June 4, 2003 Share Posted June 4, 2003 One word that might help your troubles: Co-Signer! Link to comment Share on other sites More sharing options...
HyakuMan Posted June 4, 2003 Share Posted June 4, 2003 i think that you may want to note that you must be of certain age to get a CC. here in canada, its 19 for application (even if it says, 18)... and you want something to start building your credit. do you have a cell phone? put it under your name. get a small department store credit card, and use that and make sure you pay it off. etc... the key is to make sure you have GOOD credit, regardless if it is so infinitecimally small it all counts! Link to comment Share on other sites More sharing options...
tkyoshi Posted June 4, 2003 Share Posted June 4, 2003 i think that you may want to note that you must be of certain age to get a CC. here in canada, its 19 for application (even if it says, 18)... and you want something to start building your credit.do you have a cell phone? put it under your name. get a small department store credit card, and use that and make sure you pay it off. etc... the key is to make sure you have GOOD credit, regardless if it is so infinitecimally small it all counts! Yeah doesn't it suck. Actually it's only in BC that the age limit is 19. If you apply else where like if you live in Ontario the age limit is at least 18 yrs. Link to comment Share on other sites More sharing options...
ahfunaki Posted June 4, 2003 Share Posted June 4, 2003 I was in the same boat you were in. I just kept applying for cards and never getting any. I finally got one through paypal though...so check their site... Link to comment Share on other sites More sharing options...
Schmoove Posted June 4, 2003 Share Posted June 4, 2003 You americans have a weird system. Here in Holland I can get any credit card I want (Visa, Mastercard, American Express... etc). They don't check if I have a job or whatsoever (I'm a student and I have a job, but they never asked me). I just got me a Mastercard from my local bank, got a ?1000 limit on that, but if I want I can just increase that. I just pay with it and they grab the money off my bank account at the end of the month. I just need to make sure I have enough money on my bank account, that's it. Link to comment Share on other sites More sharing options...
dougkinzinger Posted June 4, 2003 Share Posted June 4, 2003 There you go ! Link to comment Share on other sites More sharing options...
Ducktape Posted June 4, 2003 Share Posted June 4, 2003 You may think it is great to have a credit card, but you have to look at this thing long term. Is it better to have no credit or bad credit? It's better tp go the cash route. I say this because look at how many people are in massive debt because they could buy when they wanted not because they could afford it! Link to comment Share on other sites More sharing options...
Daniel F. Administrators Posted June 4, 2003 Administrators Share Posted June 4, 2003 moved to real world issues Link to comment Share on other sites More sharing options...
Joel Posted June 4, 2003 Share Posted June 4, 2003 here in canada, its 19 for application (even if it says, 18)... and you want something to start building your credit. The best part of reading here sometimes is seeing how people think that their laws are everyone else's (sorry HyakuMan, I'm using you as an example). 18 here, not 19. Link to comment Share on other sites More sharing options...
azcodemonkey Posted June 4, 2003 Share Posted June 4, 2003 You may think it is great to have a credit card, but you have to look at this thing long term. Is it better to have no credit or bad credit?It's better tp go the cash route. I say this because look at how many people are in massive debt because they could buy when they wanted not because they could afford it! You don't own a house, do you? ;) In a way, you are correct. However, if you ever want to purchase something that, unless you're a multimillionaire, you can't pay for with cash, you need credit. Apply for a loan on a house and the loan company will crawl up your ass with an electron microscope. You need to have low debt/income ratio, and no late payments in the last year+. My wife and I just went through this. It blew, but we got the house. Credit is both a curse and a blessing. Be responsible and you shouldn't have any problems. Link to comment Share on other sites More sharing options...
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