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Thumbnuts

Starting from a credit score of ZERO.

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Hello Everyone,

 

I have been living a debt free lifestyle for just over 8 years now. My situation was never as bad as some, but it sure felt that way in '08/'09. I was pretty mad at my situation back then and vowed to never make the same mistakes again. I intend on making all new ones :) One mistake was, I didn't try to build credit or at least maintain what I already had. When I paid off an account or card, I closed the card and didn't open any new ones.

 

The oldest item on my credit report is a vehicle loan that closed on 4/12. There is a few late payments on that loan, but that was 5.8 years ago.

 

In Oct 2016 I decided that it was time to start building credit again. I foolishly applied for a Chase card and was denied because of a lack of credit history. That's about the time I got back on here and started researching again. Now I don't post much because I hate talking about myself. I figure there might be someone in the same situation as me and this might help them too. I know I appreciate all the advise here when it was given to someone else, so why not. After being denied I sent for my free reports, signed up with Credit Check Total and cleaned up a couple very minor flaws.

 

In June 2017 I applied for a secured installment loan at my local bank. I also went to my local credit union, opened a new account and got a secured credit card for $500. My local bank didn't have any good options for credit cards. I have been making my payments on time and have been trying to keep my utilization under 30% on the CC. One time I let it get to 94% because I was buying gas on a road trip with it. I paid it off, but it did report that high limit one month.

 

I've been watching my score climb and I'm thankful that I don't need to fight a bunch of negative marks on my reports. Basically I feel like a teenager that is just starting out.

 

My scores as of 11/24/17 are Exp 727 Equ 719 TU 716, according to Credit Check Total.

 

I figured it would be a good time to purchase a decent used car. I applied for a loan at my credit union on 11/28/17, and was denied, because of limited history. My Equ score when my report was pulled was 752. That was a little surprising considering what CCT was reporting. I was a little upset, and started thinking about paying cash again for the next vehicle. I'll be able to save enough in two or three months if I wanted to do so. After sleeping on it I decided to stay on track with this rebuilding process. I have to, if I want to build that new house next summer right? I called the loan officer and asked him if he could use yesterdays report to apply for an unsecured credit card. A hard pull at this stage in the game hurts more than a little bit, especially if denied. He said I had instant approval for $2000. I was also reminded to give it a couple more months and re-apply for an auto loan.

 

Hard pulls

Right now there are 4 showing on Equ, 1 showing on TU, and 1 showing on Exp.

 

Accounts showing

Installment loan for $5k closed in '09 Zero lates

Auto loan for $10k closed in 2012. A few late payments. 60 month loan PIF in 48 months.

CC from local CU $500 limit soon to be $2000. Current balance $234. December payment is already paid.

Secured installment loan from local bank $500. Paid on time every month. 12 month loan

 

Bankruptcy or Court judgements

None, Zero, Never

 

 

What is my next move?

Dealer financing at a larger dealer to get reliable transportation?

Wait a couple months for a little bit more history, before applying again for an auto loan?

Apply for another CC? I am a member of NFCU, and I only have $200 in savings. I can start using that account more and open a checking account with them.

Apply for a Menards card? I plan on getting one anyway and using it. Where does it fit into my next move?

Something else?

 

 

 

 

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Immediate advice - ignore proprietary cards for the time being. Pay off remaining balances and get a checking account with NFCU. Get a secured card from a large bank such as BofA, Chase, etc.
Longer term? Get an auto loan.

Others will be along shortly with in-depth advice.

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Technically 0 is not possible FYI. Having no score is possible.

 

Congrats on your progress so far!

 

NFCU CC and auto loan are probably your next steps.

 

Dont confuse using CCs with being in debt. Dave Ramsey is wrong. Many of us never pay a penny of interest.

 

Immediate advice - ignore proprietary cards for the time being. Pay off remaining balances and get a checking account with NFCU. Get a secured card from a large bank such as BofA, Chase, etc.

Longer term? Get an auto loan.

 

Others will be along shortly with in-depth advice.

 

A secured (or even unaecured) card from NFCU is a better move IMO.

Edited by mendelssohn

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Thank You-

 

No score showed up on my report from my local bank as a zero.

 

I am not confusing using CC's with anything Dave Ramsey is trying to teach. I don't really pay any attention to that guy. I have been living a debt free lifestyle because of my own stubbornness. When I ran into trouble back in '08/'09, I decided there has to be a better way, and I vowed to never get into that much debt again. I have borrowed money since then and I've bought and paid for property, but they were personal loans from family and the land that was paid off this spring was on a contract for deed.

 

Now that I've learned how the credit game is played, thanks to this site, I'm sure I can win.

 

I'll try again on an auto loan, and after I do that, I'll get an NFCU CC.

 

What are your thoughts on getting an auto loan with a higher interest rate now, and then refinancing it with my local CU after a few more months pass?

Edited by Thumbnuts

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I wouldn't get an auto loan just for the trade line.

 

I would recommend charting a path to five quality major credit cards (V/MC/AE).

 

Also, don't sweat the inquiries.

 

Your post shows that you've done a lot of reading and you've absorbed a lot while lurking. Nice job, and it's nice to have you posting. :wave:

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I wouldn't get an auto loan just for the trade line.

 

I would recommend charting a path to five quality major credit cards (V/MC/AE).

 

Also, don't sweat the inquiries.

 

Your post shows that you've done a lot of reading and you've absorbed a lot while lurking. Nice job, and it's nice to have you posting. :wave:

A newer vehicle is more important than the trade line. DW is in need and we are fighting a couple JDB's on her report. Figured I might as well utilize the trade line on mine while were at it.

 

Any recommendations on 3 quality CC's, or a thread discussing them? I'll apply for the NFCU, and I'm happy with my Visa from Spire Credit Union. I preapprove for a Discover card, but I'm not going to do that, because of what i've read here. I tried to get pre-approved with Cap1, and they didn't have any suggestions for me.

 

I'll admit I have been worried about inquiries. Should I apply for a few cards all at once or spread them out a little. I'm not going to try for a Chase card at this point, so i'm not worried about the 5/24 rule.

 

I have done a lot of reading, but I've still got a lot to learn. Thanks to people like you, and this site, I know where to find the answers. I'm on a roll posting tonight that's for sure

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I wouldn't get an auto loan just for the trade line.

 

I would recommend charting a path to five quality major credit cards (V/MC/AE).

 

Also, don't sweat the inquiries.

 

Your post shows that you've done a lot of reading and you've absorbed a lot while lurking. Nice job, and it's nice to have you posting. :wave:

A newer vehicle is more important than the trade line. DW is in need and we are fighting a couple JDB's on her report. Figured I might as well utilize the trade line on mine while were at it.

 

Any recommendations on 3 quality CC's, or a thread discussing them? I'll apply for the NFCU, and I'm happy with my Visa from Spire Credit Union. I preapprove for a Discover card, but I'm not going to do that, because of what i've read here. I tried to get pre-approved with Cap1, and they didn't have any suggestions for me.

 

I'll admit I have been worried about inquiries. Should I apply for a few cards all at once or spread them out a little. I'm not going to try for a Chase card at this point, so i'm not worried about the 5/24 rule.

 

I have done a lot of reading, but I've still got a lot to learn. Thanks to people like you, and this site, I know where to find the answers. I'm on a roll posting tonight that's for sure

 

 

You are likely to get a Capital One Card, and that's not a bad place to start.

 

I agree on the secured card recommendations as well. A Capital One plus a new secured card plus the two you have gets you to four.

 

Once those report for a few months, pick up number five.

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You are likely to get a Capital One Card, and that's not a bad place to start.

 

I agree on the secured card recommendations as well. A Capital One plus a new secured card plus the two you have gets you to four.

 

Once those report for a few months, pick up number five.

 

That sounds like a good plan. Thank You

 

I'll go to my Credit Union tomorrow to sign the application. As soon as I get back I'll apply for a Cap1 card. I'll go for the NFCU next payday. I want to have more money deposited there, in case they want to go secured.

 

For the record. I am not a veteran. My dad is a retired Marine Corps Vietnam Veteran and not a member of NFCU. I have a copy of his DD214, NFCU has not asked for it yet.

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You are likely to get a Capital One Card, and that's not a bad place to start.

 

I agree on the secured card recommendations as well. A Capital One plus a new secured card plus the two you have gets you to four.

 

Once those report for a few months, pick up number five.

 

That sounds like a good plan. Thank You

 

I'll go to my Credit Union tomorrow to sign the application. As soon as I get back I'll apply for a Cap1 card. I'll go for the NFCU next payday. I want to have more money deposited there, in case they want to go secured.

 

For the record. I am not a veteran. My dad is a retired Marine Corps Vietnam Veteran and not a member of NFCU. I have a copy of his DD214, NFCU has not asked for it yet.

 

 

:good:

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Local Credit Union unsecured my card today and gave me a $2000 CL. It will take Visa a day or two to update my new limit.

Applied for a CAP1 card and was approved for a $500 limit. lol. I'll make this one my fuel card and PIF every month. I'll ask for a higher limit in a few months.

 

I'm somebody now.

Edited by Thumbnuts

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Update time.

 

My scores are currently lower than when I started this thread. I will check my scores at CCT in a week after everything reports with new balances. A few months ago I purchased a new car for my DW. Then due to an unexpected business re-location I let my two cards climb up to 95% utilization. I've been making 100% of my payments on time. No worries there. My two cards are a Spire CU card with a $2000 limit and a Cap1 card with a $3500 limit.

 

Last week I took advantage of the balance transfer offer from NFCU, and was instantly approved for a $15k CL, on a cash rewards card. I was a little surprised. That'll bring my utilization down to around 25%. I should have the balance paid off in a couple months now that my business is up and running again.

 

My current plan.

Refinance the new car at a better rate with my local CU in one more month. I financed through Ford credit when I bought it to take advantage of a rebate.

Pay down the 5k on the NFCU CC within a couple months time.

Sock drawer the Cap1 card, right after I get a CLI.

Keep making my payments 100% on time.

This summer, apply for a loan to build a new detached garage.

After I get the garage loan I might add a couple more CC's. I'll be reading here to research which ones I should apply for. I'd love to hear some suggestions.

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On 11/28/2017 at 3:20 PM, Thumbnuts said:

Hello Everyone,

 

I have been living a debt free lifestyle for just over 8 years now. My situation was never as bad as some, but it sure felt that way in '08/'09. I was pretty mad at my situation back then and vowed to never make the same mistakes again. I intend on making all new ones :) One mistake was, I didn't try to build credit or at least maintain what I already had. When I paid off an account or card, I closed the card and didn't open any new ones.

 

The oldest item on my credit report is a vehicle loan that closed on 4/12. There is a few late payments on that loan, but that was 5.8 years ago.

 

In Oct 2016 I decided that it was time to start building credit again. I foolishly applied for a Chase card and was denied because of a lack of credit history. That's about the time I got back on here and started researching again. Now I don't post much because I hate talking about myself. I figure there might be someone in the same situation as me and this might help them too. I know I appreciate all the advise here when it was given to someone else, so why not. After being denied I sent for my free reports, signed up with Credit Check Total and cleaned up a couple very minor flaws.

 

In June 2017 I applied for a secured installment loan at my local bank. I also went to my local credit union, opened a new account and got a secured credit card for $500. My local bank didn't have any good options for credit cards. I have been making my payments on time and have been trying to keep my utilization under 30% on the CC. One time I let it get to 94% because I was buying gas on a road trip with it. I paid it off, but it did report that high limit one month.

 

I've been watching my score climb and I'm thankful that I don't need to fight a bunch of negative marks on my reports. Basically I feel like a teenager that is just starting out.

 

My scores as of 11/24/17 are Exp 727 Equ 719 TU 716, according to Credit Check Total.

 

I figured it would be a good time to purchase a decent used car. I applied for a loan at my credit union on 11/28/17, and was denied, because of limited history. My Equ score when my report was pulled was 752. That was a little surprising considering what CCT was reporting. I was a little upset, and started thinking about paying cash again for the next vehicle. I'll be able to save enough in two or three months if I wanted to do so. After sleeping on it I decided to stay on track with this rebuilding process. I have to, if I want to build that new house next summer right? I called the loan officer and asked him if he could use yesterdays report to apply for an unsecured credit card. A hard pull at this stage in the game hurts more than a little bit, especially if denied. He said I had instant approval for $2000. I was also reminded to give it a couple more months and re-apply for an auto loan.

 

Hard pulls

Right now there are 4 showing on Equ, 1 showing on TU, and 1 showing on Exp.

 

Accounts showing

Installment loan for $5k closed in '09 Zero lates

Auto loan for $10k closed in 2012. A few late payments. 60 month loan PIF in 48 months.

CC from local CU $500 limit soon to be $2000. Current balance $234. December payment is already paid.

Secured installment loan from local bank $500. Paid on time every month. 12 month loan

 

Bankruptcy or Court judgements

None, Zero, Never

 

 

What is my next move?

Dealer financing at a larger dealer to get reliable transportation?

Wait a couple months for a little bit more history, before applying again for an auto loan?

Apply for another CC? I am a member of NFCU, and I only have $200 in savings. I can start using that account more and open a checking account with them.

Apply for a Menards card? I plan on getting one anyway and using it. Where does it fit into my next move?

Something else?

 

 

 

 

FINALLY!! Someone who (started in) the same position as I am in now! We are rare creatures. 😳. I've been coming through hundreds of posts trying to find someone with a similar score- NO score- so that I can learn something that may fit my situation. Wow, sorry was just so excited. Anyways, good luck with the auto loan, I'll keep tabs on your progress. Thanks for posting! 😁

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13 hours ago, ccprof said:

FINALLY!! Someone who (started in) the same position as I am in now! We are rare creatures. 😳. I've been coming through hundreds of posts trying to find someone with a similar score- NO score- so that I can learn something that may fit my situation. Wow, sorry was just so excited. Anyways, good luck with the auto loan, I'll keep tabs on your progress. Thanks for posting! 😁

I wouldn't say I'm a rare one. Like many people here, I learned the hard way. My first line above said that '08/09 were bad for me. Honestly I got my ass handed to me. I then went into stubborn FU mode for several years as I paid stuff off and closed accounts. I really strive to do the right thing, so walking away from my debt wasn't really an option. There was one company that didn't get a dime, but that had more to do with their attitude when I was trying to negotiate with them.

 

I do have a very good friend that had never had a loan in his life. He bought a house in under a year, from when he got his first secured card. When he got his first hard pull done they couldn't find any information on him.

 

I'm glad in a way that I went through this. I have been teaching my kids everything that my parents couldn't teach me. Hopefully they listen.

 

One thing that I learned in the beginning of my rebuild is that a score of 720 didn't mean much, because my AAOA (history) was so low that I still couldn't get a loan.

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1.5 year ago my bf also had no credit. He did have a file because he’d let Target do a hard pull at some point, probably for their check card that they always push at the register. But he’d never had any credit whatsoever. So, when I got my secured card at that time, I added him as AU, had him do the secured loan trick at a local credit union, and in a few months he was able to get his own Cap1 card with 1k limit. As I’ve gotten more cards I add him as AU. He also got an Amex of his own with 1k limit. And yes, he also adds me as AU on his cards as we are both building.

 

After about a year he needed to replace his vehicle which he had bought with cash. We did a joint loan with him as the primary thru GM. 

 

He knew nothing about credit and I just push him to do what I’ve learned from these boards and other places. Get some tradelines, pay the bills, keep utilization low, etc. He doesn’t really like having credit still and doesn’t want to take another card even though Citi has sent him two prequalified offers now. Lol 

 

He understands that credit will be necessary to do the things we want to do. He’s just not on board with the notion of building up lots of available credit yet. I can’t say I blame him, since it took me a long time to realize the benefit of that. 

 

On the car loan: it’s a used car so not a high loan amount. I’d like to refinance it now that it’s been a few months, for lower interest. He would rather pay it off around the 1 year mark. Again, he doesn’t like credit. I’m wondering how this will affect the credit reports. 

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