Establishing credit!

[DEDixon 39]

My husband keeps saying me that I should get a car, with a loan, even though I could pay probably it entirely with my savings. He says that if I don't do that, it will take me forever to get a good credit score. On the other hand, I am opposed to paying interests for (almost) nothing. Is he right? If I keep doing it only with my credit card, how long will it take to have good credit? And if I take a loan for a car, how long?

Never really know exactly how long it will take. Please, don't buy a new car....

[Cecile and Bryan 0]

Please, don't buy a new car....

Well, I'll have to buy a new car because mine is pretty much falling apart.

Question is, is the difference in time to build credit score worth taking a loan or not?

[rheanick 42]

Please, don't buy a new car....

Well, I'll have to buy a new car because mine is pretty much falling apart.

Question is, is the difference in time to build credit score worth taking a loan or not?

I would suggest that you weigh the pros and cons.

[kaffy 2]

Question is, is the difference in time to build credit score worth taking a loan or not?

Perhaps someone else with more understanding of this subject here can better educate you on how an installment loan can improve your FICO score but one thing I will say is now is not a bad time to buy a new/used car. A lot of automobile companies are offering some excellent deals on financing (low or no APR). You will need a good existing credit rating to qualify for these type of deals so if your husband can qualify, have him sign as the primary lender and you sign as the co-signer. That way the credit gets reported in both your names while you minimize the amount of interest you have to pay. Also, you probably know this but the more deposit you put down, the less you owe and again the less interest you have to pay.

I too am irked by the idea of paying interest for something you can afford outright in order to build a good credit rating.. but that's just the way this country works!

If I keep doing it only with my credit card, how long will it take to have good credit?

If you aren't in a hurry I can let you know at the end of the year when I check my score (no installment loans or mortgages here, just 2 credit cards which I pay off on a monthly basis)

Edited May 11, 2009 by kaffy

[Cecile and Bryan 0]

Thank you for the advice Kaffy. That co-signing thing is what my husband wants us to do, and yes it is definitely a good time to buy a car considering the current market (and considering the one I have is dying )

This country works in a strange way... credit score, very expensive health insurance, etc. Sometimes I find it a little scary because everything we knew before to come here is just destroyed. My dad used to tell me to NEVER take a loan for a car. Loans are for houses only. Well, not many people think or can do it that way here...

[Hannah+Vito 0]

http://www.ehow.com/how_2108670_build-cred...-immigrant.html

i found this too while googling how to establish credit for new immigrant.

Question, hubby has a fairly good credit score from what i understand is good and he has an amex which is payed off fully every month. Obviously i am currently not working untill i am allowed and i basically have no savings as what little i had has been blown on wedding and for aos. he got a card on his account with my name on it but i think i am just a secondary card holder, if he puts me as a joint account holder instead will this affect his score? i don't want to ruin his credit score if i don't have to.

[Hannah+Vito 0]

http://www.ehow.com/how_2108670_build-cred...-immigrant.html

i found this too while googling how to establish credit for new immigrant.

Question, hubby has a fairly good credit score from what i understand is good and he has an amex which is payed off fully every month. Obviously i am currently not working untill i am allowed and i basically have no savings as what little i had has been blown on wedding and for aos. he got a card on his account with my name on it but i think i am just a secondary card holder, if he puts me as a joint account holder instead will this affect his score? i don't want to ruin his credit score if i don't have to.

never mind hubby explained won't be doing that then.

[MrsCat 6]

Yeah, success story for me today.

On a whim I decided to apply for a BoA Alaska Airlines Visa. I had the same credit card back in Canada and loved the mileage plan. I've only had credit history in the US for 6 months, as I got a Capital One MasterCard in November. I started with $500 limit and after 3 months moved to a $1000 credit limit.

Well I was approved today for my BoA Visa with a $9500 credit limit. Yeah! And the 25,000 bonus miles was a sweet bonus. Almost a free trip home from HI.

[Big Papa Zone 93]

Yeah, success story for me today.

On a whim I decided to apply for a BoA Alaska Airlines Visa. I had the same credit card back in Canada and loved the mileage plan. I've only had credit history in the US for 6 months, as I got a Capital One MasterCard in November. I started with $500 limit and after 3 months moved to a $1000 credit limit.

Well I was approved today for my BoA Visa with a $9500 credit limit. Yeah! And the 25,000 bonus miles was a sweet bonus. Almost a free trip home from HI.

This is exactly what I'll be doing (only with a Northwest/Delta credit card) to get that 25,000 miles.

[DEDixon 39]

Please, don't buy a new car....

Well, I'll have to buy a new car because mine is pretty much falling apart.

Question is, is the difference in time to build credit score worth taking a loan or not?

What I wrote on another post, it isn't original, I read this from a book and it made sense to me:

By the way, it is okay to finance the purchase of a 5 year old car, don't shy away from it. The reason is that starting with the 5th year, cars depreciate at a steady pace of around 3% to 4% a year. Supposing that you get a low interest rate on the used car, paying 7% interest and losing 3% to 4% in depreciation a year is a lot better than the alternative new car purchase. In the case of a new car purchase, you lose 10% per year on average (something like 15% first year, 12% second year, 10% and then 8%) all the while you are also paying payments and tires and higher insurance because the car is new. The worst thing about the new car scenario is that the "new-car-buying-folks," after they've lost the absolutely most they can in the first 4 years, get bored with the car, trade it in and encounter the lose all over again on another car. Imagine what all those lost dollars... car after care after car could be doing for your 401K plan or a savings plan or even family vacations filled with photos and memories that will last forever.

[Cecile and Bryan 0]

Oh sorry DEDixon, when you said "don't buy a new car" I thought you meant "don't buy any car, keep yours"... I didn't realize it meant "please buy a pre-used car, not a new one". Yes it totally makes sense, I do not want something new. 5 years old should do just fine.

[christera22 8]

May be I am asking like a noob, but then i am new in this country and i need help from VJ ers in this matter.

I understand from earlier posts that for a new person who has just got his/her SSN its best to apply for a credit card(capital one), add to car loan/ house mortgage loan, a department store. Now i have some queries . I have listed them below :

i) my wife has a bad credit score . Now wd it be safe for me to join her cards, house mortgage loans ?

ii) Wd these department stores, credit card companies offer me card if i apply with my ssn , even if i dnt have any job ?

iii) what about a credit card from a bank where we hold joint a/cs ? wd they offer card inspite my wif e`s bad credit score ?

iv) something like Bank of America. do i have to open a cheking or saving account with a small amount to apply for thier card ...and do we open it singly in my name or jointly.

All helps wd really be appreciated. Thanks a lot.

[kaffy 2]

get a secured credit card in your own name. many banks offer them, not just capital one

[christera22 8]

Thanks Kaffy. Anyone else with answers to my queries ??

[kaffy 2]

i) not sure about this one

ii) i highly doubt it. I have a permanent full time job and the bank declined my unsecured cc application so i got a secured card through them instead

iii) check with the bank

iv) most banks don't require you to have an existing checking account with them first prior to opening a credit card account. but like I said, i doubt you can get an unsecured card in your own name, and with your wife's poor rating I don't know if she can get one either. Best to start with a secured card