How does one get credit?

[loochy]

you get credit by having lines of credit open. having a larger credit to debt ratio is better.

[R8RFAN]

Originally Posted by loochy

you get credit by having lines of credit open. having a larger credit to debt ratio is better.

So what do I do? Go borrow money I don't need and just pay it back to get credit?

[The Franchise]

Originally Posted by R8ers

So what do I do? Go borrow money I don't need and just pay it back to get credit?

You can....yeah. It can be as simple as taking out a $2000 loan....putting the money into a savings account and then making the monthly payments every month. You'll lose a little money in the interest you pay over the loan....but it will build your credit history.

[R8RFAN]

Originally Posted by Pestilence

You can....yeah. It can be as simple as taking out a $2000 loan....putting the money into a savings account and then making the monthly payments every month. You'll lose a little money in the interest you pay over the loan....but it will build your credit history.

Where should I go? My local bank where I have my money at... I heard once you should never have loans where you bank is there any truth to this?

[loochy]

Originally Posted by R8ers

Where should I go? My local bank where I have my money at... I heard once you should never have loans where you bank is there any truth to this?

Go wherever give you the lowest rate.

[loochy]

Originally Posted by R8ers

So what do I do? Go borrow money I don't need and just pay it back to get credit?

You COULD...but it might be cheaper to just pay the high interest rates for having bad credit.

Open some more high limit credit cards and keep them paid off or something.

Yeah, I know, the way this thing works is absolutely reeruned. If they just looked at your situation they'd see that you can easily pay off whatever...

[JohnnyHammersticks]

Originally Posted by loochy

you get credit by having lines of credit open. having a larger credit to debt ratio is better.

Actually, this is 100% false. The higher your credit usage is--i.e., ratio of credit used to credit available--the lower your credit score is. If you have $50,000 in available credit and have a revolving balance of around $25K, you're going to get dinged pretty hard for having 50% credit usage. The lower your credit usage ratio is, the higher your credit score.

Sounds like the original poster is getting screwed. I underwrote residential and commercial loans for years, and if the scenario the OP laid out is accurate, his FICO should be in the high 700's to low 800's. I would recommend ordering a full tri-merge credit report which shows all 3 scores. Maybe one of the 3 credit bureaus--Experian, Equifax, or TransUnion--has erroneous info. Make sure to look at all pages of the credit report, including the Public Records section, which shows any past or outstanding liens and/or judgements.

Unfortunately the credit bureaus intentionally make it almost impossible to contact them and review things that may be impacting your credit score negatively. Just another in a long line of banking/finance-related scams that Wall Street and its minions use to screw the average hard-working person.

[loochy]

Originally Posted by JohnnyHammersticks

Actually, this is 100% false. The higher your credit usage is--i.e., ratio of credit used to credit available--the lower your credit score is. If you have $50,000 in available credit and have a revolving balance of around $25K, you're going to get dinged pretty hard for having 50% credit usage. The lower your credit usage ratio is, the higher your credit score.

Sounds like the original poster is getting screwed. I underwrote residential and commercial loans for years, and if the scenario the OP laid out is accurate, his FICO should be in the high 700's to low 800's. I would recommend ordering a full tri-merge credit report which shows all 3 scores. Maybe one of the 3 credit bureaus--Experian, Equifax, or TransUnion--has erroneous info. Make sure to look at all pages of the credit report, including the Public Records section, which shows any past or outstanding liens and/or judgements.

Unfortunately the credit bureaus intentionally make it almost impossible to contact them and review things that may be impacting your credit score negatively. Just another in a long line of banking/finance-related scams that Wall Street and its minions use to screw the average hard-working person.

Wait what?

Having 100k credit limit and only using 1k is worse than having 100k credit limit and using 75k?

[ThaVirus]

Originally Posted by loochy

Wait what?



Having 100k credit limit and only using 1k is worse than having 100k credit limit and using 75k?

I read it as the opposite..

[lewdog]

Originally Posted by loochy

Wait what?

Having 100k credit limit and only using 1k is worse than having 100k credit limit and using 75k?

No he said it right but you have it backwards in your mind. 100k with 1k used results in higher credit score than the other option. You want to use the least percentage of your available credit. Those who use near all their available credit have crappy scores.

[loochy]

Originally Posted by lewdog

No he said it right but you have it backwards in your mind. 100k with 1k used results in higher credit score than the other option. You want to use the least percentage of your available credit. Those who use near all their available credit have crappy scores.

Thats what i said in the very first post he commented on but he told me i was 100% wrong

high credit to debt ratio

credit 100000000000 debt 5 = high credit to debt ratio

I did NOT say high debt to credit ratio

[JohnnyHammersticks]

Originally Posted by loochy

Wait what?

Having 100k credit limit and only using 1k is worse than having 100k credit limit and using 75k?

Sorry!! You were 100% correct, not false. I misread your post as if you were saying the opposite. We're in total agreement. My bad.

[loochy]

Originally Posted by JohnnyHammersticks

Sorry!! You were 100% correct, not false. I misread your post as if you were saying the opposite. We're in total agreement. My bad.

Ha ha ok. You had me really confused... I was like "WTF man, why would they want you to use up all of your credit?