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  #16  
Old 06-09-2011, 10:20 AM
btm757 btm757 is offline
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Default Re: anyone know anything about loans?

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Originally Posted by knightmare1015 View Post
They told you a little bit wrong my friend. Yeah it can improve your credit as long as you show activity. But if you pay it off and don't use it again, it can harm your credit as well. It's really a two way street. Also don't apply for too many credit cards because each and every time your credit is checked it lowers your credit score with every credit reporting agency. Just be carefull and reasonable and you'll be ok.
I know that... Instead of using my debt card use the credit card just like I would use the debt card and pay it off when the bill comes or pay it off each week. Currently I dont have any credit cards. I dont really want one but I need to get a unsecured line of credit so that I keep my credit good enough to purchase a house in the next couple years
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  #17  
Old 06-09-2011, 10:42 AM
dixie_boysles dixie_boysles is offline
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Default Re: anyone know anything about loans?

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Originally Posted by btm757 View Post
I was able to get a $2800 loan with no collateral and no co-signer from my bank (credit union) this was when I was 18 and had no credit yet. im now 21 and have almost a 800 credit score with no credit cards. Im told I can get my score higher if I got a credit card and used it but paid it off when the bill came
Quote:
Originally Posted by knightmare1015 View Post
They told you a little bit wrong my friend. Yeah it can improve your credit as long as you show activity. But if you pay it off and don't use it again, it can harm your credit as well. It's really a two way street. Also don't apply for too many credit cards because each and every time your credit is checked it lowers your credit score with every credit reporting agency. Just be carefull and reasonable and you'll be ok.
yeah ben, paying it off DOES help BUT keeping a balance is even better. keep you balance around 25% of total credit. Of course you are paying interest, but it really helps your credit score ALOT. i cant say that my credit score is that high, but im definitely learning from my mistakes. When you do this, you are establishing payment history.

Also, NEVER cancel a card. your score takes a hit then too. just keep it even if you dont use it again. or go charge something on it every once in a while to keep it "active".

keep your debt to income ratio down as well. too much credit is not good. Try to stay below like 41% (you can buy a house with this debt to income ratio). basically this ratio is the ratio of how much you are paying out each month to how much you are bringing in each month.

Taking out bigeger loans and paying them off is good as well. If you have had a few bigger loans that you have paid for, banks and other institutions are more than lkely to lend you money. And like Ben said, having a major credit card (VISA, MC, etc) helps your score as well.

I need to take my own advice. i currently dont have a credit card but i do need to get one. I have learned alot about credit over the course of buying our new house. Trust me, ANY late payments you have, when you ever want to buy a house or car, you will have to explain them. They really hurt. even if its just a $15 payment at walmart or lowes or something.
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Last edited by dixie_boysles; 06-09-2011 at 10:44 AM.
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  #18  
Old 06-09-2011, 10:53 AM
knightmare1015 knightmare1015 is offline
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Default Re: anyone know anything about loans?

Quote:
Originally Posted by dixie_boysles View Post
yeah ben, paying it off DOES help BUT keeping a balance is even better. keep you balance around 25% of total credit. Of course you are paying interest, but it really helps your credit score ALOT. i cant say that my credit score is that high, but im definitely learning from my mistakes. When you do this, you are establishing payment history.

Also, NEVER cancel a card. your score takes a hit then too. just keep it even if you dont use it again. or go charge something on it every once in a while to keep it "active".

keep your debt to income ratio down as well. too much credit is not good. Try to stay below like 41% (you can buy a house with this debt to income ratio). basically this ratio is the ratio of how much you are paying out each month to how much you are bringing in each month.

Taking out bigeger loans and paying them off is good as well. If you have had a few bigger loans that you have paid for, banks and other institutions are more than lkely to lend you money. And like Ben said, having a major credit card (VISA, MC, etc) helps your score as well.

I need to take my own advice. i currently dont have a credit card but i do need to get one. I have learned alot about credit over the course of buying our new house. Trust me, ANY late payments you have, when you ever want to buy a house or car, you will have to explain them. They really hurt. even if its just a $15 payment at walmart or lowes or something.
That's good advice right there Scott, plus it would be a really good idea to keep your utility bills up to date as well. Financial institutions also look at this for some reason or another. Most people make the mistake of living beyond their means and rely too much on credit. Then all of a sudden something happens, and they can't make the nessecary payments due to either a job loss, an illness, divorces, etc. That's when things usually get ugly to say the least and when it comes time for them to get a loan they desperately need, they can't get one. That's how credit usually backfires. It did me back in 2001. I eventually paid off everything, but it still is hard to get a loan when I need it. Now adays my policy is this, If I don't need it and don't have the money, I don't buy it.
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  #19  
Old 06-13-2011, 03:21 AM
dvrich dvrich is offline
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Default Re: anyone know anything about loans?

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Originally Posted by BlackBy4 View Post
Your best bet is to go into a credit union to get a loan. They're more willing to take on the risk.
Also, paying off your credit card completely every month isn't always a good thing. The best way to build credit fast is to maintain a balance of LESS than 50% of your total credit limit. So if you have $1000 limit, keep it around 3-400. Use it every month, and pay off the previous balance every month, but this will show that you are actually responsible with your credit card, and living within your means.
Credit is a hard thing to understand. I know a decent amount, but not everything. Also, I don't want to overrun this thread. If you want more advice, shoot me a PM>

Credit unions are very conservative on handing out loans, whoever told you they would be more willing to take risks is clueless.
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