Whats a good credit card for a low credit score and immediate approval?
I want to build my credit back up after paying off all of my old debt but I am not educated much about credit cards and a good finance rate. I want about a 1000 dollar credit limit to help with a few things I've been in need of.
If anyone could help me out with any experience they may have, I'd appreciate it.
Originally Posted by MR.EM1
Bump! I'd like to find out too
dont get one....
credit cards dont do shit for you but lower your credit limit....
why are you so concerned about good credit????? so you can go into debt..... smart.
get a good job..... if your if you have a good downpayment, income to debt ratio is good you can buy a house.... what more do you need credit for.
if you want to build credit finance a cheap car..... pay it almost all the way off.... and a year later make the final payment.....
youd have pretty much perfect credit at that point... especially if its with your primary bank.
capital one will give anyone a credit card.....they report monthly
They start with low limits though
so do most with no credit history..... get a credit one or capital one.....
save up 500 bux..... pay the money on the card and you have a grand credit.....
reports stable credit at 1000 bux...... dont use it much.... but it will only hurt your score....
what people dont realise is someone with NO CREDIT and a good job will get a house at a better rate than someone with GOOD credit..... and an ok job... like manager at hardees.....
or a person with bad credit... with NO DEBT.... with BIG INCOME.... DOWNPAYMENT and SECURE JOB
just saying dont go into debt just to go into debt more
if you own a house or property..... im guessing not many of you guys do...... credit is kinda..... like a bad memory......
credit is debt AND debt is bad..
not the information I was looking for...
I understand credit cards bring more debt, since i have just come out of that debt, I want to try to fix that shitty credit score with a new line of credit.
I cant finance a car because of my credit. I cant be approved for a new phone service, get much of anything because of my credit background. I have now a great job and i'm financially stable enough that I can handle a credit card.
I got my first one through bank of america when i was barely 18 and wanted to buy a bunch of shit and never pay it off..
Now, I need some information about some credit cards people have dealt with and are obtainable for someone with lower than average credit.
credit is like any motor or swap. Everyone has a different opinion on its usefulness so to speak. The following is based on my experience.
First off credit cards have never lowered my score. they say you shouldnt carry more than about 25% debt vs available credit. Meaning if you have 1000 dollar card never carry more than 250 for more than one month. A good income with bad credit isnt gonna get you crap. At the end of the day the creditor still wants their money they dont care that you have the ability to pay it they want to see that you will pay it. Good credit makes all the difference one half of a percent on a 30 year mortgage can equal 15000 dollars or more in some instances.
if you want a card save up 500 bucks and get a secured card and only put gas on it then pay it in full everytime the bill comes. youll see a difference within 6 months. Granted your interest rate will be well over 20% but that has alot to do with the economy. right now alot of creditors are only lending money to people that really dont need it.
Example: my parents make well over 250K a year and best buy gave them a credit limit of over 5 grand with 24 months no interest. when my dad got his new tv it came out to less than 19 dollars a month for 24 months simply because of no interest. This just shows you that good credit can get you far. granted with his income he could buy the TV cash but now he doesnt need to because with no interest its the same as if he did pay cash.
I started off with a secured card and ive never made over 25k a year and i have a credit score of 690 never once have i had a co-signer. I just pay bills as they come and watch what i spend.
one other quick note is always get your free scores every year to check for mistakes. Youll have to call all three credit bureaus and ask to have it sent but they have to give you a free report every year by law. Especially if your like me and are a Jr. Ive gotten my reports before and saw where i was 19 and making 2000 month house payments because they made a mistake.
hope this helps
thats not all true bro. If you have no credit and money. you will not be able to get a house. cmon man thats why the housing market took a dump. it coming back alive tho. credit is everything. unless you have shit tons of money than you can just buy with cash. But if you have 620 or below its gonna be real hard to get anything. nowadays lenders are tighten up!! Believe me dude im a mortgage broker
do some research? are you in school? maybe you can get a student credit card. having lines of credit with 0 balance will boost your credit. if you have debt you need to pay them off or make it look like your paying on it.
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
this guy knows what up. but i dont like those secure credit cards. See wit me the rate doesnt matter because i always pay my credit card bill in full! Also people need to realize when you use a credit your are spending money you dont have so make sure you get the money to pay it off!
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
Just be careful and read the fine print with whatever credit card you do try and get.. A lot will give you a card but have a high annual fee or interest rate..
And to answer mortgage questions.. People under 620 score can get a mortgage but it's going to be a federal insured loan so you're going to pay a premium every month to get the mortgage with a low credit score.. Anything over 700 is pretty good to get into the lowest interest rates available.. Down payment really isn't a deciding factor to get a loan, just because you put half the value of the house down up front doesn't mean that you're going to be guaranteed a loan.. (it does help of course)...
I think the best option to try and build credit is to get a secured credit card though a reputable bank.. for one thing the credit limit never increases so if you're someone that tends to spend freely then this helps regulate that.. I have one for 500.00 that I used to build my credit over the last 2 years that I've lived in the U.S. and it really was only about 6 months after I had that card that I got my first car loan and then a house.. just make sure you use it and pay it off right away..
ooh and to the OP i forgot to mention check out Dave Ramsey hes pretty smart now when it comes to money.I say now because at one time he and his wife had a combined net worth of a couple million, lost it all and filed for bankruptcy and then wrote books on debt and how to get out. I read a couple of his books and it got me to where im at now.
thats what my dad always taught me. He said if you cant get out your debit card you dont need to get out your credit card. but it only applies to accessiories not necessities.
yup. it common sense to me
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
Yep agree with other's. Get a credit card, even if its a capital one with a $500 limit, get it, and cut it up. Have a open revolving account, but never spend on it, past there pay everything with cash.
yup
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
well to add a bit. you need to build a credit history. someway some how. cell phone plans, monthly bills etc help. a credit card can help if your smart.
what i did to build my credit score. i had a credit card, i spent only gas on it. paid of about 95% of it each month, and let the other 5% build. The way it was told to me, by people working at equifax, you dont want to pay it off in full each month but also not make minimum payments all the time. by having a little balance left, i did that but also didnt get alot of interest added on top.
Even still, until you make a major purchase, or borrow a large amount and repeatedly make good payments on those, you will have a credit score, but no history of major purchases. Aka when i picked up my car back a bit ago, i had a 783 credit score, but never having a car, house, loan under me, i was not able to still secure the top line finance rate. From anyplace i checked which was alot. Of course if i had a job that paid really well it wouldnt have mattered, but if your asking about this, i assume that you don't.
So again, a credit card can help raise your score, but unless its something major you add to your history, it won't help with something like a house or car down the road (as much).
actually you are wrong..... but thats ok....
if youve had a stable job for over a year.... a good downpayment.... and good income with no debt YOU WILL GET A HOUSE>>>>>>with no credit
most people do not know this.....
in fact there are plenty of people that get turned down with perfect credit....... because they have no verifiable income and they make over 6 figures a year/......
my best friend is a loan writer for WACHOVIA wich is now wells fargo/
I have friends who make well over 6 figures and have applied for housing loans a few years back when the market was booming and couldnt get financed simply because of lack of credit history. They wanna see on paper that you can re pay the debt. They dont care if you make millions if you cant keep track of a 500 limit card you definitely cant handle a 150k dollar house.
You have to look at it from the lenders stand point. If you wanted me to loan you 150k for a house but said i have no credit history i wouldnt approve you unless you had a substantial down payment. Even with no debt that just means youve yet to enter the credit market. Meaning you dont know how hard it is to stay on track. And you may handle it well and pay me back but its highly unlikely. Its just to big of a first step.
Now if you had good credit with years of stable credit history id approve you without thinking twice simply because youll do whatever you have to do to make the payment and im more likely to get my money back.
No offense but saying your friend is a loan writer for wachovia isnt saying much. They helped get the market where its at. why do you think they got bought out.
Sorry dude but your wrong. back in days sure this could so happen. anyone that had a beating heart could get a loan. now KEY WORD BEING NOW that shit will not fly. Im in the business your not. I try to find programs all day for clients inneed of homes. if your credit is below 620 good luck finding a lender. Im telling you lenders have tighten up things man. if you do happen to find a lender that will overlook credit hmmm expect one high ass interest rate. IM SURE YOUR BOY AT WACHOVIA IS NOT APPROVING PEOPLE WITH BELOW 620 CREDIT SCORE BRO ITS NOT GONNA HAPPEN
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
get a gas card
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
f youve had a stable job for over a year.... a good downpayment.... and good income with no debt YOU WILL GET A HOUSE>>>>>>with no credit
that doesnt even make sense?? if you have good income and no debt you have grade A credit
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
There is some good advice, bad advice and outright wrong advice in this thread. I'm not going to pick through all of it though, no sense in arguing.
First, the outright wrong. Cell phone bills and your monthly utilities, etc DO NOT build credit. They are not loans, no one is extending you credit. They only effect your credit if you do not pay them.
The minimum credit score for an FHA loan is 620. No way around it, 620.
I don't know much about subprime mortgages though, they may loan to people in the 500's but you are going to pay for it big time. They may not even do this anymore though since the housing crash. I don't know, I own two houses but I've certainly never shopped for a subprime loan.
I worked in auto finance for years and saw people turned down all the time because of insufficient or bad credit history. I had to tell a guy with $105K a year income to get a cosigner for a $25K car because his score was in the low 500's. (I still work in finance but not consumer based)
As for the actual purpose of this thread... get a credit card. Look around for one with no or very low annual fees. Try to avoid paying them if possible. You can find cards that are geared towards building credit. Yes, the limit will be low but it matters more how you use it and manage it than how much credit you have for now. If you get a card with a $500 limit, keep the balance around $100, buy a little something each month and then pay it back down to $100. This establishes regular, on time payments and shows you can carry a card but not use it much. Also, once you establish credit and your limits rise, be careful. Always think before you buy something. Make sure it's worth paying for plus a little interest.
Good luck
2005 Mazdaspeed MX-5 -1.8L Turbo
There is some good advice, bad advice and outright wrong advice in this thread. I'm not going to pick through all of it though, no sense in arguing.
First, the outright wrong. Cell phone bills and your monthly utilities, etc DO NOT build credit. They are not loans, no one is extending you credit. They only effect your credit if you do not pay them.
The minimum credit score for an FHA loan is 620. No way around it, 620.
I don't know much about subprime mortgages though, they may loan to people in the 500's but you are going to pay for it big time. They may not even do this anymore though since the housing crash. I don't know, I own two houses but I've certainly never shopped for a subprime loan.
I worked in auto finance for years and saw people turned down all the time because of insufficient or bad credit history. I had to tell a guy with $105K a year income to get a cosigner for a $25K car because his score was in the low 500's. (I still work in finance but not consumer based)
As for the actual purpose of this thread... get a credit card. Look around for one with no or very low annual fees. Try to avoid paying them if possible. You can find cards that are geared towards building credit. Yes, the limit will be low but it matters more how you use it and manage it than how much credit you have for now. If you get a card with a $500 limit, keep the balance around $100, buy a little something each month and then pay it back down to $100. This establishes regular, on time payments and shows you can carry a card but not use it much. Also, once you establish credit and your limits rise, be careful. Always think before you buy something. Make sure it's worth paying for plus a little interest.
Good luck
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
thanks for the housing loan information.. Im not ready to buy a house just yet. Maybe in a few years when I'm settled into my military job. I think I will go with the capital one card or a gas card and keep that..
if there is any more information anyone could bring forward, i'd accept it.
gas card.. remember using a credit card means you are using money that you don't have. make sure you get the money to pay it off in full! 0 balance is key
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
i make enough money.
i dont need it for gas though.. would like a way to finance my engine rebuild.
engine rebuilding is not a good thing to refinance. you need to save up cash for that. so ur telling me that you want a credit card so you can pay for ur engine rebuild?
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
so i should get a gas card to maintain a good credit line and then later on i can get a normal car?
well at 270k miles on my b16, i'd like to start collecting the parts for when i do decide to start my rebuild.
If this is a bad idea let me know.
yes get a gas card or open up some type of credit card to establish credit or to boost your credit. using a credit card to pay for your rebuild stuff is a bad idea if you cant pay it off. and if you do minimum payment on it interest will start building and than u will be like WTF im paying my credit card and the balance isn't going down. ok i suggest with your money you start collecting parts for the rebuild one by one. do you plan on doin this rebuild yourself? or want someone else to do it. I just dont want you to get a credit card and fund your project with it and cant pay the credit off and damage your credit even more. NO CREDIT IS BETTER THAN DAMAGE CREDIT
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
i can pay it off.. i decent money. after all my bills are paid i still have around 1000 dollars expendable income.
but with my prior credit experience, i'll take your experience to mind and stick to this advice you all have given me.
good for u! i got a b16 engine for sale lol 450bux:boobies:
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
Jenn, I hate to tell you this but you are completely wrong when it comes to FHA loans.. The POINT of a FHA loan is to give it to people who don't have a credit score high enough for a conventional mortgage. I respect that you have had a history of auto loan issuance but I know what I'm talking about when it comes to mortgages..There is some good advice, bad advice and outright wrong advice in this thread. I'm not going to pick through all of it though, no sense in arguing.
First, the outright wrong. Cell phone bills and your monthly utilities, etc DO NOT build credit. They are not loans, no one is extending you credit. They only effect your credit if you do not pay them.
The minimum credit score for an FHA loan is 620. No way around it, 620.
I don't know much about subprime mortgages though, they may loan to people in the 500's but you are going to pay for it big time. They may not even do this anymore though since the housing crash. I don't know, I own two houses but I've certainly never shopped for a subprime loan.
I worked in auto finance for years and saw people turned down all the time because of insufficient or bad credit history. I had to tell a guy with $105K a year income to get a cosigner for a $25K car because his score was in the low 500's. (I still work in finance but not consumer based)
As for the actual purpose of this thread... get a credit card. Look around for one with no or very low annual fees. Try to avoid paying them if possible. You can find cards that are geared towards building credit. Yes, the limit will be low but it matters more how you use it and manage it than how much credit you have for now. If you get a card with a $500 limit, keep the balance around $100, buy a little something each month and then pay it back down to $100. This establishes regular, on time payments and shows you can carry a card but not use it much. Also, once you establish credit and your limits rise, be careful. Always think before you buy something. Make sure it's worth paying for plus a little interest.
Good luck
Proof Positive..
Borrower's who are applying for a FHA mortgage do not need to have a certain minimum.In fact HUD does not impose any minimum credit score standards. While some lenders may impose minimum this is not an FHA requirement and is a lenders choice in order for them to minimize their risk of potentially problematic loans. While not perfect they do give an indication of the borrower’s credit history. Borrowers withabove 620 will generally be able to get approved through the use of automated underwriting engines. Borrowers withbelow 620 may not get approved through the automated engines and have to go through a manual underwriting process. Manual underwriting usually takes a few extra days and a little more documentation. Once again it will be the overall pattern of credit that will be evaluated. Beginning July 14, 2008 borrower with a representative credit score between 300 - 499 will not be eligible for financing above 90% LTV.
And...
HUD recognizes that some borrowers may not have yet established a credit history. For those borrowers, and those who do not use traditional credit, the lender will try and develop a credit history from utility payment records, rental payments, automobile insurance payments, or other means. This is called Non-Traditional Credit. Specific guidelines in dealing with this were released on April 29 ,2008. In trying to establish credit a borrower may consider applying for a secured credit or debit cards or rebuilding their credit history.
As a interesting side note.. I mentioned that when I moved to the U.S. I got a secured credit card.. Well, just yesterday I got a letter from Bank of America telling me that my secured credit card had now been converted to a unsecured card and they are sending me my deposit BACK!!! Woo hoo.. nothing like a 500.00 bonus for Christmas!!
So again, secured cards from a reputable bank are an excellent way of building credit.. I had this card and used it for gas, small purchases but always paid it before the due date and I don't think I had one finance charge in a about a year and a half.
you are right in everything to say. FHA does not have a credit requirement but the only way your gonna get it is thru a lender like you said, and majority of lenders are putting a credit limit of 620 PERIOD. Its getting harder these days IM a broker i deal with it everyday. My buddy with a fico of 603 cannot buy a house. ITS AT THE LENDERS DISCRETION AND LENDERS ARE TIGHTENING UP MAN. PEOPLE WITH UNDER 620 may have a chance man but I don't see it happening. why do you think these lenders an banks are folding? because they lend money that they are never gonna see again. would you do that now knowing people wont pay it back? maybe in 08 but it is now 2010 and i assure you the only reason the housing market is picking back up is because lenders are stricter and lending money to people with good credit and want to pay the money back! but you on the right track
Last edited by HatchHero; 12-24-2009 at 10:23 AM.
All that is necessary for evil to succeed is for good men to do nothing."
Two things a man should maintain to the highest degree
credibility and reputation
You should have put that in quotes since you copied and pasted it from a website.
Yes, I know this but have fun finding a lender that will give you a loan with a score under 620. I may not know every single in and out of mortgages but I have two of them and I just asked a mortgage lender this exact question a few months ago. He said 620 for FHA, anything else, he shops as subprime or doesn't even bother with at all. To get an FHA with Fannie Mae and Freddie Mac, you need a 620. And as was said above and which I totally agree with, the FHA itself may not have a minimum but if the lenders do, that's what matters. You aren't applying to the FHA for a loan but when Fannie Mae and Freddie Mac, the largest FHA lenders, have something as a minimum, you're going to have a hard time getting around it.
http://www.housingwire.com/2009/12/0...-score-to-620/
http://www.azmortgageguru.com/min-cr...-fha-va-loans/
If you don't have a 620, you shouldn't be buying a house. You should be saving money and fixing your credit.
Also, FHA loans are not just used for people who cannot qualify for conventional mortgages, they are mostly used for people who do not have a large down payment. The FHA minimum down payment is 3.5% while banks and other lenders may require 20%. FHA loans are also heavily used by first time buyers who do not have equity in a home to use as a down payment on their new home.
I worked in auto finance over a decade ago and since then I've had two mortgages and one refi. Over ten years of home ownership, I've learned a lot. I may not know it all, but I know enough and I try to learn more as the rules and regulations change. Being an accountant, anything that involves money gets my attention. I'm actually quite happy about the recent changes in the loan industry. I think people need to start seeing home ownership as something to work for and not something they can just walk away from when they can't take it anymore. I'm certainy happy about it because I just closed on my second house last month and paid $80,000 less than the original listing. Brand new home inside the perimeter... yay housing crunch! lol
Last edited by JennB; 12-24-2009 at 12:14 PM.
2005 Mazdaspeed MX-5 -1.8L Turbo
wow, the posts from Dallas are just retarded. I don't even think he speaks English.
Never take advice from someone who doesn't know how to spell beyond a 6th grade level and doesn't understand proper grammar.
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