271–280 of 313 posts
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Being an authorized user on a parent's credit card does build credit history for the child. I did not have that, or any cosigned loan.
But you are an american right? You spent your whole life in the US? So you have a history with a bank I am assuming. I don't understand exactly why I am being down-voted. The system is at it is it's not something I made up.
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It's absurdly backwards because it's asking you to create debt which normally is the opposite of showing you are good with money and I would question the validity of seeing people paying back limited debt to be indicative of ex. borrowing for a house. You could instead just look at the history of their debit card usage to figure out whether they are trustworthy. As I said though I understand why they do it, it's just…
The trust by default model was tried with driver's licenses. Give one to everybody. Result: lots of accidents. Most states have now switched policies and require a year of driving with a provisional license. Result: fewer accidents. If we want to avoid debt "accidents", only letting people with demonstrated experience seems like a good solution.
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There's absolutely no need to take out a penny in loans to build a credit score. That's a myth.
Yet thats exactly what I had to do. I had to basically fund my own credit for some time and pay it off. All which cost money of course. As a foreigner thats how it's normally done. At least in a bank like Citibank.
2) Shred credit card
3) Now you have a credit history
(They'll probably close your account in a year of inactivity if you don't use it but you'll still have credit history until the account falls off your report-10 years)
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>They aren't loaning you money, but they are trusting that you will have the money every month to pay them with. Even more importantly than that: the lessor gives the lessee custody and (limited) care-taking responsibilities over what, in most cases, represents a significant investment of capital.
i agree. In fact, when i signed the lease, i handed over a check for first and last month's rent plus a security deposit equal to another month's rent. it's me, the tenant, who is loaning money to my landlord.
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"I felt pretty "trusted by definition." Citi gave me a credit card with a $3,000 limit as a college freshmen. A few years later I had an $8,000 limit card and a $10,000 limit card." As a recent immigrant I felt pretty untrusted. In my late 20s, despite being able to show a year of income in the six digits, no overdrafts, I had to go to four separate banks before finding one that was willing to give me a $300 limit ca…
You can get any store credit card easily. Your limit will be like $400 but it's enough to get you a history.
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> We need .gov smartcards. Or at least a .gov OAuth provider. That's not really a good solution either, though, because that requires trust in an essentially unverifiable system and the entity producing it. > banks should be shipping hardware tokens, for example. No, they absolutely should not. That's like saying banks should send out staff to take care of signing stuff for their customers, and then insisting that th…
What do you propose?
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It sounds like you are at least ten years out of college. Federal regulations have changed and now it is more difficult for a college student to access credit cards
I work for Capital One and their target customer is actually people without credit scores. As far as I know, it's the only company that actually targets these customers as the primary revenue stream and also makes money. The way it works, is they usually only give someone a $500 limit, then double the limit every 6 months If you pay monthly. Once you get a job you can get a bump to $2000 limit with the 1.5% back easy…
My credit report (free from my bank) tells me my score is slightly lower than it would ordinarily be because of how short the card history is. I still get a couple "pre-approved" card offers every week and the occasional offer to raise a limit, but I just shred them.
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How do my parent's credit history have anything to do with my credit history in the US? Are you talking about co-signing for loans or possibly how a child can get a card under their parents' name? I didn't think either of those had any impact on the child's credit score.
Given what I hear about US banks, this seems like a most obvious variable to include in computing the credit score. Which leads me to my question - is there an official/exhaustive list of what exactly is considered and how, or is that a banking secret?
I am in no way affiliated with freecreditreport.com, it's just a site I find incredibly useful. It's now owned by Experian and it gives you your Experian FICO 8 credit score. They break down each part of your credit score and grade you on each. (A-F)
There's other sites like credit karma that do similar but they use vantage score which is also known as FAKO score and isn't used by lenders but is a good indication of what your FICO score may be.
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>Citi gave me a credit card with a $3,000 limit as a college freshmen. How old are you? Just a few years ago, despite making a very decent amount of money and having no marks on my credit, it took an entire year for me to get a credit card. Reason: lack of credit history. A lot of people have similar stories. >This depends on your definitions a little bit. The part where you spend money that isn't yours and then pay…
I have a about $90k~ worth of available credit to me on my CC's alone. How many cards do you have? I understand it's mostly theoretical but I'm wondering why would anyone want to use their high-interest credit card to borrow even a few tens of thousands? Or any high-interest vehicle of debt for that much money, for that matter.
Here are a couple ideas: lawyer fees during a contested divorce and emergency spending from being out of work too long.
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Why in the world would you want 100k of credit?
I have about $150k limit on my cards combined. It would be a lot higher but I asked most of them to lower my limits. I just have a lot of cards. If they want to give me bonuses for signing up I will take them. Free money.