Hi. I just posted recently about tactics listed here: http://www.divorcenet.com/states/nationwide/credit-faq03 I received good advice in Credit Talk, but it was either "there is no quick fix" or "read everything and educate yourself." I used to post here often in the last year or so when going through credit issues, and am in the stage now of trying to clean things up so I can get a mortgage. As in the past, after reading up on as much as I can, my eyes start to glaze over and it seems like I lose the ability to figure out the first step. So, I wanted to stop reading and throw out two ideas to get the ball rolling. I'm hoping someone will confirm that these are good, solid things to do (or not!): 1. I believe I can get myself added as an AU (authorized user) on my 2 brother's credit card accounts. Before doing so, I wanted to be sure there is NO risk to them. In this case, the card would be mailed to me, I would give it back to my brother, and they would cut it up. Of course I would only do this with cards that were not maxed out. 2. The link I posted above recommends to open up a $400 savings account, and then apply for a $400 loan, pledging the savings account. When they give you the $400 loan, take it to another bank and do the same thing. Get several loans set up this way, and make all the payments on time. So, taking the best advice I've seen on Credit Talk (ie, don't do anything until you understand all the ramifications) I hope I can get some opinions on whether to get started with 1 and 2. Thanks! bushka
bushka, Your tactics here are a good way to establish credit, maybe not so much "improve" credit. If you do not have an established credit history, then these are some of the ways to start out establishing credit. But, take these steps in moderation, the "loan" scenario could catch up with you, and you will pile up some fees that you will have to pay. The AU route is a good one, as it will add credit history to your credit report. IF you can use it wisely, it will jelp establish a history of using credit wisely. The "compensating balance loan" approach is a good one also, but I would only do it one loan at a time. You will pile up recent credit inquiries, and you will skew the averge age of your accounts.
Have you disputed anything that is wrong on your Credit report? If not that is what you should do 1st. As for having someone add you as an AU. I would see how long the CC has been open,( the longer the better), I would pick a card that has a utilization at least 30% or lower, and make sure that he doesn't have any lates on that CC. Also make sure that they report AU's, some CC's don't.
biz- I have a long credit history, which is 100% positive, until I got into cc trouble a year ago and my credit, which was usually around 730, tanked. While I ponder what best to do to repair things, I at least wanted to get the ball rolling as I want to start looking into getting a house. When you say "one loan at a time" are you suggesting to open just one loan and no others until it is paid off? This could take awhile, but I understand what you are saying about having too many loans open (inquiries, etc.). I'm not worried about interest on such small loans. I have plenty of cash flow now, my problem is getting dinged by the 3 cc companies. thanks, bushka
haybreez- There doesn't appear to be anything wrong -- only a couple of current loans are showing twice, as duplcates for some reason. I don't know if this matters or not. Regarding the AU's: the people I would do this with have low balances and pay on time always, so that wouldn't be a problem. I just didn't want to cause any problems with their credit just through the act of getting an AU. It doesn't sound like there are any negatives, from what I can tell. thanks, bushka
