Ok it's time to get some credit. Here's the story. I'm 18 and I'm about to go into the Air Force. I want to have really good credit in 4 years when I get out. I have a derogatory item which is about 5 months old. It's a video rental. I was 17 when I rented it so I'm going to say I wasn't old enough to sign contracts, illegal etc. and get that cleared off. Then to build positive credit, my dad cosigned on my car so I'll be paying that off all throughout my 4 years in the Air Force. Needless to say, I don't even need to drive while in the Air Force and when I do it will be payed for (perks of the job.) So basically it will do nothing but build my credit. I applied for a CC and will take whatever balance I can get. I also applied for a Target card and a Citgo gas card. Obviously I won't even need these, I'll use them a couple times a year just to keep them active. I'm going to be a CD for 500 dollars and use that to get a secured loan at a credit union, and put that in a savings account and get another secured loan at another bank, and then take that and repeat the process. I'll have 2000 in secured loans, and I'll pay them off with the money from the loans leaving me with about $55 dollars to pay out of pocket per month. So that's my plan...does it sound feasible? Any suggestions? Where would you ESTIMATE my score to be when all is said and done? I would assume it'll only take about a year for things to go up, but could it go sooner? So to summarize my questions: 1. How long would it take for my credit to go up? 2. Approximitely where could my score be? 3. Is this feasable? 4. Any suggestions? Thanks for any and all replies, it is greatly appreciated.
First of all, let me congratulate you on being such a responsible young man. There aren't many 18 year old people out there who care as much as you do about their credit. It's hard to tell what you credit score is. If you really want to know, you can apply for the 3 month trial of privacyguard (www.privacyguard.com) for $1. This will allow you to pull your credit from all 3 bureaus daily and view your equifax score. Just don't forget to cancel your membership before your 3 months are up. Otherwise, you'll end up paying $80 bucks a whole year membership. But let me tell you something about your car if you don't mind. If I were you, I wouldn't get the car if you didn't need it. I think it is a much better investment or strategy to put the monthly car payment in savings/CD/money market whatever including the gas and insurance you'll be paying for it. When you get out of the Air Force, you can use that money to buy a new car CASH and you'll probably have some money left over. At least you didn't have to lose money on the car by paying interest and you can get a better/newer car when you get out. You can build your credit in many different ways. I don't think you have to have a car loan to get good credit. You can obtain a credit card or two... use them.... and pay them off monthly and not wait for the statement so you don't pay interest. By doing that, the creditor will probably raise your credit limit every six months or so. Within 4 years, you'll have high credit limit! Monitor your credit consistently so you know what's missing and how you're doing. Never be late on payments and don't carry too much balance on your cards. That should help a lot. I hope this helps! GOOD LUCK! -GC
The cards you are getting to have credit references only need to be used a few times a year. On the secured loans, I would get one, wait 6 months or a year until it is paid off, and if needed get another one. Ideally, you want to have 2 Visa/MC type cards, 2 store cards, at least one installment loan and, perhaps, one gas card. Overall your plan sounds good!
Hi, I am ex-Air Force. I have a couple of pieces of advise. 1) Join the Credit Union at your first base. You will be able to keep the account where ever you go during your career. They also have better rates than the banks. 2) Be extra careful with your bills, consider on line banking. If you are overseas, it take much longer for the mail. You credit card bill may be past due by the time it arrives, then you are hit with lates. 3) Things to consider with a car. You don't know where you may be stationed. Financed cars are difficult to take overseas, you may have to get permission from the loan company. And you can't ship a car to some locations if you are below a certain rank. The insurance and gas overseas may be too expensive. Many first timers just by cheap cars. You can pick up one from someone who is leaving, then sell it when you leave. Most bases have buses on base, but the schedules may be very far apart and worse or not at all on weekends.Or don't run during bad weather, then you may have to walk to work if you live on base. But there are always other dormrats that have a car, just offer them gas money for the favor. 4) Choose a career field that interests you. Study hard and take all the classes they offer. Enjoy yourself and where ever you go. 5) The first 2 weeks of basic training are the roughest, then it get better. It is only 6 weeks. Good Luck.
you can also apply for an AAFES card which can be used at army/airforce exchanges, good for getting those extra uniform items. as for a car...probably a good idea to wait and see where you will ultimately be stationed.
These are absolutely awsome pieces of advice. I've only been on this board for a couple of days and this is like my 3rd post...and this is the best board i've ever been on. Thank you so much. What field were you in? I plan to be an OSI intelligence specialist (enlisted)
