Econ how to build a "newbies" credit.....

[sam]

so I'm old and have been established for a long time. only had house loans for last 15 years.no other loans,and 3 major credit cards,which i pay almost all way off monthly. so has things changed? here's my situation

my son active duty military E4
only credit card is "star card" used to buy clothing/ groceries/whatever on base credit limit $2,000 (he has never had more then $600 on it) has paid on time every month for last 19 months.
when came home from Korea last month he paid cash for a 2011 ford fusion 50k miles.fully loaded out moonroof and all paid $7k
now he wants to get a small loan to buy a "supermoto" bike to ride around base $6,000 or less USAA and Navy federal are trying to give him intrest rates between 7-15% because of "limited credit history" his credit score is a 719.
what do you all think? get some credit cards and let him build credit for next year B4 he gets a loan,so his credit score goes up and he has a better intrest rate?
He did get a Verizon plan on his own ( they wanted 40% down on I6 but i paid for it in full) and now he has a monthly bill of $85/with discount which i assume should help his credit

i know "store" credit cards would be easy for him to get macy's,Belks, walmart all at a whopping 24.99% and I dont like that..............so any of you young guys,what did you do to "establish" yourself???

THANKS,from a old mama

 

[AirOpsMgr]

7% is a great rate for his age, but if he wants it now, either save up the cash or take the 7% and pay it off early (which will also boost his credit profile). It's going to take a few years to build up credit history with a CC

 

[sam]

7% is a great rate for his age, but if he wants it now, either save up the cash or take the 7% and pay it off early (which will also boost his credit profile). It's going to take a few years to build up credit history with a CC

no more paying cash for awhile. he made $20k last year came home with $16k in his checking acct. paid $7k cash for fusion.
he said he was going to go to a couple credit unions on base and see what their rates were today,he is NOT allowed to make a decision until MOM gives him the thumbs up!

@Leshaire husky $3500???

 

[Willy Leadwell]

Young people are so prone to getting themselves into trouble with debt that most lenders look at the length of the credit history more than the score itself. I jacked my credit up when I was 21. Took a couple years to ruin it and until I'm 34 to fix it.

My dad worked for a small financial firm back in the 70s. The guy he worked for taught him to never loan money to the three Ps. Preachers, policemen and privates.

 

[Leshaire]

It doesnt work that fast. I just went through this same exact thing. he is simply not going to just open a new credit card and have a rock solid score in a year.

It have more to do with open lines of credit, utilization of those lines, and the amount of time hes had them. So one more card will do him no good for a while. His score is what I like to call a base model credit score lol. Think of a new mustang rolling down the street with rims, some fattys in the back, and overall looking mean as hell, but then you pull up closer and see that its the new four cylinder ghey version. HIs credit score may be 'good' but he doesnt have the lines of credit over time to actually back it, like a V8 in the car analogy.

I spent the last two years going from a 600 with NO credit cards or any credit of any kind, to a 723 with 7 credit cards, a car note, a student loan, and a mortgage. I can nearly go buy whatever I want. Hell I was denied for clothing store cards back in the day, even my own bank denied me for a $500 card when I had been using them for years and never out of money or over drafting etc...

He needs:
1. As many lines of credit as possible
2. Under 30% utilization on all of them at all times (assuming theyre cards)
3. Tiiiiiiiiiiiiiiime (which also helps to remove inquiries. double whammy here)

For reference/proof check this out. 10 lines of credit and a 2 year history and both of those factors are still regarded as "poor".

 

[Leshaire]

no more paying cash for awhile. he made $20k last year came home with $16k in his checking acct. paid $7k cash for fusion.
he said he was going to go to a couple credit unions on base and see what their rates were today,he is NOT allowed to make a decision until MOM gives him the thumbs up!

@Leshaire husky $3500???

$4K and its yours bruh

 

[Willy Leadwell]

View attachment 13951

Creditkarma is legit. I used the hell out of it when I was rebuilding my credit.

 

[Leshaire]

Creditkarma is legit. I used the hell out of it when I was rebuilding my credit.

So did I. I haven't checked it since I bought my house Bc I don't care much any more lol. This thread made me go look


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[sam]

$4K and its yours bruh

BRAAAP
$3500 send me pics

 

[sam]

Creditkarma is legit. I used the hell out of it when I was rebuilding my credit.

i also use creditkarma, very easy to use and FREE!

 

[Leshaire]

BRAAAP
$3500 send me pics

I did mofo you didn't text back!!


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[Leshaire]

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[sam]

Sent from your moms couch using her iPhone

2009? miles? what all does it need? clean GA title in your hand?
oh,changed my #,ill PM u

 

[Leshaire]

I told you this three times lol. 12k miles. Could use a rear tire. Clean title in hand. PM me


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[sam]

I told you this three times lol. 12k miles. Could use a rear tire. Clean title in hand. PM me


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I'm old. PM sent

 

[Leshaire]

I'm old. PM sent

I'm the old timer here


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[sam]

I'm the old timer here
far from it.


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