Which Is Worse? Bad Credit Or No Credit?
Hello everyone,
I tried to check my credit report through consumerinfo and was told that I do not have sufficient credit? Also I applied for 3 credit cards in a day just to check but got a response in the mail saying that there are too many inquiries on my credit? Do you guys think that 3 cc applications a day caused that or do I have no credit or is someone else using my info? Just for your info I have never had a credit card, everytime I have applied I have been rejected because of no credit history.
What is the best and cheapest way to find out what is going on without getting dinged.
Also in your opinion which is worse? That I have no credit or if I have bad credit? And if I get a secured CC how long would it take to build a good solid credit score?
When I tried to check my credit history through Experian via their site the error I got was:
"We are unable to access your credit data. Please call for further information. "
And when I tried Transunion the error I got was:
"Your Identity Cannot Be Confirmed: We cannot deliver your TransUnion Personal Credit Report online because we are unable to confirm your identity."
I havent tried equifax cuz I dont know how to get a free report from them.
Thanks.
[ Edited by aybe on Date 09/24/2003 ]
Bad credit is definately worse.
You need to stop multiple credit inquiries.
Leave your credit alone for at least 6 months...you obviously have done this more than once.
Do not get a secured credit card.....Why pay for your own money being tied up...think about it.
I am guessing you are trying to get a visa or M/C... guess what... Not! Your inquiries are blowing it.
Go to your bank in about six months and get one their. In the meantime throw a couple grand in a savings account and borrow against it (1yr).... when you borrow the money put it back in the bank... pay it off with in 6 months then apply for c.c
>You need to stop multiple credit >inquiries.
I just wanted to see if I could get a credit card and that was before I found this website and the info here.
I have left my credit alone for atleast 2 years. I didnt request a credit card or any kind of loan.
I heard from someone that getting a secured credit card is the best way to start building credit when you dont have any. What other option do you suggest considering I do not have ANY credit?
I wish I had a couple grand laying around but I can definitely work towards doing that. So basically it will take about 2 years to get started with my credit?
Thank you for the quick response. I appreciate it. I'm just a newbie trying to learn, I just wish I had found this site a long time ago.
Definitely bad credit is worse because you have to take two steps.. One is to get rid of the bad credit, and you still have to establish positive credit.
Without the ability to deposit money in your account to borrow against, the secured credit card is the easiest way to get started. There are some companies that will let you get started with as little as a $50 deposit of your own money to charge against. I know its kind of not locigal to pay to use you own money, but its a cost of building up your credit, if you have had problems in the past. Try seaching on the internet for "secured credit cards".
Another approach is to get a family member you trust, and who has good credit, to add you as a secondary card holder on a credit card, like american express or visa. As they pay their bill monthly, it will reflect a trade line on your credit report. You don't need to actually have a card in your possession.
[ Edited by mortgageman on Date 09/24/2003 ]
You say you didnt have bad credit but not credit. Not having Credit is not good in todays world regardless of your interest in RE or not.
You need to get a copy of your report and dispute all the inquiries that you did not authorize. You said you made 3 application for CC then you should only have 3 inquires that you agreed to. All others you could dispute. If you tried to buy a car, lease an apt or get a loan of any kind these will also show up so if you did not do any of this the only "real" legitimate inquirys should be the CC holders.
Since you were denied credit you have a right to a copy of your report for free.
I also recommend you open a savings account and put money in it each and every week. You can then go to the bank and request a secured CC. This will not hurt your rating but will give you a CC that you can use wisely and eventually it will be unsecured.
This is what I had my college student do. She can not charge more than she has and she can not draw out of her savings and drop the amount down lower than her CC limit. (kind of kills two birds with one stone). She must always maintain the amount in her savings that is her CC limit.
Ok where do I get a copy of my credit report? As posted in the original listing I tried two of the three companies but they could not identify me. Any ideas? Once again thanks for the help.
start with a store credit card i think they are easy to get.
suggestion - go to google and enter
turned down credit card report
It will come back with lots of articles giving advice.
The essence is that you write to the rating companies and challenge their decisions in writing
and keep doing it untill you get a satisfactory answer
You can get your fico score and credit report at myfico .com you can also go to all of the agency websites directly or call them directly for a FREE credit report. You are entitled to one if you've been denied credit. Once you get your credit report you can dispute any discrepencies. Below you will find the numbers for the 3 main agencies:
Equifax 1800.685.1111
Experian 1.888.Experian
Trans Union 1.800.916.8800
You can get a also get a FREE copy of Understanding your Credit from Fannie Mae...call 1-800-782-2729
Hope that helps =0)
I can tell you that no credit is worst then no credit becuase my friend just got his SSN and every place he asked to get finance they rejected him since he doesn't have history and the funny thing is that one of the loan officer told him that he can get loan to some one that have bankrupcy!
[addsig]
When disputing items in your credit report, HANDWRITE your letters to the credit reporting agencies. I recently typed and sent off a dispute letter to TransUnion and it was summarily rejected with a comment that it was "frivilous" and appeared to have been sent on my behalf by a credit repair company. Just a little tip.
FYI, Equifax and Experian responded very quickly and deleted the derogatory info. TransUnion is hardnosed. Good luck.
Florence
Find out from the company who denied you the credit which credit agency they utilized. If you recieved a letter from them it is usually stated on this letter whom they obtained thier info from.
Take this letter and copy it. Write a letter telling the agency that becuase of thier report you were denied credit and you are intitled to a free report of whatever they provided to the co by the FCRA (Federal Credit Reporting Act).
You must include in your letter your SS#, current name, address ect. for the credit B to do this.
If you do not have a letter to copy (you really should get this denial in writing with a statement of why you were denied), include the company which denied you credit; Name, address and person/title that denied you credits name & phone #.
You are intitled to a free report from this agency period....they must give you what ever they supplied the company that denied you credit. Put in your browser Credit reporting act and you will find the federal website for the information on this document. You need to know your rights, I recommend you get this and read it. Keep a copy.
Good Luck
why cant you get a preapid credit card. Some of them they even report to the credit bureau too. Just my two cents.
Den
I would say that both are bad, but bad credit is difinately worse. If you don't have sufficient credit, you can pretty much establish yourself within 24 months. If you have bad credit, it may take more than 24 months (sometimes a lot longer than 2 years) to re-establish your credit.
A lot of advice here. It is making my head spin. I suggest you do go to www.myfico.com and purchase a copy of your credit record. Even if you have almost no credit, whatever credit youdo have will show up. As far as inquiries made by yourself on your credit, these ones will NOT hurt your credit. Only those inquiries made by prospective creditors will cause your credit score to be dinged. After getting a copy of your credit and checking any inquiries that were not authorized by you, you not only have the right to have them removed but you may be entitled to collect damages for any unauthorized inquiries. The best places to apply for credit are JC Penneys, Sears, Mervyns, etc. This type of retail stores are more lenient than VISA or MasterCard issuers. Your credit limits may be small but it doesn't matter. Buy socks or underwear and when the bill comes pay it off. Buy small items that you can payoff right away and slowly but surely your score will improve and you will get offers for credit from other companies. Depending of what is currently in your credit record, it may take you from 12 months to 24 months to get established. See my profile and e-mail if you want additional info. I am a mtg broker and have been working in the banking/mortgage biz for 12 yrs so I think I know what I am talking about. Good luck!
Thanks guys for all your help. I appreciate all your responses.
So letsgomario if I apply for a card at a store like JC Penny or Old Navy would I get approved or since I did not get approved for a normal visa I might get rejected for those too? And also would this affect my credit rating for applying again? Or should I wait 6 months or so before I apply for a store credit card?
Also another question. I got a book from the library by Carleton Sheets and he suggests getting a Certificate of Deposit and then later take a loan by keeping that as collateral. Now he suggests a 1000 dollar CD and I found Washington Mutual gives secured credit cards with a minimum of 300 dollar deposit and this is what their website says:
"A certificate of deposit (CD) will be established in your name and pledged to secure payment on your credit card account. Your CD will earn a competitive interest rate and will be insured by the FDIC"
Do you guys think this is a good idea to get a secured card from them to build my credit history?
I think it would be a good idea to get a secured credit card as long as the company providing the line of credit reports the activity on the secured card to the credit bureaus. Make sure to use the account for the things that you normally pay cash for and that you are always able to pay it off when the bill arrives. Even if the activity is small, i.e., $50 dollar charges per month, the fact that you are using credit and paying it on time will help you get your credit going. I would still try to get one of the retail credit cards even if they give you an initial credit line of $100. ** PS. Try to use the least amount of money possible to open the secure credit card and DO NOT TIE UP YOUR FUNDS FOR MORE THAN 6 months at a time. 3 months CD's would be best. Good luck!
Start with fuel cards. If you're not an ax murderer, you can get a gasoline card. Companies figure: "How much damage can they do?" Be sure to get a few cards, and space the inquiries out over a few weeks, if not months. Use all the cards in rotation ... these days not all issuers report to all agencies, and some report to none. You don't know which is which until you see the report. It's Roulette.
Next go for specialty retailers or jewelers. Limited for Men (formerly Structure), etc. They carry one kind of merchandise ... so again they're lenient becuase they figure "How much damage can he do?" Use them, pay them.
Move up to department store cards. Because they carry a lot of different stuff, Sears is not easy, so don't start there for this level--try a 2nd tier mall anchor (say Belk's, Mervyns, Penney's--not Nordstrom or Saks or Niemens) *other* than Sears, like. Use them, pay them.
At this point, you should have offers pouring in from MC/Visa ... you won't have to go looking.
Thanks for the great advice. I will start looking at these options.
flacorps, I am definitely not an axmurderer. The only thing is I live in NYC so I just use the subway and do not have a car. So I dont know how much fuel companies would help. But other ideas I can definitely try.
[ Edited by aybe on Date 10/11/2003 ]
Many gas cards also let you purchase convenience store items.
You do eat, don't you?