building a fico credit score?

Submitted by StubbzOG t3_yilfp1 in personalfinance

Hello! I'm 27 years old and just moved out I have no idea what I'm doing I don't think I have good credit / any credit I'm trying to get into apartments but everyone wants credit or a co sign. I cannot do co sign I have nobody but my wife whom also no credit. I'm making 870 weekly that's without OT which I frequently get. can anyone reccomend any ideas how to build a score up so I can finally get some place for us to live?

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BillScorpio t1_iuj9xjk wrote

You want to get a credit card, use it, and pay it off in full every month.

After awhile of doing that, you want to inquire about increasing your available credit.

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StubbzOG OP t1_iujbb2i wrote

Is there you can reccomend? Everyone I apply for I get shot down.

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BillScorpio t1_iujbufs wrote

You may need to get a secured credit card, if you aren't able to get approved for a traditional credit card.

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Steve_Austin_OSI t1_iujjvuf wrote

You can go get a credit KArma account, and they can show you credit cards with your likelihood of acceptance.

Normal, I say enver get a credit card with an annual fee, but in your case you may have to do that.

Also, if you have a solid work attendence recard, see if yout vcompnay will crafcft a letter saying so.
Then look for small rental places and see if they will take that in lieu.

Pulling credit report for rental is bullshit and should be outlawed.

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whisky_in_your_water t1_iujasdu wrote

Building a FICO score takes time, so you'll need at least a year.

The first step when starting from nothing is to get some kind of credit posted to your report. Your best option is probably a secured card. I recommend Discover since they automatically convert their secured cards to regular credit cards after a year or so (I think it's actually 10 months). You should have a score posted after your first statement, but it's probably going to be really low since you have no history.

Longer term, you should maintain a flawless payment history (make at least minimum payment on time every month), and in 2-3 years you should have good credit. I recommend going for a second credit card after your first so you have two accounts providing positive payment history. Also, be aware that you never need to carry a balance on a credit card to get positive payment history, that's a myth that's just going to cost you interest. If you pay off the statement balance by the due date every month, you'll never pay interest.

Since you need something soon, your best option is to keep shopping around to find a place that doesn't require a credit score (maybe they'll need employment verification or something). You may pay a bit more in rent, but without a score, your options are limited. If you can wait a year, then you could go the secured card route to get something on your file.

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StubbzOG OP t1_iujbmrc wrote

I really appreciate this advice I will Starr with discover asap where might be a good place to check my fico score etc?

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whisky_in_your_water t1_iujc6a4 wrote

The Experian app is free and provides a real FICO score. They also sell other scores, but you probably don't need those.

As a general overview, there are three bureaus that provide FICO scores:

  • Experian
  • TransUnion
  • Equifax

There are other types of credit scores, but these are the only FICO scores (that I'm aware of). Eventually, you'll want to get access to all three, and usually credit card companies provide a free FICO score from one of those bureaus (I think Discover provides TransUnion nationwide), and which they offer may depend on your region.

Just make sure you always pay your bill on time. Having bad credit can be worse than no credit. Also, try to pay off your statement balance every month, otherwise you can end up paying interest, which can get you into a lot of debt.

Good luck! I hope you can find a place soon!

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StubbzOG OP t1_iujeh9z wrote

Ahh this sub has been so helpful thank you and everyone for there help!

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whisky_in_your_water t1_iujftzg wrote

No worries.

When you get some time, review the wiki, there's a ton of great stuff there relating to managing credit, budgeting, etc.

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LOGICpremium t1_iuj85kg wrote

You have never opened a credit card account? If you have not I would suggest opening one to begin building credit, everything you use your debit card for replace with your credit card. You can immediately pay off the credit card, but you need to at least use your credit card to begin building credit.

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