Using "secured" credit cards to establish credit??

Discussion in 'The Watercooler' started by DDD, Sep 24, 2012.

  1. DDD

    DDD Well-Known Member

    difficult child#1 is a "credit ghost" according to the mtg people. They suggest that we get two secured credit cards and within six months he will have a credit score. How weird is that? You give the bank a hundred dollars and then make charges of thirty or fifty which you repay and you end up with a credit score? Once he has a credit score he allegedly will be able to buy a house with no money down financed for 33 years.

    I have my fingers crossed that we can get this project done so he will owe NO money in less than ten. Debt is such an ugly thing. :) Evidedntly lack of debt is ugly too. LOL DDD
     
  2. DaisyFace

    DaisyFace Love me...Love me not

    DDD--

    Even easier...assuming that YOU have good credit - add him as an "authorized user" to one of your credit cards. Do NOT actually give him the card...just add his name. You don't even need to tell him. In six months - all of YOUR good credit habits with that credit card will appear on HIS credit report and will give him a good credit score.
     
  3. witzend

    witzend Well-Known Member

    L's ex was a sales manager at a car lot and this does actually work. I like DF's idea about adding difficult child to your credit without saying anything, and would be sure to de-authorize difficult child once his credit is established.
     
  4. InsaneCdn

    InsaneCdn Well-Known Member

    Other things that build credit scores... are utility bills. Does he pay for his own cell phone? If it's in his name and on a "plan", it builds credit rating.
     
  5. AnnieO

    AnnieO Shooting from the Hip

    Secured cards are good IF they are paid off. I had to do this to get out from under my bankruptcy. I would do what DF said, though. I couldn't, but you can...
     
  6. DDD

    DDD Well-Known Member

    Our credit rating used to awesome. What can I say. The past ten or twelve years have been harsh. Even though my husband is very very laid back...I don't think I can do that. We are no longer awesome. Sigh. Thanks for the idea. DDD
     
  7. DammitJanet

    DammitJanet Well-Known Member Staff Member

    I thought buying my car was going to get my credit rating up there. I pay my cell phone bill every month like clock work. I have never had my power shut off in all the years I have had power which is over 15 years. I dont have any credit cards. I dont have any revolving credit. When I bought my car I never missed any payments and they were never late because they were autodrafted and they reported to all three credit agencies that I was in wonderful standing.

    My credit is trash. I tried to get one of those Bill Me Later things online to attempt to work on building it up a bit and they turned me down for an item that cost $19.50. Just how bad can I be that I would be a risk for less that twenty bucks?

    I actually am pretty sure what the issue is though. Really ticks me off because I will never take care of the matter until I die and then they can go after my estate. I have a judgement against me for $1500 by the vet who decided to sue me because the county never took the idiot who killed my dogs to court even though they swore they were going to do it and that is why I allowed them to do such expensive treatment to the dogs. I would have never allowed them to perform a necropsy on a dog just to remove a bullet if it wasnt going to be used in court. They also wanted to keep the other dog alive as long as possible so she would be alive for the trial. Trial never took place because my neighbor is related to one of our local judges. Brother in fact. The courthouse has in fact destroyed the file involving that case. Odd huh?
     
  8. DDD

    DDD Well-Known Member

    Update. I decided to see about adding him to credit cards in my name only. I have six of them. They will all allow me to add him but the "history" would start today. EXCEPT one, lol. One of the two home supply companies added him and the report will include ten years of history or whatever. The credit manager laughed and said "yes we just add him and hope it will help get a good history for him". I was grinning ear to ear. Then...the other five said "of course we can add him but he will only be included on purchases as of this date".

    I guess it's a shame that I'm not a shopper. Chances are I won't be buying anything until December so it wouldn't help.
    Today I opened his bank account. It's in his name with me as the Representative Payee. I got a debit card at the same time. Maybe that will help build a credit history. What a life! DDD
     
  9. InsaneCdn

    InsaneCdn Well-Known Member

    DDD... use those credit cards for "stupid little stuff" - things you have the cash for. Use CC instead... and then pay it when the bill comes. It runs against our "old-people" mindset of minimizing credit... but if you put the cash is an envelope and the purchase on CC... it's the same diff.
     
  10. DDD

    DDD Well-Known Member

    I'm going to choose the store that is "my" store for almost every purchase. by the way, they are most minimal and I don't mind getting the bills I was just hoping that I could pull off "instant credit rating" for difficult child.

    Truth be told I don't know how often retail stores submit info to credit bureaus. Monthly? Quarterly? Our small business doesn't have any connect with that type of reporting. Guess, lol, deep deep down I have a tinge of difficult child in me trying to circumvent the normal credit practices. Oh, no. DDD
     
  11. busywend

    busywend Well-Known Member Staff Member

    The credit card companies have auto feeds to the credit bureaus. You get a credit report and you can see every single month, every payment, every balance, etc.
     
  12. DDD

    DDD Well-Known Member

    Wend is that true of major department stores too? DDD
     
  13. DDD

    DDD Well-Known Member

    Well today I called Sherwin Williams and the manager will get back to me tomorrow. That's the last of my credit accounts. It has been interesting. My sister called on her accounts also. It was funny because alot of her cards are from the same companies as mine even though we live hours apart. The last one I tried of mine was Dillards which is in husband's name. The credit rep so "oh, yes, we can do that". Then...oops...husband hasn't used it in over a year or two so they cancelled the card. I knew my sister had one so I asked her to call. She got the exact same answer. Yes, they can do it but....the card hasn't been used in eighteen months so we cancelled it..sorry. Here's hoping the paint co will save the day. I don't have six months to build a history. The offer is in and we expect the answer by Tuesday.

    It's not the end of the world but it's interesting. DDD
     
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