Post # 1
So FH and I are planning on moving in together next month. While I was in college, I made the decision to not take out any credit cards. I figured, if I don’t have the money to buy it now, what’s the point of struggling to pay it off in the future? Now that I’m out of college, I work full-time and rent my own apartment, and still don’t have credit cards. FH has some debt under his belt, about $2K worth, but he’s paying it off now. The sucky part is that we found an apartment we love, and the manager told me that I’ve been approved but I don’t have enough credit. She said it should be enough when they factor in FH’s income and credit. So now, I’m stuck waiting for my phone to ring that we’ve been approved.
The moral of the story: credit sucks major ass.
Post # 3
She said you didn’t have enough credit, not enough debt. Landlords don’t like to be the ones to decide if you can afford and will make the rent.
They like to have tenants who have already been proven to have good credit habits. At some point you need to start establishing credit in your own name.
Start with a gas or store credit card, then apply for a VISA or Mastercard. Just because you have a credit card doesn’t mean you have to build up debt. I pay off my cards every month. I just use them for convenience and to get airline points.
Post # 4
I agree – get a no fee, low balance credit card at your credit union or trusted bank. Get the minimum credit limit they’ll give you. Even if you just put 1 tank of gas on it a month start paying it off every month! Do not miss a payment. Use it at least once every month and you’ll have the very baby basics of your credit building.
You’re still young enough to be fine later in life. Atleast you havent’ screwed youself up so much that you’re stuck not getting approved for a mortage one day! Start now and be responsible!
Post # 5
I was told the same thing when I went to buy my car…but once I started paying back student loans I was good.
Good Luck! Im sure you will be fine!
Post # 6
Totally its a revolving circle of crap sometimes. Either you dont have enough to get what you want or you have to much.. Or you have some from when you were young and messed things up lol.. It will get better!! The phone will ring it will be okay!!
Post # 7
@misssydneyj: “While I was in college, I made the decision to not take out any credit cards. I figured, if I don’t have the money to buy it now, what’s the point of struggling to pay it off in the future?”
Just because you have credit cards doesn’t mean that you are going to rack up debt or have to buy things you can’t afford. Darling Husband and I have multiple credit cards and we don’t put anything on them that we don’t already have money in the bank to pay for. Then we pay the bill off in full at the end of every month – meaning we have no credit card debt and quite good credit for 24/25 year olds.
Building credit is practically a requirement (IMO) for getting buy in adult life. People aren’t going to want to rent you apartment, sell you cars, loan you a mortgage, etc if you don’t have a proven track record of being responsible with money/credit and making on-time payments.
Post # 8
I understand that building credit is a good thing to start doing, but I can’t afford it right now. During college, I worked 2 jobs, and could barely afford rent, so why would I take out a credit card if I know that couldn’t pay it back? Now that I work, I was going to take out one, but once again, I’m barely making ends meet since some things changed with my financial situation, so I can’t afford it. I started paying back my loans, so I would think that would make me okay to get an apartment. The apartments I’m in now did a credit check, and everything is fine. Once I have the money to pay back an amount on a credit card, I’ll take one out.
Post # 9
@Mrs.KMM: This is exactly how you should handle your credit cards.
@misssydneyj: You can afford a credit card. Do you buy gas with cash? Groceries with cash? If so, put them on your card and use the cash you had to buy gas and groceries with to pay off the card. If you pay them off immediately (within the billing cycle) you don’t accrue interest. You can actually “make” money doing it this way with cards that offer points or cash back. Like PP said, it’s a necessity to build your credit. If you just started paying back your student loans you have a long way to go until you’ll have enough credit to get any sort of loan. It’s a good start, but honestly you need to supplement it with some sort of revolving credit like a credit line from your bank or a credit card.
Post # 10
@misssydneyj: “I’m barely making ends meet since some things changed with my financial situation, so I can’t afford it”
No matter what your financial situation, you can always “afford” a credit card because (with a few exceptions, like AmEx cards) they are free – at least, when used properly.
Even if you are barely making ends meets, you still have expenses (gas, groceries, utilities, etc) that you are obviously paying for now with either cash or check or debit card. So instead, put those on a credit card (there is still no change to the amount you are spending) and use the cash that you are currently are spending on each individual expense, and use it to pay off the credit card.
No additonal cost or expense (and no accumulation of debt), no matter what your budget/financial situation, and you are still building credit.
Post # 11
I hate apartments that do credit checks. I just want to be like mutha fuckers….call my previous landlords if you want to know if I paid my rent every month with no problem and call my damn job if you want to know if I’m working!
The only think that comes up on my credit report is a major ass hospital bill when I was very ill. At the time my insurance had a “lifetime limit” (oh yeah America. That doesn’t sound rationed to me at all!) and I hit the lifetime max of 2 million dollars in a bout a year. It happens. Shit is expensive. So when the insurance started to deny claims, the hospital started to bill me. Yeah…like I have a million dollars just sitting around.
I’m not even attempting to pay that off. It would take me a lifetime. It’s not happening. The hospital should have written it off. Oh well.
Luckliy I have never been denied a place even with a credit check. My past landlord basically conviced the renting company to let me have the townhouse. Hopefully when we move again (I’m not in a stage in my life where I think home ownership is important) my current landlord will say that I’ve never been late with a payment. In fact, I always pay a day early.
My credit report won’t show that.
ETA: Oh, and car salesmen will have no problem selling you a car if you tell them you have $8k in cash and ready to buy today. You would be surprised how fast they knock down a price to get the cash in hand.
Post # 12
I know about credit card responsbility lol. I’m just saying that it’s frustrating that I wanted to stay out of credit card debt in college because I knew I couldn’t afford to pay it off. If I could barely pay rent back then, why cause more stress? Now, I probably can get a credit card, but I want to wait until we move in together, so my whole check won’t go to rent anymore. I got into a financial bind because of some issues with my mom..but that’s a whole other story.
Post # 13
@Miss Tattoo: Yeah, both of my last apartment credit checks went smoothly, but this one is a pain! I’ve paid everything on time, so I don’t see why that doesn’t count.
To clear this up, I will take out a credit card, but not right now. I need to get my finances in order first since things are changing now, and then I will do it. My frustration is coming from an apartment credit check, not if I have a credit card lol.
Post # 14
You know what you made a good decision that unfortunately the rest of the world has a problem with. Most people don’t have enough self control to not rack up debt. Have you asked your landlord about a higher deposit? I have one credit card and when we move, I’m cancelling. If I don’t have the cash to buy something, I’m not going to buy it. My Fiance and I fully plan to put at minimum 50% down on a house before we buy. Living frugally and responsibly is great.
Post # 15
@beekiss: I’m planning on asking her. It sucks because I plan on getting a credit card, but I also want FH to pay off his credit card debt so we can just start fresh. We have about 5 or 6 years before we buy a house, so we are definitely going to rebuild his credit, and start building mine before then. I don’t understand why not having a credit card is bad lol. I can understand how you need a track record, but why do I need to sign up for something that I know I won’t be able to pay off?
Post # 16
@misssydneyj: What I advise you to do is take out a credit card buy something small like $10-$20 than pay it off immediately in 5 days or what iI do the same day. YOu just have to show that you can make purchase and pay the ENTIRE amount off not just make the minimum payment.
Also, however it will show in your credit check that you made a credit card inquiry and this is a hard inquiry.
Don’t go and take out 3 or 10 just 1 or 2 one could be a department store one the other one could be one you could use anywhere.
Show activity each month but remember to pay it off not just give the minimum buy something for $10-$20 that is showing activity than pay it off. Trust me in 3 months you will have a credit score. Just be careful not to max out the card that show irresponsibility for example credit card for $1000 spend $1000 that lowers your score