Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
siggmooo

0 Contributions
0 People Helped
[New to Credit] Beginner's Question
I am 27.
I have no credit.
I have worked at Walmart for 4 years.
I will finish my associate's from a community college in '15 or '16.
I bank with Bank of America.
I was approved this week for a Discover IT Student card [it'll be here soon].

My intent is to build credit as fast and perfectly as possible. because I want to get a mortgage on a small plot of land (100k~) and build a small house to avoid renting.

My questions:

--- Now that I have a Discover student card, should I immediately apply for more cards? Should I get another student one, a store (Walmart?), or should I wait 4-6 months? How many should I apply for, and how many should I aim for?
**************
[My thinking: I should apply for several now to get the inquiries out of the way, and in a year, the points lost from said inquiries will be negated by having a higher CL and longer credit history average].

--- Does diversifying my spending help? As in, does it matter what I spend my money on, or is all forms of retail treated equally?

--- Should I take out a small loan simply to show I can handle one? If so, when?

--- Should I make a bank account with a lender to form a relationship so I can more likely get a mortgage with them later (TD Bank)? Would a small savings account look good? How can I find out who might be the most likely to give me a loan some day?

--- About how long would it take of perfect credit building to get approved for a mortgage of 100-150k?

--- After 1 or 1.5 years, what could my credit score be?

--- What does my credit score begin at? When will I get my first score? About how many points a month can it increase by?

--- Who exactly would I meet with to discuss these and similar questions with? A bank or credit union?


Thank you for reading. I realize these are a lot of questions, but I do not expect an answer to them all. If you feel like responding to any of them, that would be much appreciated.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
3 Contributions
10 People Helped

Hi new to credit,

You brought up some very good questions, but if you don't have any credit, you can see it improve rather quickly, over some months to a year. You should follow some key rules in managing your new card. 1) Don't charge more than you can immediately or soon pay for leaving at least 70% of the balance available for use or unused. Pay each month 90% or better of the balance, which must never exceed 30% of the credit line, and for now, avoid cash advances or balance trans fers/convenience checks. I will leave you with a response to your question about applying for new lines of credit or credit cards. I would suggest you space out your hard inquiries, many inquires in a short period of time is a red flag for creditors. Check your credit report to see how many hard inquires you have on all credit reports. Existing reports don't come off your credit report for 24 mos (25th month is when they no longer show) and too many look bad within that 24 mos time. Try to keep it under 4. Good luck! 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.