Posted on: 29th Nov, 2009 01:53 pm
I have a 0 credit, I will be recieving my score in the mail soon, with this card, my useing and paying on time how much will my score go up, also is this card is used and payed on time, do I get my money back at the end of the year, or how do that work.
i dont get your question? exactly..
So you have a credit card on the way and it's the first time you've used credit so you don't have a credit history at present - is that right?
first off you don't have a 0 credit score - if you did you wouldn't be getting a credit card! You will start off at a benchmark score - an average credit rating. If you make your payments in full and on time, your score will go up to reflect your good payment record. It won't go up immediately, but builing a good credit history is a long term endeavour, and one thats worth doing.
first off you don't have a 0 credit score - if you did you wouldn't be getting a credit card! You will start off at a benchmark score - an average credit rating. If you make your payments in full and on time, your score will go up to reflect your good payment record. It won't go up immediately, but builing a good credit history is a long term endeavour, and one thats worth doing.
>>first off you don't have a 0 credit score - if you did you wouldn't be getting a credit card!
He can have a zero score and get a secured credit card. It sounds like he's asking if he'll receive the secured portion of his cash back after making payments on-time for a while.
Every secured credit card has a different duration regarding when you're going to receive your security money back, so you'll have to ask them (or read your agreement). The agreement with my secured credit card said they'd refund me my security depostion, plus interest, and convert the card to non-secured status, after 12 months straight of on-time payments.
He can have a zero score and get a secured credit card. It sounds like he's asking if he'll receive the secured portion of his cash back after making payments on-time for a while.
Every secured credit card has a different duration regarding when you're going to receive your security money back, so you'll have to ask them (or read your agreement). The agreement with my secured credit card said they'd refund me my security depostion, plus interest, and convert the card to non-secured status, after 12 months straight of on-time payments.
Since you have no qualifying trade lines it will take about 6 months for you to get a score. The bureaus need a 6 month total credit history for you to ahve a score. If your new card reports and you have some credit but not enough to currently meet the 6 month requirement you could have a score sooner. It is also imperative that you not " max out" your current card and keep the balance, at the time of your statement date, as low as possible. You will hear people mention 50% or 30% as the balance to limit ratio but I have found that 10% or less is best.
Hope this helps
Nick Lees
Eagle Nationwide Mortgage Co
877-905-5700
Hope this helps
Nick Lees
Eagle Nationwide Mortgage Co
877-905-5700
and nick lees is on the money with that 10% - what i advise those who are seeking to establish or re-establish credit by undertaking a new credit card is this:
go out and make a purchase - a small one. when the bill comes, pay it in full. do the same thing for at least 3 months, then tuck the card away and don't use it for a while. if you wish, and you are responsible enough to do so, you can use it regularly as long as the balances charged are minimal and the debt is paid in full every month.
in doing that, you pay no interest and you establish a track record.
since a favorable credit score is based on an accumulation of histories (plural), it's advisable to have at least 3 lines of trade overall that are active and paid as agreed. this could mean the acquisition of a couple of other major credit cards, or store cards, or even a small personal loan or car loan.
no matter what: pay on time, keep balances at zero or nominally higher and don't go nuts shopping for new credit. these will all serve in good stead in building a credit record that is favorable.
go out and make a purchase - a small one. when the bill comes, pay it in full. do the same thing for at least 3 months, then tuck the card away and don't use it for a while. if you wish, and you are responsible enough to do so, you can use it regularly as long as the balances charged are minimal and the debt is paid in full every month.
in doing that, you pay no interest and you establish a track record.
since a favorable credit score is based on an accumulation of histories (plural), it's advisable to have at least 3 lines of trade overall that are active and paid as agreed. this could mean the acquisition of a couple of other major credit cards, or store cards, or even a small personal loan or car loan.
no matter what: pay on time, keep balances at zero or nominally higher and don't go nuts shopping for new credit. these will all serve in good stead in building a credit record that is favorable.
quote :
I have a 0 credit, I will be recieving my score in the mail soon, with this card, my useing and paying on time how much will my score go up, also is this card is used and payed on time, do I get my money back at the end of the year, or how do that work.
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what u need for that i cant understand..
I have a 0 credit, I will be recieving my score in the mail soon, with this card, my useing and paying on time how much will my score go up, also is this card is used and payed on time, do I get my money back at the end of the year, or how do that work.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
what u need for that i cant understand..
First, a zero score does not stop you from getting a loan. Many lenders, cinluding myself, will allow for a zero score. As far as how much your score will increase and how fast, that will depend on the rest of your credit profile. Typically, you can expect a score of about 620-650 with a no score and then getting a credit card. This assumes of course that you keep the balance down in relation to the credit limit. Regarding monies back, you will have to check with the credit cards terms.
i've seen many clients with scores below 600 as a result of new credit - partially a result of having gone to the wrong creditor to acquire some of that new credit (anyone in favor of first premier?), for example. also, so many of those who begin their credit record with a credit card abuse the card immediately, maintaining a balance far too high in relation to the credit limit. it is necessary to keep a balance as low as possible if one wants to begin a favorable credit record (or maintain one).