I've posted quite a few times about credit. Look for my posts in the following threads:

https://www.hdforums.com/m_1653243/tm.htm
https://www.hdforums.com/m_2345000/tm.htm

I am not an expert financial wizard but I have handled everything from excellent credit, to recovering from bankruptcy, to having a missing credit report, and multiple instances of identity theft for myself, friends,and family members...I've even helped a few folks out of some deep debt when they thought they done.I agree that it would be nice to use cash for everything but unfortunately it does not always workout. Credit definately has it's place if used wisely.

If you have a good job but little credit try a few different lenders someone is bound to give you the loan (even www.eloans.com might bea shot since they try multiple lenders)....be prepared for a hefty interest rate though since your credit score is non-existant.

 

HD financed me and I nearly fell on the floor that I got approved and then did hit the floor when they hit me with the 18.99%. I had a really nasty divorce and had to file bankruptcy and lost my home.

Before I went down to the shop I called my banker he told me no problem sign the papers and when he got back from vacation we would take care of the paper work. I would not finance with HD there are more financial institutions out there that will set down with you and help you with your purchase.

 

For someone who has no credit to begin with, the biggest bang for the buck to get started (to build a credit score) is with a credit card. Unsecured, revolving credit is one of the heaviest factors that makes up a fico score. That combined with proper utilization is the path to high scores. Utilization is the percentage of used credit to available credit. 10% utilization is generally accepted to be the optimum amount to carry by those who study fico. If you have a $1,000 credit limit, carry no more than a $100 balance on the card. Over 20% utilization can begin to show negative effects on your score if everything else has remained the same. Charging a balance and paying it off completely before the card reports to the bureaus will have the same result as carrying a $0 balance, and that does not help your score. (It should go without saying that all payments must be on time, by the due date of your bill)

To build a truly high score takes time and a variety of different types of loans. Installment loans (auto) will contribute to your score but won't weigh as heavy as unsecured credit will. Having both types in good standing will raise your score more than having only one type.

Don't bombard your credit reports with credit inquiries. (What shows up when you are shopping for credit and someone runs your credit profile). Too many inquiries has a negative effect and they remain on your report for 2 years, so it can be pretty easy to collect them. Their impact lessons after they have aged 6 months, though.

 

Just noticed something so I have an off topic question. My last post says it was in reply to firecap (the post previous to mine).

It was intended to be just a general post and not a response to firecap. What did I do wrong?

 

First of get a copy of credit report (They have to give you one) had you applied any place else every inquiry lowers your score. Look at you report make sure you dont have negatives that are not yours
Do youown or rent? Any other monthly payments? try a bank

 

Go back & read what I said. You're a little too quick on the trigger.I was referring to sending reports TO THE CREDIT BUREAUS....not taking applications for credit. We EXTENDED credit and sent in info that went into the credit reports. I wasn't referring to taking appilcations. So....yeah. I think that 100's qualifies for a little more than 2 month's worth.

Once again.....that wasn't what I said, or was referring to.

Yes....I understand the system. It's pretty simple once you understand how it works. But I can't speak for you.

Obviously, you think that I'm pretty simple-minded or else you think I'm stupid. Either way....yes, there ARE differences in the way reporting bureaus compile their scores and their procedures vary. That's the reason that a good financial person will pull all of the "Big 3" when considering any type of application.

 

Ahh excuse me but if you are planning to buy a house..Don't buy a Harley NOW, wait until you have the house!

 

Shop around at different dealers. I went to my local dealer who is 10 minutes from me. He submitted my application to Harley and they turned it down. Never even offered me the chance to explain the issues on my credit report due to divorce, etc. I went to another dealer 70 miles away and he asked me for all kinds of information and explanations. He submitted the exact same application basically and I was approved.&nbsp\\;

Bottom line is that some dealers just don't need to do the extra work with people like ourselves with questionable credit. Some are willing to go that extra mile to get you on a bike. In my circumstance, the issues that were drawing my credit down were from a divorce from 4 years prior. Once this was explained to Harley Credit, the gave me the loan.

It sucks that I now have to drive 70 miles to pick up my new crimson red Heritage Softail when I should have been able to drive 10 minutes, but I'm looking at the positive. 70 miles is a hell of alot nicer first ride than 10 minutes.&nbsp\\; Good luck....

 

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ABSOLUTELY!!!!!!
I've been in the real estate profession for 32 years and this is just plain good advise. Banks are in defense mode now so those with questionable/bad credit are on the outside looking in. Those with too much credit are also getting the blindside. Be smart, spend wisely.

 

The problem is, you don't show a HISTORY of paying back debts.

Its all fine and good that you choose to pay cash for things, in the overall sense, thats the smart thing to do, but it leaves you with no record of how responsible you are at paying back loans. Even someone who racks themselfs up a TON of debt, but makes the monthly payments on time, at least shows that they WILL make the payment.

You, unfortunately, are an unknown to the credit union.