Maintaining Good Credit

I think people overthink this. I rarely keep a balance and my credit rating is in the high 700's. Its not a game and you do not win with the highest score. When going for loans from what I've seen once your over 650 or 700 you are pretty much golden for any rate.
 
I have the Dubbs so I can't make my own thread. I have a credit related question for anybody knowledgable about car loans.

I started building my credit a year ago. So far, I have paid off a small loan and I am currently using a credit card that I pay in full every month. Obviously, I would be getting a poor interest rate on a car loan since I have not had credit long enough.

My dad is willing to cosign and he has perfect unblemished credit. What I want know is, can he be the main person on the loan and I'll be the cosigner? Or does he have to be the cosigner since I have lower credit?

My reasoning is that if he is the main person for the car loan then the interest rate would be decided based on his credit and not mine. I'll just cosign so I can also build credit while I pay off this car. Also, I would like to add that I'm planning on putting a down payment that is 35% of the car's price.

Any helpful info would be appreciated. Thank you
 
the purpose of a cosign is to decrease risk from the lender.

being cosigned by someone with less credit means nothing.
 
Lustercross said:
I have the Dubbs so I can't make my own thread. I have a credit related question for anybody knowledgable about car loans.

I started building my credit a year ago. So far, I have paid off a small loan and I am currently using a credit card that I pay in full every month. Obviously, I would be getting a poor interest rate on a car loan since I have not had credit long enough.

My dad is willing to cosign and he has perfect unblemished credit. What I want know is, can he be the main person on the loan and I'll be the cosigner? Or does he have to be the cosigner since I have lower credit?

My reasoning is that if he is the main person for the car loan then the interest rate would be decided based on his credit and not mine. I'll just cosign so I can also build credit while I pay off this car. Also, I would like to add that I'm planning on putting a down payment that is 35% of the car's price.

Any helpful info would be appreciated. Thank you
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Can he just buy it and you make payments to him or do you really want the credit history of making a car payment. If he buys it you would most likely have a lower payment due to lower interest. I think you have to be the main buyer the cosigner is just more backing up the loan. Your father wouldn't need a cosigner. I'm not 100% sure so just go in and check with a dealership. They will work with you, they want to sell you the car and will give you decent advice as far as if you can do it yourself, need a cosigner or whatever.
 
RerouteToRemain said:
Can he just buy it and you make payments to him or do you really want the credit history of making a car payment. If he buys it you would most likely have a lower payment due to lower interest. I think you have to be the main buyer the cosigner is just more backing up the loan. Your father wouldn't need a cosigner. I'm not 100% sure so just go in and check with a dealership. They will work with you, they want to sell you the car and will give you decent advice as far as if you can do it yourself, need a cosigner or whatever.
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We'll I want the credit so one day I can buy a house without having to rely on anybody else's credit.
 
SevenSamurai said:
you can get your credit scroe from each agency free twice a year in most states.


still doesn't mean they aren't fucking you.

It's modern day slavery.

When they couldn't steal slaves from Africa for labor, put debtors in work camps, and push opium anymore they came up with new ways to enslave us -banking
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My girlfriend tells me that even having your score checked gets it lowered, but neither of us have a credit card soooo.
 
Lustercross said:
So they wouldn't allow it?
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ummm allow is a weird word to use here. u could sign a paper but it would mean nothing.

if u have a good relationship with ur father, what you really should do is borrow money from him, or if he doesnt have money, just have him take out the loan in his own name.

The only reason for you to take out the loan or do any cosigning is if your father doesnt want to assume the risk from you. If you want the credit from paying off a loan, then you're just gona have to pay the price.
 
BJ@LW&WW said:
ummm allow is a weird word to use here. u could sign a paper but it would mean nothing.

if u have a good relationship with ur father, what you really should do is borrow money from him, or if he doesnt have money, just have him take out the loan in his own name.

The only reason for you to take out the loan or do any cosigning is if your father doesnt want to assume the risk from you. If you want the credit from paying off a loan, then you're just gona have to pay the price.
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He trusts that I'm responsible so him cosigning isn't a problem. He would also easily get the loan solely in his name without a problem. I just don't want him to because I want to build credit for myself.

We'll I'm just going to have to hope that his cosign and my big down payment give me a decent interest rate. Thanks for the information BJ Penn :)
 
sgt jumpy said:
My girlfriend tells me that even having your score checked gets it lowered, but neither of us have a credit card soooo.
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I've heard that too.

My credit is great. I have two credit cards, one for gas and groceries and the other for other purchases. I pay them off on pay days and never miss a payment.

When I went to buy a new vehicle the finance guy said he has never had a credit check come back so fast. And considering my bank just upped my card limit i must be doing something right.
 
Man I'm so confused. My credit card statements also come with a FICO score. Two statements ago I was up to ~800. For no apparent reason I'm back down to ~780. On that statement I had used ~15% of my credit line. No idea what could have brought my score down..
 
BJ@LW&WW said:
From what I understand, applying for a large number of credit cards alone hurts your credit rating. If these purchases you speak of raise you above ~25% of your credit limit, then yes that also hurts you as well.
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Hey man, if you're still interested in the topic, according to this site, http://creditcardforum.com/blog/800-credit-score-how-to-get-it/

Having multiple credit cards is how you get an insane high-score like 800

"3. Number of accounts

According to a post by a MyFICO moderator, 6 accounts currently being paid as agreed is the average for high achievers. Moreover, there’s an average of 4 to 5 credit cards on file (which includes accounts both currently open and those that have been closed but are still on the report). Just a little FYI though - I have many, MANY times more cards than that!

So for all the haters out there that love to harp about how evil credit cards are… just remember, when used responsibly, they can be quite helpful for your credit score! If you honestly think you’re going to get to 800 and above by only having a student loan and car loan on record, then I have some swampland in Florida I would like to sell you."
 
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I have 1 credit card right now with 500$ credit line and my score is 790.

My statements come with my FICO score every month. Not sure if this is the direct reason, but the month that I only had a 80$ balance, my score dropped to 770. I raised the balance to just under 200 and it went back to 790.
 
Satsui Ryu said:
I think people overthink this. I rarely keep a balance and my credit rating is in the high 700's. Its not a game and you do not win with the highest score. When going for loans from what I've seen once your over 650 or 700 you are pretty much golden for any rate.
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This is a good post. 100% agree.
 
My score was 800 and I only have one credit card. I think it is a 2k limit. I have never left a balance on it. Always paid off immediately.
 
over 10yrs ago I let a buddy of mine, who is a childhood friend use my credit card so he could get a cell phone.

he always honored his payments, as expected. last year he switched phone providers & had outstanding payments left over from his old provider. I didn't find this out till later because I kept getting harassing calls from collection agencies & he would be nowhere to be found, not answering my phone calls or texts - shit he never used to do before, like a sudden act of shadiness in all our years of friendship. he finally calls later at night & apologizes saying he'll pay it off. a month goes by, BAM - same shit. harassing calls & he's nowhere to be found.


not too long after I receive a letter from Macy's saying they're going to lower my Macy's card allowance due to my credit score dropping. furious, I dig deeper & sure enough I see "delinquent payments, T-Mobile" or something along those lines.

he refused to accept blame & insisted that such is impossible & since then we haven't been speaking really. he says I'm kinda flakey, the gonads this guy.


I'm the only one out of my group who isn't in debt & my records have been clean until this bullshit.


lesson to be learned? I was a moron to bring money into friendship.
 
pay your credit cards on time. Pay them off asap. Make sure you don't default on loans (funds in your bank).
 
Just use your credit card to buy stuff instead of cash. Then at the end of every month, pay your card off in full and never pay a cent of interest.

Your credit score will be high and you wont even have to think about it.

It's pretty simple really but people try and make it more complicated than it is.
 
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