Author Topic: Starting from "thin file"/no credit score  (Read 3045 times)

cavewoman

  • Pencil Stache
  • ****
  • Posts: 522
  • Age: 33
  • I'm a woman who likes caves
Starting from "thin file"/no credit score
« on: October 19, 2014, 08:54:43 AM »
I've finally checked out credit karma, and they estimate my score at 697.  I've got some old medical bills that were sent to collections and a comcast charge (even though I've not had service in my name since 2007!)  I'm going to work on cleaning those up so I can see my score improve.

My boyfriend D has a "thin file" due to being a cash man.  It's a whole other discussion that he has no credit but has also never been in debt, and I, a former debt master, have a better score than him.

He's 25.  He just went to tech school and has about 11,000 in student loans that will start to accumulate interest in May 2015.  He's on my cell phone plan.

1)  Will his student loan start his credit file and put him on the books so he can have a credit score?
2)  Without living in a permanent place (utilities) how else can he build credit when he is denied for credit due to not having credit?

Hotstreak

  • Pencil Stache
  • ****
  • Posts: 776
Re: Starting from "thin file"/no credit score
« Reply #1 on: October 19, 2014, 09:22:48 AM »
1)  Will his student loan start his credit file and put him on the books so he can have a credit score?
2)  Without living in a permanent place (utilities) how else can he build credit when he is denied for credit due to not having credit?


1  -  Yes, his student loan should already be on his credit file.  He can get a free credit report to confirm.
2  -  Utilities do NOT build your credit.  None of those companies report anything unless you stop paying them, in which they file a collection or judgement.  Generally the only things that report are when you borrow money.  You don't do that from any utility I know of. 


He can build credit by also getting a secured credit card.  Many banks offer these.  The general idea is that he puts $300 in to a secured savings account, and they give him a $300 credit card.  Keep it for a year or two, use it very lightly, and he will likely qualify for a regular card.

wtjbatman

  • Handlebar Stache
  • *****
  • Posts: 1313
  • Age: 36
  • Location: Missouri
Re: Starting from "thin file"/no credit score
« Reply #2 on: October 19, 2014, 10:04:09 AM »
Secured credit card is probably his best bet. Like Robbyj said, put down the $300-500 or whatever, then just have him use the card regularly. Obviously pay it off every month. I also know someone who took a low interest personal loan for a relatively small amount ($1000?), then paid it off over the 12 months. This boosted her credit score significantly.

La Bibliotecaria Feroz

  • Magnum Stache
  • ******
  • Posts: 4628
Re: Starting from "thin file"/no credit score
« Reply #3 on: October 19, 2014, 02:39:44 PM »
Is boyfriend a credit union member? From mine, I was able to get a small ($2500 limit) unsecured credit card in my own name even with mediocre credit (probably low- to mid-600s at the time) and only $10K of personal income. It's a start.

cavewoman

  • Pencil Stache
  • ****
  • Posts: 522
  • Age: 33
  • I'm a woman who likes caves
Re: Starting from "thin file"/no credit score
« Reply #4 on: October 20, 2014, 06:58:50 AM »
Thanks folks!

He is a credit union member, but the credit union is in CA.  I'll have to see if he can apply with them online, or we'll take care of it next time we head that way.  From what he said, even they denied him last time, but hopefully just "existing" in the credit world through his student loans will help him out.

I wonder where I got the idea that utilities build credit?  Just a quick google search reiterates what you guys are saying, but that's one of those things that has been rattling in my brain for so long, I believed it as truth. 

Ok, question part two:  As far as his student loans go, any ideas as to the best route of paying them off?  They don't accrue interest until May 15.  His instinct will probably be to pay them off quickly.  Would it help him out more to pay less over time?  I'm working on getting him to be on board with the ideas I've learned here, that employees can earn more somewhere else than what we're paying in interest on this.

Scandium

  • Handlebar Stache
  • *****
  • Posts: 2223
  • Location: EastCoast
Re: Starting from "thin file"/no credit score
« Reply #5 on: October 20, 2014, 10:58:50 AM »
Apply for a Capital one credit card. I also didn't have a credit report/score and was denied for several but finally got a capital one card with $300 limit, with some automatic increases over time if you don't mess up. Maybe he'll be accepted for a store card as well? Target for example.