I have been living abroad for years. However, I returned a year ago and have been trying to build credit. Recently I got a secured loan. I have had a checking account with this same bank for past 3 years in good standing. I had also applied for a bloomingdales card because I had read that it can be helpful. Initially i got rejected, as they could not verify my address. I mailed them a copy of my bank statement and was told i would be approved shortly. I also have a family plan under my name with At&t and have kept this account in good standing. I plan to do some other things in the coming weeks. Open another checking account at another bank and get another secured loan. Apply for other store cards, perhaps bestbuy or something. Apply for another secured card. The bank told me that after 12 months of good standing it will become a regular credit card. My question is, does the card start reporting while it is still secured, gradually building credit, or is there no effect until 12 months pass? Is there any credit building method i am missing? If so please help.
What you have done so far is going to build a good credit score for you. However, don't go on taking new loans and cards. This may lower your score as the issuers and lenders will do a hard inquiry on your credit report to check your credit worthiness. This can ding your score.
Just maintain the payments on those which you already have. Payment history helps you the most in building and maintaining your credit score.
As for the secured credit card, check if your bank is going to report about this to the credit bureau. If not, you yourself can report this to the credit bureau. Secured card helps you the most in building good credit.
Some secured cards report and some down, you need to ask your bank if they are one that does report, also you can ask them if after a period of time you can be upgraded to unsecured installment loan.
Installment loans are the best way to build credit, you should keep opening and paying as agreed, not early - you want to build payment history right now. But as soon as you pay one off, open another one. These build towards being able to get auto and mortgage loans later.
Credit Cards - you want to be careful, don't apply for more than 3 a year. The inquiries will hurt your new credit score, if you have one yet. Usually after establishing new credit it can take up to 6 months to generate a score on your file.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.