All, What are good ways to build a credit history? My wife was born in another country and has been a U.S. citizen for a while; so how do I help her establish credit (which is next to nothing here, everything tends to be in my name / on my credit, which is not bad)? Secured credit card? I'd think to put her on our next loan (not that it'll help us save money, but the idea is for her to get some credit going). Any ideas. I'm just not good at this stuff---I get distracted on everything else.
Probably next loan, secured credit card, maybe even try a credit card altogether (if not worried on hit etc./opening more credit). Then just use the secured credit/credit card and pay monthly on time. Main thing is to pay it on time/timely payments to establish history
We got a credit card for her but it's under my account so I don't think it'll help? Secured credit card was mentioned to me.
Yeah, so I think the credit card would need to be opened under her with you as a co-sign (like true coop account), not just adding (at least I think). I think secured would probably be the easiest, outside of new joint accounts.
Secured credit card is a way and think about putting her as an authorized user on one/some of your credit cards. Your on time payments will be added to her credit history so it will build her credit as you pay your bills normally. You get another Card, but you don't have to use it or give it to her. I also wouldn't take out more debt just to build credit. It's not that serious. Is there a reason why your are trying to build her credit? I'm just curious.
Are you sure on this, DreamShook? She wants some independence here, which I can understand. If something happened to me.......etcetera.
Yeah, I'm sure, but you can ask for more info from the internet or your bank and credit card issuer. Just look up "authorized user" and you get YouTube videos explaining it. Even look up ways to build credit without taking on debt and YouTube has got you covered.
Secured credit card and secured loan. Need to have at least 6 months of payments. Also apply for high interest CD and just pay monthly before due date. Worked for me. this a good forum that has several tips.I https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit
Credit karma is a decent site for info. I haven't been there in ages but they offer more products now. Co financing a card is also good. I would start signing up to any no annual fee CCs as possible. I still have one my dad setup when I was a minor and it serves as great foundation. However, building credit is slow and aggressiveness is penalized in the short term with hard credit pulls. Those stick around for six months even if your request is approved. Do some research into whether the institution does a soft or hard pull on your wife's credit history. Hard pulls should only be done for big loans or apartment hunts, but some cc companies do it anyways The strategy here is to increase the average age of your credit cards.
I'm an authorized user on someone's credit card account and it does show up on my credit report. FYI. As far as building credit, try a gas card then after six months of use try a dept store card then after another six months or a year of use try for a MasterCard. It's pretty easy to build credit as long as you pay things off on time.
We have credit cards with a couple of banks, one being USAA, and while checking our balance there, I noticed some general "tips" off to the side for improving your credit score. One of the first tips mentioned to move up your credit score is to keep the balance at or below 1/3 of your limit over time. Charge things, of course, so you can make monthly payments and establish that credit, but in moderation. Good luck to her!
I suggest going with a Capital One or Bank of America secure card. One of the hardest categories to build in a credit score is length of credit history. If she starts out with a low grade credit card company, gas card or department store card, that card will likely get closed, thus reducing her open credit history. I really like Capital One. They tend to do extend credit lines w/out requests. They also will upgrade your account over time w/out having to open a new card. Their fraud protection is great.
