Credit Check.

[mysteriouspoet]

I want to move into this place, and I'm really close. I think I may get it. But I believe the landlord is running a credit check on me. I have basically good credit. But on some of my credit cards and loans I had some late payments. Will this count seriously against me? Ack!

I know this isn't about being frugal, but it's related to financial issues...so...if anyone knows...blegh.

[remilard]

I want to move into this place, and I'm really close. I think I may get it. But I believe the landlord is running a credit check on me. I have basically good credit. But on some of my credit cards and loans I had some late payments. Will this count seriously against me? Ack!

I know this isn't about being frugal, but it's related to financial issues...so...if anyone knows...blegh.

A few late payments isn't going to keep you out of an apartment. Most places will rent to you unless you have defaulted on a loan.

That being said, no more late payments, they can cost you thousands of dollars on a home mortgage.

[Exitof99]

You might want to check yuor credit report yourself. State laws have now made it so you can request a copy each year(?) so that you can verify that everything is correct. It's cascading across several states though, not sure if all the states are now doing this.

The three major credit bureaus are:

Experian
Equifax
Transunion

They all have websites, but I'm not sure how to get that free report. Google around and I'm sure the answer will show up.

Experian does have a 30 day free trial for their service that will give you a look at your report. With it, you can get an updated report daily at no extra cost and after 30 days, they charge $9.95 a month. You can cancel before they charge though!

You will want to check to see if your late payments were actually recorded as such. Sometimes you pay a late fee and it doesn't show on your report.

[catswym]

i just recently used equifax. the free one won't give you your credit "score", i believe.

i think i paid $15 to get the score for mine. i think it will count against you but not heavily and not enough to worry about it.

[4 Life]

FYI - Late payments only report on your credit if they are 30 days or more past due.

[Thalia]

FYI - Late payments only report on your credit if they are 30 days or more past due.
Yes, thanks, I think that's what most people forget. And some places won't even report until 60 days. Plus, utilities don't report at all (phone, gas, electricity, water.)

The only accounts who report on mine are cell phones, loans, credit cards. No columbia house, etc.

To do a credit check, they have to have you sign something first, anyway. So you should know if they check it or not. If you do the free credit report after they allegedy checked your credit, their name will show up as someone who recently looked at it.
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

I think it's worth it to pay the extra $10 bucks for the actual score.

[bstutzma]

I agree. Knowing your credit score is very powerful, especially if its very good.

[Exitof99]

The score does come with that 30 day free thing with Experian!

[mysteriouspoet]

My credit score was pretty good. Unfortunately I can't help any of the things that hurt it--the fact that my credit limits were low, the fact that the lines of credit have been open for less than three years, and the fact that every loan or credit card I've applied to ran a--yep--credit check on me. I can't control that. I guess it feels good knowing I've done all I can by paying on time and being a good girl...

[Exitof99]

It's really funny, but to improve your credit score, you need to have a credit history. In other words, you carry debt, and if you manage it well, you are rewarded with a good credit score. If you don't have a credit history, then you don't have a good score!

One of my girlfriends put me on her credit card as a co-signer before I ever had a card myself. I never wanted one because I thought they are evil. Now I realize they are part of the game and much needed if you ever plan on getting a mortgage.

If you have a boyfriend or parent that can you can co-sign with, you will assume some good credit! If you have low limits, it can help. My first card was a $200 limit with an annual payment. I knew I had to start somewhere so I took it. I would charge everything I would *normally* buy on the credit card and set the cash aside. I even mailed in payments multiple times a month on my card (before there was online services).

They want to see you are responsible to manage debt, so if you carry some debt with them (aka make them money) and set up an automatic payment online, you can expect your credit limits to increase.

Credit card companies usually won't let you do a requested credit increase every 6 months, but nothing wrong with asking them every 6 months. If you haven't, then see if they can increase your limit or offer you a better card. It will help two-fold, having more credit than debt available increases your score.

[Blue Plastic Straw]

FYI the website to get your free credit report is https://www.annualcreditreport.com

[bstutzma]

I disagree that you have to carry "debt" on a card to get good credit, unless you consider it carrying "debt" when you pay off your credit card in full every month. The debt you carry from your school loans also counts, or from a car loan.

I would not put my name on a credit card with a boyfriend or girlfriend usually. Because their mistakes (such as, buying things they cannot pay for, or missing payments) become black marks on your credit history. Get your own card and manage it responsibly. Nowadays, credit card companies will give cards to anything that breathes. Get one with a really low limit if you must, but don't share one with someone unless you are prepared to take that risk.

After college, I was worried about having to build credit because I had never owned a credit card, and did not have a car. I wondered what would happen, since when you apply for an apartment, they often check your credit. But since my student loans were there, and had not started repayment, and thus, I had not missed any payments, I had "great credit." Crazy system.

I waited a long time to get a credit card, now I have one, which I pay off in full every month, and when I checked 2 months ago, my credit score was over 800. Just pay your bills, and don't get involved financially with people who have bad credit, and you'll have no trouble.

[Thalia]

I would never co-sign for someone nor ask anyone to co-sign for me. If I am being denied credit or if my friend is, it is for a reason. Now-a-days, credit is handed out like candy, and if a credit card company or bank is unwilling to trust me or my friend, there is good reason for that. When someone co-signs, that person is legally responsible for the entire amount of the loan if the "friend" goes awol. So you lose credt as well as money. Plus your friendship. Therefore I could never ask anyone to do that for me, and I'd be foolish to do it for someone else.

If someone really can't get credit, there are these "prepaid" credit cards, and ones with super low limits (like $300) you can get to help establish yourself.
And bstutzma's right, you don't have to carry a balance to improve your credit, just use your card once in a while. (oh, but I think exit was talking about getting your limit raised, that is different.)

[Exitof99]

Hmmm, true, cosigning with a person with bad credit wouldn't be good, but cosigning with someone with good credit sure helped me get started.

And yeah, I was referring to getting more credit. They will want to make more money and if you manage your credit well, then you can request increases, which in turn will help your credit score as long as you do keep your debt load low enough. It's always important to not charge all of your available credit and maintain high balances. That will make you more of a risk.

[bluegrrrl79]

I disagree that you have to carry "debt" on a card to get good credit, unless you consider it carrying "debt" when you pay off your credit card in full every month. The debt you carry from your school loans also counts, or from a car loan.

You're right, you DON'T need to carry debt to have credit!! What builds credit is simply having a credit card. But sure, having and paying off loans, which I guess you can consider debt will help your credit, so long as you pay them off on time. But as far as credit cards, just having it bumps your credit. You don't even have to use it.

[remilard]

You should use the credit cards, you need not carry a balance. You want a non zero average monthly balance, but paying it off in full each month is fine.

[Gracie]

If someone really can't get credit, there are these "prepaid" credit cards, and ones with super low limits (like $300) you can get to help establish yourself.
Actually, prepaid cards generally don't report to credit bureaus, so they don't help build a credit history. They're good to give to teens, or for anybody who needs to get used to using credit without overspending. Secured cards do report, so if you can't get a traditional card, they can help.

Be sure to get all the info before you get a secured or prepaid card. Find out what sort of fees are involved, whether they report to credit bureaus, and whether the card shows up as "secured" on your credit report. Try to get one that doesn't show it.

[mysteriouspoet]

My credit is pretty much as good as it can be. All my credit cards are paid off. And I spent last year paying off about 2000 dollars worth of debt. That ought to give me pretty good credit.

[smokin'veggie]

For anyone who is interested, I called Equifax and by using the phone automated system I received a free report in the mail, not sure if it was by accident or not, but I recieved it in like 7days.( not sure if it's the same for Canada and US)

[smokin'veggie]

FYI the website to get your free credit report is https://www.annualcreditreport.com

I could not get this one to work, said it was wrong or something.:tame: