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29 minutes ago, Kirk W said:

OK, you have my attention now.  Please share the details of how you do this?

My son did this on a later model pickup truck he owned and had it paid for. Simply went into the bank and asked for a car loan and it fell under the age limit of vehicles that they loan on. Actually the loan value they would loan on it was more than he had paid for it originally too. Since the interest rate was better than doing a personal loan it worked to his advantage.

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On 4/8/2021 at 10:42 PM, sandsys said:

Not paying the balance in full does not mean being late. The bill will give you a due date and a minimum payment amount. As long as they receive that minimum by that date you are NOT late. You can even make those payment a week before the due date if that is more comfortable for you. But paying that minimum amount every month by the due date for at least six months is what establishes credit. If the minimum payment is going to pay off your purchase before six months then buy something else to keep the payment pattern going. Yes, it make things cost more because you are paying interest on the unpaid balance. But, that's what it takes if you want to build a credit record. If you don't want to qualify for a loan, ignore all this.

Linda Sand

My parents never had a credit record.  They paid cash for everything!!! 

On the other hand, I have ALWAYS paid my credit card balance in full every month and have a sterling credit rating.

Once, I noticed a finance charge on my credit card balance and immediately called the bank.  It turns out that I transposed a couple of digits on the check and paid the bank $40 less than the full balance of $800.  The finance charge was over $100 on carrying a $40 balance!!!

In fairness, the bank reversed that charge given my payment history. 

Pay your credit cards off in full EVERY month.  Otherwise, it is a short path to financial ruin.

I would find a credit union to work with. 

Be honest with them, BTW the smaller the credit union the easier it would be for you to work with them.

I have been with the same credit union for 43 years and have NEVER lived within 40 miles of the credit union.   I have stepped into the building TWICE in 43 years.

A few years ago I needed a 30,000 bridge loan for ONE MONTH.  Called a couple of places and then called my credit union to see if they could offer anything.  Inside of an hour, had the loan.  Paid it off the following month with interest charges of $50.  No fees.  Oh, didn't have to show up for the loan either!!

Good luck, but credit unions are the way to go.......banks are just too weird to do business with on a continuing basis.

 

 

 

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On 4/8/2021 at 1:26 PM, sandsys said:

If you pay the balance in full every month you don't show a pattern of making regular payments. If you buy something not too cheap you can make the minimum payment every month to establish a pattern. I would buy something I'm going to want in my RV. In your case that might be something to increase your internet connection as you travel.

Linda Sand

I don't understand that logic.  I've always paid my CCs in full each month, except for a 2 year period after my divorce 6 years ago, and my credit rating is north of 800.   I don't have any other debt, always paid cash for my (cheap) cars and RVs and never had a mortgage.

Edited by Lou Schneider
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1 minute ago, Lou Schneider said:

I don't understand that logic.  I've always paid my CCs in full each month, except for a 2 year period after my divorce 6 years ago, and my credit rating is north of 800.   

Same here.  High credit score and no debt, no payments.

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2 minutes ago, Lou Schneider said:

I don't understand that logic.  I've always paid my CCs in full each month, except for a 2 year period after my divorce 6 years ago, and my credit rating is north of 800.   I don't have any other debt, always paid cash for my (cheap) cars and RVs and never had a mortgage.

 

Just now, 2gypsies said:

Same here.  High credit score and no debt, no payments.

That's what happens when you're old. You become less of a credit (flight) risk.

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We now pay ours in full as well but we didn't when we were first starting out and needed to build a credit record since we had never owned a car or a house or had credit in our names at that point in time. Once established, paying in full each month is a good thing to do. But, do you remember way back when you needed to get established? We had to get a co-signer for our first car purchase and the department store where I worked would not give us credit because the Army was about to move us out of state for two years before moving back. What is easy for us now was not always so.

Linda

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They will ding your credit report for not having a mortgage, car loan, etc .   It isn't much, and I don't worry about it, but it takes a small ding.   It is the algorithm that banks use and regular payments on a specific collateralized loan instead of credit cards gets positive points for you.

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6 hours ago, Lou Schneider said:

 I don't have any other debt, always paid cash for my (cheap) cars and RVs and never had a mortgage.

We had good credit and a mortgage before I retired and until the last 10 years that I worked we had always financed our cars and some other things, but once the kids left home we quickly moved to using less and less credit. Since retiring 20 years ago, we have not financed anything and we pay all credit card bills in full every month. In fact, none of the 3 credit cards that we now have have ever had a balance carried on them. And we too have a credit rating well into the very upper section of all 3 rating services. 

3 hours ago, Barbaraok said:

They will ding your credit report for not having a mortgage, car loan, etc .

While that was once true, it is very little if any impact today. The following quote comes from the website of Experian.

Quote

Not having a mortgage doesn't hurt your credit scores, it just doesn't help them. Points aren't taken away because you don't have a mortgage. However, you might gain some points if you do have a mortgage.

 

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5 hours ago, Barbaraok said:

They will ding your credit report for not having a mortgage, car loan, etc .   It isn't much, and I don't worry about it, but it takes a small ding.   It is the algorithm that banks use and regular payments on a specific collateralized loan instead of credit cards gets positive points for you.

Here's a good article.  You don't need debt for a high credit score.

 

https://www.heraldnet.com/business/no-you-do-not-have-to-be-in-debt-to-have-a-good-credit-score/

Edited by 2gypsies
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No credit score isn’t a bad thing. If anything it's a fresh slate to start on. Do some research on the best credit card for your income and lifestyle. You want to begin with secured cards like OpenSky . Start clean, make on-time payments and slowly add other types of credit like loans as you progress.

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"They will ding your credit report for not having a mortgage, car loan, etc .   It isn't much, and I don't worry about it, but it takes a small ding."

Okay I have no debt for many many years now and my FICO score is between 730 and 760.  Over twenty years ago it was 830 when I took out loans for new truck (USAA) and later a used but new 28 foot TT (Bank of the West).  Everything was paid off on time.  My FICO scores are from CC and Banks. Now only have small amount of occasional CC debt roll over.  Interest is tiny.  Cheers to many and none to some.

https://www.facebook.com/CaptainWilliamPerkinsInternationalHelicopter/?ref=pages_you_manage

9Nzkk6Nm.jpg

This is only the beginning

 

Edited by NamMedevac 70
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7 hours ago, 2gypsies said:

Here's a good article.  You don't need debt for a high credit score.

That article fits with our experience. We have had no loans of any kind since we paid off the house in 2000 and then our motorhome in 2003. We last carried any credit card balance in 2001, when we paid for some air travel accomodations in 2 payments. We have had 2 credit cards and a debit card since before 2000 and we currently have 3 active credit cards. None of them have ever had a balance carried and since 2001 we have paid all cards in full every month. Our main card is used to pay the vast majority of our purchases and our bills because it has a 2% rebate and that monthly bill ranges from a little under $1000 to as much as a little more than $2500, with the highest ever having been just over $5000. Our current balance is high because we pay all of our vehicle insurance this month and we both had dental work on the current balance that will be paid early next week. Even so, I just checked our credit scores and TransUnion (range of 300 to 850) is sitting at 797 while FUCO has it at 817 (range 250 - 900). With the two credit cards that we use most giving the above scores with each month's bill, I can tell you our scores do go up and down with the amount of credit used each month. TransUnion, which I watch most closely has ranged from a low of 797 to a high for 836 over the past 6 months. Since the low point is still in the "excellent credit" range, I don't believe that we are harmed by not carrying any balance. 

What company is behind the FICO score?

Quote

FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is a data analytics company based in San Jose, California, focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956.

I also check my credit report from all 3 reporting companies annually with FreeScoreOnline.com. The 3 companies are TransUnion, Equifax, and Experian. 

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8 hours ago, Kirk W said:

That article fits with our experience. We have had no loans of any kind since we paid off the house in 2000 and then our motorhome in 2003.

People who don't have that history have a different experience. Credit is not the same for everyone just as RVing is not the same for everyone. Please, people, stop comparing your apples to the OP's oranges.

Linda

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To the OP if you are active or former military then USAA of San Antonio is an excellent source for financing new and some used autos, trucks, rvs, boats, etc.  They have very reasonable rates and absolutely no tricks, or gimmicks of any kind.  I have been a satisfied member since 1970 for both auto loans and auto insurance.  They offer all kinds of financial services such as banking and investments.  Cost nothing to join and become a member.  Good luck to you.

Retired Acct & SEC CFP plus former legislative aide and pilot to two Texas Governors, etc.  

https://www.facebook.com/media/set/?set=a.1739912699644241&type=3IcpZG9fm.jpg

This is only the beginning of

Edited by NamMedevac 70
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17 minutes ago, sandsys said:

People who don't have that history have a different experience. Credit is not the same for everyone just as RVing is not the same for everyone. Please, people, stop comparing your apples to the OP's oranges.

Did someone say that it was? I just went back through the entire thread and nobody made that sort of statement. But you did state that to get a credit record you need to carry a balance on your credit cards from month to month and that simply is not true. Like you, and everyone that I know, we started with no credit record at all. Our/my first financed thing was a new AMC Rambler bought in Blackfoot ID when living there for Naval Nuclear power training and just 2 months after getting married. We didn't have a cosigner, but saved up a good downpayment and bought an inexpensive car. We managed our limited money very carefully and made all payments on time. About a year later we got a second loan to buy our first furniture, which we paid off in about 6 months. Slowly, over time we did establish a credit record, but none of this has anything to do with the way that credit is issued today. My wife was a bank loan officer back in the 80's when credit reports were similar to the present but credit scores had not yet been invented. None of what either one of us did or didn't do has any bearing on our credit records today as those only go back 7 years (which happens to be the statutory limit of liability in most states). With the advent of credit scoring, the giving of loans is much different today but credit scoring works exactly the same for everyone.  Before your information appears in a credit bureau file, your credit history simply doesn't exist. No credit is better than bad credit because it is easier to turn no credit into good credit. But according to Expiran, there is no need to have borrowed money to establish a credit score. 

Quote

What bills help build credit?

Rent payments.

Utility bills.

Cable, internet or cell phone bills.

Insurance payments.

Car payments.

Mortgage payments.

Student loan payments.

Credit card payments.

Doing business with anyone who makes reports to the credit reporting organizations will establish at least some credit records. When you have no credit history, the credit bureaus just don't know enough about you to guess whether you'll pay back borrowed money. And that's all a credit score is — an estimate of the likelihood you'll pay back the next credit you're granted, based on the data in your credit reports.

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Kirk, my  latest credit report shows that I have one credit card with a 29 year history off on-time payments on it, my Discover card.   The others have around 15 year history listed with them.   So some things do stay on a credit report longer.   And the 29 yr history is always cited as a + factor for the credit score.  

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9 hours ago, Barbaraok said:

So some things do stay on a credit report longer.  

For good things, that is true. Experian states that good things stay indefinitely while negative items stay between 7 and 10 years, depending upon what they are and statute of limitations. FICO says that length of history can be as much as 15% of a credit score. A longer credit history is a good thing if it is a good one. As they state, a short history is not negative but longer will always look better to a potential lender. The following comes from Investopedia.

Quote

Long credit history is helpful (if it's not marred by late payments and other negative items), but a short history can be fine too as long as you've made your payments on time and don't owe too much.

 

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Do you have electric or water bills that you pay by check?  Those can count as credit, but the credit agencies may not know about them.

Does anyone know how he could use these bills as credit information??

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For those that have sold S&B to purchase an RV I am curious if not having the collateral asset of the S&B had any negative impact on the loan process?  By selling the S&B first does that impact the prospect of obtaining a loan and you now have to use proceeds to pay for the RV?

Would it be better / easier to obtain a loan for the RV first, then sell the S&B ?

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5 hours ago, Solo18 said:

Does anyone know how he could use these bills as credit information??

The degree of help is mostly determined by whether or not the company reports the history to the credit bureau. Utility bills are not typically found on a credit report.

1 hour ago, palmeris said:

Would it be better / easier to obtain a loan for the RV first, then sell the S&B ?

At one time the owing of a house would generally give you a lower interest rate on an RV loan, but I doubt that it does much for you with the low rates of today. If you sell the house and pay off the existing mortgage that would be reflected in your credit report. 

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