[tlj009]

My parents tried to do that with my brother. My brother paid it off too soon, so it reflected negatively, IIRC

Yeah. It is amazing to me how you can take out a 5 year car loan but if you pay it off in under 3 years then your credit score goes down.

[athanatos]

Originally Posted by Nate

My wife and I got in the same situation trying to be too careful, avoiding debt / credit whenever possible, paying only cash, trying to be responsible stewards of our resources.

The long and short of our experience is that it is never too early to get a credit card and it is absolutely essential to your financial life that you do so sooner rather than later.

As I am coming to learn...

Go to a bank you use that you have a lengthy history with and get a credit card with them at whatever interest rate / credit limit they will offer. Negotiate until you get one. Then use it.

You don't need a big purchase to obtain a line of credit from your bank in the form of a credit card. Just put day-to-day things on it and then pay it back at the end of each month.

And don't accept no for an answer. People [especially in smaller lenders] are willing to negotiate and let you prove your reliability. Bank cards reflect better than store cards, too.

I'll remember to negotiate; I also know how to think outside of the box to be aggressive and work the system, but my natural tendency is not to do so (work the system, that is). I have to be intentional about it. ... I'll check out one of my local banks to see how it would go.

Originally Posted by BillSPrestonEsq

too many inquiries is bad. However, it is bad in the sense it shows you are having trouble getting credit.

Exactly what I was thinkin'. I've been trying to spread my inquiries out, actually. Think that helps?

When I got my car financed, (after a credit card, mind you) the dealership's finance department sent it out to 19+ lenders before one took us, meaning I had a heck of a lot of inquiries that month. I was advised that after a few months, those just go away, especially if you don't do anything stupid. I did not need to get a secured card, but that may have changed, but I believe my initial credit limit was something like $50.

That's crazy.

Originally Posted by tlj009

Yeah. It is amazing to me how you can take out a 5 year car loan but if you pay it off in under 3 years then your credit score goes down.

The system is odd, but I can see a hint of rationality behind it. Though really lame either way.

[Pre-Ex-Girlfriend]

Originally Posted by athanatos

Okay, so the way you and Wikipedia portray it...........

It's in some respect like a reloadable debit card. Only it acquires a history with the company, allowing credit essentially (or in practice) be your balance. Well, until your credit increases.

Blech! That honestly sounds lame, given that they cost money.

I guess you could think of it that way. I think of it more like this. The credit card company has no reason to trust you if you don't have a good credit history, so it wants the security of knowing that it will get paid back if you somewhere down the line don't pay them back the money they lend you.

And you get the money back when you cancel the card. At least you should. Check before you sign up, obviously. So, it only "costs" money if you accrue interest. Or, of course, if there is an annual fee. But that's the same as any other credit card.

Given your situation, I don't see how this is a lame option.