I am 21 years old and I have nothing as far as credit. Everything I have is in my parents' name (phone, car, school bills, etc.). While I'm fortunate to have such generous parents, I think it will handicap me when I want to take out my first loan. I'm getting married in 2 years to a young man in the same situation. We want to take out a loan to pay for our own wedding and reception because we are very grateful to them for all they have done for us thusfar. We don't want anyone to co-sign for us. Is it possible to build enough credit to be able to take out a $10,000 loan with a decent interest rate in just 2 years?
2007-07-16 08:26:44 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Get a credit card or two, use it, but pay it off before the due date, another idea is to apply for a small loan at a bank, just a grand or two, make payments ahead of schedule and for more than is due. Even if you need a co-signer on the second your credit rating will be way up there within a year. (Do not get a Capital One card they do not report your limit only what you used so it does not help your credit)
2007-07-16 08:31:48 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
OK 1st of all it is extremly difficult to get an unsecured loan. You would be better off trying to get a mortgage or something than an unsecured loan for the wedding (and the interest rate would be better).
2nd $10,000 is SO not enough for a wedding!!! Trust me mine was $25k and it was tame, no booze.
3rd if a mortgage doesn't sound good, get some credit cards (2 each in each individuals name, don't bother with authorized users...this does not affect credit and instead of having 4 lines you would only have 2). The best way to build credit is to get the cards and charge between 30 - 50% of the available credit. Make the payments on time and try to pay more than the minimum if possible.
Congrats!
2007-07-16 15:34:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Absolutley!
The best the to do is to start small, perhaps with a credit card.
If you use it wisely over the next few years there should be no problem in getting that loan for your wedding.
Just don't get in over your head, or start opening multiple credit card accounts, even if you do have the option.
Get one card, start small.
2007-07-16 15:32:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋