Dear penny hoarder I finally got my credit cleared and need a car ,computer , and a credit card how should I go about it.
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Hello @Renee Daley! I think you need to think of these as three separate goals. Starting with the credit card: If you can't get approved for a regular credit card, you can probably get a secured credit card. You'll pay a deposit and then use that as your line of credit. Eventually, after a year or so of on-time payments, you'll probably qualify for a regular card.
Regardless of whether you get a secured or unsecured card, your limit is going to be pretty low when you're building or rebuilding credit. So I don't want you to use a credit card to buy a computer. The purchase price would probably eat up most of the credit limit, which will hurt your credit score at a time when you're trying to build a positive record.
If you can put off the car purchase for a while to build up credit, that could help you get a car loan. Usually, it takes about six months to build a credit history. However, I get that it's not always possible to put off a car purchase, especially if you need it for work. If that's the case, you may wind up paying a pretty high interest rate.
So in a perfect world, I'd focus on getting the credit card first to start building a positive credit history, then focus on saving cash for the computer. The longer you can put off buying a car, the better so you have time to build credit history.
These are great tips from @Dear Penny! There are other things you can do to help build up your credit for credit cards and an auto loan, including becoming an authorized users on a trusted family member's credit card. If they have a sparkling payment history and have had the card for awhile, you can greatly benefit from that when it comes to your own credit score. Here are more tips on how you can help build your credit fast.
For the computer, you can also consider looking at resale options or discount stores. You might be able to find one at a lower price point at one of those stores to help get you started.
Ok thank you. I was wondering what might be the best secure credit card company. Can u help me with that please.
@Renee Daley A credit union or community bank is often a good starting point for rebuilding credit, but if you don't have a good option near you, Capital One and Discover are usually pretty good options as far as major credit card companies.
The most important things to look at are the APR and annual fee, both of which you'll want to be as low as possible, of course. Aim to pay off the balance each month so that the APR won't matter to you, though. Usually the best thing to do is make a small purchase once a month and then pay off the card that same day.
Make sure that the card reports to all three bureaus so that you're building a credit history. Also, make sure you're getting a secured card and not a prepaid card. It can be easy to confuse the two, but a prepaid card will NOT report your activity to the bureaus or help you build credit. Good luck!
@Renee Daley We have some resources on Credit Sesame to help you find a card that best fits your needs. Here is a list of some of our preferred partners where you can apply for a card directly, and here is another article where you can learn more about some of the most popular cards. Hope this helps!
I have used Rent a Center for my computers because they have 6 months same as cash and will meet pricing if you show them proof for the same unit cheaper elsewhere. It doesn't drag on your credit as a huge utilization of credit.