What looks better on an application when applying for credit?
Living at home or renting?
I can’t seem to find the answer to that question anywhere.
thanks
-Penfold
I would assume when they say “Living at home”, it means, you own the house, in which case I’m sure they can find out, and something you wouldn’t want to lie about.
I mean it gives three options. 1.) rent 2.) Own 3.) Live with parents
I rent but My address is still at my parents so I could go either way really.
No, I’m sure he means with mom and dad.
Creditors have no visibility to that. Utilities don’t report as credit unless you don’t pay them.
Living at home will be cheaper, you’ll be able to save more, and will have more assets. That will ultimately “look better” to creditors, but this isn’t really what is going to build or make/break a new credit record.
Creditors are looking at your month to month balance, as long as your consitently chipping away at something theyre happy. Believe it or not if you payoff a CC down to a zero balance at each statement it shows a zero balance and really doesnt effect yer credit. if you bought something like worth $1000 and paid it off say $100 per month, that establishes credit, as if to say-hey this guy is responsible enough to make his month to month payments. As far as yer question i would guess renting would look better but im not sure how they’d find out about yer residency technicalities.
There are many things that effect your credit score. Carrying a balance on a revolving account (credit card) hurts you no matter what. What hurts it the most is if you have a high debt to credit ratio. If you have two credit cards with $5,000 limits on both of them, you have $10,000 worth of credit. If you have $5,000 charged to one credit card and $0 on the other, your debt/credit ratio is 50%. This will hurt your FICO score. Also the length you’ve had your existing credit will also play a big part in what your score is. What establishes credit is how long your accounts have been open. Charging $1000 and paying $100 off every month doesn’t establish credit and make your score go up. It actually makes it go down because you have a higher debt:credit ratio. You would be better off getting a credit card and never using it.
Another thing that will hurt your score is if you’ve been searching for credit by filling out a bunch of credit applications. Every time a creditor looks up your score it makes a mark on your report. It’s because they assume you are looking for more credit for a reason, and you must be about to spend some money and go into more debt. So if you have a few credit cards already, don’t get another one if you don’t need it. If you get an offer for a different card with a lower balance, don’t close your existing accounts and open the new one right away. That will kill your credit history which is very important. Negotiate with your current credit companies about lowering or matching this other rate that you have been offered. They want your business and most will do it.
Lots of other things too, this is only a few.
To answer the original question, I would say that owning>renting>living with parents.
Thank you. Lots of use full information there I appreciate it.
Now, whats the best way to build credit then?
[quote=“walter,post:4,topic:38037"”]
No, I’m sure he means with mom and dad.
Creditors have no visibility to that. Utilities don’t report as credit unless you don’t pay them.
Living at home will be cheaper, you’ll be able to save more, and will have more assets. That will ultimately “look better” to creditors, but this isn’t really what is going to build or make/break a new credit record.
[/quote]
:word: Neither builds credit as neither involves paying a loan, but living at home will allow you to save money.
[quote=“Penfold,post:7,topic:38037"”]
Thank you. Lots of use full information there I appreciate it.
Now, whats the best way to build credit then?
[/quote]
Paging Sureshot…
haha, I’m not asking whether to live at home or not. I already rent and do not have anywhere else to go back to even if I wanted.
But now, how can I start building credit so when I want to take out a loan eventually I don’t get denied? Maybe take out a small loan. Is $5000 small?
Depends on who you ask. You typically need to take a loan for “something.”
Do you have a credit card? Student loans?
[quote=“Penfold,post:7,topic:38037"”]
Thank you. Lots of use full information there I appreciate it.
Now, whats the best way to build credit then?
[/quote]
All the info you need is here-
http://www.creditboards.com/forums/
I don’t have a credit card, but I do have student loans through Citibank.
If I take out around a $5000 loan on a car, will that build credit?
edit: yeah, I’ve been searching, I just can’t find info that relates to me entirely. There is always some varible involved in the topics I searched that doesn’t apply to me.
[quote=“Penfold,post:13,topic:38037"”]
I don’t have a credit card, but I do have student loans through Citibank.
If I take out around a $5000 loan on a car, will that build credit?
edit: yeah, I’ve been searching, I just can’t find info that relates to me entirely. There is always some varible involved in the topics I searched that doesn’t apply to me.
[/quote]
Student loan is very good. Low interest, and it will build credit. Make all your payments on time.
The car loan will also build credit. Just don’t get raped by high interest just to build credit.
Yes, get a credit card. Make sure there aren’t any annual fees, and don’t carry a balance on it. Get one. Use it. Pay it off in full every month.
Auto Loan will help build history. Installment credit takes around 2 years of good positive reporting for it to really bring up scores.
Credit Card will give you revolving credit and create history and show responsibility. Credit Card is a good way to build good credit fast/faster.
I would get a credit card first. If you only have student loans a auto loan can be hard to get with out co-signer and high %.
thank you. 
/thread.
well, I just got my credit report and half of my Fathers information is mixed with mine and it’s all messed up. According to the report I have $58k in debt…damnit. More crap to deal with, now I have to fix this.
[quote=“Penfold,post:17,topic:38037"”]
well, I just got my credit report and half of my Fathers information is mixed with mine and it’s all messed up. According to the report I have $58k in debt…damnit. More crap to deal with, now I have to fix this.
[/quote]
isnt there another thread just like ^^^^ story…maybe a week or so back