Hey Austriacus, what is that forum you mentioned a while ago, something about a "fat wallet" or something..?
I need to start building up credit (I have none
). Any suggestions?
Very close!
fatwallet forums or more specifically
fatwallet finance has lots of information about best bank deposit rates, best credit cards, signup bonuses for banks and credit cards, car test drive bonuses, etc. etc... fatwallet also has an extensive deals section for all kinds of products (mostly consumer electronics/computers), restaurant coupons, you name it. The credit card deals on fatwallet will usually already assume you have good credit for most of the deals they post.
More specific to banks would be
bankdeals blog or
credit union deals blog, then there's also
MyMoneyBlog and last but not least
PF Blog for those who aspire to become millionaires. If you're interested in reducing your inflation risk you can also look at the
Savings Bond Advisor ... these are some of my favorite financial sites.
About building good credit, there are several ways to go about it. I used my foreign credit card for the first five years or so, consequently had no credit, and one time almost didn't get approved for an apartment lease because of it. But I've already had an account with a credit union for several years, and they approved me for my first US credit card. So this would be one way, establish an account, keep it in good condition, and later apply for a credit card from the same bank (in my case it was a credit union ... it might be easier to get a credit union card). Another way to get a credit card with no credit is to get a "secured card" which means you deposit the amount of your credit line with the lender before (then they are more willing to give you a card). Another way to establish credit is to get a car loan, and it may require a co-signer. (I got a loan on my car even though I didn't need it, just to have it on my credit report. I paid off a large part of the balance in the month after I got the loan, which reduced the interest a lot.) And yet another way is to become an "authorized user" on someone else's credit account (like your wife) although the credit scoring models are changing and apparently authorized users will not be considered anymore for credit scoring.
Essentially what they are looking for is that you make your payments on time, that you have a long history, and that you don't "max out" your cards. So the best thing to do would be to stay below 30%-50% of your credit line at all times, even if you pay the card off every month.
What's also important is that for the credit score it never matters "what you have" only "what you can owe." So putting a million dollars into a bank account wouldn't get you a high credit score, but having a couple of unutilized cards with $10,000 limits and a multi-year perfect payment history will. Don't be surprised if they start you out with $200 or $500 limit!
