I don't have much credit

Discussion in 'Buying Tips and Advice' started by cwwilson, Feb 9, 2009.

  1. cwwilson macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    Okay so I've been trying very hard to save up enough money to get a new computer, which was going to be either a MacBook Pro or iMac. The deal is though, is that both are north of $2,000 which most "normal" people don't just have in cash form. I went to the Apple Store with $800 to put down towards a computer but apparently that didn't matter, I had to sign up for that Juniper Visa card which I knew I'd get declined for. I make more than enough to afford payments on a computer (among things I have to pay for) but I don't have any credit cards or the suchlike, and my only bank account has been closed for quite a while.

    Aside from owing the bank $80 and re-opening my account, there shouldn't be anything "bad" on my credit history, it's just that I probably don't have that much credit to begin with and I'm confused as how to get it satisfactory enough for Apple to approve me so I can buy one of their computers. I know there might not be much anyone here can help me with but I thought it was worth a try (and yes, Best Buy turned me down too which makes me sick since I buy almost everything from them).

    I can afford the computer I want. I have the money. But I don't have an 850 credit score so I get turned away? Apple needs some sort of special financing but hell, it is a COMPUTER, not a car. It would get it paid off real quick which is why I'm so upset.
  2. Sky Blue Guest

    Sky Blue

    Jan 8, 2005
    That's going to haunt your credit history for a long time. Why not pay and open the account back up? At least you could save the money then.
  3. edesignuk Moderator emeritus


    Mar 25, 2002
    London, England
    How do you even function or earn money without a bank account? :confused:

    It's no wonder no one will give you credit, especially in these times of the credit crunch.
  4. themoonisdown09 macrumors 601


    Nov 19, 2007
    Georgia, USA
    If you can't get a loan from a bank by yourself, why not get one of your parents to co-sign with you? I do think that you should open up your bank account. That looks really bad if you don't have one.

    Here's a good article for building your credit: 9 Ways To Build Credit From Scratch
  5. liquidtrend macrumors 6502


    Jul 26, 2008

    the only credit you DO have is bad credit from getting your account closed down.
    the juniper card is not one they give out left and right. you have a better chance of snagging a best buy card before a juniper.
    best buy turned you down as well because of the same situation. you dont have much credit, and the credit you do have is bad credit.

    you buy everything from best buy, but you got turned down because its a CREDIT CARD. best buy isnt giving you a friendly "oh you come here all the time" card...they are offering you a credit card, from a credit card company that is contracted to best buy. if the credit card company doesnt want to give you a card..then they wont.

    same thing goes for a juniper card. there is no bank of apple. the juniper credit card is a visa card distinctively for apple products. visa isnt going to give anyone with little or no (or bad) credit a credit card if they dont feel like they can trust the account. and sorry to say...the fact that you have little or no credit, and the amount that you have is bad...if i was a bank...id probably turn you down as well.

    and wait...you walked into an apple store with $800 and dont understand why you didnt get a computer? no...its not a car..but if you dont have the money for a computer, you dont get a computer. if i dont have money to buy a pack of gum, i cant buy a pack of gum. so it shouldnt matter that you had $800 for a computer.
  6. cwwilson thread starter macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    I knew that could be a hitch, I'll try to clear that up.

    I was just cashing my checks, PITA I know but that's just what I was doing...

    Their credit's probably not much better than mine but I'm going to try opening this account back up. I don't know why I didn't bother with it sooner. For a while I didn't have a use for it since I just cashed my checks down the street from work and got my money that way.
  7. jackiecanev2 macrumors 65816


    Jul 6, 2007
    A few quick things:

    Apple and Juniper are separate entities, which are mostly unrelated. Juniper is run by Barclays Bank, and their only connection to Apple is that they are the default credit issuer. If you google around here for juniper, read the posts about their credit and billing practices and be wary of getting one anyway. AFAIK, Juniper requires decent credit, and offers a minimum amount of credit to those on the low-end of their qualification scale.

    You are more likely to get a credit card through your bank, with a reasonable limit. That is, assuming that you reinstate and maintain your bank account. Credit is a part of life, and is a luxury; if you want things on credit, you will have to first prove slowly that you can handle it. You might as well go ahead and start now, so that you don't run into this dilemma again in the future.

    That said, if you can pay it off so quickly, then there should be no harm in exhibiting a little patience, saving the money you would have paid it off with, and buying it outright. No one these days is too overly eager to extend credit with the market in the shape that it's in, and it will no doubt take you longer to build the credit you will need for a $2k+ machine than it will for you to save the dough.
  8. cwwilson thread starter macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    Oh of course, I wasn't expecting them to be easy-peasy to get. I just figured if I already had almost half the money up front that there'd be another direction we could take but I guess not :p

    And the BB card, yes, I know what it is. Even though I didn't apply for the Mastercard, just the in-store one. From what I've gathered, it wouldn't have mattered anyway since they see that I owe a bank money.
  9. wwooden macrumors 68000


    Jul 26, 2004
    Burlington, VT
    Clear that bank thing up ASAP, as in, today. The longer that goes, the worse your credit gets. You don't want $80 to destroy your credit. Ignoring it is not going to make it go away.
  10. Mal macrumors 603


    Jan 6, 2002
    OK, so you don't have enough cash to buy it outright, you have no credit due to bad practices (or at least, let's just say you haven't built any credit history), but you claim you can afford this computer? Sorry, but you're fooling yourself. You either have to build the credit history or buy outright. No one will (or should) lend you money to buy a computer without having some history to indicate you're good for it.

  11. mcpryon2 macrumors 6502a


    Dec 12, 2008
    "Okay so I've been trying very hard to save up enough money to get a new computer..."

    "I can afford the computer I want. I have the money."

    Not to be rude, but which is it? If you have the money, why on Earth would you need to get a credit card to buy a computer?
  12. Dimwhit macrumors 68000


    Apr 10, 2007
    Sounds like your hosed on the credit end. Get the bank account back open and try to get a secured credit card from them. Might not get you the computer, but it will build your credit.
  13. cwwilson thread starter macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    Maybe I worded that incorrectly. No I don't have the money to buy outright or else I would have and by that, this thread doesn't exist. What I mean is, I can afford the payments, and had a considerable amount to plunk down upon purchase. But since I didn't have the amount in full, I would need a card. Obviously.

    Thanks for the advice. There were lots of things going on during the time the account got closed, so I let it go (bad choice, tell me about it). I will do everything I can to get it re-opened. I must look like an idiot and I'm sorry for that, bad decisions get made every day and I made mine.
  14. Bruce Wayne macrumors newbie

    Mar 19, 2003
    I agree with a lot of what the others have said so I won't repeat them, but having been in your position when I was very young here is what I did to get out.

    First, take your $800 and clear up ALL outstanding debts you have, even if they don't affect your credit. You can't afford a new Mac if you owe others money.

    Take the remainder and start a savings account at a local bank or credit union. Add as much to the balance as you can every month until you get to about $500 above what you need for your Mac.

    Now you have $2500 in the bank. Go to the same bank and take out a secured loan of $2000 to purchase your Mac, the secured loan will 'lock' the money in the savings account until you pay off the loan. Also, secured bank loans uusally have much lower interest rates (i.e. 7-8%) than a Juniper card at 20-25%.

    When you make payments on the loan, they will report your timely payments to each of the credit agencies (most real banks report to all three). Take the extra $500 and put it in your checking account AND DON'T TOUCH IT. This is your 'safety net' so you can always make your payment in case you lose your job, your car blows up, etc (you don't want to screw up your progress).

    This will start to build your credit with a positive payment history and a paid in full loan at a low interest rate, you'll have your Mac, and you'll have $2500 in the bank when you are finished paying it off.

    I know this isn't the quick and easy answer you are looking for, but take it from me, it takes a long time to build good credit (and even longer to cancel out a bad credit strike like your bank debt) and the sooner you start the better off you will be.

    Good luck.
  15. Dimwhit macrumors 68000


    Apr 10, 2007
    Well, as far as bad credit decisions go, this one isn't the end of the world. Rack up tens of thousands in credit card debt and then we can talk about colossally bad credit decisions. :)
  16. miggitymac macrumors 6502a


    Jan 7, 2009
    It seems like getting a computer (especially an Apple) should be very low on your list of priorities, at the moment.

    Get everything else sorted out first. Ignoring your bad credit in the short term so you can get a Mac will catch up to you later on. Build your credit back up (by making smart decisions with your money and saving), and then start thinking about making this kind of purchase....don't dig yourself deeper in the hole.
  17. cwwilson thread starter macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    Well that certainly sounds like something I can do. I see a post like this which is very helpful, and then I talk to my mom and she says my owing to the bank isn't the reason my credit is bad/low. I'm like wtf. I want to pay the money I owe. Because of her, I didn't pay it sooner because she said it wasn't that big of a deal (not trying to throw her under the bus but I just got off the phone with her) and she was the one who got me the account.

    I will take the aforementioned steps above and sure it's not a quick fix by any means and might take a month or two to complete but at least I'll be fixing what's wrong.
  18. Amdahl macrumors 65816

    Jul 28, 2004
    Is it a productive asset?

    The credit bubble is history. Going forward, you have to ask yourself if the proposed purchase is going to allow you to produce things that you would be unable to produce without the purchase. These type of assets are worth taking on short term debt to purchase.

    Items which do NOT create new production are NOT worth debt to purchase. Save up the entire purchase price, and then buy if you so choose.

    I'll assume you already have a computer of some kind. Odds are high that you can achieve ANY productive endeavor with the current computer (Oh, the humanity!) long enough to save the cash for the Mac.
  19. colmaclean macrumors 68000


    Jan 6, 2004
    Unfortunately for you the money fairy has died for this generation. Saving up's the way to go.
  20. Aea macrumors 6502a


    May 23, 2007
    Denver, Colorado
    Yea, maybe, but then again all this guy wants to do is put an item he can't afford on credit since the monthly payments don't seem that scary, wait, isn't this the same poison that killed the fairy?

    That said I've been consistently been getting good offers, i.e. right now I'm using a card with 0% APR for the next fourteen months. Buffer helped me in purchasing all the things I need for my new place, but I know that if I had to pay it off right now, I would have no problem doing so.
  21. pjarvi macrumors 65816


    Jan 11, 2006
    Round Lake, IL
    About all you can do with $800 is buy a brick, ski mask, and a good pair of running shoes.

    As others mentioned, what you really need to do is pay off any outstanding debts. Get a free credit report and look it over thoroughly. It will show you why you are getting declined. Take care of every single issue that is still outstanding on your credit report. Once all past issues have been cleared, open a free checking and savings account and start putting money away. Once you have some savings with no outstanding issues on your credit history, you'll start to be eligible for credit.

    You are always better off savings the cash though. You need to get in to the habit of saving for something instead of trying to live a life of debt.
  22. radicalcentrist macrumors member

    Dec 10, 2008
    Portland, OR
    cwwilson, I am going to try not to sound disrespectful, but your mother is wrong. And if she helped you get the account (or "got you the account" as you say), then this is going to be reflected negatively on her credit, as well. Now, if you're lucky, you can pay it off before the bank reports you to the credit bureaus.

    As someone who managed to make every bad credit decision possible, it takes a lot of work and patience for you to get it resolved. I'll echo others on the board, get a small, secured credit card either from your bank or a high-fee low limit card from a credit company like Orchard Bank. I'm not a fan of their business practices, but Orchard Bank offered me credit when no one else would, which allowed me to rebuild my credit.

    While getting your computer now might satisfy a craving of sorts, you'll be far happier down the line when you try to get a mortgage. (Not to mention sparing yourself the embarrassment of disclosing your financial transgressions to a future spouse...lemme tell you, that ain't fun.)

    Good luck!
  23. js81 macrumors 65816


    Dec 31, 2008
    Dude, I don't mean to sound negative, but if you've got $800 and need/want a Mac, do you really have to have a $2k+ iMac/MBP? If you REALLY want an iMac, you can get a refurb 20" for $999 (I know its not on the refurb store right now, but it is a lot of the time - keep checking back) or an Air or a Macbook... the list goes on. Heck, look on eBay or Craigslist and get something used. Maybe if you have no credit and no bank account, it wouldn't be the best idea to spend 2 G's on a computer, charged or not. Believe me, I know all about "I can afford the payments so I can afford the ___." Been there, done that, paying for it now. For something that loses value like a computer (yes, even a Mac), save up and pay cash, or "downgrade" to something you can afford. I hope this doesn't sound harsh because I don't mean it to be AT ALL. It's just that I've been there done that and I would hate to see someone else do it, too. Now in that same regard, I think a great idea for your $800 would be to first save a bit more (like $100-200) and buy a refurb white Macbook and immediately upgrade to 4 GB's of RAM (about $40 or so). That is a great little machine that will do just about anything short of playing the latest games. (Or even better save up to the $999 of the new WhiteBook with the 9400M) And if you're going to say that you want to play games, take that $800 and buy a Dell Studio 15 (yes, with Windows) with the 256 MB ATI HD3450 - check this link. Best of luck. :)
  24. stainlessliquid macrumors 68000

    Sep 22, 2006
    Over drawing your bank account does not hurt your credit (Im assuming its overdraft fees since theres not much else to owe to a bank outside of loans), it hurts your credit when you get your debts sent to the creditors. If you dont pay the bank then they will send it to the creditors to get the money, which is probably the worst thing to have on your credit report outside of a bankruptcy. Now closing it without paying was probably REALLY stupid, they might have been adding $15 each week that you havent paid as late fees if its an overdraft charge (the fees tend to snowball and get bigger as time goes on), you need to take care of that right this second because theres a chance you owe thousands of dollars in fees.

    You need a bank account either way, you just cant expect to get a credit card when they see you dont even have a checking account. I dont know if its even possible to have a credit card without a checking account these days.

    Also since you havent had a credit card before you wont get a very high credit limit, even if you get approved I will bet that the credit limit wont be high enough to cover $2000.
  25. cwwilson thread starter macrumors 65816


    Jan 27, 2009
    Oklahoma City, OK
    Thanks for all of the help, guys. I'm going to try to get this resolved tomorrow if at all possible.

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