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Comment by Someone1234 | Hacker News Reader

I did some Googling, and the worst thing I can find anyone say about Credit Karma is that they failed to correctly utilise HTTPS/SSL through 2013[0]. But aside from that nobody has much bad to say about them.

PS - I cannot actually get a credit score as they cannot generate security questions for me because they don't have enough information about me or similar. Plus a lot of places bounce my SSN as the SSA started generating them a different way in 2011, and tons of systems haven't updated to the new format yet (as only post-2011 immigrants and babies have those SSNs).

[0] https://www.ftc.gov/system/files/documents/cases/140328credi...

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Not sure if you have done this on purpose but if there is any chance you actually want to build credit and be tracked by the credit agencies with a credit score, then the first step is to get a "Secured credit card" which means that a bank will give you a credit card but you will have to deposit like $500 etc as collateral/security. Then start using this credit card to pay for your expenses as much as possible while paying the statement balance in full every month. Do this for a few months and you will start building credit.

Sorry to be the annoying European here, but the the American concept of building credit is really strange to me. Instead of just buying things with money I have, I am supposed to use the money as security for loans I don't need. That somehow proves that I am financially responsible in general.

I hear you. But you know as they say "When in rome...". The thing with American financial system is that your credit score/history is of significant importance if you want to part of the usual society. For example, to get a loan, they want to check your credit as it is a standard way of ensuring that you are an ok candidate. Does that work all the time ? Of course not. The 2008 financial crisis is a solid proof.

But the thing is that if not this, then what ? Not everyone can buy a house with cash. Ok, so then don't buy it unless you can pay all cash? Fine. Try renting an apartment without credit. Most of them will not talk to you. Now, What about employment with certain financially sensitive companies ? They check your credit..yes they do. It is a requirement to get an offer at those type of companies. Want to get car insurance ? They may check your credit history too. Of course you can choose not to drive a car. Did I forget to mention cell phone companies ? Yes, here in the US, most people get a post paid plan which involves checking credit. Could you use prepaid ? Sure you can but it is not very lucrative as you cannot get Iphones for $0.99 with prepaid plans.

So the point is that it is technically possible to not have any credit and get by specially if you have a lot of cash, but it is extremely difficult to get a lot of things done without credit in the US.

I guess you have no credit cards or loans under your name right?

I cannot. No credit score.

Secured credit card.

This. Bank of America and Capital One both have secured cards that eventually convert into unsecured.

I'd prefer not to pay $15/year (plus hassle) to improve my credit score. I'm sure the problem will solve itself eventually.

Probably not the best stance to take. You can build quality credit much faster than you might think just starting with a secured credit card. It is certainly worth paying ~$15 for.

You can get no fee secured credit cards. The problem is usually the low limit with respect to the security deposit.

Personally, I wouldn't wait, because credit can take a long time to build (just getting an unsecured card will take a year).

You may also be able to get a card from a bank in your country of origin, some have branches or affiliates in the US.

I'm not a financial advisor, but you might think twice about this. Establishing a good credit history could save you a lot of money at some point in the future. It's a hassle now and doesn't seem to matter in the short term, but 10 years from now if you wanted to get a mortgage you wouldn't be able to go back in time to now to start establishing a good history and it might cost you a lot in interest.

It will not solve itself eventually. I have a friend who immigrated to the US and went this route, and he basically lost a few years he could have used to build a credit history, which hurt him ten years later when he wanted to buy a house.

So when I immigrated to the US, I started with a secured credit card as fast as possible. Mine was free to have, and you could set it up so it was paid automatically, in full, from your checking account every month. That way you just need to charge something to it each month, and you'll slowly build your history.

> you just need to charge something to it each month

You don't even have to do that. You can leave it idle for months if you want. The only thing you have to watch out for is the issuer canceling inactive cards. Having an idle credit card shows you aren't maxing out your cards - you have credit available that you are not using. Length of credit history is also a factor in your score.

Does it count towards making payments on time though?

Why would you need to pay $15/year for a credit card? Most have no monthly fees - you can surely find a free one. If you pay the balance off in full every month it costs you $0. The big issue with having zero credit history is that you risk not being able to be approved for an apartment.

Good for you - keep it that way. Contrary to popular belief you can still get a mortgage (it's called manual underwriting, and a copy of a written budget plus proof that you have no other debt makes you a desirable borrower) and anything else you'd need a credit score for is probably better off being paid for with cash.

this is the best advice ever. Staying debt free is critical to amassing wealth. I wish I would have received this advice sooner in life.

Worst advice ever. A credit score is not just for getting a mortgage or a car loan. When I lived in New York, I had to have an acceptable credit score to get an apartment in most places.

Not to mention, when I signed up for a Verizon account under an LLC that I have with my dad, we were forced to put down an $800 per phone deposit because the company had no credit history. Same with utilities.

When I was starting a company, the bank wanted to check my credit score to decide whether I was going to get a checking account or not. This has happened twice, once with my previous company and a merchant account for credit cards.

I haven't ever personally, but I've also talked to people who check credit scores as part of employment evaluation.

Also, having a higher credit score gets you a better interest rate if you do need a loan, which can be worth a whole lot of money.

You have every right to make the choice to live without credit, but I would have a hard time arguing that it's the smart play.

having done all of those, it was without a credit score.

Actually building and attaining good credit is a valuable asset in its own right. Building wealth is more than refusing to play the game and putting money in a shoebox.

Be disciplined and use various financial vehicles for your advantage.

No credit == Bad credit.

This equates to you being seen as more risky which equals you paying more interest for any loan in the future. Having good credit also afford you more opportunities.

I only know b/c I avoided holding a CC and loans for years until it started to hurt. Now I use them with discipline and for my advantage and am 810+

Like I said, I'm not interested in taking loans, regardless of interest rate, as the risk associated with such aren't worth it for me. I've seen what debt does. Its like a drug. Look at all of the comments and they all sound like drug abusers. "Use it responsibly" or "I can handle it". You are welcome to borrow, I'm taking my ball and going home. I won't ever borrow again. If I can't pay cash, I can't afford it.

There is nothing bad or irresponsible about using some credit responsibility.

>anything else you'd need a credit score for is probably better off being paid for with cash.

Your credit score has become a stand-in for a whole bunch of non-credit related things. You get lower insurance rates with a higher credit score and vis-versa. Every landlord nowadays requires a minimum credit score and employers will check your credit report as well. For the last item not having credit won't be a problem, however, they are just looking for negative items. Utility companies (cell phones, internet, electricity) usually require a down payment for those without a credit history (or those not wishing to authorize a credit check). Your credit is pulled when you get a bank account (don't know the consequences of not having a credit report for that one though - if you don't show up they may make you prove your identity more?)

> Every landlord nowadays requires a minimum credit score

Not accurate, though it may be true for a typical apartment complex.

Depends on the region, of course, I should have put that as a disclaimer. Where I live you absolutely can't get an apartment from anyone unless you submit to a credit/background check (and pay for it yourself of course). This wasn't the case a few years ago but that's how it is now.

Perhaps you should clarify apartment landlords, since many houses are owned by individual real estate investors who lease out the properties, and who have a different set of requirements when it comes to single-family dwellings.

I moved here early this year from another country and had zero credit score but a rather high salary.

Went to HSBC with proof of salary and they happily gave me a credit card with a decent limit. Got my credit score up rather fast.

If you're in a similar situation it might be worth looking into.

When I had no credit (and no salary, I was in school) I applied for a Target credit card on a whim. They accepted me but gave me a $250 limit.

You can get a pre-paid one

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