So I have used nothing but direct debit since I started working, 2007. Frivelous spending, car spending, insurance spending, any spending, check is deposited, and I burn through it, for whatever its worth to me.
Now. I want to open credit cards, and I am constantly denied because, I do not have an adequate credit history.
(I know, now I am late in the game, I have to get the ball rolling, which I am, on one slow grind credit card.)
But Wal Mart shut me down - and this… this I just can not abide by. (AFTER opening up the real credit card.)
I have spent over 200,000$ in the last 7 years, living dam fine and dandy! But because I didn’t -hawk spit- place it on no dang credit card, I got to be denied authentication of worth? As in - to get my MORTGAGE APPROVED?
so How in Tarnations - are we going to get it, so that compulsory spending through Direct Debit, met against your income, TO TRANSACT INTO SOME< -grumpling baseball coaches spit mouth raving-> LEGITIMATE FORM OF RECOGNITION ?
The closest I ever got, in 7 years, to ONE “monthly interest penalty” was when I stopped working for 6 months and let my bank account skim down to +/-500$.
I am not looking for advice on raising my credit card.
I am rallying on the point, for debit transactions to accumulate for credit recognition.
my 200,000$ debit line for 7 years kicks the shit out of your credit card transactions.
“so How in Tarnations - are we going to get it, so that compulsory spending through Direct Debit, met against your income, TO TRANSACT INTO SOME< -grumpling baseball coaches spit mouth raving-> LEGITIMATE FORM OF RECOGNITION ?”
If you don’t have an actual credit card, try getting a smaller loan and pay it back. Car loan, home improvement, small business. Chances are the people who aren’t letting you have a mortgage have plenty of options for ways you can owe them money.
I’m not entirely able to parse any of your posts (English not first language, maybe?), but it seems like you’re asking how to get debit transactions treated as credit.
Why should they be? As similar as it may seem, a debit transaction is barely different (for these intents and purposes) as writing a check or using cash. You can’t build a credit history doing either of those, either.
Using a debit system is superficially similar to credit while being fundamentally different. So, before asking how to change that system, it’s perfectly fair to ask why it should be changed in the first place when it’s a fundamentally different thing.
I get that it would be of use to you, but there are always two parties to a transaction, and it would be of little use to the bank.
ETA: Actually, it would possibly be a negative to the bank. Even if you might be a relatively safe risk to take, that’s not necessarily the case for other people.
There is no such thing as a “$200,000(the dollar sign goes before the number) debit line”-you’ve just used your debit card instead of writing checks to pull money out of your bank account. Again, how often and for how much have you used your one credit card, and how faithful have you been in paying it back?
And the reason is that your writing, such as the second paragraph above, is not clear. So how about not trying to write in a cute manner and just asking your questions in as straightforward a manner as possible?
Could you please for the sake of clarification drop the “Tarnations” “-grumpling baseball coaches spit mouth raving-” and random bolding, and just ask a straight question?
I assume the question is “how can I use my history of financial responsibility to get credit cards and loans?”
Short answer: there is no way to use your debit and checking history to count as credit history. That information is not on your credit report, and creditors don’t care about any other information.
(There may be one small possible exception: the bank you’ve used for debit and checking does know your payment history, and may be more willing to give you some kind of credit. But I assume you’ve already tried that?)
To actually get your debit history to count for credit, you’d need to change the entire credit and banking system. That probably would require major new state and national laws. Good luck with that…
Basically, you have no credit history because you have never borrowed before – which may be virtuous, but it still means that when banks ask “has anybody ever lent money to this guy?”, everyone says “who?”.
When I first moved to the States, I had no American credit history, so my first American credit card was a $300-limit thing with some ridiculous annual fee. But using and consistently paying off that was enough to get me a more conventional credit card (which I still have) within six months. I cancelled the crappy card before having to pay the first annual fee, and all has been good since.
You might look into getting a Secured Card, which is basically a credit card where you deposit some cash as collateral for your spending. That can be your bootstrap into getting a conventional card very quickly.
“Credit” does not measure your ability to pay back loans, it measures your proven track record of actually doing so.
Debit transactions never go to creditworthiness because they don’t represent other people’s money that was loaned to you. Perhaps you’ve observed that some people treat other people’s money different from their own. Banks have also noticed this. So they want to know WHO has lent you money and HOW you handled the debt.
If the answer is NO ONE and thus I DON’T KNOW then they are taking a risk to loan you money. Not because you are poor but because they have no idea of your behavior with loaned money.
“Look! Ten thousand soldier marching, every one of them out of step except my son Henry!”
The banks and merchants are being excessively cautious which is irritating but understandable. There’s nothing on your credit history that says “this man has chosen to avoid credit on principle.” You’re in the same boat as the person who has not had an alcoholic drink at the party all night - is it because he doesn’t like to drink? Is he the designated driver? Is it OK to feed him one drink? Don’t know.
Credit score (by definition) does not track how well you handle money you have not borrowed. You are shackled by a system that assumes everyone who participates in modern life has a credit card, car loans, and all the other accoutrements. Rather than evaluating your history, they rely on the score produced by someone else. They’re lazy and playing it safe (if the loan goes sour, they can fall back on “but he had a good credit score” which is a more valid excuse to their boss than “he seemed to me to be a good risk”). So yes, start small and work your way up - or save enough down payment that the mortgage company will feel you are worth the chance (or do both).
[ul]
[li]Have you actually checked your credit history from the only legitimately free service available - Annual Credit Report.com - Home Page ?[/li][li]Have you considered using your debit card to purchase the full credit report from FICO so you know what your credit score really is before you attempt to obtain credit?[/li][li]Have you even considered talking to the folks who issued you your debit card about financial planning and obtaining credit?[/li][/ul]
There is some merit to the OP’s claim that his spending $200k over a 7 year period should be enticing to a credit card issuer, as their primary goal is to earn merchant fees off of consumer spend. But as pointed out, he has no history of borrowing money and repaying it, which credit card companies worry most about, as even if the consumer spend is large, the fees they earn can be wiped away with a defaulting payer that never pays his bill.
Also, even when there are extenuating circumstances that may warrant the issuance of credit to someone that has no credit history, these are unique and require more judgment on the issuer. Most financial institutions that are in the business of personal lending, use more systematic “check the box” approaches, as more custom underwriting is too costly and would eat into their profit margins. So sadly if you don’t meet their “check the box” criteria, you will be denied.