Never tickle a sleeping dragon.
Thursday, July 12, 2007
Establishing credit
My nephew is experiencing the joy of trying to establish credit. It all began when he decided he wanted a cell phone -- something he can actually get, now that he has a job. So we went through the process of ordering service and a phone from AT&T, only to receive a message that he can't get a phone without first making a deposit, since he doesn't have credit. After visiting the store and asking a clerk, he was told he'd have to pay a $500 deposit, for twelve months, in order to get a basic celluer plan.
So we tried Verizon. That online order is pending, while they run a credit check.
So I made a suggestion. Ride to the Shell station, and pick up an application for a Shell card. Give me the card, to use filling the car. You pay the balance on the Shell card each month, deducting the amount paid from the $100 you're currently paying me for rent (way less that he really should be contributing toward the house, but that's another story). This way, you'll be able to establish credit. It'll take a while, but it'll show up on your credit report, so next time someone runs a check on you, you won't be automatically denied.
So tomorrow, he's going to apply for a Shell card.
So we tried Verizon. That online order is pending, while they run a credit check.
So I made a suggestion. Ride to the Shell station, and pick up an application for a Shell card. Give me the card, to use filling the car. You pay the balance on the Shell card each month, deducting the amount paid from the $100 you're currently paying me for rent (way less that he really should be contributing toward the house, but that's another story). This way, you'll be able to establish credit. It'll take a while, but it'll show up on your credit report, so next time someone runs a check on you, you won't be automatically denied.
So tomorrow, he's going to apply for a Shell card.
Labels: Nephew
