I've been denied for a lot of things over the past year because lack of credit or I've had to pay a huge interest charge. I'm young and It seems as if nobody wants to give me a chance no matter how responsible I am. Does anyone have any advice on how to avoid charges and earn the credit needed?
2006-06-14 11:56:10 · 9 answers · asked by Milo 3 in Business & Finance ➔ Credit
You will not get the credit you think you deserve because you must first establish credit. I know a kid whose only bill was a cell phone. Guess what? He went delinquent on it. He has just put the first stain on his credit.
The only way to prove yourself is to accept the high interest rates now. Pay them on time all the time. Maintain your employment for as long as you can. If you change you job within the last year it will affect your interest rate and may even affect whether or not you are approved for credit. Keep in mind that creditors are looking to see what they can work with.
1. How much do you earn? In most case it must be over $12,000 USD.
2. How long you've worked at your present job? Should be better than a year.
3. How old your are? Over 24 is a better chance to get credit and lower interest rates
4. Do you own or pay rent? "Live with parents" doesn't impress a creditor.
If all the above are good answers then work on getting a secured credit card. There will be a lot of fees associated with a secured card such as application fee, annual fee, processing fee and late payment will be $25 and up, and your interest rate may be around 18 - 25%. Do this for a over a year. Make sure you actually use the credit card but dont ever max it.
Providian Bank may give you credit without money into a savings account but there interest rates will be up there. They start of low but every 6 month they increase as long as you've made timely payments.
Also get a loan. Have a family member cosign it. Your credit as well as their credit is affected. So as long as you make timely payment its a win win situation. You can't be denied an auto loan. Having and paying these loans and credit cards increase your credit score. Once you have these under your belt and your on the better side of items 1-4 stated above, you should be home free.
Good Luck
2006-06-14 12:16:23 · answer #1 · answered by Anonymous · 9⤊ 0⤋
It is hard to get started. The best option is to have someone co-sign on a loan for you, perhaps an auto or something. Many people don't have this option and that makes it more difficult to establish a credit history. If this is not an option, you can start with some secured credit cards, charge up some debt, then make "only the minimum" required payment over a period of time to create a payment history. It takes a while, but keep everything paid on time, and soon, you will have more credit offered than anyone should ever use.
2006-06-14 19:02:05 · answer #2 · answered by not4u2c_yet 4 · 0⤊ 0⤋
Many people begin by purchasing something with a co-signor. If you do not have access to a co-signor you may want to look into a secured credit card. These secured credit cards basically give you credit up to the amount of money you deposit into an account connected to the card. After a while you will establish enough credit to obtain a credit card that is not secured.....and then you are on your way.
2006-06-14 19:03:11 · answer #3 · answered by Laz 1 · 0⤊ 0⤋
I started building credit by getting the store credit cards like from Dillards or JcPenny. Any credit card you get when you first start out will have a small limit on it like $200-$500. Using your credit card and making the payments on time will get you a higher credit limit.
2006-06-14 19:23:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
never had a CC and didn't even establish credit until recently and I'm 18 with 14 years experience...(32 to be real)...After I financed a car for one year with my dad's cosign and then another car for 2 years, no cosign, I could finally get a dept. store card...bought and payed off a couple of things, financed this computer and just got approved for a real VISA...give it time, I know it's nerve-racking...try with a co-signer first...oh and now they have it set up that credit reports track every time you are denied and that could be held against you too
2006-06-14 19:03:39 · answer #5 · answered by levity 3 · 0⤊ 0⤋
JUST KEEP TRYING SOMONE WILL GIVE YOU A CHANCE. TRY TAKING A SMALL LOAN AROUND $500, AND PAYING IT BACK, AND AFTER YOU HAVE PAID IT OFF, THEN TAKE OUT ANOTHER ONE.
I HOPE THIS HELPS!!.
2006-06-14 19:08:16 · answer #6 · answered by msverychocolate 5 · 0⤊ 0⤋
Try to get one thru a gas station
2006-06-14 18:59:34 · answer #7 · answered by Judas Rabbi 7 · 0⤊ 0⤋
take it into ur own hands
2006-06-14 19:00:27 · answer #8 · answered by Anonymous · 0⤊ 0⤋
rent to own co.
2006-06-14 22:57:20 · answer #9 · answered by amberharris20022000 7 · 0⤊ 0⤋