how can you build credit?

Question

I am 20, and have absolutely no credit..I don't have bad credit..i dont owe money..I just dont have any credit at all. I want to get a credit card but no one will give me one..what do i do? Plese help!

Answer 1

Try Chase. Or capital one. They both gave me credit cards when I had no credit. Then just use them and pay more than the minimum payment (or pay all of it) and it will help establish your credit. You may also think about asking your financial institution. They may have ways to help you as well.

Answer 2

If you really want a line of credit you can apply for a secured credit card. What that is basicly, is a card that you put money into, kind of like a debit card. Some secured cards let you make a small deposit that they will place in a savings account that will grow with interest. In case you were not able to pay the minimum due on your card, the bank (or whoever you have your credit line with), will draw the funds from the savings account. It's really easy to get one, all you do is apply and make the deposit, and you get the card in a couple of weeks. It's good to go with the bank your currently with when applying. It also does not hurt to have a checking and savings account, the companys that moniter your credit look at this and see how you are able to manage all your accounts, (checking, savings, credit). After a while with a good payment history the card should become an unsecured credit line, just the opposite of a secured. Always make payments on time and more than the minimum due. if you owe 10.00 dollars one month, try paying like twenty or thirty dollars instead, (even more if you can afford it). The next thing is never get too close to your limit to the point of maxing it out. If you have a line of 500.00 dollars, try to keep it at one or two hundred dollars, (it shows you can manage your spending habits). The next thing is to NEVER go over your limit Which is not good for your credit at all. Lastly, if you can, try paying your balances off in full each month, which can really do wonders for your credit score! I hoped this helped!!! Goodluck!!! ^_^

Answer 3

How about a department store, or other retail card? Credit is easy there if you buy something. Spend maybe a few hundred bucks, then pay it off. Now you've got a history. Repeat the process, each time paying if off in full. That builds your history.

Later, you can buy a first new car, or have a regular Visa/Master Card. And managing that (carrying a balance for a while, but paying it all off) is the best way to build credit.

By the way, one of the biggest credit killers is a divorce. So choose your mate carefully - have a long relationship before getting engaged, so you know that his spending, and saving habits are reasonably close to yours. Stable married couples tend to have the best credit, and the most wealth!

Answer 4

These good ideas are mentioned above, I'm summarizing:
* Get added as an authorized user to a parent's credit card (if your parents are ok with this, it doesn't take long and is guaranteed to work)
* Get a secured card (you put the money in before you can use it, guaranteed approval)
* Get a charge card at a retail store (they approve almost everyone)

The following has not been mentioned yet, and is probably the first thing you should try doing:
* At 20, are you a student? Apply for a student credit card (yes, credit card companies have credit cards specifically targeted for students). You'll have very good chances of approval.

Answer 5

Well, you have a clean slate, and that's a good thing. You will probably do well in your credit venture.

Capital One is NOT the card you want. You want a company who is responsive to your needs.

Someone advised you to obtain a secured card and that's OK for a start. But you may qualify for an unsecured card through HBCS Card Services. They offer high interest, no fee cards for high risk borrowers.

You don't want a card with fees but high interest is OK because you will pay the balance off each month.

Another excellent way to build credit is to purchase a new car. There are many "first time car buyer" programs out there. This will build your credit faster than a credit card.

Know what your income level is, what you can afford to pay out each month (with comfort). If you haven't tried HBCS than give them a look. If that doesn't work than a secured credit card may be your only way in.

Answer 6

The first thing you should try is to have someone add you as an authorized user to their cards. Maybe ask someone in your family. If they agree to add you, make sure that that the card(s) that they add you to have an excellent history and low utilization. Otherwise you would be defeating your purpose.

After those start reporting on your reports, go to Bank of America and Orchard web sites. Both of those sites has a recommendation sign up that you can do. Those recommendations will not pull a hard inquiry on your reports. If you apply for one of the recommended cards, then it will pull a hard inq.

Be advised that even if you get a recommendation, that is no guarantee that you will be approved for the card.

Even if you are an AU on someones card, you may have to start off with secured card.

Also, try for store cards like Wal Mart or Target.

Be sure to use the cards wisely. Only use them for what you know you can pay in full when you are billed.

The best thing to do is to use a card and pay in full, then stick it in a sock drawer for about 6 months or so before using it again.
Do the same with the rest of the cards, just space them out so you don't get overloaded with payments in one month.

Answer 7

Try a small store card like JC Penney.

Warning: Please don't fall into the credit card trap! One card ONLY and for emergencies only. I wish someone had educated me on c.cards when I got my first one. Educate yourself about LATE FEES, OVERLIMIT FEES, HIGH INTEREST RATES, PAYING MORE THAN MINIMUMS PAYMENTS, ETC.

Answer 8

I can have you over a 700 score in 6 months.

Email me at
fairway_finance @ yahoo.com

I wont ask personal questions or ask for money, but I do like to help people.