How can I establish credit, when noone wants to approve me for a credit card? I have no credit.?

Question

I've tried to go for a car or house, but I have no credit. They suggest to start a credit account, but I have tried at credit card companies. But they won't approve me because I have NO credit.........how does that work?

Answer 1

You might try and have someone add you as an authorized user on their card(s). Just be sure that the cards you are added to have an excellent history and low utilization.

Doing that should raise your scores and make it easier to get your own cards.

Try to get a secured card. If you go with a good credit card company, depending on how you manage your card, it should unsecure in about 9 to 12 months.

If someone does add you as an AU, wait until it starts reporting before you start applying.
Everytime you apply that means a hard inquiry, which lowers your credit score.

Answer 2

You can get a store credit card at a major chain or a gas card. These are easier to get but might have a low credit limit. I do not suggest paying off the entire balance every month. The idea is to establish credit. For example, get a Sears card then buy a sweater or a new tool under $100. Pay the minimum balance due for a couple of months then the entire balance on the third month. Then start over with another purchase. Pay the minimum due balance for two months then the entire balance on the third month. This will show potential credit lenders that you are dependable with making your payments on-time & that you are not leaving beyond your means. After 6 months to a year, you will have establish a good credit history with Sears. The same goes for a gas card or Capital One card. A pattern of paying on time and not maxing out your cards is what gets you the good credit. Capital One does seem to give out cards easily. It was my first card when I was 18. Now I have 4 times the amount of the credit limit I did have with them. -- Good Luck!

Answer 3

If you know anyone who is willing to co-sign a low limit (like $500) credit card with you, that's the easiest way. If you don't know anyone who can or will do that, apply for every department store card you can. They're more generous because they want you to buy their products.

Just be sure to pay the card in full every month as if you were using cash. It will give you an excellent credit rating in a relatively short time.

The only thing to worry about is when you apply for credit cards, it does count against your credit rating for a short time. Creditors worry that someone may be trying to run up a bunch of credit and then file bankruptcy.

However, you'll never get a decent rate on a car loan if you have no credit established. You'll never get any sort of home loan until you have credit established.

Answer 4

I don't know if they do this in the states but in Canada I went to my bank, Toronto Dominion, and they said that they could set me up with a visa card. This Visa card is not a normal Visa. Instead what happens is you put, the minimum, of five hundred or whatever the mininmum is at your bank and then from their you spend the money and pay it back just as if you would if it was a regular Visa. The Credit Bereau will except that Visa for credit. Do this for a minimum of one year and, WALLA, you have
good credit agan. But their is no easy or quick way to get your credit back up agan. Not unless you can break into a government building and change the information on the computer.
If you have no credit then I would reccomend going to your bank to see what your options are. They will answer all your questions for you. They will also tell you what you need to do in order to receive a credit card of any kind.

Answer 5

Most card companys will let you deposit any amount to start with. $300. $500, it takes time, but after you've done real well with that you will get credit,,sllloooowlyyy, personaly the only card I have now it AMEX and I pay it in full each month, a yearly fee, but no interest. That way I never get into debt, but can still charge at stores, gas, eating out, etc. and pay at the end of the month. As for getting a car, most dealers will sell you one with high interest and over time it will help your credit. A house is a differant story. Go to a credit union, they are much more leanyent and better to deal with, to many banks are arogant .

Answer 6

I have been in your position and have helped others get credit. What you need to do is to establish a secured credit card. You will establish credit even with as low as $100. You will need to have it established for 6 months. Buy some things on it and pay it on time. For links go to orchidbank.com. Be wise in your use of credit, pay at least the minimum on time and you will build it up in order to buy a car or home in the future. Best of success

Answer 7

Two options
1) get a department store credit card. only chage on it what you can pay off the next month

or

2) find an agency that will issue a card matching the amount you send them. For instance, if you send them $200 up front you have that credit. These things help build credit. Start small then move big (House & Car).

Or you could try a Credit Union.

Answer 8

My suggestion to you #1 is pull your credit reports. Since you have been denied you are legally entitled to a free report by all 3 credit bureaus. Contact them for one. See what is on your report that could be negatively affecting your ability to get a credit card. If there is anything negative - dispute it. Dispute anything from incorrect balances, to credit collectors, etc. This can open up a small can of worms and wake up dead creditors if you have any sitting there, and depending on what is on your credit report - so head over to creditnet.com and creditboards.com for more help on that. You'd be amazed on how much getting one item deleted from a report can raise your score!

#2. If nothing negative on your reports, don't bother with loans. Why pay interest to get credit. Credit is supposed to be a tool, not put you in debt! Go to a local credit union, or search online for a bank that will give you a secured card. Usually after putting your own money down on a secure card and keeping it in good standing for a few months, the bank will upgrade you to a normal credit card, or at least give your score a chance to grow to allow you to get a credit card on your own. Most likely you will only qualify for "sub-prime" cards, crappy interest, money down, etc. So my suggestion is stick to the prepaid secure cards for a while - then repull your credit to see what your score is and go to www.whogavemecredit.com to get an idea of what you can apply for. It's not an exact science, but more of a guessing game - but that site can give you a better idea of what you might qualify for.

#3.) For a really fast credit score boost, have a close family member or friend (be careful with friends money) with good credit add you as an authorized user to one of their credit cards. Make sure the card doesn't have a large balance otherwise that could hurt you more. Also make sure the card has history. When your added in as an authorized user, automatically 2 years of their credit past are added to your report - so obviously paid on time credit cards prefered, since if they are 30 days late etc, that will reflect on your account.

In this day and age, everyone needs at least one credit card for emergencies, etc. Work up your credit to get to that point and get yourself a good card. Don't settle just for sub-prime if you don;'t have to. If you can wait it out a little longer, take my suggestions above and start there. Patience is a virtue, but I tell you after 6 months I increased my credit score 100 points and now have quite a few good rate credit cards, with fat limits.

Good luck!

Answer 9

i applied to department stores and gas stations. they all denied my too cause i had no credit. then a credit card company sent me something in the mail saying i was pre approved.

so just apply untill someone send you an application. o and also, you can get a small loan from your bank and pay that back it will get you some credit.

Answer 10

You can start with secured credit cards, high-interest credit cards that they give out to the "high risk" pool (This includes capital one. Just be sure to pay the balance every month.), or you can get on a joint account with a trusted family member, or get that same trusted family member to co-sign on the car. All of that will help build your credit.