If you are just starting out, how do you gain credit?

Answer 1

This credit card may be a good answer for you, There is no credit check and you are guaranteed acceptance. It reports to all 3 credit agencies. The limit is low at first but gets bigger as you pay on time. That way you are building credit without building a lot of debt. Check it out.
http://creditoffernow.com/imaginecard

Answer 2

There are credit cards called secured credit cards. This means that you pay them a fee or a down payment to use the card. Use this card and pay it off as often as possible. In about 6 months, you should be able to apply for an unsecured card and start using that one. This card will have no down payment. You may have to start of with a card with a higher interest rate until you prove your payment history. Just always remember that credit cards are money and you eventually have to pay them. Getting a car loan or a small personal loan is also a good way to get started. You may need a cosigner but as long as you make the payment there won't be a problem. Good luck, building good credit can be tricky.

Answer 3

It is great that you are looking to establish credit. Here are a few things to know about getting credit:

Obtaining Credit

Every year, financial institutions lend billions of dollars to consumers. The decisions to loan money or extend credit are based on the individual’s assets, income and credit history. A person with damaged credit, or someone who has never had credit, may face difficulty getting a loan or credit card. Fortunately there are options to consumers in such situations:

•Open a checking and savings account
•Apply for a retailer’s charge card
•Purchase on lay-a-way
•Apply for a secured credit card
•Obtain a student loan if college-bound
•Ask a close friend or relative to co-sign for a loan.

Term loans or Note Loans (auto, mortgage or personal) are weighted more heavily in your credit score. These are loans that have the same monthly payment and pay off over a set period of time.

For more information on understanding credit go to Fair Isaac's site (They created the credit score) www.myFICO.com
There are many free resources located on the site.

~Danke Schoen

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Answer 4

your Credit Score is affected by so many things there is no exact formula these are the basics though:
1) You want to go on line and check out your credit report by the way there is no real free report they usually end up charging you the next month then you fight to get free so find the cheapest one and look at you credit report they usually throw in all kinds of advice and explanations for free.
2) Resolve any problems with late payments/judgments against you/unpaid bills/anything you owe money on and have not paid or made payments on and continue to pay what you owe on time this will be you biggest help.
3) If you have credit cards bring it down to 2 or 3 max and maintain a low balance and low max.
4) Do not apply for allot of credit at once because how many people check you credit affects your score
5) Do not get a high interest loan for the sake of building you credit I don't recommend getting a loan at all just for the sake of building your credit but people will disagree.
6) Unfortunately time is a large part of this but follow the general ruel do what is right pay who you owe and you will see your credit build.
6) Become a Dave Ramsey listener
7) If you set yourself up right by not buying expensive cars living your "wage" and proper planing you don't need credit because you pay cash. I am not there yet but I am on my way thanks to Dave Ramsey

Answer 5

Set up a line of credit to your checking account. I would start out with $500. This allows you to have extra money in your account in case you run low and it builds your credit alot!! also check with your bank or credit union and find out if there is any credit cards that are focused for people just like you... people trying to build credit... almost all banks do. Don't use it unless you need it or to put gas on it every month and then pay it back... gradually it will build and you are doing it responsibly!

Answer 6

I started with with a department store card like Mervyn's or JC Penney. Then work your way up to gas cards like Chevron, then a Visa or MC sponsored by your bank, etc.

You may have to get a parent to co-sign, even to start out.

Of course, the key to any of this is to manage your credit well from the beginning. Be disciplined about making only small purchases and paying off the balance in full with each statement. You'll quickly start to get offers in the mail in no time.

Answer 7

apply for a prepaid credit card, where you put your own $ on it then use it and pay it back... it seems silly but it works if you cant get a credit card currently.

Or try for store credit, by purchasing something and getting a family member to co sign for it, then make your payments - this will build up your credit.

*** keep in mind, if you dont have the $$$ to pay for the item, it may not be wise to purchase it.... remember that credit is your $$$, and interest charges can add up ***

Best of luck

Answer 8

Get a credit card with a low credit limit. Pay it off every month.

Get a car loan. Make sure to pay the monthly payment every month on time.

Answer 9

get into a situation where you have to make payments on somthing... like go to your bank and open a credit card... or when you buy a car, take the loan out in your name. this will help your credit. Also, if you are going to take out any student loans to go to college, take it out in your name. They techinicaly dont care who's making the payments as long as they are being payed... but thats the basis of gaining credit is showing that you can make payments.

Answer 10

Go to the bank you (or your parents) have always used, and tell your banker you want to take out a loan to establish credit. Take out a $1000 loan for 1 year. Don't spend the damn money, just repay it over the year.

Credit card credit is not nearly as good as bank, auto, or motgage credit.