I have no credit, not bad credit, just no credit. How can i begin to establish credit?

Question

I'm just starting out with establishing my credit. I tried to get store credit cards etc but every time they decline because I haven't a sufficient credit history, or references. How can i establish credit and is it true that a pre-paid credit card is a good way to start?

Answer 1

get a credit card from a bank. Capital one is real good.

Answer 2

That is not quiet correct NOT prepaid what you need is a secured visa or master card, there is a difference. As a secured visa/mc you set your own limit because your saving account deposit secures it until you have establish credit worthyness.

One of the best bank cards that I have seen is the one offered by Credit One Bank in NV. It used to be 1st. National Bank of Marin. You can contact them on line at. www.creditonebank.com for more details.

Good luck, credit is a great thing to have but it is also a great responsibility. I am a Realtor and I can tell you first hand if it is misused it can come back to bite you in the backside.

Answer 3

Store credit is not the best way to start. Get a credit card of the bank where you have a savings and checking account, with a low credit limit.

Answer 4

One of the best ways to establish credit is to AVOID those questionable services that hook folks with the line "If you have bad credit or NO credit, have pen and paper ready to respond to his INCREDIBLE OFFER.....";if it sounds too good to be true, it likely is and more likely is a finance trap.

I'm also wary of "pre-paid" financial services too. Read carefully the legal-eze fine print--see clearly if the offer comes direct from a reputable credit card service OR if it's a service using the credit card service's name: believe me, there ARE several differences. I'd also call and ask the "pre-paid" service some direct questions, too: will this service improve my credit score?

Local bank loan advisors and CPAs can also help guide you in the right direction with ways of improving your credit score, too.

Bear in mind that whatever legitimate direction you go towards establishing credit, AVOID late payments or defaults on credit service payments. Wisely manage credit card services--NEVER let a credit card go beyond your ability to pay it comfortably each month.

Answer 5

You can start by applying a credit card from your bank and pay your monthly payments timely. Don't get a store credit card yet because you will actually lower your scores. You may also lower your scores if credit companies inquire on it too often. Stick to only one or two major credit cards until you build a good history.

Answer 6

My son applied for a credit card when he was 17. He got one with a credit limit of $300.00. He pays it on time and has good enough credit to get a couple more cards from two store. Just be careful and don't over use them. Buy small amounts, make payments on time and you will establish good credit.

Answer 7

You can try to get the one credit card and use it often and pay the entire balance (not the just the minimum payment) every month.

This is how you establish good credit. NEVER MISS A PAYMENT. The credit card companies will never let it go.

Answer 8

You can go to the bank and explain that you have no credit. you can set up a savings account with them and apply for a credit card. the savings account is the amount that you would like the credit card to be. you don't touch the savings account (so it is like a loan pre paid) and you can use that to get a secured credit card.

Answer 9

DON'T! All a FICO score is is a measure of how much you like debt! The only way to raise your FICO score is to go into debt and say there. They only reason to have a good credit rating is so that you can get a loan for a home and that can be achieved by paying your rent on time or early for at least 2 years. You will have to go to somebody who does manual underwriting that is somebody that looks at the person not just a number that tells them how much you like debt. That is what a FICO score is the "I love debt score."

You need to meet a man called Dave Ramsey. Because of him I got out of the black hole called debt and I am well on my way to paying off my home mortgage. I have NO payments. All of my money is MINE!!

"The debtor is slave to the lender."
Bible

(added 5 Sept 2006 1959hr)
I noticed that I have gotten some negitive feedback....am I the only person that has read this question that likes to keep his money and not send it to the bank or some stupid credit card company?

Answer 10

go to your local bank and explain to them you have no credit. As long as you have a job you should be able to apply and recieve a credit line of no more than 500 dollars. Use it every month and pay if off for 6 months.... then apply for another card when you get some letters in the mail letting you know you are pre-appoved.

My first credit card was a citibank one.

Answer 11

I would talk to your bank, They can usually start you with a low limit line of credit it is a little costly but it will get you started. do that for a little wile and keep applying for store credit. then get off the bank credit. or if you need to buy a car auto dealers seem to be great at making sure you will qualify for credit. Just don't expect a good APR rate.