I need to rebuild my credit, but I can not even get a card for people that need to rebuild there credit. Does anyone have any suggestions what I can do to rebuild my credit? I need to get a credit line of some sort with a place that reports to the credit agency.
2006-09-05 18:08:37 · 15 answers · asked by Anonymous in Business & Finance ➔ Credit
OK, I need to elaborate... I have all my bills paid off, I have nothing on my credit report, but need more credit. We want to buy a house. But I don't have enough credit to even get something to build credit.
2006-09-05 18:20:38 · update #1
There are a few ways that you could try.
I hope you aren't planning on getting the house for at least 6 months to a year. Even if you get approved for credit right now, it will take some time for it to help you.
One thing that you could do that would help you fairly fast is if your husband has credit cards that are in good standing with low utilization, have him add you as an authorized user. Or maybe your parents could do that for you. Just be sure that the cards have a great history and low utilization or you will be defeating your purpose. Also, request that the credit card company report on your credit reports.
That is one of the quickest ways to improve your credit.
If you can be added as an authorized user, wait until they start to report before applying for credit.
Once they start to report, or if you cannot be added to anyones cards, try for secured cards. Check Bank of America, Orchard Bank and HSBC websites. They have a card selector on their sites that will not pull a hard inquiry. If you apply for a recommended card, then they will pull a hard inq. Keep in mind that even if a card is recommended, you can still be denied.
You might also try Chevron/Texaco. If you don't qualify for the regular gas card, they may offer you the rebuilder card.
Try not to apply to much if you are planning on purchasing a home in the next 6 or 12 months. The inquirys might work against you.
If you are planning on purchasing a home sooner than that, I would suggest going the authorized user route only. That way you won't have the inquirys and you won't have new accounts bogging you down. New accounts will hurt you if you are planning on making a major purchase within 4 to 6 months after opening the accounts.
One other place you might go with is Crown Jewelers. They do not pull your reports, you will automatically be approved. Their bit is that you have to make a purchase for them to report. But, you can make a small purchase, around $20 or $30 and have a $1500 credit limit on your reports. (even though they will probably tell you that you are approved for $500, from what I've heard they will still report it as $1500 and not just $500)
One other thing that you might try, if you are not planning the home purchase soon, is to get a small "short term" signature loan from your bank or credit union. Don't spend the money on anything but to pay the loan back. You will have to pay some interest though. But, it probably would be pretty much the same as if you had to pay a yearly fee on a credit card.
2006-09-05 20:39:41 · answer #1 · answered by echo 7 · 0⤊ 0⤋
There are credit companies that specialize in giving credit to people who have no credit rating. It's part of a brokered risk plan -- that is, they spread the risk around through a number of other companies, so if there is a loss, it is shared out equally. And if the person pays up, everyone benefits.
There are also credit cards you can get from a store, that allows you to shop in the store and use their credit card. Then you pay their bill at the end of the month. That might be the easiest way to begin. Get a card, make a purchase, pay it off. Then get another card, make a purchase, pay it off. If you can keep up with your payments and pay them IN FULL (not the minimum payment) you won't have to pay interest.
You must have a line of credit with the telephone, light and hydro companies? How have you handled them? They can be used as credit references if you have kept up your payments.
If none of this works, join a Christmas Club. Sounds corny, but what you do is pick out stuff you want to buy for Christmas and then you make regular payments, but you do it up front, before you get your goods. Nonetheless, the fact that you can keep to a payment schedule counts with the credit raters.
Good luck -- it isn't easy to overcome a bad credit rating, but it can be done!
2006-09-05 18:20:22 · answer #2 · answered by old lady 7 · 0⤊ 0⤋
Ok to answer your question you need one of the following:
1) A "SECURED" Credit card. What this means is that you put X amount of dollars and that will be your credit limit. But the credit card company first has to get your money as security to issue your card. To be safe...put in @ least $500.00 that way you won't be denied a secured credit card v.s. $300.00 this will increase your chances of getting approved just in case your FICOs are very very bad.
2) You can try orchard credit cards or God forbid First Premeir...the thing you have to know about First Premier is that they charge an arm and a leg in fees...they only give you a credit limit of $250 but they hit you with a annual fee, a "preparation fee", a starters fee, which all totals to $170 dollars....also pay your bills right away via the mail...becuase they charge $7.00 to pay your bills online...yes you heard correctly they charge you for you to pay your bills online..but via the mail you shouldn't have a probelm
ORCHARD get them if you can!!!!
---also in terms of getting a mortgage...you can try a sub-prime lender they usually go 500 but more below then that will be a pretty pretty high interest rate and you may not be able to afford the mortgage payments
2006-09-06 01:40:33 · answer #3 · answered by christiansareawesome 4 · 0⤊ 0⤋
Hi Laci M,
I know you said you have tried getting a rebuilding credit card but have you tried the Orchard Bank Mastercard? Because they almost accept anyone and it is designed for people like yourself. It actually reports to the three main credit bureaus when you pay your bill on time so that you can raise your FICO score faster. I would reccomend checking it out at least.
http://www.0-apr-creditcards.com/orchard-bank-mastercard.htm
Hope this helps you!
2006-09-06 08:13:00 · answer #4 · answered by aheitzman 2 · 0⤊ 0⤋
You could check out this credit card. It doesn't check credit history and you are guaranteed acceptance. It reports to all 3 credit agencies. It starts out witha low limit, but gets bigger as you pay on time. This way you can't get into too much trouble either but rebuild your credit too. Good Luck.
http://creditoffernow.com/imaginecard
2006-09-06 02:53:58 · answer #5 · answered by Harvy S 2 · 0⤊ 0⤋
Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
2006-09-06 00:41:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋
there's secured credit cards out there and Capital One is often willing to take a chance...even my wife got a card from them, a month after her Ch 7 was final...we pay it very well and her score(less than 2 years post-bankruptcy)is approaching 700
2006-09-09 16:47:54 · answer #7 · answered by Dwight D J 5 · 0⤊ 0⤋
you have to get a cash-backed credit card. basically, what you do is deposit X amount, and that becomes your credit line. until your score improves, you cannot borrow more than what you deposited. most banks will do this for 18 year olds, as this has almost no risk for them.
2006-09-05 18:12:16 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Apply at Aspirecard.com
they are "secured" credit cards for ppl with debt or credit problems.
Good luck!
2006-09-06 08:41:27 · answer #9 · answered by camoprincess32 4 · 0⤊ 1⤋
Just say no! to credit cards.
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2006-09-05 18:14:12 · answer #10 · answered by Firefly 4 · 0⤊ 0⤋