How can we build credit if nobody will give us credit to begin with?

Question

I asked a similiar question a few weeks ago and everyone said we can not get around gettting a credit card. (We were trying to go about this without getting one)
So we tried a few things. First thing we tried was getting a small personal loan through our bank. It was denied.
Than we finally broke down and applied for a credit card. They also denied us that.
Our credit is a little tinged. His by a 200 dollar medical bill and mine by an outstanding cable bill.
how are we supposed to build better credit if we can't get approved for credit to begin with?

what is 2 supposed to mean?

First of all, the medical bill he had no choice. he was 18 with no insurance and deathly ill. We have tried to contact the hosptial to set up payment and they won't even talk to us.
My cable bill i guess I am being a little stubborn over because my ex fiance just used my SSN to open the account without my permission. I guess I think if they didn't do anything to prove i opened the account I shouldn't pay for his cable..

I liked the first answer but if I had a thousand dollars open enough to just sit in a bank account I wouldn't need to get a credit card of a loan.. I can't afford this method.. Or a secured credit card because you still have to put like 300 bucks into it..
If I could afford all this I wouldn't need someone to give me some credit!

Okay I understand that we have outstanding bills.. I am not an idiot..But I have heard of people getting credit with far more debt then the 300 bucks we have combined..
If I had 300 dollars sitting around I wouldn't be asking this question. I would just get the damn secured card. We can afford to pay a loan or credit card payment by the time the bill actually comes.
The fact is I am having a baby any day now and we need something to help us get by until I can go back to work at the end of October...

Answer 1

Here is the best way and sometimes the only way, open up a bank account, if you already have one all the better, put in as much money as you can spare, $500.00 or $1000.00. Then go to the bank and tell them you want a small loan, but you want to borrow $500.00 against your savings account,they will give it to you in a minute, because for them it is a win win situation, no way for them to lose they have your money. Then in few months pay it back! Then go to your small loan company while your 500 or what ever amount is still in your bank, ask to borrow 200 dollars, they will ask for a reference, give them hour bank that you had a loan for the $500.00 with, they will give you the $200 make sure you pay it all back then you can apply for anything because you have 2 references, only way to start your young and have a long life ahead, now is the time to build your credit, always, always pay on time or early, if you don't you are back to square one! Good Luck!

Answer 2

I'll try not to make this long and boring. My credit is way worse than that and I've got credit cards, and loans from my credit union. 1st- Secure Loan- my mom gave me a couple thousand, I went to the credit union and deposited it, told them I wanted a secure loan on it. They froze THOSE funds and gave me a loan for the same amount. You pay your loan payment on that (stretch it to at least a year), If you pay $200 a month, once you've paid you bill that $200 is available the next day to spend. You loose absolutely nothing, and it loOKs like someone actually gave you a loan. When I left the credit union that day, I gave my mom back her money. You can take your payroll check and do it, cause they give it right back to you.
2nd- www.myimaginecard.com, and www.rewards660.com
Both of these places will give you a credit card. They both have small things in their cardholder agreement but if you read it well you'll be ok. I pay my money order, western union, or money gram before my due date. Had Imagine since Jan. and I'm up to $900 limit. Just got Rewards 660.
I tried Orchard Bank last year, but was denied.
Sorry, I did make it a long answer. You've got enough of those on here.

Answer 3

First of all, if your ex used your social security number to open a cable account without your permission, can you prove it. Such as, wasn't living in that state, or even county. Isn't that fraud??? Isn't that the same thing as identity theft??? Secondly, if you can't prove it, start making payments, even if they are small. You don't have to talk to these companies about making payments. If you send in the payment, and they accept it, what is the problem. If they send the payment back to you, then you have a problem. Otherwise, cease all communication with these creditors, and ride it out till it is off your credit reports, and rebuild your credit. Sometimes, department stores are more willing to give credit to people with less than perfect credit. If your income is high enough, and you belong to a credit union, they will give you a very small loan, to pay off your past debt. But only if your income is way above your debt, but that does not sound like that is the case. Try making a small payment to each company of say $20 each. If they accept it, great, they will start reporting on your credit report that you are making payments, thus making you look alitlle better, unless it is about to come off your credit report. Then it looks bad.

Answer 4

Your question seems to indicate that you don't understand why you are a credit risk, and why you are getting denied for credit.

So let me try a different example. Suppose you want to go to Harvard or Yale (the universities) because you know that people with degrees from those institutions get good, high-paying jobs.

But for some reason, Harvard and Yale will not accept you for admission, based upon your school records - what CAN you do?

You either need to explain why you got bad grades or retake the classes to raise your GPA. Same thing here.

You either need to explain, on your credit report WHY there is a mistake, and/or how you tried to fix it, OR you need to fix it by settling with the company.

As far as the cable bill thing goes, you need to contact the police to file a police report - which you can then mention in your letter to the credit bureau, along with paying off the credit bill and apologizing for the delay.

People and companies don't lend out money (i.e. credit) to people that show a history of not paying their bills. IT really doesn't matter how good your reason sounds to YOU - just pretend that a complete stranger wanted to borrow money from you - and the only information you have to go on is that htey ALREADY owe people or companies money, and aren't paying it back.

A secured credit card is best, or there are always the ultra-high interest rate cards for people with bad credit.

But honestly, you have no business getting a credit card until you understand that credit is not "free money", it is an iron weight around your neck that inexoribly drags you down. And if you don't have $300, you shouldn't be buying anything that requires credit.

I'm not saying that to be unkind - it just happens to be one of the lessons I learned the hard way. More than likely, you need to earn more money. That means a second job, or a better job. Or a part-time business.

Answer 5

I think if you go in person and see the social worker at the hospital and explain your circumstances the bill can be charged off. Then just pay the cable bill. They have credit cards you can get with a 300.00 limit but you have to pay a high interest rate and like $79.00 service fee.. If you need help for the baby you may have to go to the welfare office. Please go to some social service and get prenatal care and plan for the delivery in advance.

Answer 6

Basically the type of credit that helps you the most, as far as scores is revolving credit (credit cards) Revolving credit boost scores far more than personal loans.

Ok, with that tidbit out of the way.....

The way it sounds is like you don't have much time, if you needed that loan by the end of this month or in the next month. Unfortunately getting credit and having it report takes time.

Is there anyway that you can get a relative to co-sign the personal loan for you?

If not, is there anyway that you can have your folks, siblings or your husbands folks, siblings add you or him to their credit cards as authorized users? Doing that is one of the fastest ways to raise your scores. As long as the card(s) you are added to have an excellent history - no lates, no overlimits. And also a low utilization - around 25%-40% (preferably less) The cards should also have a long history.

If you can be added, be sure and request, when being added, that they report on your credit reports. When the credit company updates they will probably add them to your reports.

But, even though that is one of the fastest ways to add history and good credit to your reports, I still don't see it happening in the time frame you mentioned. Building credit takes time.

Yes people do get credit with worse things on their reports than what you and your husband have, but many of those people have more on their reports to build from. Also, many of those people do start out with secured cards or store cards and work their way up over time.

You might go to the site I've listed and click on Forums. Then look in the upper right corner for Credit Pulls. Click on that and then enter your score plus about 5 or 10 points. Look to see who gives credit to people who have similar scores to yours. Many times you can read comments from the people who entered their info about what they had on their reports at the time of applying.

While you are on that site, you might go to the Credit Forum and look in the sub forum for the Prosper Marketplace. Do some reading on what people experience going through Prosper for a loan. You might also go to www.prosper.com and do some reading there.

Also, while you are in the Credit Forum, look in the sub forums for the Medical Forum and do some reading on how to make that hospital deal with your husband on paying them.

I wish I could be of more help to you.

+++++edit

I agree with the person that posted right before me, as far as filing ID theft. You should file a police report for ID theft on the cable bill. After you file it, you should send a dispute to the credit bureaus and include the police report with the dispute.

Answer 7

I empathize with you however, you sound like a big ball of confusion. The thing of it is you dont understand how money works. Before you start applying for credit all over the place. If you cant afford to pay for it don't buy it. You need to educate yourself on personal finance. Check this website out
www.citibank.com

Answer 8

Just put money into an acct at a bank. (substantial amt). Then, apply for a crd card at that bank, thus, getting a secured crd card. This will open doors for you and help you establish credit. Once you get your credit card, pay the 200. med bill, etc.

Answer 9

Somebody apparently did give you credit to begin with, or you wouldn't be owing the medical and cable bills. Pay them first. Then get a cosigner with whom you share mutual trust. Never betay that trust, no matter what. Start out small, then build.

Answer 10

Go to your local Macy's Department store, if you have no credit, you have good chances of getting a card, your credit line might only be $100, but its a great starter, it will help you alot in the future. also, don't go applying for credit left and right, this will hurt your chances of getting a card, banks dont like seeing that you apply at alot of places. also, try Chase bank,
they have alot of choices.
http://www.chase.com
they start you out at $300, but again, its a great starter..
Don't try more then maybe those 2 places,
if your not approved, you can resort to a 'fee' card, it might sound like your paying alot of money, and people might say its a rip off, but trust me, i know what your going thru, my mother had a score of 488 and was approved for the card, i have one also, bot of our limits started out being $50, but they helped us GREAT overtime.

http://www.rewards660.com/

hope i helped, sorry if not.
good luck.