Credit .............................................................................................?

Question

Can anybody explain how you credit works?

This is what I mean...when you apply for credit it's a mark against your credit. You haven't purchased anything, but it goes against your score.

Now, your score is what tells creditors your "credit worthiness".

How can you get credit, if, when you apply for credit, you get denied b/c you have too many inquiries? But you have the inquiries b/c you want to get some credit.

Does it make any sense to anybody>>>?

I am not trying to...someone else on Answers asked and it made me think of this question.

Answer 1

You need to build your credit up via other methods such as a vehicle loan, paying off your utility bills on time every month...etc.

If you can't get a credit card, try getting a co-signer with good credit. If you manage to make every single payment ahead of time, or at least on time, your credit score will go up and you will establish a good credit history.

Stop applying for stuff if you keep getting denied and get a co-signer. I know it's easier said than done, but that's how most people start down the credit road.

Answer 2

The people who are racking up inquiries are not going about it in the right way. They need to apply for those cards which are made for low/no credit-- instead they just apply for anything and everything and hope something sticks-- and they are shooting themselves in the foot.

They need to do their research and find a good match an apply only to a select few.

OR they can do a secured loan through a bank-- deposit money in a savings or as a CD, and let the bank 'freeze' it and hten get a loan for the same amount. No risk for the bank, and it builds credit for you.

Answer 3

It's hard when you're just starting out. I'd read the credit education at myfico.com to learn more about how your credit score works.

If you're just trying to establish credit then I would suggest doing one or both of these:

1 - apply for a secured card (preferably from your bank so they know your history)

2 - have someone add you as an authorized user to their account.

Both of these will get you started. You might also consider pulling all three credit reports from annualcreditreport.com just to make sure there isn't anything weird on your reports.

Good luck!

Answer 4

It seems ironic, but to a great part it is true. Those that seek credit most deperately are those lease likely to get it. Your credit rating represents your ability to handle debt. The more debt you want to take on, the more nervous the lender becomes about your ability to repay it. So if you are looking everywhere for available debt, each inquiry will count against you. Credit must be built over time. When your credit rating is high, you will have every lender out there begging you to borrow from them. But try to push too fast and you ensure that your rating will not rise. I hate to borrow money. I hate to be in debt. My credit rating is high and I could heat my house with the junk mail I get trying to give me credit cards and loan offers. To get that way, I used credit sparingly and paid on time and paid off debts as quickly as I could. Credit is a tool that will work for you, but if you let it, debt will crawl up on your shoulders and become your master. Don't let it.

Answer 5

Apply for a secured credit card. This is the best way to not have a credit check done but will be reported to the credit bureau.

Answer 6

When you have too man inquiries it makes you look...well...desperate. It increases your credit risk. Applying for a card is not neccessarily a mark against your credit. Unless you've been applying for a lot of cards...especially if you've been denied.

Answer 7

A sercured credit card from your bank or a co-signer that will start you credit up good luck

Answer 8

How Credit Really Works you wants explained? I took a whole book to answer that question and that's what I called it. visit www.LearnAboutCredit.com