How do I build credit without a credit card and low credit?

Question

I have a credit score of about 580 that i would like to improve... .. but I can't get approved for a credit card that I can actually afford up front.... Do I need to take out a small loan... is that even possible?

Answer 1

Have someone add you as a Co Borrower to an exsisting credit card with no late dates and a low balance (a card like American Express, Bank of America, Chase, etc that reports to bureaus). In about 90 days that credit card should show up on your credit. Try to get your own low limit credit card and always keep the balance below 50% and pay every month. Make sure the person takes you off as co-borrower once you get your credit card and provide a letter to you so you have it for your records.

Credit Score is not factored by Debt to income. That is a huge misunderstanding. When you pullyour credit with the credit bureaus they do NOT ask for you income and you get a score. Most places will ask for income but it has no relevance to your score. What factore determine your score is how many collection, charge offs, liens, judgements, installment laws, revolving credit, balances on revolving credit, and late dates. Balances over 50% of the high credit limit on revolving accounts are derogatory, too many reveloving accounts are derogatory and also collections, charge offs, late dates, judgements that arent satisfied, and too many recent inquiries all negativly impact your score.

Some people may say that you can get a credit card where you give the company say $200.00 that becaome your credit limit and you use the card then make payments every month. I see about 50-100 credit reports a day and I've never seen those cards show up on anyones credit.

Answer 2

Believe it or not, building good credit starts with paying your telephone bill and utilities on time. Never skip a month. It is fairly easy to get low credit line department store credit cards. Say you keep your purchases under $100 or so but pay the account on time and in full before the next purchase (this is a good way to establish good credit) Never over draw your bank account (Visa/Master cash card) Do not use more than 3 credit cards. Try to get a small loan from your credit union where you work. Pay it off on time or ahead and use the account for reference for a larger purchase like a major household appliance or tv . All this will help you to establish credit .Next biggie would be a car and then who knows what other kind of mischief you could get into (ha ha)

Answer 3

Well, if you think you can make the monthly payments on a small loan then go for it, but if you apply for a gas card (BP, Shell) you will normally get approved. My husband applied for one and he didn't have any credit. He got approved. His limit was only like 300 dollars. It really helped him build his credit. Plus they really come in handy if you don't have any available cash for gas.

Answer 4

Credit is improved by several factors.
Debt to income, available credit to debt, available credit to income, and ability (willingness) to pay bills.
You can inprove your credit score by continuing to pay bills on time (even if it's utility or phone) and not making late payments.

Also by resolving any past due bills or those in collections.

Answer 5

oh I can very much relate with your situation dearie, a month ago I got assistance from NHBS, Inc and indeed they have great loans, credit programs to offer, I even had my son got his first credit card from them, all the best to you and I know youll be ok soon

http://www.newhorizon.org

that is their site

goodluck
smiles