I have never really bought anything but my credit score is low. This prevents me from being approved for things. How can I improve my credit without the help of a cosiner?
2006-12-01 18:11:13 · 9 answers · asked by Rusty 1 in Business & Finance ➔ Credit
Here are a couple ways.
1) If your family trusts you and they are timely with paying their own bills they can add your SSN on to their account as a "co-applicant" not an authorized user. This means that you don't get a card, and you dont get to go and charge money on the account, but when they make their monthly payments on time it will also mirror over to your credit file... Since they are simply paying their bills the way they always do and you aren't borrowing any money or using the card you get to coat tail and get a little credit history built up... This works well for parents that want to get their children's credit history built up before they are 18. My little sister is a co-applicant on my credit card - by the time she turns 18 she will have a 10yr old credit file... and will qualify for all sorts of loans and beter terms for things...
2) Passbook savings accounts & bank loan - this is an old trick that used to work well, however you may have a little trouble considering how rare passbook savings accounts are now. Here is what you do... go to your bank that you have a checking account with (if you don't have a bank you check with- get one) if you are on good terms with them talk with a rep there and tell them that you want to get a loan for $500 - and simultaneously open a PASSBOOK savings account (where they issue you a passbook - like a passport that must be presented to deposit or withdraw from the account). Explain that they can place the loan funds into the passbook savings account AND hold the passbook as collateral. You simply want to make payments and have them report those payments to your credit file.
a. now you have a $500 loan which is reporting to your credit file, you also have a savings account where you place those $500 in funds. The bank is holding the passbook, so you arent going to be able to take the funds out and spend them.
b. make a $100 payment toward your loan 1 month.
c. make a $100 payment the following month
d. repeat
e. repeat
f. repeat
You have paid off your loan in 5 months, you also now have the passbook with the $500 in it and it ended up costing you $25 in interest... but on your credit file it will look like you paid a loan off early... and will be the positive mark that you need to be able to go out and get a credit card.
3) secured credit cards - you put $200 up to secure the use of the VISA or MC service label... so you are essentially making credit card purchases with money you already paid to the CC company- be careful of the fees and such that can be charged -there are a lot of sub-prime (low/no credit) lenders that are very predatory.
Best thing that you can do is find a good bank or credit union that you can be a part of, credit unions work well to help their clients and are valuable tools for people trying to establish themselves credit-wise. The better your account standings are (dont bounce checks, or overdraft, nsf, etc) the more services they will be willing to offer you as far as loans, credit cards, etc.
hope that helps.
2006-12-01 19:18:44 · answer #1 · answered by E-Rock 3 · 0⤊ 0⤋
pay for things on time. don't spend money you don't have. get a low interest credit card based on your savings account and keep at least a 1000 in it. use it only for gas and small purchases and pay the full amount each month, not just the minnimum payment. after about 3 to 5 months, your credit score will have gone up by about a 100 points or so.
2006-12-02 02:22:29 · answer #2 · answered by RZA 4 · 0⤊ 0⤋
In order to build good credit you need to start building a good history. You need to partner with companies that will report to all three (3) credit bureaus, but won’t pull your credit. Crown Jewelers is a great company that will give you a small credit line and report to all three (3) credit bureaus. Easy approval.
http://www.crownjewelers.com/
Second, open a secured credit card. New Millenium Bank is an excellent choice. They won’t check your credit and report to all three (3) credit bureaus. You can even pay your bill online.
http://www.nmbonline.com/
Revolving trade-lines are highly weighted in credit scoring, so keep your balance –to- credit limit ratio low. Never miss a payment. Before you know it you will be on your way to better credit.
2006-12-02 07:07:10 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
Well...in my case I just had to get rid of my husband. In your case....get a "secured" credit card (meaning you will put money into a credit card and spend what you have in the account. Then as others see you have not abused it they will give you credit.....use that credit and pay the monthly amount plus a little extra every month on time,,,,also....get anything else in your name too such as cell phone etc and pay on time
2006-12-02 02:16:15 · answer #4 · answered by xovenusxo 5 · 0⤊ 0⤋
Pay off things and borrow a small amount and pay it back in like 2 days
2006-12-02 02:14:24 · answer #5 · answered by rockydriver22 5 · 0⤊ 0⤋
Stay out of debt! there is nothing wrong with debt-free living .just a thougth good luck.
2006-12-02 10:56:25 · answer #6 · answered by JNISSI 3 · 0⤊ 0⤋
credit karma offers advice
https://www.creditkarma.com/faq/how-to-improve-your-credit-health
2014-07-16 11:38:38 · answer #7 · answered by Ron Paul 2012 2 · 0⤊ 0⤋
There is some useful advice here.
2006-12-02 09:58:01 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Get a signuture loan and pay it of, that will help you
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http://www.bestcreditrates.net
2006-12-02 17:22:52 · answer #9 · answered by Anonymous · 0⤊ 0⤋