How do I get credit?

Question

I can't apply for a regular card because I have no credit and no cosigner, I can't apply for a student card because I am not a full-time student. Everything I have has been paid off in full by me, but while it was being paid off it was under my parents' names. I can't even get a cell phone plan because I have no credit! Help! Thanks.

Answer 1

I used to have the same problem, I would pay for everything in CASH. What I did (just to let the credit card world know i was alive) was, I bought a car, but instead of paying cash, I had a co-sigher for the loan, and then did the monthly payments thing for a few months, then payed off the car. Within weeks I was flooded with credit card companys wanting me to take there card. INSTANT CREDIT!! Sucks the way I had to do it, But today, they all know me, and want me!! I wonder if Donald Trump had this problem?

Answer 2

You are indeed in the starting point of credit. It is difficult but not impossible. You can try a store card to get a credit history. Another option is a credit card that requires a deposit, this will establish your credit also. It may take time but it can be well worth it. Why you ask, well because a big problem today is the ease of credit and the ease to result in huge debt. This delay in credit acceptance gives you the opportunity to review your options and ensure you do not end in a place where coming out of is depressing and can be embarrassing. The first thing in credit to remember is interest rate. So when you purchase a one pound or dollar item and do not repay it at the end of the month, you are actually paying £or$1.18 if the interest rate is 18%. The more you hold that pound or dollar on your balance, the greater your interest cost will be eventually equaling the cost of the item or exceeding it. So that "sale" became the most expensive item you ever purchased.

Answer 3

There are a couple of things you could do. You could go to your bank and make a deposit which would be the security for a personal loan. You will want something you can may monthly payments. Another way is to get a secured credit card. You put money into a bank account and the amount you deposit is your credit limit. You will still need to pay for whatever you charge. Just having a checking and savings account will help build your credit as long as you make regular deposits to savings and don't have bounced checks. You could also ask your parents to co-sign a loan for you. If they have credit cards, they could add you to their account and it may be reported to both of your credit reports.

Answer 4

1. Start with a checking account
Any time you apply for a credit card, they ask if you have a checking and savings account. A checking account is not necessary in some cases, but it does help. Maintain a good standing with the account, i.e. do not bounce checks or anything else negative because the bank will report this information to the credit bureaus. While a checking account does not really help raise a credit score (because good standing is not reported), it does establishes a credit history.

2. Cell Phone
Cell phone retailers pull your credit when purchasing a cell phone, if you have no credit you will not receive a cell phone. However with a little credit (which you establish with the checking account), you will qualify for a cell phone plan. Just like the checking account, the cell phone account will not dramatically raise your credit score, but it helps establishes credit history. Like wise, maintaining the account in good standing is not reported, but negative information does (i.e. not paying the bill).

3. Proprietary Credit Cards
Apply for an easy credit card through proprietary credit cards such as gas cards, department store cards, and other cards (Gateway or Dell cards). Some of the easer department cards to get are Target, Mervyn’s, and JC Penny’s. Sometimes those with little to no credit can qualify for a Sears, Best Buy, or Macy’s card. Maintain a good standing by not going over your credit limit and making the payments on time. Carry a balance of no more than 25% of your credit limit. You need to establish that you are making payment and not going over your credit limit. You will need to carry a balance to prove this. Proprietary cards are higher in interest (20-30%), but you need to start somewhere. View these cards as a transitional period. In other words, once your get a better rate or meaningful card (MasterCard, Visa, or AMEX) cancel the proprietary card.

4. Secure Credit Cards
Apply for a secure MasterCard or Visa. In reality, secure credit cards are really debt cards. However, secure cards are reported as credit cards to the credit bureaus.

5. Credit Cards
Apply for a MasterCard or Visa credit card. Some of the easier cards to get are student based, Capital One, credit cards from your bank, Chase, and HSBC. Keep the account in good standing. Carry a balance of no more than 25% of your credit limit, do not go over your credit limit, and do not make late payments. You may only qualify for a higher APR. However, in 4-6 months call the customer service and ask for a lower APR. If you ask, you may receive. Do not get offended if they cannot give you a lower rate. You are a consumer and you can take your business to a better card. Do note that asking for a lower rate requires reviewing your account, meaning they may pull your credit. This will count as an inquiry on your credit report. Not necessarily a bad thing, but you do not want too many (removal takes 2-years).

Conclusion
It is hard to predict what exactly will establish your credit faster or raise your credit score better. It is best to be patient and persistant. If you find a credit card that will benefit you better, (i.e. lower rate or an actual MasterCard or Visa) go for it. Keep in mind, you want to keep a credit card for 2-4 years in good standing to establish a good amount of credit history. You do not have to follow all of these steps. However, at the very least you will need a checking account. Every credit application asks if you have a checking and savings account. After establishing a checking account, you may want to apply for an actual credit card (i.e. Capital One) instead of following the cell phone, proprietary credit, and secure credit steps.

Answer 5

Do you have a bank account? Savings account? Job? get one of each of those, and ask your parents to help you get a credit card or something. Credit is built slowly. Be patient.

You should be able to get a cellphone, but they may require a security deposit. I know Verizon does.

Answer 6

go to your local credit union open an account and have them help you

Answer 7

I think working heard we can get credit!