I have NO CREDIT at all, how can I begin to build my credit and what credit cards can I get?

Question

Please also tell me what credit cards I should not apply for.

Answer 1

The best way to establish a credit history is to apply for a small loan or line of credit from your local bank or a credit card from a local department store. Ask whether they report to a credit bureau.

If they don't, having the card or loan won't help you establish credit.
~ To get a credit card without a cosigner, you must be at least 18 years old and have a source of steady income. Gas cards are relatively easy to get. Apply for one and use it to establish credit, but pay it off every month to show that you can pay your bills responsibly.

~ If you can't get a small loan or gas or department credit card on your own, try to find someone to co-sign for you. Again, make payments regularly and on time.

~ Increase your chances of getting the loan you're applying for by coming up with a large down payment. If you don't have the cash, consider borrowing from a family member.

~ If you don't have a checking account, open one. You have very little credibility with lenders if you don't have at least a checking account and preferably a savings account as well.

~ Just as importantly, be sure not to overdraw your bank account. Bouncing checks sends a signal to potential lenders that you can't manage your daily finances and are therefore not a good credit risk.

~ Know what lenders and credit card issuers look for when issuing credit. There are other factors that affect credit approval besides just your payment history, such as how often you move and how often you change jobs. It also helps if you've had an apartment or utility in your own name. If you don't have a telephone number in your own name, you may find it more difficult to get credit.

~ If worse comes to worst, you may find it necessary to get a secured credit card. These cards require you to deposit money in an account to secure the loan or credit limit, and they often have fees and higher interest rates. If you default on your payments, the lender takes the money from your account. After a few months of making payments on time on the secured credit card, you may be able to obtain a regular credit card. Remember to make sure the company reports to a credit bureau before applying for a secured card, or the card won't help you establish a credit history.

Before you apply for a credit card or car loan, get your ducks all lined up. Think like a lender. Applying to a number of credit cards in a short period of time can decrease your chances of getting approved. Lenders see this activity on your credit report and steer clear because they think you're getting in over your head, so pick and choose carefully and have a plan of action.

Being rejected for credit can also look bad. Apply only to cards whose requirements you are likely to meet. Read the small print and call the company to make sure your income and other factors qualify you for the card. Just because you get an offer in the mail doesn't mean you qualify.


With careful planning and a little knowledge of how lenders issue credit, you CAN establish a credit history fairly painlessly. There are many businesses waiting in line to take advantage of you by charging exorbitant fees or interest rates, so be careful out there.

Answer 2

Bank of America and Chase will porobably give you a small limit credit card with a higher interest rate. I use mine to spend money on stuff that i would have used my debit card on. This includes food and gas and utilities. I then pay off my credit card with the cash I would have used anyway.

People who say do not get a credit card really need to think that through. And to the poster who said 90% of millionaires do not have a credit card. WRONG!! I work in a bank as an analyst and I see plenty of millionaires accounts.

For the average person not to have credit is a very foolish decision. How else can you get a good home load or car loan? When is the last time any of you had $250000 in cash lying around for a house.

Answer 3

I'm going to have to agree with most of what foodguru said. Getting a credit credit isn't going to "help" you build credit. Credit is made up of the history of repayment over your life time. Credit cards are okay but if you pay everything of in say 6 months and never use it again it isn't showing repayment. Loans are a good way to start since it shows that you can pay a certain amount on a certain day for X number of months. Most lenders look at loans first, because if you've never been late on your car bill or house but were late one time on your credit card, most people can explain that away.....but if you were late on a house payment its a sign of something serious.

Answer 4

Get a "secured credit card" and make sure you use it to the maximum and pay it off as soon as the bill comes. Apply for store credit cards, they are easier to get. If you don't get approved, wait until you have used the secured credit card. Can't tell you where to get a secured credit card, but I'm sure you can put those words in Google and find out. You can also go to a bank, especially a small bank, and offer to put money in a CD or savings account and borrow against it, but tell them you want to make sure that they report it to the credit bureaus.

Answer 5

Building a good credit can be done in various ways. If you are fed up of the collectors tirelessly chasing you to pay your debts or if you are disappointed at your loan application being turned down, because of absence of credit history, you should learn how to do build your credit. The most important thing to remember is not to buy unnecessary items. Do not convert your ‘want’ into ‘need’, as it can drag you deeper in debt. If you are looking to build credit and do not have any history, set your priorities properly.

Answer 6

credit is not as important as your ready cash and earning potential. save as much money as you can as fast as you can. this will tell you what type of bills you can pay. for example if you save money for one month and can't save $500, then you should not make bills of more than $200 a month because if you are not able to pay of your outstanding debts then it will only be a matter of time before your credit starts to go bad.

you should not get a card unless you will pay off existing balances within two months.
this is easier said than done. so make sure at least making enough money to pay the bills you have before you discover the joys of compounding interest and hidden fees.

american express is what you should get if your financial situation is stable and you don't plan on abusing your credit.

Answer 7

Take a look at this http://sirlook.com/4rmt9 article i found it should answer your question and also has some good information on credit cards and finding good deals etc.

Answer 8

2 things.

Don't get more than 2 credit cards ...

apply for a capital one card ... they accept almost any credit score, they may not give you much of a limit ... but its a start

Answer 9

Do not apply for any of them! They aren't worth the trouble they get you into. That's why 98% of Americans are up to their ears in debt.

Instead, save your money and pay cash for the things you want.

Answer 10

Please also tell me what credit cards I should not apply for.

Answer: ALL OF THEM. Ask any millionaire what card they carry. 90% don't have one.