whats the best way to establish credit if you dot have any?

Question

i dont have any credit and im 19.is a credit card a way to establish credit and if so what credit card is good? HElp give me some options

Answer 1

Start with a bank loan. Use the loan proceeds and open a savings account. Then, use the money in the savings account to make the payment, or better yet use the money from your payroll checks. If you do, you will have the proceeds still in the bank after the loan is paid off.

You can try to apply for a credit card after your loan is paid. Chances are a CC company will give you a card, however, the rate will be much higher.

Answer 2

You are not doing anything wrong. I believe you should apply for more credit cards. I have been in your situation for a long time as I was an international student and I had no credit history in this country whatsoever. My first card was called Emerging card and I had an annual fee on it besides a high interest, just like you. What helped my credit history later on was a car loan ( although a very small one on an old car). I'm not saying that you should go apply for a car loan but as funny as it seems, the more debt you build, the better it will be. Make sure you always pay your debt because credit scores can go down very fast. After my Bank of America Emerging card and my car loan, I applied to Washington Mutual credit card and I love it. It even tells me what my credit score is whenever I want ( I check it online) I think that's an awesome feature and I would encourage everyone to apply for it. My credit line limit keeps increasing as well with this last card. In the meantime I applied for a Citibank credit card but I only used it once. I suggest that you open a few and try to use them. Don't open them and keep them inactive and always always always pay your bills. Oh don't forget that Best buy and Macy's cards help a lot too and they are easy to get. Make sure you never forget to check if you have balance on those. I hope my answers help.

Answer 3

In order to establish a good credit, you must show a number of stabilizing attributes. Most notably, your report must prove to the lender that he will get his money back. Here are some suggestions:

OPEN A BANK ACCOUNT
Open a bank account and use it responsibly. This is the first step in establishing a financial history.

CO-SIGN
One way is to piggy-back onto someone who already has a good credit history established and is willing to co-sign. Once the co-signing has occurred, you simply make payments on or before the due date. In time you will have established a credit history.

SECURED CREDIT CARD
Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use (spending within your budget and paying your bill on time) will help you build a good credit history.

DEPARTMENT AND GASOLINE CREDIT CARDS
Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is sometimes easier to establish. It is also a great way to establish credit.

This website can be very useful for you:
http://www.howtoestablishgoodcredit.com

Answer 4

Any kind of loan with a major company will be a good start. Credit cards are usually the easiest to obtain when you don't already have credit. Make sure you read the agreement before you sign. For personal reasons, nothing to do with credit, you don't want a very high interest rate, and the lowest or no annual fee you can find that you qualify for. Charge a little bit every month, make sure you pay the bill on time, and you are on your way to a good credit history.

Answer 5

PIGGYBACKING: Despite its' virtually
unlimited potential, piggybacking is
not used by nearly as many consumers as
it should be. It's easy, effective,
and extremely fast. Unfortunately,
it's mostly used among parents and
siblings while those who can really
benefit stay in the dark.

How it works. Almost every credit
card or credit account will allow the
primary account holder to add on (at a
later date) what's known as an
"Authorized User" or "Secondary Account
Holder". In most cases, when this is
done, the entire account history
(retroactively) gets posted to the
authorized users credit report
regardless of their current age or
credit history!

For example. If it's a credit card
with a $10,000 limit which has been
paid as agreed for the last 10 years,
then that complete history will be
posted to the authorized users' credit
report. I once saw a clients' credit
report who used this technique with his
mother. He was only 24 at the time and
he had a $15,000 Gold credit card on
his report with history going back 11
years! I laughed as I thought to
myself that this kid would have had to
be approved when he was 13 years old
for this account to be his!

As you can see, this strategy is
usually only used by parents and their
children and in most cases with no
regard to the benefits the children are
reaping credit wise! In fact, in
recent years, due to its'
effectiveness, this technique has led
individuals with excellent credit
scores to "rent out" authorized user
accounts on one or even multiple credit
cards in return for a fee! I once
recall seeing an ad in USA TODAY for
just such an opportunity. Like most
good credit loopholes, I'm sure this
methods' days are numbered much like
what may be the case with...




For more information on the CREDIT
SECRETS BIBLE you may visit:

http://gaby1221.niesong.hop.clickbank.net

Answer 6

A credit card is a good way but u don't have 2 use it a lot.

Answer 7

no one will give you credit BUT
you can get a visa thru ( I believe Orchard Bank-google it)
which gives you a credit line=to a savings account you set up
sort of as a deposit...afer a certain period you can either get your savings back, ditch the card or either or both and get ANY new one as you NOW have a credit history! Be sure to use the card and pay it properly every month!

Answer 8

Yep, get a credit card and put small amounts of easy to pay amounts on it. Make sure you pay it on time too it will look bad it you don't...

Mind you I bought a cell phone and a car to establish my credit.. Hard to do...

Answer 9

I would go to a jewelry store and make a small purchase, make sure you make your payments on time and your credit score will gradually grow. Good Luck & make sure you make small purchases where you are able to make the payments.

Answer 10

any store credit card will be glad to extend credit to you, use it wisely