Limited Credit History- How can I start building my credit?

Question

Im 18 years old and lack credit history..the only thing I have as of now is a Macy's card which I've been using for just one month. Can anyone give any suggestions or recommendations as to how I can start building my credit? Or which credit card companies will be willing to take on a customer with limited credit history? I've applied for several but got rejected due to my lack of credit history.

Answer 1

In order to get 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 suggestion:

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.

Answer 2

Since you have no credit history it is going to be harder to get a credit card. I know when I was a banker and I had people who had no credit I would do what was called a secured loan. Anyone can do it at a bank. Open a savings account and put a few hundred dollars in it then apply for a secured loan using the savings account money as collateral. You can take the money from the loan and make small payments towards the loan, for about a year or so. Even if you had bad credit from a divorce or whatever this is a good way to get some credit established. Banks are much more strict on approving credit cards, because a person does not have to put up an collateral. Please do not apply for multiple credit cards because those inquiries show up for two years on your reports and they lower your credit score. Currently most banks want 2 years of good credit history on a report to approve credit( mortgage, car financing). If you want a good interest rate and not something ridiculous you need to start establishing some credit.Because you will be new to the credit world the risk is higher and a credit card is likely to give you a high interest rate. With the secured loan it is a much lower interest rate , because of the collateral.

Answer 3

Applying and getting rejected hits your credit by one point or up to six points ( or thereabouts) for every hit within a six month period. So first off let that rest a while. At least the six months need to go by. In which time I would Keep up the payment of the macy's card. Buy something of at least half the balance and get that paid off. Even if you have the cash for a twenty dollar purchase, put in on the card and take your 20 cash and put it in an envelope. Mail a check or money order of course on to Macys AFTER the bill comes in.

What they look for is someone who pays the bill on time and in full by the specified date. If you have to have the bill at balance Zero every month do so. If not, make a payment aproximately 10- 15 % Over the minimum balance until its paid. If you plan to make a purchase again, pay off the old balance before adding more.

Secondly you can go to the bank where you have your/savings/checking account and apply for a student credit card, take a cosigner. Student cards are easier to get and the cosigner ( with good credit) should seal the deal. Do the same in payments for that one as for the macy's card. Or mayhap, don't use it at all for six months. Having Open zero balance lines of credit looks Marvelous!

You can in fact open a line and cut the card up so you can never charge to it. Keep the cut up card though in a Sealed envelop with a note marking the date. I dont think you ever have to even Activate the card so it CAN'T be used fraudulantly. I know it seems dumb to have lines and not use them but this will help with house loans, college loans and car loans later.

Answer 4

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...

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SECRETS BIBLE you may visit:

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Answer 5

trust me and every one in the world,the last thing you want to do is get a credit card.find other ways of get credit get a cell phone are somthn simple might take longer but the last thing you want in your hands is a credit card. when i got a credit card i told my self i would just purchase a shirt then cut it up and throw it away now im 10.000 in debt. i dnt know u but im just tryn2 help u out. u can im me if u want with yahoo.

Answer 6

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