how to build up credit?

Question

how does bad credit people build up credit? i cant even apply any credit card.so how? please let me know

Answer 1

You have a chance to improve your credit rating and therefore brighten up your financial future by being patient, a conscious effort, and a personal debt repayment to improve your credit report. The most practical and effective way to truly improve credit is through a number of practical steps designed to help you not only improve your credit rating but also to maintain a decent credit rating once it has improved. No matter how bad your credit is, taking following steps will make it better.

STEP 1: Dispute Inaccurate Information or Frauds in Your Credit Report
STEP 2: Pay all of your bills on time
STEP 3: Reduce the number of credit cards you carry
STEP 4: Avoid bankruptcies, tax liens and collections
STEP 5: Request for Lower Credit Limits
STEP 6: Get a Small Loan or Credit Card with Co-Signer
STEP 7: Get a Secured Credit Card
STEP 8: Periodically Get a Copy of Your Credit Report

Find complete explanation for each step at:
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php

Answer 2

If you have negative accounts on your credit then you're just going to have to wait until they come off. Delinquent accounts come off after 7 years while satisfactory accounts stay on there for 10 years. After they come off you can pretty much start from scratch. Try to get a credit card but keep the credit line low so you don't spend too much. Pay the bill on time and your credit will slowly improve. In the future, don't let anything new go into collection or else your credit will be cursed for another 7 years.

Answer 3

I was in the same boat with you. The easy way to apply for the credit card is having someone with a good credit co-sign for your application. I just got my SSN so there is no credit score on my profile, when I went to car dealer they checked and the report says 0. A month later, I applied for a credit card, my uncle co-sign for me, when I check my TransUnion score it went up to 700 (I did not check my FICO so I don't know) I am sure this is the real score because I applied for Discover card and they approved without cosigner.

Answer 4

Being money-wise is key. If you have bad credit, it might be hard for you to get credit if you have a lot of negative accounts on your credit report so you really need to monitor your credit report and make sure to dispute anything inaccurate.

I used to have a problem with my credit because when I was underage, someone who rented a room at our house got ahold of my personal information and opened accounts in my name so it was a nightmare getting resolved but I finally did but in the mean time I had to live with bad credit.

You might do well to open an account at like Badcocks or other lease to own places that allow you a small financing account. Buy something like a lamp and make the minimum payment on it until you own it and then get something else once you own it. That way the payments are tiny (Maybe $10 an month) but you're building credit as you go.

Something I did (which takes very good discipline and responsibility) is I opened up an Amazon store credit account. I will buy something on Amazon.com with my credit, then sell it on Ebay (sometimes higher than I bought it depending on its value like a laptop or video game) Then I will take that money and put it in the bank. I will never touch that money unless I made a profit. Then if I spend more than $250 on amazon I get 6 months interest free repayment and I set my bank account to be automatically debited for the amount I charge on my card. Over the past 8 months my credit limit increased from $400 to $2500 because my payments are on time and I don't even have to spend any money, meanwhile my credit score is benefiting. -- It's almost too easy to be true so I wonder if what I am doing is even okay, but it has worked for me. Like I said, it takes extreme will power -- I also opened a "Fingerhut" account which I use for personal use and not to raise my credit necessarily but it also helps. The only thing that sucks is that the prices are much higher than normal so I only get big things that I wouldn't normally have money to just go and buy at the store like My bedroom set when I moved into my new place. I hope this gives you some ideas. :) -- I don't think any one of our answers is the "Best Answer" but I hope you take away ideas from everybody and get on the right track!

Answer 5

The truth is most people make the mistake of going to a 3rd party company to get their credit report. You want to go to one of the original credit bureaus: Trans Union, Experian or Equifax from the beginning. This sets the stage by being on the same page with the only companies that generate your credit scores.

Read the blog: "The #1 way you know your credit score is increasing" - Click link to read the full blog: http://resource2recovery.blogspot.com/2014/07/the-1-way-you-know-your-credit-score-is.html

You will also read in the blog how a 3 step challenge can change any credit situation....

Answer 6

20 years ago, the only credit i had was bad credit.
I hadn't tought that muc about it until I fell in love with a house for sale. Up til then, I was ok with renting.
Now, however, I found 'my' house, and I had 3 months to clean up my credit to buy it.
First thing I did was get a valid report, and I did it by going in person to each credit reporting agency in my city.
I found a lof of real human beings ther who helped m understand the nature of my problems and a way to get my credit right. NO, of course they didn't pay off my debts! They did, however, help me get clear on just how much in the hole I was, and also helped to get rid of a couple of 'wrong' bad statements on m report.
Once I had an idea of whom I really owed and how urgent the debt was, I set a goal to pay off the debts, and I was able to pay off as many as necessary so that I could buy the house I wanted.
It was a 'repo' - a repossessed house from some government loan. It needed a lot of fixing up, but I learned these things during my ownership between 1988 and 2003. Then, I sold it with enough money left over to now live on 15 acres in the country - my life-long dream.
You CAN get what you really want. But you have to do without some of the stuff that other people, incliuding media tv, etc. say yyou should have.
JUST SAY NO - Yes, it does work. BEgin by cutting up ONE credit card to never use it again. Toss it OUT. LEt it go.
If you have an eagle spirit, cut them ALL up.
From then on, only buy whatever you have in cash in your pocket;
If you have no cash on your pocket, your eagle spirit will fly overhead nonetheless.
You willl find that most of your previous expenses have gone to indulge others - or indulge your desire to maintain an 'image' for others.
Letting all that go not only relieves a big burden on your wallet but also on your ego.
:Let go.

Answer 7

Bad credit can frustrate your efforts at getting a credit. Hence ensure you keep your credit report clean. If there are any errors in the report, undertake credit repair to clear out any errors. This can be tiring and frustrating, but highly rewarding. Though law recognizes and protects your rights, it is your duty to remove any anomalies in

Answer 8

Work at the same job. The card company likes you to be with the same place for one year sometimes two years.
Have all bills in your name; gas, water, electric, rent. Always pay them on time, never for any reason late not even one day. After a year or two try to get a credit card. Try for one that is for a store like K-Mart.
When you get a card always pay it in full when the bill comes. Only have one or two cards & don't have high limets on them.
Good luck.

Answer 9

in 2003 i filed for bk. once it discharged, bought a car. about 6 months later, got a credit card. now 4 years later I have very good credit, i am able to get just about anything! if u need further help, contact a credit counselor, they can help u! ive been there!! good luck.

Answer 10

Paying bills at time. simple and best way to remove bad credit