How do I establish and build my credit?

Question

I am a young adult who wants to start getting a good credit history. I just checked my report and I have one negative thing and I have like 4 or 5 inquiries. I disputed my negative thing for one of the indicated reasons. How can I start getting credit? Where can I apply, when I have no credit? I have 3 savings accounts and 1 checking account, but that doesn't even show up on my file. I have tried getting credit, but I am denied because I do not have a significant history. What can I do to build my credit up? Where can I start? please help!

Answer 1

Go to your bank and get a secured credit card. Then go and make some purchases and pay them off over at least 6-months. Do this 3-times and you should be able to get a regular credit card.

Answer 2

I would strongly suggest getting a credit card through Orchard Bank. They specialize in cards for people with no credit and bad credit. The credit limit will be very low, around $300 but they do report to all three credit bureaus which is what you want. Do not waste your time with a secured credit card because only unsecured credit will improve your credit score. Someone also suggested that you call the credit bureau and ask them to put your savings/checking accounts on your credit profile, they will NOT do this as bank accounts do not represent credit in any way. There are multiple sites you can go to in order to get credit cards for people in your situation. Just keep in mind that the fees tend to be high and credit limits low. So as soon as you have built some credit history, you will want to apply for a regular credit card. But I wouldn't try that until you have a year of strong history behind you. Here is a link to the website. http://www.creditcards.com/bad-credit.php. Best of luck to you, you'll have good credit before you know it.

Answer 3

Spifman is right. But I also just learned (when I refinanced my house) that playing the credit card shuffle really hurts your credit. I used to switch cards when a better offer came around, but my finance guy tells me that keeping an account open, even if there is very little activity, is better than closing it. Just charge something very small every few months that you can pay off right away - otherwise they'll close the account due to inactivity. Plus, if you get a better offer in the mail, you can call your current credit company and they'll usually match the offer. Just be diligent about paying everything on time, and pay more than the minimum. Also, you could get a small loan ($250 - $500), pay it on time, and that will help build credit as well.

Answer 4

Got to a local loan company and tell them you want a small starter loan, or a revolving loan. You can start out as little as $100. Make your monthly payments on time. Aviod having your credit ran when looking at new cars. that will drop your score quickly. Don't apply for any credit cards or anything like that. this should help!

Answer 5

You need to go to the credit bureau and ask them to put your checking and savings accounts on your report. Then you need to try to get secured cards like MC or visa you can also get cards from retail stores. Sears is pretty easy to get. Dont' check you credit score that often because every time someone checks it your score goes down 2 points.