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If you have little or no credit, there are many credit card issuers who will give you the chance to prove your credit worthiness. Although you'll pay higher interest rates and some additional fees, you'll be able to establish a positive track record-- and eventually you'll be able to apply for better offers with less fees and lower interest rates. To see a complete list of these types of offers, visit:

http://www.asapcreditcard.com/unsecured-offers.html

GOOD LUCK!

2007-03-05 15:33:06 · answer #1 · answered by Anonymous · 0 0

When people offer you credit, they are looking for three things. Good credit history, revolving accounts, and a lack of unpaid debts.

To generate credit, you could sign up for secured credit cards - you essentially deposit money into a credit card and then use the money you've already put there, then pay that card back every month. Over time this shows your capability of being financially responsible over a long term basis, and you are really losing nothing because you are just paying yourself back. Once you decide to no longer use the cards, spend what you have available and close the accounts.

You can also have utility bills put in your name, which will show revolving accounts that are paid on time. Ask the companies if they will submit your payment information to the credit reporting agencies - some companies only report bad credit, but not good credit, unless you ask.

If you need loans, you can sign up at credit unions - they are good for people with bad or little credit history.

I'd also suggest not applying for credit or financing through any stores, until you know your credit score has risen, because most inquiries will reduce your credit rating - some drastically, which will only put you in a worse position than you are already in.

You might want to sign up for one of the many credit reporting programs that allow you to check the information and scores of all three of your credit reports, and track any changes that happen there. If you don't want to do that, or can't afford it, at least take advantage of the free report you can receive once a year from each agency. You can find that information here - https://www.annualcreditreport.com/cra/index.jsp

If you do have any bad credit on your reports - pay it off. Call and be up front with the places, and make arrangements to pay, even if it's only small amounts. It shows good faith and willingness to be responsible.

It takes a little time, but if you keep on top of things and work at it, you can generate a good history for yourself.

2007-03-05 12:37:52 · answer #2 · answered by raindreamer 5 · 0 0

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.

2007-03-05 23:13:03 · answer #3 · answered by Anonymous · 0 0

Whitney,

I don't know the best way, but I can tell you what I advised my daughters to do. It takes time and you need to be in your chosen carreer field. I had my daughters place 3 seperate orders from mail order companies. Then they received a credit card (never take the balance above 50% of available credit---this is very important to build your score).

After they had their cards for a while they received master and visa cards. At that point they paid off their mail order card, but left open (there's one open credit line).

They used Visa and Master Card (sparingly) (there's 3 open Credit lines) You don't want more than 3 credit cards and you never want the balance to go above 50% of what is available.

Then they bought their first cars. My advice at that point was to make the smallest down payment possible then as soon as possible pay a large chunk on the Principal which immediately sends the scores up.

It is much simpler if someone will co-sign for you, but I wanted my daughters to build and learn to manage as they went.

2007-03-05 12:39:48 · answer #4 · answered by Cindy 3 · 0 0

Get an electric bill and pay it. They will give you electric in your name w/o credit history.

2007-03-05 12:32:14 · answer #5 · answered by frenchie 4 · 0 0

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