How can I establish good credit while I work off debts?

Question

I have a few overdue bills that are being taken care of through collection agencies. So far, I have had no luck in getting a credit card; even the easy to get gas cards etc... Is there something I can do? I am very wet behind the ears when it comes to the concept of credit. Many thanks.

Answer 1

Have you ever requested validation from the collection agencies to be sure they have not illegally inflated the amount and that they have a legal right to collect the debts?

Have you sent them a pay for delete letter requesting that any negatives they have placed on your credit be removed upon payment?

I agree with the first poster about trying Orchard but stay far far away from high fee, very, very subprime First Premier.
You might also try HSBC.

If you have to start with a secured card, try Bank of America. They will grow with you as your credit improves and generally if you keep the account in good standing it should unsecure around 9 months. Orchard and HSBC do have good secured cards, but those companies will not grow with you.

Answer 2

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.

Answer 3

Okay, try Orchard Bank or First Premier - you can get a "secured" credit card. You pay like a $200 deposit and after you charge/payoff for about 6 months, you get the deposit back. The best part is: it builds revolving credit but someone pulling a credit check cannot tell that it's prepaid.

Oh yeah, I mentioned First Premier only because I could not remember HSBC!!! Thanks Echo!

Answer 4

The best way to find a co-signer you can ask your closed friends or relatives with good credit history. It is the best way to get card with good features, high credit line and low fees. If i were you i would try this http://www.yourcreditoptions.com/Best-Credit-Cards-870377-page.php
If you can't look through credit card from First PREMIER bank. They issue cards for people with bad credit with guaranteed approval http://www.credit-land.com/1030/1030_page_4248_4639.php But they would rarely give you high credit limit, besides these cards provide enormous fees.
If you can't give much money to credit company apply for secured credit card it will help you to prove your creditworthiness and reestablish credit history.

Answer 5

try visiting http://www.igotmymoney.com