How do I start a credit history?

Question

I know for sure that I don't have a credit history, how do I start one?

Answer 1

First, it would help to know what makes up your score. Here's a breakdown.

Payment history 35%
Amount of debt that's owed 30%
Length of time that credit's been established 15%
Types of credit 10%
Inquiries and New accounts 10%

If you don't have one already, you should open up a checking and savings account. Though it won't directly build your credit, it will show that you have a way to manage your money.

Then you might want to check to see if they offer low limit or secured credit cards. Bank of America, Wells Fargo, Orchard Bank, are some that offer secured cards if where you do your banking doesn't offer them. I posted the links to apply directly to the cards below. They're the easiest to get becuase you have to deposit upfront the same amount in a savings account. For example, if you depost $500, you would get a $500 credit line. If you pay the card on time and keep the balance low or 0 preferably, you'll get the deposit back usually after a year, with possible interest. My advice would be to make small purchases ($20-75/month) that you can pay off on-time, in full every month. I would only use the card in emergencies.

Another thing would be to open a certificate of deposit and secure an installment loan against it.

Another thing is to see if a close friend or a family member with good credit can add you to their credit cards as a authorized user, but you don't get a card. They're only adding you for credit reporting purposes only. Make sure that they make sure that the credit card company reports that account on your credit too.

Lastly, check out this website http://prbc.com/default.php?

If you pay rent, cable, utilities, insurance, day care, phone, cell phone, etc. every month, you can report previous payments from up to 3 years back and current payments, have them verified and scored in a report that can be used with your regular credit reports. Look this site over, there's too much for me to explain, but I feel that this is perfect for your situation.


Good Luck!

Answer 2

Starting out to build credit can be a pain in the butt. Everyone says you have to have credit first, but no one is willing to give it to you. Sometimes you may get lucky and they will give you a student credit card, but that's actually a really bad way to get started. Many students do this, and end up in so much debt.

Here's a safer way:
Take $500 and go to the bank, and get a CD. This isn't a music CD, it stands for Certificate of Deposit. Once you get the CD, apply to take a loan out against the CD. Because the loan will be secured, banks will give the loan 99.9% of the time, it takes about 1 day for processing. You can do the loan for the length of the CD, whether it be 6 months or a year. You will be able to do 90% of the CD, which, on a $500 cd it will be $450. You can then use the $450 and do whatever you want. You can spend it, save it, or you can stick it into a account and have the payment on the loan come out automatically out of that account. Stick $50 in there, and you don't even have to worry about the payments. Once the year is up, you get that $500 back.

This works, I've done it. I have two collections that ended up on my credit somehow, and dealing with someone who stole my credit and did a lot of bad stuff, and manage to still have a credit score of almost 700 because I do the loans with the CDs.

Before getting the loan, make sure you can get one for the amount you have. The minimum is almost always $500, many banks require more than that though.

Answer 3

There are many answer to this question, any one will work.
First try and apply for a credit card, Sears, Penny's, Lowes, ETC. if you are approved make small purchases that you now you can pay in full when you statement comes due. If you are denied, go to your bank, ask them to make you a secured loan. They will hold let's say $500.00 of your money and then loan you $500.00. Spread the payments out over 12 months. After this loan has been paid off, reapply at the bank for $750.00 on your secured $500.00 and then pay that off. This will show a steady payment history on your credit report, as long as you don't have negative credit against you, you should then be able to reapply for credit cards. I might suggest that using credit cards to build credit history is a quick way to get a good history, but the flip side is that unless you can pay the balance in full each month the interest is a real killer. There are other ways, like get a cell phone. Most of the cell phone companies report to the credit bureau, even if you don't have credit they will ask for a deposit which you will get back in 12 months generally. (as long as you make the payments) Good Luck.

Answer 4

depends on how old you are if you are under 18 you can get what is called a young adoult visa you can apply as early as 16 and start bulding your credit the only thing is that your parents have to co-sign with you and they decide what your credit limit is but it is a great way to get started. If you are at least 18 the way to go is with a secured Credit Card you make a deposit and that is your credit limit you pay back on the amount used and after a year the account gets re-evaluated and most of the time if you are good at keeping up with your payments and etc. you get your deposit back and get a regular credit card ussually with a beeter rate than if you hadnt done it that way. And one last thing do not apply and apply and apply the more you apply the lower your FICO score goes and the more it seems like your looking for $ so financial institutions

Answer 5

Apply for a student card through Citibank, if that doesn't work get a secured card. You won't establish credit history unless you are the primary on the account.

Don't bother with the trouble of being added as an authorized user because it does nothing for your credit report but bring your score down. Being an authorized user increases your credit exposure, but you don't make the payments so it doesn't benefit you.

Answer 6

Apply for a credit card if you can.
If not, get an additional card from your parents.
After a month or two, application for credit card will fly in.
Make sure to pay on time to build a good credit history.
Get an American Express Blue Cash, it's the only card you need.
Don't have to deal with refund check or points.
They will give you cash directly after 1 year.
Also, they are the only one that offer free extended warranty on all your purchases.
Keep it simple, just get one AE and a Visa if you want.