I have been trying to help my friend get some form of credit. She's 23 and has no credit as of yet. We've tried having her apply to a gas card, her primary bank's credit card and now we've sent in an application for a retail credit card.
I'm wondering, since she has no credit yet, can she get a negative score? Will these failed appempts to gain a credit source cause marks against her?
If this application is denied... what advice can you give to help her attain credit?
Cheers!!
2007-06-13 11:00:53 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
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2007-06-13 11:08:34 · answer #1 · answered by orpa920 3 · 0⤊ 0⤋
She will not be negative, just many applications will put her score lower. Have her save some money and get a card that is a deposit card, let's say you have a deposit of $500 and get a $500 dollar credit card, remember just because you have a deposit you still have to make the payments on it. Use the card for a purchase here and there, less than $100, then pay it off before the due date, never carry a balance of over more that 30%. Within 4-6 months she will build up a credit score. Stay away from Capital one they only report what you have used as you credit limit and thus reduces you credit to debt ratio, and there terms are bad. Another option if you have a bank is see if you can get a small loan, put the money in savings, and make payments on it. Stay away from the store cards
2007-06-13 11:13:49 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
My husband went through this while we first got married. Start off with jewelry store accounts, gas cards, easy type of credit cards like First Premier Bank or something like that just to get her started. Maybe a car loan in her name. The ones you mentioned are sometimes hard to get when you have no credit. And yes having no credit is a low credit score and kind of looks bad to creditors who might give her credit. It happened to my husband but then again that was 11 years a go. Also PLEASE BE CAREFUL that she doesn't apply to many times in a 6 month period. That can lower your credit score too.
2007-06-13 11:12:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
She could get a secured loan with her bank. i.e. $1,000 for 1 year; pay off 1/2 right away, and then the rest over the next 6 months. This will show up on her credit report as paid off early.
She can become a joint (and it works in some cases as an authorized) user on one of her parents credit cards. Once she has this she can apply for American Eagle, Gap, Victoria's Secret and get automatically approved. After that she can take her name off her parents card and wait for a few months and get her own.
Pay off any student loans. This is appear on her credit report.
Good luck. There are message boards to help with such matters.
2007-06-13 11:13:55 · answer #4 · answered by thearizonapenguin 4 · 0⤊ 0⤋
If you've got a stable job with a good source of income, you might be able to apply for a loan through a website called Prosper. This will be reported to a credit agency that can help her get her credit score up. Also, you can try a secured credit card. This site is a People-to-People (P2P) lending site where individual borrowers join in on the loans to help fund yours. The following is a link of a group that can help to walk you through the whole process:
http://www.prosper.com/groups/group_home.aspx?group_short_name=LIFFE&utm_campaign=referrals-unknown&utm_medium=referral-link&utm_content=link&utm_source=referrer-FundingLIFFE
Best of luck
2007-06-13 12:49:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
She should start with a checking account. After she has that for a while (without having any overdrafts), then she should be able to get some kind of credit card.
2007-06-13 11:06:39 · answer #6 · answered by me_myself_&_eye 4 · 0⤊ 0⤋
You cannot get a negative credit score.
2007-06-13 11:09:18 · answer #7 · answered by Stephanie M 1 · 0⤊ 0⤋