How do you start building credit if you have absolutely none?

Question

I'm 22. I don't have any history of credit. (No credit cards, loans, etc... Nothing.)

My friends told me that they all started building credit by opening a student credit card from Chase, the ones with a 200 dollar limit.

I tried to do that but actually got denied. They said that I have "too few accounts open to resolve credit."

So how do you do it?

Okay, I will try citibank, thanks. :)

Also, I already have a checking account open.

I do not have a cellphone or any other type of bill like that under my name, though. I mean, I don't have a cellphone period, haha. :) I don't want one.

Also, I would never use a credit card unless I could pay it off immediately, of course. :) That was my plan.

Answer 1

Citi Card will definetly give you a card. Charge only what you can afford to pay back on it though and always pay over the minimum. Good luck.

Answer 2

The first thing you need to do right now. Is to get up and take a walk and just celebrate the fact you have no credit and no debt. In fact, do better than that. Have a party and treat yourself to a big cake. Except for those few who are in your boat, you are the envy of the majority of people your age. They started out with the mind games about building credit and so forth. So be careful what you want. You just might get it. Those others your age are now doomed to 5 -7 -10 years of credit problems that will put a very dark shadow on what should be the best years of their lives. The second thing you need is to save and pay cash for whatever it is you need. If you can pay a credit payment you can save the money instead. Getting a credit card is the worst thing you can do.

Answer 3

I was actually in a similar situation to you when I was your age. I began by getting my name on my parents credit card as an authorized user. They sent me a card which I gave to my dad and he cut up. But with my parents using that card a lot and paying on time it built my credit as well, even though I never used the card or paid a bill.

Checking also goes on your credit rating.

And instead of paying cash for a $5000 car, I set up a loan with my bank and got a very low interest rate by having an account with their bank that had a balance that never went below the total owed on the loan.

You could also get a normal credit card but it would have a pretty hefty interest rate due to you not having a credit history. If you do this, use the card sparingly and pay off the total every month not just the minimum due.

Answer 4

Banks are pickier. The best is a direct mail MasterCard or Visa offer. The rates stink and the credit line might be low, but it will establish credit, just remember to pay it off every month so you don't go over limit and don't pay the huge interest. Don't sign up for any with annual or monthly fees.

Second choice: brows the internet and apply online.

Third choice: (and probably most likely to be approved) department store card (Macy's Kohl's). Get one or two, buy something, pay off the card. Do this a couple of times every few months to build a track record. Wait twelve months and try for a bank card again.

Answer 5

what I did... I got a $500 loan for a car when I was 16. I had a co-signer. Once that got started, I opened I high interest credit card and tore it up once I got it in the mail. I paid $20 a year to keep the account open, and when it came time to buy my new car, I was good. If you can't get your credit up, living in an apartment will raise it too. so will cell phone, and other credit cards, I suggest opening a loan with a federal credit union.

Answer 6

I'm 21 and I have excellent credit. First you need a checking account. Since you are 22 I'm assuming you have one. Typically you can get one through your bank which is usually the best bet for your first credit card.
I actually got a Chase card for my first one and the application came through the mail at my college. 1st Financial Bank is a really good one as well because as long as your a student and your balance doesn't exceed $250, its 0% apr. I have one of these as well.
Since you were applying for a student card you proably also have student loans....unless they are not in your name. My student loans have allowed me to finance both a computer and a new car and I'm 21.
There are deffinatly ways out there and if worse comes to worse, just ask your parents to put you on their credit card account to help you to start building credit.

Answer 7

Student credit cards are a little more difficult to get than credit cards for poor / no credit. If you can't get approved for a 'student' credit card, try one of these:

http://www.asapcreditcard.com/poor-credit.html

Although these offers tend to have higher interest rates (and additional fees) when compared to 'standard' credit cards, they'll give you the opportunity to prove your credit worthiness and build your credit history over time. Eventually, with regular on-time payments-- you'll be able to qualify for better offers with lower APRs and less fees. But for now, these might be your only options...

Hope this helps. GOOD LUCK!

Answer 8

try citi cards or discover, they both have good student accounts. also, open a checking or savings account in your name. sometimes even opening a cell phone account in your own name will build up some credit for you.

Answer 9

Try CapitalOne. Thay have a very good interest rate and they won't turn your application down. They might start you at $300. Or you can get your parents to link you to one of their credit cards ( that's if they trust you; and if they do make sure you don't dissapoint them). Good Luck

Answer 10

Try other credit cards.. also try and open a checking account with whatever money you have..