I am 18 and want credit but cant get any cuz I dont have any credit . I need some pointers on how to begin.?

Question

How do I establish credit when credit companies turn me down for not have any credit history?

Answer 1

Go to your bank or credit union. You have a history with them and they may give you a credit card.

You may have to go for a secured card -- you deposit $500 as collateral and they issue you a credit card with a $500 limit.

You could also try for a store or gas credit card. Use it and pay it in full every month. After 6 months or so, you might be able to get a major credit card.

Answer 2

I was in the same situation as you. I started off by applying for a student visa credit card with a $700 limit on it. It does have a high interest rate but many do. Also, you can try going to a local jewlery store and applying for one of their credit cards.. they are pretty easy to be qualified for. Here is a website I have also used. This site offers credit cards for people with bad credit OR no credit. You just have to search for the one that's best for you. Most are guaranteed approvals.

http://www.newhorizon.org/Info/unsecured.htm

Hope that helps! :) Good luck and be careful because credit cards, if used irresponsibly, can lead to lots of financial and credit problems. I've learned that the hard way. :P

Answer 3

Applying several times will hurt your credit score as it makes new creditors believe you may have more credit than you have.

Talk to your credit union or bank where you have a checking account. They have programs where they deposit loan proceeds into a share account or CD. The loan is secured, so they feel it a safe loan to make because the money never leaves them. Just make sure you tell them to report the loan to the credit bureau. Explain to them that is why you want the loan.

Long term, the best thing to do is NOT USE CREDIT unless you have a good reason to AND can pay it back easily. Dave Ramsey is a millionare who preaches living "debt free". He does not have a credit score because he has not used credit in years.

Answer 4

Try getting a store credit card. They are generally easy to get and you can only use it at the store so its harder to rack up huge bills. Put a small amount on the card and pay it off every month. It shows that you can handle credit, and you avoid high interest if you pay if off every month. Also try getting your own cell phone, but be careful they can get really expensive.

Answer 5

Secured credit cards are a great way to rebuild your credit. Most secured credit card companies require a deposit equal to the credit line your are seeking. Make sure they report your payment monthly to the major credit bureaus. Making your payments on time monthly will increase your credit rating. You will also get you deposit returned to you after one year, turning your secured credit card into a unsecured credit card.

Answer 6

Options are:

Cosigner.

15% down payment.

Apply through a subprime lender.