Building Credit?

matthewcims

Well i'm young (20) and Im trying to build my credit but I cannot get a credit card anywhere or am I looking in the wrong place?

Tried lowes and home depot denied.
Tried citi denied


Where would someone starting out build there credit? Even just a gas card something witha limit of 250$ I will pay it off every month so Its only going to be used to build my credit.

Milhaus

Talk with a local bank. Even if they can't do anything for you now, you need to have a good relationship with your banker. Explain your situation and what you want to do, and see what they say.

If they turn you down, keep everything in good standing, and go back in six months and talk to them again. The consistency will show you are serious.

mark

BreyerConstruct

Even a rejection should start to build a history...
I helped a buddy with this a few years ago. Same situation.

Also, get a cell phone, even if you need to make a deposit- this hits your credit.

For a bank, offer to open a small CD account, and ask them for a loan against it- explain that you're looking to develop a relationship with a local bank, and are also trying to build your credit.

Best wishes,
~Matt

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JonM

What you need to do is go to your local bank or an on line bank and get a "secured" credit card...you deposit, lets say, 200 dollars into that account...they give you a credit card and you draw against that 200 dollars. You will get a bill each month to replace what you used of the 200...within 6 months to a year you will have a credit history...just make sure you pay that credit card every month ON TIME...and you are off and running...it takes about 4-5 years to established a credit score you can be proud of and the banks look upon favorably...good luck

wireless

Instead of building credit, build a cash reserve! You won't need credit then.

carolinahandyma

A friend or relative with established credit may be able to serve as a cosigner to help you get a credit card.

SelfContract

1. Try to buy a used car with offered dealer loans & with no/bad credit instant approval as advertised (for students, unemployed, etc. in your local news paper). Because they have your car as collateral, if you default, they will take back so it is much easier got approved... rather than just go apply for credit card at local bank.

2. If approved, try to pay more than minimum$ and NEVER BE LATER per month. (very important);

3. Then, every month, car lenders will automatically report your consistent/good payments agreed to major credit scoring systems;

4. Major credit bureaus (Equifax, Experian, Trans-Union, etc.) will start to build new and/or upgrade your credit scores from zero to 500+ in few to 6 months, etc.

W-Tinc

Most of the companies that will give you credit with no credit on file are not companies that you will want to do alot of business with for the long term.

Go to your local bank or credit union and instead of getting a secured card get a secured loan, basically give them $1000 so they can loan you $1000. and make payments on it for a couple years. After a few months you will get a fico score and have a better chance getting some decent credit.

Spend some time researching creditors. For instance, Home Depot cc's are backed by citi, if you had known this you might not have applied for the other after being denied by one(basically wasted one or more inquiries).

Lowes is backed by gemb, not bad but you can do better as far as companies to grow with.

Having a bunch of low limit cards will not look as good in a few years as two or three cards that can grow with you. For instance Bank of America has a card called the 99/500. They sometimes give it to people with no or very little credit, you give them $99 and they give you a card with a $500 limit that reports as secured.

12 months later if you were a good boy they unsecure it and give you a credit limit increase, I have one with a very nice credit limit after 3 1/2 years.

Have you tried for any student cards?

The main thing is you need to sprout out a fico score and some payment history and build from there. Try to avoid cards that will never have a limit higher than $500-$1000 even if they will accept you now.

I think if you buy a car from a buy here pay here lot you will probably overpay for the car, the interest rate will be high, and you will need full coverage insurance even if the vehicle is not that valuable.

Dale S.

Here is a forum that has a LOT of specifics that will help you do exactly what you are asking:

http://www.creditboards.com/forums/

They have a business and various other forums. A big topic in the business forum is building company credit. Seems like they have contributors that know their stuff.

dale

BobsLandscaping

Check with the dealers where you buy your equipment/supplies from. If you're a good customer they may sell you something on a floor plan and report it to the credit bureaus for you. It's backdoor, but worth a shot.