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How do someone with no credit establish credit?

My fiance has applied for store credit and credit cards but they all tell him he does not have enough credit to be approved. How do you build your credit up if you currently have none?

Answer Question
 
mama28th

Asked by mama28th at 10:36 PM on Feb. 22, 2010 in Money & Work

Level 2 (10 Credits)
Answers (11)
  • Get a loan and pay it back on time. Get a credit card from the bank.
    Anonymous

    Answer by Anonymous at 10:37 PM on Feb. 22, 2010

  • Try FirstFinancialBankUSA. They start out credit cards at $250+
    Anonymous

    Answer by Anonymous at 10:40 PM on Feb. 22, 2010

  • get a student loan for school, get a phone plan, buy a car at a high interest rate. i think living without debt is the way to go though.
    angevil53

    Answer by angevil53 at 10:41 PM on Feb. 22, 2010

  • Or, you could just skip the credit game altogether and pay cash for everything. You don't NEED credit cards to survive in this world. Length of time with an employer, good income, steady residence, etc. can be taken to a lender that will work with a zero FICO score to get a mortgage.
    halfpint_ny

    Answer by halfpint_ny at 10:45 PM on Feb. 22, 2010

  • open a victoria's secret, jc penny, mervyns, macy's belk, gas card, etc... account. Pay them in full, on time and close them if they become inactive. open a new bank account (performing several transactions, withdrawals and deposits no matter how small, to create activity) it will take the credit companies some time to catch up on these things...30-90 days.
    Anonymous

    Answer by Anonymous at 10:50 PM on Feb. 22, 2010

  • I agree with the others on being debt free as much as possible! If you don't have the cash, you don't need the item!

    but yes, there are credit cards, they are called secured credit cards, where you send them $, they put that in a savings account, you can't touch it. but you get a credit card with a limit equal to what you gave them. Over time, as long as you pay your payments on time, they will raise your limit, and then after a certain time period, you get the $ + interest from that savings account on the initial $ you sent them. These cards do tend to have high monthly or yearly fees, but that's part of the price you pay to build up credit.
    Anonymous

    Answer by Anonymous at 10:50 PM on Feb. 22, 2010

  • we are having the same issue. we were turned down for a home loan because my DH has never established credit. They told us to have him co-sign for a loan with someone else and then pay it back - but my mother with perfect credit was turned down for the loan, then he lost his job, every credit card on the planet turned him down, including all those store cards... I don't know how we are ever supposed to buy a house without a loan, but I guess we will have to...
    SabrinaMBowen

    Answer by SabrinaMBowen at 12:00 AM on Feb. 23, 2010

  • I agree with halfpint_ny.
    And Sabrina, you'll have to go to a bank that knows how to underwrite a loan. You'll need solid employment, a 20% down payment, and proof that you've paid your rent on time for at least the last two years.

    You can get a mortgage without credit.
    Anonymous

    Answer by Anonymous at 1:17 AM on Feb. 23, 2010

  • get a credit card and buy little stuff and pay the balance off every mounth right now i am trying to fix my credit
    tazmidgiefairy

    Answer by tazmidgiefairy at 2:41 AM on Feb. 23, 2010

  • If he is a student some lenders will allow a small credit card with no credit otherwise he would need a cosigner. Also you can apply for credit with him just make sure the person with credit is first on the application.
    bjane01

    Answer by bjane01 at 9:06 AM on Feb. 23, 2010

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