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4 Bumps

how do i build credit?

i have nothing on my credit report. when i try to get anything, a loan, a credit card, anything, i get turned down. it is always because i don't have any credit. how can i start building credit? my name is on utilies, bank accounts and the lease on our house. and it has been for 3 years.

 
happy-go-lucky

Asked by happy-go-lucky at 7:20 PM on Aug. 24, 2010 in Money & Work

Level 17 (3,357 Credits)
This question is closed.
Answers (12)
  • There's this card called ..orchard card... that help u to build credit...it only start u off with $300...and i think its a annual fee of $50..a little more or less..i cant remember...but they help me to build credit after filing bkrupt
    TezMoM

    Answer by TezMoM at 7:35 PM on Aug. 24, 2010

  • I worked with bank loans for a long time.....Utility bills and bank accounts do nothing for your credit unless you default in some way on them, The only way to get credit is with credit cards, home or auto loans, and student loans. Try getting a car you may need a hefty down payment and might pay a high intrest rate because of your lack of credit but it will pay off with your score. that is about the easiest way to get started. getting approved for bank or store credit cards is difficult unless you have some kind of credit already on there. ( also some people think cell phones, Atm cards, electric, or cable bills help because you pay the every month....but your paying a bill, not a line of credit. They don't even appear on your credit unless you don't pay and they send you to collections.) Good luck and once you get your credit be very careful with it. :)
    Finkette

    Answer by Finkette at 7:35 PM on Aug. 24, 2010

  • I will be from the other side of the debt fence. Avoid credit cards and debt. If you have paid your rent or mortgage on time for 24 months or greater, you qualify for a standard conventional home loan. My credit rating number is ZERO. If I do not have the money to buy something, well I just don't buy it. Whatever happened to saving up for what you want and then paying CASH for it. I am pretty old school with regards to money. 25% of my income pays for housing and utilities. 25% of my income is deposited into savings. 25% of my income goes towards car fuel, car tags and car repairs. The last 25% is divided between food and giving. I have lived this way for years. I hope you find the answer you are needing. Check out Dave Ramsey for financial information.  There is a group of Dave Ramsey followers on Cafemom. A credit score or a FICO score is nothing more then a "I love debt" score.  

    Joeygoat

    Answer by Joeygoat at 7:51 PM on Aug. 24, 2010

  • That's how you start credit, have utilities in your name, pay the bills on time every month, and you'll have a credit record. Credit cards and banks are really stingy now, though, so maybe they want to see more years of it. Try going to your actual bank and asking for a card with a really low credit limit, even $200. Couldn't hurt to ask.
    TwoBrownDogs

    Answer by TwoBrownDogs at 7:25 PM on Aug. 24, 2010

  • What about a car note? There are places that will work with you even with no credit, and they report monthly to the credit bureau so you can start to establish some credit.

    sheloveearth

    Answer by sheloveearth at 7:34 PM on Aug. 24, 2010

  • Finkette is right- they don't show on your credit report unless you default and then that's a negative, not something that helps you build your credit score.

    Does your SO have a credit score? Having him co-sign on a loan with you or adding your name to an existing line of credit will help you establish credit.

    That being said, you do need to ask yourself why you even want a credit score in the first place. All it allows you to do is borrow money and pay it back with interest. Over a lifetime that can end up being thousands and thousands of dollars down the drain all for some stupid credit score.
    Erica_Smerica

    Answer by Erica_Smerica at 7:42 PM on Aug. 24, 2010

  • If the bank offers a credit card get it from them.
    musicmom08

    Answer by musicmom08 at 7:24 PM on Aug. 24, 2010

  • You might want to look into a Credit Union. Often they will be willing to help you out when a bank might not want to. They still have reporting standards and regulations, though. But a small $500.00 line of credit is not a bad way to start. Just don't go overboard. Start off small with something you know you can pay in full if you had to. If you do get a credit card or LOC, keep it for awhile, say at least 2 years. You want to build a positive credit history. Read the fine print on anything before you sign,and watch out for high interest anything!
    69humblepie

    Answer by 69humblepie at 10:09 PM on Aug. 24, 2010

  • Sometimes a dept store will give you a credit card before anyone else, but be very careful, their interest rate is thru the roof. You may have to have someone else co-sign for you. Or see if you can get a secured credit card, that is where you put the money up front, say 300.00 and VISA/ Mastercard will let you have a card for that amount. Then if you default, they have the cash.
    CorrinaWithrow

    Answer by CorrinaWithrow at 11:41 PM on Aug. 24, 2010

  • thank you for the suggestions. i have tried to get store credit cards, bank credit cards, every thing. i am a member at a credit union, and they wouldn't loan me money to buy a car... just $2000 was all i was asking for. my husband has a low score (his ex wife never paid a singel bill when he was in Iraq, we are still having new cretitors call us because there is a over due balance from at least 3 years before.) so he can't co-sign anything. we are working to fix his credit, but want me to have good credit too.
    happy-go-lucky

    Comment by happy-go-lucky (original poster) at 11:56 PM on Aug. 24, 2010

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