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Building a Credit HistoryOn your first attempt to get a loan or credit card, you may face a common frustration: you don't have a credit history. Some creditors will look only at your salary and job and the other financial information that you put on the application. But most also want to know about your track record in handling money, specifically, how reliably you've repaid past debts. They turn to the records kept by bureaus or reporting agencies whose business is to collect, store, and report information about borrowers that is routinely supplied by many lenders. These records include the amount of credit you have received and how faithfully you've repaid. Here are several ways you can begin to build a good credit history:
  • Open a checking account or a savings account or both. These do not begin your credit history but may be checked as evidence that you have money and know how to manage it. Cancelled checks can be used to show that you pay utilities or rent bills regularly, a sign of reliability.
  • Apply for a department store charge card. Repaying charge card bills on time is a plus in your credit history.
  • Ask whether you may deposit funds with a financial institution to serve as collateral for a charge card; some institutions will issue a charge card with a limit usually no greater than the amount on deposit.
  • If you're new in town, write for a summary of any credit record kept by a bureau in your former town (Ask the bank or department store in your old hometown for the name of the agency it reports to).
  • If you don't qualify on the basis of your own standing, offer to have someone cosign your application.
  • If you're turned down, find out why and try to resolve any misunderstandings.
  • I recommend approaching a small community bank or local credit union. Be honest and forthright, explaining your situation, either you have no credit, or bad credit. Request a "secured credit card" and open a savings or checking account there with a debit card. If you are refused, ask what steps you need to take to get both types of cards. For a secured credit card, you will have to make a deposit equal to the amount of your credit limit. Offer to have automatic deduction from the bank account to pay for your purchases. After a period of time, 6 months to a year, you can request that the funds securing the cards be released and its' status changed to a regular credit card.

I agree with this answer but I would also add that the chances of you getting any type of credit in this market are very low. I would advise you skip applying around because you'll lose points with each request. About 50% of credit unions and banks offer secured cards. I would check that route first.

After you have your secured card (s) about 6 months, you will see a rise in your credit score. After 12 months, it will be even better and the lender should review your account and convert to unsecured (if you've handled it well).

The last thing is keep all of your balances under 30% of your credit limit. Within 12 months, you will be sitting very nice.

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13y ago

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How can I start building credit history?

To start building credit history, you can apply for a credit card, make small purchases, and pay off the balance in full each month. You can also consider becoming an authorized user on someone else's credit card or taking out a small loan and making timely payments. Building credit history takes time and responsible financial behavior.


If you are a secondary card holder yet you have been the only user of that credit card does it mean you still have no credit history?

If you are on the account your are building a credit history, hopefully a good one.


What is the best prepaid credit card option for building credit?

The best prepaid credit card option for building credit is one that reports your payment history to the major credit bureaus, such as the Green Dot Platinum Visa Secured Credit Card or the Netspend Visa Prepaid Card. These cards can help you establish a positive credit history if used responsibly.


What is the best credit card option for someone with no credit history?

For someone with no credit history, a secured credit card is often the best option. This type of card requires a security deposit, which serves as collateral and helps establish a credit history. It can be a good way to start building credit responsibly.


How can I start building a credit history?

To start building a credit history, you can apply for a credit card, make small purchases, and pay off the balance on time each month. You can also consider becoming an authorized user on someone else's credit card or taking out a small loan. Remember to use credit responsibly and monitor your credit report regularly.

Related Questions

How can I start building credit history?

To start building credit history, you can apply for a credit card, make small purchases, and pay off the balance in full each month. You can also consider becoming an authorized user on someone else's credit card or taking out a small loan and making timely payments. Building credit history takes time and responsible financial behavior.


If you are a secondary card holder yet you have been the only user of that credit card does it mean you still have no credit history?

If you are on the account your are building a credit history, hopefully a good one.


What is the best prepaid credit card option for building credit?

The best prepaid credit card option for building credit is one that reports your payment history to the major credit bureaus, such as the Green Dot Platinum Visa Secured Credit Card or the Netspend Visa Prepaid Card. These cards can help you establish a positive credit history if used responsibly.


What is the best credit card option for someone with no credit history?

For someone with no credit history, a secured credit card is often the best option. This type of card requires a security deposit, which serves as collateral and helps establish a credit history. It can be a good way to start building credit responsibly.


How is it possible a consumer might not have a credit history?

If they have never taken out a loan, credit card, or anything else, there is no credit history. You should start building credit while in college - small credit cards and student loans are good ways.


How can I start building a credit history?

To start building a credit history, you can apply for a credit card, make small purchases, and pay off the balance on time each month. You can also consider becoming an authorized user on someone else's credit card or taking out a small loan. Remember to use credit responsibly and monitor your credit report regularly.


I need to get my first loan, what can I do to to help build credit history?

Building a credit history requires taking out credit to get a history going. Open a no-annual-fee credit card and make sure to charge to it every month. Also, make sure to pay it off in full each month to build a positive credit history.


How can I use Experian to help build my credit?

You can use Experian by regularly checking your credit report for errors, monitoring your credit score, and using their credit-building tools and resources to improve your credit history.


What are the best credit building credit card options available in the UK?

Some of the best credit building credit card options in the UK include Aqua, Vanquis, and Capital One. These cards are designed for individuals with limited or poor credit history and can help improve your credit score over time with responsible use.


Can you transfer your Canadian credit history to the US or will you have to start building it all over?

Nope. You will considered as if you were born today. No credit history in the USA? No credit given to you. It will take at least 5 years to establish your USA credit record, step by step. Jim Bunting. Toronto.


Can a person who has no job and no credit history get a gas card to build his or her credit history?

Your chances are pretty slim. With that being said, my suggestion to you is to open a bank account and start building a long term relationship. Once you build up $1,000.00 in your savings account parlay that into a secured loan. Make your payments for 6 months and then pay it off in full. Now you have a positive credit history. It is an old fashion way of building your credit but it works!


How long does it take building a reputation that will allow one to get business credit?

Building a business reputation does not happen overnight. Suppliers report monthly and it will take several months for your businesses credit history to be built up. Try and set up accounts with small suppliers to help build your credit history and keep your payments up to date.