Building Credit

[wendykh]

How does one build credit?
How does one do this when they have no credit?

The above questions are not rhetorical!

Comments

[secretburning.livejournal.com]

The advice I've always heard is to get a credit card at a gas station (easier to get, I guess) and pay it off monthly. Store credit cards are typically easy to get approved for as well. I didn't realize until I married husband #2 that no credit history is often seen as worse than a bad credit history; he had a hard time getting any credit on his own because he didn't have credit. Joining forces with my stellar credit rating built his credit, but I was dropped by at least one credit card company for adding him. (I was younger and more naive then.) No way would I put husband #3 or anyone else on my credit cards/accounts now, as I watch my 760 credit rating (and climbing) like a hawk.

[anna-lise-a.livejournal.com]

I know this one, because when we moved to the US our credit history didn't follow us, so we had to start over - same when we moved to the UK. Get something like a Target card, and use it - obviously make sure you pay it off each month! You will find your credit rating goes up quite quickly.

[cloudkucooland.livejournal.com]

I agree with what those above me have said. Get a credit card--Target would be perfect. Even if it has a fee and high rate... consider the fee an investment in your future and ignore the interest rate since you'll be paying it off in full each month. If you can't pay it off one month, put it in a ziploc bag full of water and put it in the freezer. That'll keep you from touching it until it is paid off.

What worked best for me, and I know this isn't an option for you, was when Jen and I got married (she had excellent credit, I had horrible credit [student loans gone into collection...]) we bought a car together, in my name, she co-signed. We payed it off early and I got all the credit for it. Good credit can be infective, but so can bad...

Pay all your utility bills on time, it really does help.

[studlycaps.livejournal.com]

Buy a car with a significant downpayment. After lots of credit problems, I went credit-free for quite some time. I wanted to start building credit again so I put $4k plus taxes down on a $20k car. Make sure you get a loan from someone reputable, not a Capital One or something.

yes!

[cloudkucooland.livejournal.com]

I put $15k down on my MINI and financed the rest over 3 years (last payment sent in this week!) and my credit score went through the roof!

Also, I worked at Capital One Auto Finance (aka Summit before CO bought them)--they write loans KNOWING that X% is going to default on them. The high-risk financing system is a racket. Never take a COAF loan, they are a bunch of crooks.

[alohamelly.livejournal.com]

I have been wondering that myself for a long time. At age 32 I have never had a credit card and can't even get one still. I am on many accounts, but I don't have my own. When I try to apply for anything, I always get rejected due to "limited credit history". So I have no answers, but I hope you're able to build some credit. Unlike me. :p

[alohamelly.livejournal.com]

And another thing - it pisses me off that an 18yo just out of high school is able to get a credit card but I've never been able to. I have no idea how that happens, but I know it does.

[itsajhthing.livejournal.com]

To answer your question with a question - why do you want to build credit at all?

[wendykh.livejournal.com]

It would be nice so when renting apartments or buying a house or car I am not treated like a 12 year old and have to get mommy and daddy to cosign. This irks me. Greatly.