I am currently a student at a 2 yrs community college. I have no previous credit history. I've try applying for a few credit cards ( american express, chevy chase credit card, citibank student credit card ) i was rejected because of insufficient credit history. Can someone recommend me a good credit card company, that will get me started. I would like a credit that that has money back rewards or gas rewards (gas prices are ridiculous btw). But most importantly i just want to build my credit history, so any recommendations are welcome. Thanks in advance!
How do i build credit history?
- Thread starter nam9684
- Start date
About the best/ONLY thing you can do right now is..... Take out a secured loan, or get a secured credit card. Basically you give the bank $500 and they loan you $500 but keep your $500 as collateral when you pay back the loan you get your $500 back. Or with the credit card you get a card with a $500 limit, and when you cancel the card you get your $500 back, or when you are upgraded to an unsecured card.
Also try to join a credit union.
I have just went through all this BTW
Also try to join a credit union.
I have just went through all this BTW
Heres what I'm doing, I'm currently 18, and looking to build it up.
Start getting something with a monthly bill. Right now, I'm using a Cell Phone bill, and paying it off early and in full, boosting up my credit just a tad.
I'm going to start applying for gas cards available at gas stations. You might be able to apply online. You can also get a secure credit card (lame IMO). You basically deposit $500, and you get $500 to spend on the card, you build up your credit and they'll give you your money back later.
Start getting something with a monthly bill. Right now, I'm using a Cell Phone bill, and paying it off early and in full, boosting up my credit just a tad.
I'm going to start applying for gas cards available at gas stations. You might be able to apply online. You can also get a secure credit card (lame IMO). You basically deposit $500, and you get $500 to spend on the card, you build up your credit and they'll give you your money back later.
Originally posted by: AMDman12GHz
About the best/ONLY thing you can do right now is..... Take out a secured loan, or get a secured credit card. Basically you give the bank $500 and they loan you $500 but keep your $500 as collateral when you pay back the loan you get your $500 back. Or with the credit card you get a card with a $500 limit, and when you cancel the card you get your $500 back, or when you are upgraded to an unsecured card.
Also try to join a credit union.
I have just went through all this BTW
A friend of mine did something similar, he had someone co-sign for him to get a $500 6month loan and put the money in a savings account then used it to pay it back( plus a little extra for the interest of course). If you can do this a couple times you credit will really improve. Just be sure to pay on time.
Originally posted by: JediJeb
Originally posted by: AMDman12GHz
About the best/ONLY thing you can do right now is..... Take out a secured loan, or get a secured credit card. Basically you give the bank $500 and they loan you $500 but keep your $500 as collateral when you pay back the loan you get your $500 back. Or with the credit card you get a card with a $500 limit, and when you cancel the card you get your $500 back, or when you are upgraded to an unsecured card.
Also try to join a credit union.
I have just went through all this BTW
A friend of mine did something similar, he had someone co-sign for him to get a $500 6month loan and put the money in a savings account then used it to pay it back( plus a little extra for the interest of course). If you can do this a couple times you credit will really improve. Just be sure to pay on time.
Yea thats what im doing minus the co-signer. Also if you have the title to your car you can take out a loan against it, at least my credit union let me. Thats a good way to build credit.
And to the person who said a secured card is lame, Yes it may be lame but it is one of the easiest ways to start building credit. It want take long with a secured card to be able to get an un-secured one.
First. Cell phone companies do not usually report unless your account is delinquent. Second. Gas cards are one of the hardest cards to get and are usually reserved for people with a proven credit history.
Lastly, secure credit cards are an excellent way for people to start off. The money is usually deposited in a CD and you earn intrest. Most primary banks (Citibank) offer the cards and it is always a good idea to begin a relationship with a primary lender. You call that lame?
Other easy to get accounts are furniture and jewelry and starter loans. Don't do like most people do and get the loan and pay it off the next month. Although this doesn't hurt you it doesn't help as much as you think and lenders like to see accounts paid over longer lengths of time. Getting a $500 loan and paying it off in two months does not impress them.
You'll learn everything you ever wanted to know about credit if you spend several hours at Creditboards
Learn from other people's mistakes and resist the temptation to make them yourself!
Learn from other people's mistakes and resist the temptation to make them yourself!
Nocturnal
Lifer
- Jan 8, 2002
- 18,927
- 0
- 76
Easiest ways, either get a cell phone or get a secured credit card. A secured credit card is a card in which you put down say, $500.00. You then get a $500.00 credit limit. If you do ever mess up and stop paying, all they have to do is take your $500.00 in which you saved and walah, they'll have their $ back -- I am pretty sure if you mess up though they'll report it even though they have their $ back.
another option might be co-signing with your parents, although i'm not sure that affects your credit since it will be technically drawn from your parents' credit. something to look in to.
This worked for our son. We had him added to our Sears charge account. It wasn't long at all before he got his own card from Sears. Once you have that, it's easy to get cards from Visa and Master Card. Coincidentally, Sears is the one who got the ball rolling for me, 30 years ago. I got a simple, low end, starter card from them, and graduated to their normal revolving charge. With that, Visa and Master Card start sending cards without you even applying!
don't apply for more then one credit card a month... over-applying kills your credit record
get 2 cards... visa or mastercard... hopefully they both will have at least a $200 limit on them
buy something worth $100 on each card (sneakers, jacket, computer case, whatever) and pay the min for each card for a full year
w/ intrest you will end up paying a LOT more then had you paid cash... but doing this for one year will GREATLY increase your credit rating
gas cards do help... but id stay away from them.
do NOT have more then 2 cc's anyway - visa/mastercard/amex - pic 2... if you have 5 cards, each w/ $5k limit and carry no balance - its gonna b hard to get something like a car loan because the bank is gonna see that tomorrow, you could in thereoy go out and buy $25k worth of stuff and not make your car payment
get 2 cards... visa or mastercard... hopefully they both will have at least a $200 limit on them
buy something worth $100 on each card (sneakers, jacket, computer case, whatever) and pay the min for each card for a full year
w/ intrest you will end up paying a LOT more then had you paid cash... but doing this for one year will GREATLY increase your credit rating
gas cards do help... but id stay away from them.
do NOT have more then 2 cc's anyway - visa/mastercard/amex - pic 2... if you have 5 cards, each w/ $5k limit and carry no balance - its gonna b hard to get something like a car loan because the bank is gonna see that tomorrow, you could in thereoy go out and buy $25k worth of stuff and not make your car payment
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