How to establish credit without credit?
Its a catch-22. I have no credit history, kindly reminded by the declined Discover application as well as the bank loan application both listing no credit history as reasons for the decline. I just graduated high school, and college is not in my immediate future plans. I want to build my credit, any way I can. I tried co-signing for the personal loan, declined. I tried credit cards, declined, Store credit cards need credit cards, declined. Student credit cards need college address, declined. What can I do to establish credit? I understand the importance of being financially responsible, and believe me I am. I’ve kept a mock ledger of my personal finances and a budget since I was 13, down to the last cent. The entire goal is for me to establish credit, for when I’m prepared to go to the bank with a business plan for a loan. I have a newly opened checking account, and have a steady income. It’s just the source is not a “steady, documented” income as I file 1099s. Thank you in advance.
Tags: Bank Loan, budget, build credit, Build My Credit, Business Plan, Cards Credit, Catch 22, checking account, College Address, credit, credit history, Decline, establish, Future Plans, How To Establish Credit, Loan Application, personal finances, Personal Loan, Store Credit Cards, Student Cards, Student Credit Cards, Without
5 Comments at "How to establish credit without credit?"
You have to apply for a secured credit card. If you default, they can still get your money back because you keep some money in an account. I think they still have those type of cards, but I’m not sure. Otherwise, you have to get credit with a co-signer that will back up the loan if you default. Do NOT keep applying everywhere because it stays on your file for 2 years and impacts it negatively. They will only give you credit when it looks like you don’t need it. LOL Got to love it. Would your parents co-sign for you on a store credit card? or a car loan? Word of advice, once you mess up your credit, it takes a long time to overcome it, be very careful.
It may be a little hard to find, but get yourself a secured visa card. Basically the way it works is you put money into the bank, and the hold those funds and give you a similar credit limit on a card. Because they have your money on deposit it isn’t such a risk for them, and you get to build your credit.
http://answers.yahoo.com/question/index;_ylt=AltWscpjPjhSB7GRSQDQFqLsy6IX?qid=20070729185054AArJKFZ&show=7#profile-info-SHXQnkiaaa
People ask this questions once every couple days.
Wow! If you have been doing a budget since you were 13, you can probably discipline yourself to save for what you need, rather than borrow. I do have a credit rating, & it is not all it is cracked up to be. I have good credit now because I have been paying on debts (mostly student loans) for YEARS. I promise, I would rather be in your shoes, credit-wise. Please get Dave Ramsey’s book, “Total Money Makeover”. It is in most libraries & bookstores. I really think a lot of what he teaches would resonate with you. You sound like a smart, disciplined, entrepreneurial person. I have been following it for about 4 yrs. I wish I had found it before I ever got my first credit card (in college).
Believe it or not, it all starts and ends with you. The important thing is that you first know what it is you want as well as where you currently stand. The fact of the matter is that there are a lot of credit cards out there that would fit your personal preference and lifestyle. If you are still in college, there are various student college credit cards you could choose from. One is a Citibank Platinum Dividend college student credit card. Balance transfers are allowed in this particular credit card as well as a cash advance facility.
Also, cash backs are earned in this credit card that is worth two percent on purchases made at stores, gas stations, as well as other basic utilities. This college student credit card allows one to build early on a credit history.
Fortunately, this student college credit card does not require one to pay an annual fee. Plus, one also needs to have good credit standing in order to be eligible for one.
Another college student credit card is one that is offered by Discover. There is no annual fee required and there is 0% APR on purchases that are made in six months.
That is if you are still in college, the above credit cards could apply to you. However, if you are one of those who may have bad credit, fear not. The fact of the matter is that there is still a credit card that could help you get out of your current financial rut (and put you in another one – just kidding).
If you have a history of bad credit, a credit card offer from Bank Premiere MasterCard may be the one for you. Thankfully, such a card is designed specifically for persons who just have bad or imperfect credit. Apply online for a student credit card at: http://www.credit-card-gallery.com/Student_Card.html