Trying To Establish Credit With Little To No Credit History [creditdiagnosis]

Trying To Establish Credit With Little To No Credit History [creditdiagnosis]

You also will have time to establish a lengthy, positive pattern of behavior to replace any negative marks on your credit report. • Order all three credit reports. Experian, Equifax and Transunion are the three major nationwide credit bureaus. They ... Know your credit score inside and out

The St. Louis Community Credit Union has tips on how you can convince lenders to loan you money. Follow these rules and you'll have a great credit score.

http://leafgardenpress.com/ How to Build A Strong Credit History Part 1

If someone just starting out is trying to establish credit, it can be very difficult indeed. Most credit cards will not accept someone who has no credit history, which can be an enormous problem. To get around this, one must first have a job. Paychecks can be a persons perfect opportunity to begin building their credit score.

Having a job and a bank account with both a checking and savings account can help. The job allows you to deposit money and not overdraft the account, while having the bank account allows a person to establish a good banking a relationship, which will be extremely beneficial in the future if trying to get loans.

Now, there are two main ways to start getting good credit right away. The first is going to stores and trying to buy items on credit.

This can be very difficult, and many large chain stores will refuse to sell in this manner to someone will no history. Producing past pay-stubs can assist a person in this respect, and some smaller stores may be willing to sell merchandise on credit. The items with higher interest will help establish a good score faster as long as the person is able to pay it off on time.

The second main way to start establishing credit is to get a secure credit card. Unlike a regular credit card, they are not based on a set or random amount of credit that a person can spend on the card. Instead, a secure card is acquired using a certain amount of money as collateral. That amount of money becomes the credit limit. However, the deposit is not money to pay back debt on the card. If payments cannot be made and the account must be sent to collections, it still needs to be paid back like any other card.

Making small purchases and paying them off on time is a good way to build up credit without going into debt and ruining the potential score.

This will not create an amazing credit score immediately, but is a sure way to establish it. There is no short cut, because credit is a reflection of a persons ability to pay back loans over time.

Another way is to help out a trusted friend or family member by cosigning on their loan. If they are purchasing a motorcycle, car, house, or any item that you are confident they will pay off without delinquency, cosigning is a great way to establish a score without ever having to take out a loan. The way that the loan is paid off with appear on both the primary and the cosigners credit reports because both are responsible. Be aware however: if the primary loan holder fails to make payments on time, the cosigner will also suffer the consequences.

When trying to establish credit as a young person just starting out, it is also possible to become a joint-card holder with a parent. This can be a great way to establish credit without having to worry about the credit score getting out of control. Both card holders are equally responsible for the debt, and so it will allow the first time card holder to have a better chance being accepted for a card and then to establish their own credit score.

Not using credit in an effort to not incur more debt can also have the unintended consequence of the loss of a credit score. To maintain or when trying to establish credit, using a credit card for small purchases regularly and paying them off on time is the most reliable approach.

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Question by Rolledoatz: How do you establish credit when you have no credit history? So.. I am 24, and moved to the US from Canada (I have awesome credit history in Canada.) but I cannot get a credit card here due to having no credit history.. So how do I establish credit history, if I can't get credit?! Help... Best answer for How do you establish credit when you have no credit history?:

Answer by GONZAR
Buy a car, or get a secured credit card. Keep up on the payments. Those are the two easiest ways.

Answer by christophsworld
find a co-signer to get a loan. Or build a relationship with your local bank. They may be more likely to give you credit than a regular credit card company.

Answer by abcd.
get a loan do something.

Answer by Real Estate Guy
The best way is to get a secured credit card. Capital One, etc have these. Example, you put $ 1000 on deposit with the company and they issue you a card card with the same credit limit. HERE IS THE KEY. Only charge up to 25% of your credit limit each month. If your limit is 1000, then ONLY charge 250 each month AND THEN PAY IT IN FULL every month and on time.

Answer by susan0048
there are couple ways of doing it, one would be applying for secured credit card with for example bank of america or one from capital one. capital one is known for borrowing to those with fair credit history. also borrowing from credit unions might be much easier that borrowing from large corporations. if you have here someone who can be a co-signer on any loans it may help as well. besides just 6 months of credit card history will improve your score enough, keep going and you will raise it from 0 to 650 and then even up to 800.

Answer by hdawn1977
One of the easiest ways is to get a secured card. You will be required to put down a deposit..for instance if you put down $ 200 then you will have $ 200 credit to use. The good thing is you can find a card that will report to the credit bureaus, which if you're making on time payments will improve your credit or in your case give you credit. Another plus is most companies will then increase your limit without any additional deposit from you once you've made on time payments for a length of time. You can check this site I believe they have a couple secured card options you can browse. http://morecreditoptions.NewCreditApplications.com

Answer by SmartAndHot
you need to get a credit card first. You have few options as far as cards are concerned. See the below site for cards that you might like. After you maintain your credit card for few months you'll have good credit at which point you can get more credit cards or loans. Good luck!

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