Friday, November 19, 2010

How do I get a credit with no credit history?

I have a no credit history, I've applied for cards to get things going but have been refused because I have no history. It's frustrating. What do I do now?How do I get a credit with no credit history?
Their care credit cards specially for people with no credit history. They usually have a pretty high interest rate, but they will let you get a foothold on the credit ladder. Use them for 6 - 12 months, and then you can apply for a normal card, and cancel your existing card.

Don't apply for lots of cards, it can actually damage your credit score, a couple every 6 months is ok.

For the UK, Capital One and Vanquis offer no credit history cards. Capital One are pretty good at accepting you.How do I get a credit with no credit history?
If you don't have any credit history,don't apply for card from bigger credit companies like AMEX,Citi etc.,Go for small credit companies like Credit unions and some other.Try building your credit history with that by paying bills on time.Gradually the companies which refused you at first will send you pre-approved invitations.Good luck.
Take a small loan out for $ 500.00 from a loan company or a bank with your parents as co-signers. Make the payments early each month. This will establish credit for you. It's how I started my sons out
go to a store, get a sears card or home depot or whatever

buy some stuff you would have bought anyway

then wait till some interest gets on there and pay that

its really the willingness to pay interest that increases it I think

along with the point system they use, mostly its like if you want to borrow money and need some, then you can't, if you don't need any, then you can borrow as much as you want

also, something called a secured loan can establish credit quickly, takes 5K or so, you deposit the money at low interest, then borrow your own money back at high interest, banks tend to lik ethat deal for obvious reasons

then you get to borrow tons more
Instead of paying all cash take advantage of payment plans. Many stores have deals that you put so much money down and pay so much a month until paid off. This type of thing is one way to build credit. One thing tho, don't be late or miss a payment. Paying off any bills that you have now will also count on your history. Buying a car and paying the loan off. This kind of thing is what builds a great credit history. Can look at your credit history and see everything paid, paid. Is good.
Go to the bank and get what you call ';a secured credit card'; that is a credit card that you pay the bank say $1000.00 and that money is put on your credit card its yours still but it is prepaied. You go out and buy a bike and it costs you $200.00 the end of the month comes a bill for $200 and u pay it, but if 2 months go by and dont pay it it comes out of your $1000.00....its garantied that if u don't pay it comes out of u'r pocket anyway, the idea is if you pay your balance off every month with out owing on it you rebuild your credit and then you will qualify after so long for a regular credit card then you talk to the bank about closing the secured credit card or tranfering it to your regular credit card. I hoped this helped, take care Heather
First go with the answer peach gave you. Then get a secured credit card. Yes it will cost you a bit but with a bit of time and patience they will start offering you credit right and left.
The first and most important step you can take is to get a ';secured credit card.'; This requires providing money as security against the risk of a borrower not paying. The advantage of this type of card is that it will be reported to all three major credit bureaus. Ifyou use this card responsibly, such as: Make at least your minimum monthly payments on time, Over time, issuers may increase your initial credit limit based upon your responsible behaviour. You need to show ur card issuer you can manage credit, which will help to build a good credit history....I would try using a First premier secured credit card- that is the one I went with. After using it, and of course paying it on time every month, I was able to establish credit and received an unsecured credit card. Godd Luck...
You need to begin building a credit history. Quickest way is to get a secured credit card. This is a Mastercard or Visa through a company that issues a card provided you make a savings deposit to their institutution. Your line of credit is measured by your savings balance. Many companies offer them. Key Bank and Cap One are ones for whom I have seen brochures offering this kind of card. Also might begin to build a credit line by buyng on credit through local merchants such as furniture stores and rental centers. Buy a car on credit, but only if you really need it and can afford it. There are always ads for ';NO CREDIT BAD CREDIT WELCOME! Trouble is you will usually pay a premium both in purchase price and interest charges in dealing with people who invite such high risk business. They have to have a margin to absorb the ';no pays'; attracted by that kind of advertising. The only way to build your credit is to use it. Like elastic, stretch it. But never break it. You will only build good credit by making payments on time as agreed.

My recommendaton: Use credit cards to make NECESSARY consumer purchases, but pay off credit card balances within thirty days to avoid interest charges. Once you have built your credit history, use credit(pay Interest) only to buy a home and if necessary an essential vehicle. For other things, save your money and pay cash. You will wind up with two, three, four times as much for your money that way.

Interest is very expensive and it is very hard to get on a cash basis once you build a big credit card debt balance. You are constantly using money for today's needs to pay off the interest on things you bought month's ago.

STAY DEBT FREE to do well financially.

The above is for Consumer Credit. Different rules apply to borrowing for business or investment, where one rule is; Use OPM (other people's money). Just be sure you can generate a profit on that money after repaying the principal and interest. OPM gives you leverage to build your equity in the business/investment faster.

Managing our money is one of the most universally needed skills in life, and yet our educational system completely fails to prepare people for the task. A client recently told me, ';I managed to get two degrees including 4 years of university educaton beyond my bachelor's degree and nowhere in 20 years of post kindergarden education was I ever in a single course taught anything about managing personal finances.';

Make it a point to educate yourself in this arena. You and your family will be much healthier, wealthier, and wiser (with a nod to BenFrankin).

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