Sunday, November 21, 2010

How do I obtain credit with no credit history?

I'm trying to finance a vehicle, even the places that say no credit/bad credit ok--are denying me. I don't have any credit established but a student loan, and I have a few hospital bills on my credit report. I am trying to get a credit card w/o doing a secured line of credit. But what a catch 22 this is turning out to be, I can't get credit b/c I don't have credit.How do I obtain credit with no credit history?
Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments - freecreditreport.sinfree.netHow do I obtain credit with no credit history?
If you can afford a new car, the best way to get a car loan is to go to a dealer, pick out a car that looks affordable, and then ask about financing. They want to sell the car, so they'll do everything they can do get you a loan.

If you want a credit card to establish credit, go to the bank where you have your checking account and apply for a card. If you're already a customer, and your student loan is in good standing, they should be able to get you at least a $500 limit.

But first of all, if you haven't done so already, check your credit report and make sure it's accurate.
If you aren't required to make payments on your student loan yet, and if your hospital bills are past due, then you actually have established some credit, but it isn't the kind you want. Don't worry, though, that CAN be fixed. You probably COULD find a car loan at a VERY high rate with your current situation, but you may be better off waiting a few months or so while you focus on your credit. Then you can get a decent rate and save a lot of money in the long run. I know it isn't easy to wait, but it could save you thousands of dollars overall. There are services out there that know how to do this quickly and efficiently based on their experience. Total Credit Care is one of those. You can visit their site at and check it out. It says they will review your credit with you for free! Good luck to you!
You should see about asking your parents about opening a credit card where you are both on it to get the credit. Many many years ago, stores used to let students open credit cards.
Have you been making payments on your student loans? You should be able to get a car loan you just wouldn't get the greatest rate.

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