Sunday, November 21, 2010

I have no credit, not bad credit, just no credit. How can i begin to establish credit?

I'm just starting out with establishing my credit. I tried to get store credit cards etc but every time they decline because I haven't a sufficient credit history, or references. How can i establish credit and is it true that a pre-paid credit card is a good way to start?I have no credit, not bad credit, just no credit. How can i begin to establish credit?
I just got a capitol one visa card last month. They offer a card for people with limited credit history. Basically what I am doing is charging one or two things, paying them off, and then hiding the credit card from myself!! That is what my parents advised me to do to start credit history for myselfI have no credit, not bad credit, just no credit. How can i begin to establish credit?
I started my credit with a prepaid credit card. It worked for me.
I would say no on the pre-paid credit card. Unless you want to pay an arm and a leg in fees to have it. Generally, the pre-paid ones charge half of your limit in fees to the card and you have to pay them back each month (with interest, of course). Financing a car is probably the best way to build credit, presuming that you make all of your payments on time.
Try applying for a bank type card instead of department stores...like Orchard Bank or First National Credit Card. I had almost the best of credit (gold cards, silver).. but had a hard time getting a Sears card. Go figure....
Read some credit tips on this site
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