How to establish credit?

[maelim 0]

How did u guys started establishing credit?any advice?

[YuAndDan 153]

Open a joint credit account, and joint bank accounts with US Citizen Spouse after you get SSN.

Also start small like applying for Fuel Company Cards, or Department Store Cards.

Edited April 7, 2008 by YuAndDan

[Lansbury 19]

We did a search of VJ and followed the advice in numerous other threads on this subject.

[Krikit 1,164]

We did a search of VJ and followed the advice in numerous other threads on this subject.

[VisaJourneyLady 33]

Lansbury - you cut and paste that from the shipping thread

[Lansbury 19]

Lansbury - you cut and paste that from the shipping thread

Madam I most certainly did not. I posted it here first

In fact the remarks were meant as being helpful as both the OPs could find all the information they wanted quite quickly by searching for it without waiting for people to reply.

[VisaJourneyLady 33]

very true

[Mononoke28 135]

We didn't want to open any Department Store credit cards because we would have to buy stuff we didn't really need or want. So what we did was open a joint checking & savings account, and then I started adding my husband to every single credit card I have, even if I haven't used it in a while. Then he applied at 4 different places, Bank of America, Chase, Capital One and Citibank. Three of them denied him for not having any credit history and then Capital One approved him for a starter credit card (it actually says that on the web site) with a $500 credit limit.

Slowly but surely.

Diana

[Lansbury 19]

We didn't want to open any Department Store credit cards because we would have to buy stuff we didn't really need or want. So what we did was open a joint checking & savings account, and then I started adding my husband to every single credit card I have, even if I haven't used it in a while. Then he applied at 4 different places, Bank of America, Chase, Capital One and Citibank. Three of them denied him for not having any credit history and then Capital One approved him for a starter credit card (it actually says that on the web site) with a $500 credit limit.

Slowly but surely.

Diana

Only problem with Capital One is they don't, or didn't, report all the information to the credit agencies. The main one being they don't, or didn't, tell them your credit limit. For this reason the credit agencies don't view Capital One credit cards as favourable as others.

When you apply for credit, it often lowers your score a few points. When I applied and got a Capital One card it dropped my credit score 40 points. It has taken me months to build it back up to where it was before I applied. The annoying thing was I didn't need the card I was just taking a second card to help build my credit score.

[Mononoke28 135]

I used Capital One back in 2002 to rebuild my credit and now I have a credit score above 800. So it did work for me.

Diana

[Lansbury 19]

I used Capital One back in 2002 to rebuild my credit and now I have a credit score above 800. So it did work for me.

Diana

I didnt say anything about it working or not, I was pointing out that using Capital One might not be the best option, and it has a possible disadvantage over other choices.

Search the web this is quite well documented. It was meant to have been corrected by this month with Capital One supplying your credit limit so the agencies can assess how much of your credit line you are using. That is part of the criteria they use to work out your score and as Capital One didn't supply it they were prone to knocking your score harder than when you applied for another card. As I said the Capital One application knocked my score 40 points an application for a Chase card reduced it 1 point. When you are trying to build up a credit score knowing these things helps you make an informed choice, if a choice is available.