How can I build up credit?

[gandacel 7]

I applied for a Capital One and got approved, this is the link: http://www.capitalone.com/credit-cards/cash-rewards-for-newcomers/?linkid=WWW_1010_CARD_TGUNS11_CP22417AD_C0_01_T_CP22417AW it has a $300 limit, which is good for a first credit card. If you rent, your rent per year should be less than you yearly income, otherwise you will get denied. i just got mine a month ago and so far all good. good luck!

[I AM NOT THAT GUY 5,715]

If you rent, your rent per year should be less than you yearly income,

Much less, I would think. If your total housing payment is more than 50% of your gross income, you probably are overextended. I got turned down once for not having medical insurance. It depends how detailed the credit application is.

[Jen and Jon 14]

Hello Everyone,

I have been trying to get a credit card issued on my behalf but its not being possible i tried even some store cards like Kroger's and walmart but all i was told is that I don't have credit history and have not created a credit file but i then want to ask how can i create a credit history? Even though I have my GC yet no body is still approving the credit card issuance yet.

I will be glad if i can be given a simplified way or example of how I can create a credit history without having a credit card. Anyone with similar experience is free to comment.

Thanks!

Does your significant other have any credit cards in their name?? If yes, try to get on to one of the ones that isn't a branded card (with a visa or mastercard logo). Meaning try getting on as a co-owner to a card that can only be used at a store. After you have been on a card for 6 months you will have established enough credit history to apply for one yourself. Not saying that's enough for a branded card but you'll be able to apply for a department store card blah blah blah. Same as I had just typed Hope this helps good luck, you could also find a bank that lets you apply for secured credit cards, these are cards with a visa or mastercard logo but you barrow against your own money. (putting a deposit down and barrowing off of that)

Happy hunting !!!!

[dstrausser83 14]

That's not what the credit card told me when I applied. It might be because I only paid monthly for 3 or 4 months, then paid the rest off in full. I thought it would save me money by not having to pay interest, but I guess it would have been better to pay a little extra to get credit. *sigh*

I have federal student loans, I can verify that they are on my credit report. How the credit issuer views them depends on them, many do not hold student loans as much value because you are pretty much forced to pay them (if you don't they'll take your tax returns, etc.). They are there though and they will boost your score.

[Labi 4]

Hello Everyone,

I have been trying to get a credit card issued on my behalf but its not being possible i tried even some store cards like Kroger's and walmart but all i was told is that I don't have credit history and have not created a credit file but i then want to ask how can i create a credit history? Even though I have my GC yet no body is still approving the credit card issuance yet.

I will be glad if i can be given a simplified way or example of how I can create a credit history without having a credit card. Anyone with similar experience is free to comment.

Thanks!

i have the same issue when i tried to get credit to build credit. one thing for sure is that you need to get credit to build credit and beeing a new starter, the best way to start is secure credit card. I live in Albany New york and my bank will not issue secure card for me because i dont have green card yet and EAD is not reliable but he told me Bank of America will be able to do it for me. I went to Bank of America and i was able to apply for it with 300 dollar credit limit. this is the best way to start, i wont even advise you to start with unsecure card because you have to get use to the dos and dont of credit so as not mess your credit up. With 300 dollar credit limit, you only need few dollar to pay on you due date rather burden yourself with much to pay at this time yu are still adjusting in the country. You will build credit fast eventhough the credit limit is small.

[isa30 4]

No. Too many inquires make you look desperate.

If you spouse has good credit, get a joint card in both your names. Put your name as the primary, or list it first. Make a small purchase and pay it off at the end of the month, or after two or three payments. Soon, you will get lots of pre-approved credit offers in the mail.

totally agree... I put my husband after getting married as a second user and now he gets offers on many credit cards... His credit is good now took about 3-5 months

We also get about $100 a month on gift cards. we never pay interests since we use our c.cards as cash. We pay in full some times in two payments within the same month so we can keep building credit....

Making more than one payment a month to pay full balance really does help... My credit score is 869 and it took me a little more than a yr ....

Edited September 12, 2012 by isa30

[kzielu 1,149]

Not true. Banks do not want you to pay it off. They want you to show responsibility by making your monthly payments, that is greater than the minimum payment, but yet still holding a balance to show the responsibility of holding a balance. Paying it off each month will still earn credit, but not as much as holding a low balance (45% of credit limit) and paying it off monthly. The banks need you to have a balance anyways so that they can earn money on interest.

You must be joking... All "how to build credit" guides recommend to not exceed 30% of limit at any time to build credit and you're talking about holding 45% balance...

[isa30 4]

Not true. Banks do not want you to pay it off. They want you to show responsibility by making your monthly payments, that is greater than the minimum payment, but yet still holding a balance to show the responsibility of holding a balance. Paying it off each month will still earn credit, but not as much as holding a low balance (45% of credit limit) and paying it off monthly. The banks need you to have a balance anyways so that they can earn money on interest.

I think they also make their money on any transaction you make when you use your card...

Where I get my nails done they only take cash I told her why she did not take credit card she said she would have to pay a fee to all credit company and would have to charge her customers for each transaction.... I think credit card banks don't mind a good paying customer since %99 of them do pay interests.... (from my own eperience)

Edited September 12, 2012 by isa30

[Shiobhan 235]

Around thanksgiving going into christmas in any malls U can apply for Macys, Pennys, Best Buy, Bloomindales etc

recieving a little gift to lure U, if U have your license, ss card and a utilitly bill on U thats instant credit there,

when U have 2 of these card after a few months if your credit is not derogatory U R much likely to get a major credit card

if U bank and have stable employment.

[웃 910]

Really? i thought they will even be easier but I have not find them easier. They said I should get in contact with their credit rating agent and I did. They asked for so many supporting agent which i supplied but yet they didn't approve it.

1) They do show up on your credit file

2) They are easier

3) They offer higher limits

4) The interest rates are much higher

5) But you need a credit history (ie one credit card on your file) for them to consider you.

Are you saying even though I don't have any credit card now and have tried so many times but they keep saying I don't have credit history means I should keep trying until they approve it. Could I be building credit by trying to apply and yet being denied a card?

No. He was debunking the false information said by the previous poster.

Stop applying. You will never get approved. Ever. Ever. Ever. Ever. And every application is "a credit inquiry" that remains on your file for about 2 years.

You have to save up $300 to $400 and go to your credit union. Tell them you want a secured credit card.

Give them the $300 or $400 and they will hold it and give you a card with a $300 to $400 credit line (depending on how much you give them).

This way you get a credit history and they are protected if you fail to pay.

At the end of the term (usually 9 or 12 months) they will give you back the money you initially gave to them. And you will have the option of either closing your secured credit card or converting it to an unsecured (normal/real) credit card.

By this time you will probably already have received a few credit card offers in the mail.

Just keep your balance low ($75 max on a $300 card or $100 max on a $400 card).

Within 6 months you could probably get approved for a Best Buy card. They give high limits, they'll probably start you off over $1500. Just don't use it...

[keziah90210 12]

Hello Everyone,

I have been trying to get a credit card issued on my behalf but its not being possible i tried even some store cards like Kroger's and walmart but all i was told is that I don't have credit history and have not created a credit file but i then want to ask how can i create a credit history? Even though I have my GC yet no body is still approving the credit card issuance yet.

I will be glad if i can be given a simplified way or example of how I can create a credit history without having a credit card. Anyone with similar experience is free to comment.

Thanks!

I used a credit union credit card to build up my credit. Try looking for a credit union around. they have low apr.

[Kim & Gesner 14]

Capital One is weird. This is my second marriage and during my first marriage, literally everything was done through my husbands name. I never worked a real job (just temp jobs here and there) and my first bout with credit was student loans when I went to college at 28 yrs old! After my divorce, I tried to build credit and was denied over and over due to limited credit accounts in my name. The only thing in my name was my student loan and cell phone (rent included all utilities). I went through Capital One and applied for a beginner card and was denied because I did not have a home loan in my name???? My thoughts were, if I OWNED a home, I wouldn't have limited credit.... but the funny thing is, I was approved for a car loan through them the next month so I was able to build my credit that way!! After about 6 months of paying my car payments, I applied for a credit card through them again and was approved with a $1500 credit limit. I still don't understand their process but however they do it, it eventually worked for me.

[Rob & Monika 87]

totally agree... I put my husband after getting married as a second user and now he gets offers on many credit cards... His credit is good now took about 3-5 months

We also get about $100 a month on gift cards. we never pay interests since we use our c.cards as cash. We pay in full some times in two payments within the same month so we can keep building credit....

Making more than one payment a month to pay full balance really does help... My credit score is 869 and it took me a little more than a yr ....

I was about to say that credit scores only go to 850...but I see there is another system now that goes to 990. How confusing...

[benuk 18]

I got a Bank of America secure credit card last year and I'm not even leaving in the US yet...a family member introduced me on the branch that he bank with it and I got a bank account ,savings account and credit card in a week!!

[LauraDP 10]

My husband is a USC but has been resident in the UK for 20 years and has zero credit history in the US as he has never lived there as an adult. We are both still in the UK and do not have a US address. My husband applied for a Capital One secured credit card and was approved no problems even having explained that we were resident in the UK and that our US postal address was that of a friend (the one who will also act as our co-sponsor). In our case, we are trying to get a head start on building our US credit rating while we are still resident in the UK so having a limit poses us no difficulty whatsoever but I would still think that a secured credit card with a low limit is worth having so as to build a credit score. Research leads me to believe that a Credit Union would be a good option too but obviously in our case that is not something we can do so I have not researched it in any depth.