Building up credit

[lost-and-found]

Well, today it came; an envelope from a credit card company telling me I've been declined because of insufficient credit file. So how does one get the first credit card????

[gjimene2]

You will need a co-signer. Usually your parents. You'll work your way up there.

I've got great credit. On my sprint phone I don't have a limit, neither on my AE card, on my Kohls I only have $1200 worth of credit.

Just make sure you pay your payments on time. You can also take out a bill under your name like the water, electricity or you phone.

[jch216]

You could also check into getting a secured credit card. Most of them change into a regular credit card after around 18 months of timely payments.

[gjimene2]

I just pay $35 a year to use mine. But it's very worth it.

[brandon184]

When I heard, "You're gonna need a co-signer" .. I always thought, 'No Way!' ... I mean, come on. You're a legal adult and you really shouldn't need mommy and/or daddy holding your hand anymore. I was disgusted at the idea... So I went into my local credit union and asked them what my options were. They started me out low and it really didn't take that long before I had a great card with a pretty good interest rate. It also opened the doors to financing and leasing options for larger purchases.

Go talk to someone who knows their credit.

Brandon

[ben-the-slacker]

Getting it thru your parents is probably the easiest and most hassle-free way. Mine is like that but I hardly use it for more than anything but gas. You can always get a checking card, but you gotta go to the bank and open a checking account, plus you need to constantly put money into the account if you're a big spender.

[osprey4]

Quote:

Originally Posted by gjimene2

I just pay $35 a year to use mine. But it's very worth it.

You pay money to the credit card company to use their card?

[gjimene2]

Yea, reason being are the benefits of it. There are alot of online shops that I buy for that my credit card picks up the shipping. Alone throughout the year the shipping and handling of my purchases are far greater than the 35 per year. There is also no interest rates what so ever. So if I spend $700, I will pay $700 and no more.




There is also nothing wrong with your parent's co-signing. Unless you really are unreliable and will royally screw up.

[KAknight]

I went to the bank and explained that I was wanting to buid a credit history. I had my parents co-sign on a $500 loan. I left the $500 in a savings account in the same bank for a year. I think the interest came out to an extra $50. After that year I had credit card companies banging down my door.

Having a cell phone in your name and making the payments EVERY month also helps a lot.

I did these things when I was 18. I just turned 23 and was able to get a $100,000+ loan to buy a house.

My best advise to you is find a bank that give you a Visa check card. Use that instead of a credit card. They are nothing but trouble.

[ShawnD1]

Quote:

Originally Posted by gjimene2

There is also no interest rates what so ever. So if I spend $700, I will pay $700 and no more.

That's only if you pay it on time. All credit cards are like that.