How can I build credit?

[Sociopath]

Good God this thread reminded me of why I hate credit and credit cards and banks....fuck em.

[Zyia]

Heh, reminds me of when I was 18 and I went to apply for a Bank account. I had a job, I had been working for a few years and was tired of cashing my paycheck at check cashing places. So I had my birth certificate, my SS card, my car insurance, and my license.. Apparently I could not get a bank account because none of those were considered valid forms of ID.. when I asked her what was considered valid forms of ID she said a Credit card. At this point I was very frustrated and may have barked back at her, "Explain to me, how you get a credit card, when you need a BANK ACCOUNT to sign up for one?"

Regardless, it was another 3 years before I attempted to get a bank account again, and at that point I was married with a child.

Moving on, If you have places like Wal-mart where they do Layaway for christmas, or even something like Rent-a-center, if you have enough to pay it off in a few days, buy something from that, and then pay it off in a few days, it will go towards your credit. Additionally, if you have a bank account, you can ask them for their "First-time Credit card" like say Bank of America's credit cards for students - (you need an account to see links) - They are things you can apply for when you have no credit and have very small maximum limits, and go that way. Again if you buy a lot of small things, and pay it off quickly, it will help to expedite building your credit.

[Monkiez]

I don't seem to suffer from that problem. I get sent credit card apps quite a bit. XD I just shred the ones I'm not interested in. From what I remember, I got my first one as a result of my constant purchases with my debt card ( or so I assume), and I guess the bank thought it was about time I receive one.

[Maison]

yeah what @(you need an account to see links) said she was ON POINT
but remember some lenders like chase dont count store cards when they make there decision idk about american express...
My first credit card was a american express!

[k80]

Mortgages

.......Why on earth would you suggest this to someone without credit? Even if by some miracle she gets approved at all, the interest would be astronomical. That said, you don't take out a mortgage for any reason other than you are ready to be a homeowner. Especially for the reason of "building credit". With such an interest rate driving up the monthly payments (could be double the cost of renting, in addition to being responsible for property taxes, closing costs, HOA fees, ALL home repairs, lawncare, increased electric/water/gas bills, etc etc) she has a high chance of not being able to make the payment every month (for 30 years!) which could end in foreclosure, bankruptcy, all kinds of nasty terrible things.

Jeeze Louise I know that I am coming off a bit flame-y, but this is such a dangerous suggestion I had to say something. I dislike the suggestion of a car loan as well, but mortgage was just such a !!!!!!!!! thing that's what I had to comment on.

As for a suggestion, another thing that helps weed out dings on your score is to make sure you don't owe any last bills to old electric companies, owe a damage deposit to an old apartment, pay your student loans on time, etc because they can report you for that. Whatever you decide to do next, I would just build ONE line of credit for a year or so. For me it was my Kohls card. Just a little $300 limit for about 2 or 3 years, and paid the balance in full every single month. Everything else I bought was with debit. Then I applied for an all-purpose card (Chase Freedom) for a little $500 limit, and paid it off every single month for about a year or so. Then I requested a credit increase and they bumped it to $2000 (!). I believe the key to all of this was full, on-time payments, and progressing slowwwwwwwwwwwwly. After about 5 years of building credit in this way, my score is in the 790s I believe.

Edit: The Chase card was probably approved with the help of my post-college/post-retail household income being much higher and more reliable. I'm not sure if I would have been approved while an unemployed student or working minimum wage.

[XxGevaudanxX]

.......Why on earth would you suggest this to someone without credit? Even if by some miracle she gets approved at all, the interest would be astronomical. That said, you don't take out a mortgage for any reason other than you are ready to be a homeowner. Especially for the reason of "building credit". With such an interest rate driving up the monthly payments (could be double the cost of renting, in addition to being responsible for property taxes, closing costs, HOA fees, ALL home repairs, lawncare, increased electric/water/gas bills, etc etc) she has a high chance of not being able to make the payment every month (for 30 years!) which could end in foreclosure, bankruptcy, all kinds of nasty terrible things.

Jeeze Louise I know that I am coming off a bit flame-y, but this is such a dangerous suggestion I had to say something. I dislike the suggestion of a car loan as well, but mortgage was just such a !!!!!!!!! thing that's what I had to comment on.

As for a suggestion, another thing that helps weed out dings on your score is to make sure you don't owe any last bills to old electric companies, owe a damage deposit to an old apartment, pay your student loans on time, etc because they can report you for that. Whatever you decide to do next, I would just build ONE line of credit for a year or so. For me it was my Kohls card. Just a little $300 limit for about 2 or 3 years, and paid the balance in full every single month. Everything else I bought was with debit. Then I applied for an all-purpose card (Chase Freedom) for a little $500 limit, and paid it off every single month for about a year or so. Then I requested a credit increase and they bumped it to $2000 (!). I believe the key to all of this was full, on-time payments, and progressing slowwwwwwwwwwwwly. After about 5 years of building credit in this way, my score is in the 790s I believe.

Edit: The Chase card was probably approved with the help of my post-college/post-retail household income being much higher and more reliable. I'm not sure if I would have been approved while an unemployed student or working minimum wage.

You don't need a $200,000 mortgage to build credit. I only used it simply because that's how I built mine. I started my credit on a "fixer upper" house that was valued at $25,000. With no credit and working for $10.00/hr, I was able to get approved with no co-signer and no credit behind me on a 9% interest rate. Constructive criticism is always appreciated and no disrespect was taken from your posting. Since then, I've paid off and sold that house, hit a bump along the way and had to rebuild and I'm sitting very well credit wise now. I was only sharing information that worked for me.

[k80]

You don't need a $200,000 mortgage to build credit. I only used it simply because that's how I built mine. I started my credit on a "fixer upper" house that was valued at $25,000. With no credit and working for $10.00/hr, I was able to get approved with no co-signer and no credit behind me on a 9% interest rate. Constructive criticism is always appreciated and no disrespect was taken from your posting. Since then, I've paid off and sold that house, hit a bump along the way and had to rebuild and I'm sitting very well credit wise now. I was only sharing information that worked for me.

I'm glad that worked out for you! It's still a giant suggestion when the original question was basically "My end goal is to get a credit card, what should I do?" It would be like saying "There's a spider in my bathroom" and replying, "Well, do you have a flamethrower?"

[|2eap]

Just start paying bills in your name. Phone bill, student loans, car payments etc. Start small and work your way up. Idk how old you are but I'd assume student loans and phone bill should be enough for now to build it up some so you can take out a loan for something else and pay that back

[XxGevaudanxX]

I'm glad that worked out for you! It's still a giant suggestion when the original question was basically "My end goal is to get a credit card, what should I do?" It would be like saying "There's a spider in my bathroom" and replying, "Well, do you have a flamethrower?"

LOL you have to admit though... flamethrower would definitely solve that problem!

[Miri]

Just start paying bills in your name. Phone bill, student loans, car payments etc. Start small and work your way up. Idk how old you are but I'd assume student loans and phone bill should be enough for now to build it up some so you can take out a loan for something else and pay that back

Utilities/cell phone do not report except if you end up late