My daughter graduated from college two years ago and got a good job at a federal agency. When she started her job, she opened an account at the agency credit union in her new city but did not apply for a credit card. Now she realizes she would like to have one, so she applied for the one carried by he credit union but she was turned down. She would appreciate advice on the best way to build up her credit so that she can get a credit card and one day a mortgage.
I suspect that the reason she was turned down is that she doesn't have any credit history at all. She rents part of her sister's house, so her rent payments don't get reported anywhere, and the utilities aren't in her name; she doesn't have any debt, so there's no history of timely payments; she has no cell phone contract.
Someone recommended a personal loan from her credit union. I suggested a secured credit card, on the grounds that the forgone interest on the security is less than the actual interest on the loan. Other options? Should I temporarily put her on my credit card? (Can I, if there's already me and my husband?) Is there some way for her sister to report the timely rent payments to the credit bureaus?
Thanks for any advice!