Author Topic: improving credit with no credit history  (Read 3867 times)

griffin

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improving credit with no credit history
« on: February 28, 2014, 03:09:57 PM »
Hi everyone,
I'm looking to get a credit card so that i can start establishing a credit history, but I'm not sure where to start - currently is very limited. I had a student loan that i paid off, and a credit card through key bank for about six months (which was a nightmare; it wouldn't allow me to set up automatic payments and their phone service (the other way i could pay it) was abysmal). I printed out my fico credit score and i don't see any late payments or other red flags (i also don't see a number...should that be on the report?) I recently applied for the chase sapphire and chase freedom cards and got rejected from both due to insufficient credit history (which may hurt my credit?) The banker at chase told me to apply for a secured card from capital one, however it carries a $30 annual fee and requires a deposit equal to my desired line of credit, and both of those are extremely unappealing. Has anyone here been in a similar situation and found a way to up their credit score without paying ridiculous fees? (if its relevant, i am currently steadily employed at about $55k/year)
Thanks!
Griffin

phred

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Re: improving credit with no credit history
« Reply #1 on: February 28, 2014, 04:58:16 PM »
Apply for a couple of gasoline only credit cards.  These are, or at least used to be, easier to obtain.  Pay in full each month.  After about six months apply for a major credit card - just one.

An older way was to buy something on time, make the payments each month, and go from there.


griffin

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Re: improving credit with no credit history
« Reply #2 on: February 28, 2014, 05:24:33 PM »
Apply for a couple of gasoline only credit cards.  These are, or at least used to be, easier to obtain.  Pay in full each month.  After about six months apply for a major credit card - just one.

An older way was to buy something on time, make the payments each month, and go from there.

Do these apply only to gasoline purchases? I do not own a car (and don't plan to for many years), so that's not really an option. There aren't really any high-price items I need (or event want) that I would take out a line of credit for.

TacosForever

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Re: improving credit with no credit history
« Reply #3 on: February 28, 2014, 05:30:05 PM »
Unfortunately if you don't use gas cards or have any large purchases to finance, your options are probably limited to a secured card or other subprime card, all of which will have interest rates of at least 20% and annual fees.

I had to start with a secured card from Wells Fargo. $500 deposit and $25 annual fee. After 12 months of on time payments they refunded the deposit, increased my credit line, and switched me over to the platinum card with no fee. And my credit score was significantly improved. So it's short term pain but was a good long term outcome.

Just curious though - why are you concerned with establishing a credit history? If you don't plan on taking out any loans in the next 3-5 years, it's probably not something you need to worry about.

the fixer

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Re: improving credit with no credit history
« Reply #4 on: February 28, 2014, 05:35:41 PM »
Do you get credit card offers in the mail? Just fill them out. Don't expect fancy rewards cards, just apply for any credit card you can get (no annual fee preferred). I don't know what the market is like nowadays but my first credit card I got in college because they were handing out T-shirts at the basketball game to students who applied. I got accepted with a $750 limit. I previously tried applying for one or two other cards I received mail offers or calls for but got rejected, which seemed kind of weird because they came to me. This was all back in 2003 or so, so it's possible my knowledge of this area is outdated.

phred

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Re: improving credit with no credit history
« Reply #5 on: March 01, 2014, 01:48:14 PM »


Do these apply only to gasoline purchases? I do not own a car (and don't plan to for many years), so that's not really an option. There aren't really any high-price items I need (or event want) that I would take out a line of credit for.
You could use the card within the store selling the gasoline: bread, milk, beer, whartever

wtjbatman

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Re: improving credit with no credit history
« Reply #6 on: March 01, 2014, 10:04:04 PM »
Go to a site like Bankrate, you should be able to find a card for someone with poor/no credit. Even if it's a secured card, with your income, it wouldn't be hard to get and use a card like that for 6 months, and then apply for a "real" card.

Greg

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Re: improving credit with no credit history
« Reply #7 on: March 02, 2014, 09:09:28 AM »
If you do any shopping for clothes at big stores, they have credit cards that are pretty easy to get.  Use them for necessities and pay them off, build up that way.  You'll get on some list and the offers for other cards will start coming in.

Also, if you use Paypal they have a card, not sure what the terms are like.

griffin

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Re: improving credit with no credit history
« Reply #8 on: March 02, 2014, 12:26:51 PM »
Ok, it looks like I'll probably just be going for the capital one secured card. 30 dollar annual fee, ridiculous interest rates and a 50 dollar deposit, but oh well. Only one more question: will my credit get better faster if I increase the line of credit? This card starts out at $200, but I can raise it up to $1000 (i only spend about $500 a month, so I wouldn't really raise it past there).
Thanks,
Griffin

Greg

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Re: improving credit with no credit history
« Reply #9 on: March 02, 2014, 02:18:30 PM »
You shouldn't have to pay a fee.  I'd shop around a bit more.

griffin

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Re: improving credit with no credit history
« Reply #10 on: March 02, 2014, 05:08:04 PM »
You shouldn't have to pay a fee.  I'd shop around a bit more.
Aha! Some shopping yielded this one: http://www.h-dvisa.com/credit/visaSecured.do. No annual fee, and technically it has a rewards program (not exactly sure what i'd buy from the harley store, but...). A $300 minimum desposit kinda sucks, but still definitely cheaper than anything with a $30 annual fee (unless the S&P does really well this year). Seems like the way to go, right?
Thanks,
Griffin