Author Topic: How to build credit when I don't have a credit history  (Read 511 times)

cascademountainman

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How to build credit when I don't have a credit history
« on: May 31, 2019, 01:21:43 AM »
Mostly wondering if there are any options better than the standard secured card?

reeshau

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Re: How to build credit when I don't have a credit history
« Reply #1 on: May 31, 2019, 02:23:02 AM »
Pay your bills on time.  Any utility will also be reporting to credit agencies.

And, have cash in the bank. (or credit union)  That same bank, in particular, may then be willing to give you a credit card.  Many banks commonly specify that any deposits can be used to settled credit cards--sort of a back-door secured card.  But without the monthly fees and side-eye.

swinginbeef

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Re: How to build credit when I don't have a credit history
« Reply #2 on: May 31, 2019, 06:09:21 AM »
You could probably get a store credit card, like Target, and use it for essentials and paying it off every month. You may be able to get a ridiculous rate, poor/no credit type credit card from a regular card company. You could also see if you can find someone willing to co-sign a card or bank loan with you. Co-signer, then store card, then small car loan from the credit union is the order I originally used to build a credit history. Just be sure not to spend money on credit just to "use" the available credit. Only for essential purchases that you would have made with cash if the credit didn't exist.

Radagast

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Re: How to build credit when I don't have a credit history
« Reply #3 on: May 31, 2019, 07:50:49 AM »
You could probably get a store credit card, like Target, and use it for essentials and paying it off every month. You may be able to get a ridiculous rate, poor/no credit type credit card from a regular card company. You could also see if you can find someone willing to co-sign a card or bank loan with you. Co-signer, then store card, then small car loan from the credit union is the order I originally used to build a credit history. Just be sure not to spend money on credit just to "use" the available credit. Only for essential purchases that you would have made with cash if the credit didn't exist.
Yeah that is a good thought. Could you get an Amazon card? That was the first one I got myself and it has been key to keeping a long credit history because I will never close it. But technically it was my second as my parents co-signed my first (with like a $300 cap). Even if you get a high rate and low limit still worth.

dogboyslim

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Re: How to build credit when I don't have a credit history
« Reply #4 on: May 31, 2019, 08:05:14 AM »
Another thing that might work is to find someone willing to make you an authorized user on their cards for a short period of time.  You would never actually get a card from them or be able to spend any of their money, but the payment history of the card attaches to some of the scoring algorithms used.  Become an authorized user, wait 2 months (billing periods) then apply for your own card with the improved history, then when you get your card, have them drop you as an authorized user.

I know this has worked adversely (to companies) in my industry and my company has been researching ways to combat it, so it may not work for  long if it even still does.  Good luck.

cascademountainman

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Re: How to build credit when I don't have a credit history
« Reply #5 on: May 31, 2019, 11:55:19 AM »
Thanks for all the strategies. I am currently on my own with no family support on getting the card so it sounds like I may just end up doing the secured thing not that its a bad deal by any means. I just wanted to see what all the more experienced people around here knew about. Thanks for letting me tap your knowledge base everyone.