How does one establish a credit history? Frustrated and at witts end
Date: Tue, 03/03/2009 - 23:18
from bankrate.com
"Another option: Try a department store, a gas company or some other smaller credit card. It will help you in your daily finances, and it will also help rebuild that credit. If you can handle a Macy's or a Texaco card, major card companies will be impressed."
Its not just bankrate... almost every article one comes across suggests doing this.
It actually sounds plausible, feasible, and a good idea.
But.......
It seems like every one the so called "minor cards" through a department store or gas card all want a "major card" on your file in order to grant credit. Uhmmmm, Ok... Sometimes I just really want to say: If I had a "major card" I wouldnt be applying for your card as I would already have a credit score which I'm trying to establish with your card.
SO why do the "experts" keep suggesting this since it doesnt seem to be working ( on my end at least ). If I had a major card, then I wouldnt be trying this suggested route in order to establish a credit score and get a major card. Is it being out of touch with reality or looking for some fluff and filler for a story?
Either way, evertime I read a story about establishing credit and read that I find it almost insulting as I have a credit report with 0 accounts in good standing and 0 accounts in bad standing.
Other than going to college and being handed a major card for doing so... Are there any other ways to establish a credit history when one doesnt have a co-signer or anyone to piggy back off of?
If you do not have a credit score and you want to build up one,
If you do not have a credit score and you want to build up one, you need to go for secured credit cards because without a credit history no creditor will be willing to offer you an unsecured card. Secured credit cards are backed by your own money and you get the credit limit equal to the amount you deposit with the credit card company. Moreover, these cards regularly report to the credit bureaus and so if you use these cards to make regular payments and pay them back on time, your credit score will improve.
This is true! A secured credit card with a bank is the best way
This is true! A secured credit card with a bank is the best way to establish credit. Pay it off in full and early each month. That will eventually lead to unsecured lines of credit especially from the bank.
