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Building Credit

Hi I am trying to build my credit and I do not know how to go about it. I tried applying for a credit card through my bank and got rejected. Any other alternatives? I keep getting rejected for having no credit

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Featured Answer by WalletPop's David Reed

 
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David Reed is WalletPop's Mortgage Expert 

Try a department store card like Sears or Target, and also apply for a gasoline card such as Shell or Chevron.  They're easier to qualify for.  Put something on the card then pay it off.  Soon, your credit history will be established.  Use it wisely....


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Helpless, I am sorry you feel that way.  I talk with people everyday on how to build, reestablish and improve their credit.  It really isnt all that hard to do.  It just takes some patience.  But in time, you will be in the 700's.

First of all, have you looked at your credit report to see if there are any derogitory accounts against you?  If so, that may be why you are not having any luck.  You can review your credit report FREE at www.annualcreditreport.com to check for yourself without having an inquiry showing against your credit. 

Another thing could be is if you recently changed your employment.  Creditors like to see stability, otherwise, if you change jobs frequently, you may be looked at as high risk.

One thing you could consider is to get your alternate tradelines of credit added to your credit.  This would be your light bill, phone bill, water bill, trash bill, car insurace... anything you pay on a regular basis that you know has always been paid on time for at least the last 12 to 24 months.  Have those companies write a letter on your behalf on there letter head stating how long you have had the account and what your average monthly payment is.  Make sure it shows 0x30 for any late payments.  In doing so, the creditors who are looking at your credit the, will see your ability to pay the other bills on time.

If you want, you can email me directly at yourhomemtg@aol.com and I will send you back a copy of my FREE Credit Readiness Program without any further obligation. I give them out all the time, including at the free credit seminars I do.  It will help you to understand your credit better and how to make the most of it.  I have closed many loans with people who I gave it to and let them strengthen their credit with so they could qualify to buy a home.

Good luck!


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Smoking kills. If you're killed, you've lost a very important part of your life. - Brooke Shields

Start with a small credit cards or credit card rewards. Make sure you pay your bills on time to build a good credit score.


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There are credit cards out there for people with bad or no credit. There are a couple sites that specialize in providing credit for people with no or bad credit.

  1. Centrro
  2. RightCharge.org

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Have you tried getting a parent, relative or friend with good credit and low debt to co-sign with you on a small personal loan?  Also, if you or your parents know a loan officer at your bank or theirs, ask if you can do the smallest personal loan possible and use the proceeds from the loan to purchase a Certificate of Deposit (CD).  Use the CD to secure the loan, pay the loan off over a 24-month period.  Once you pay the loan off, you will still have the CD money in the bank and will have it to use to secure an additional loan if needed.  This pay history will report to the credit bureau and you will be on your way to starting a credit history. Once you establish a payment history with your bank, it should be easier to go in there and get a loan again.  A credit history is not just what shows on a credit report.  A credit history can be anyone you have made payments to over time.  It could be on an electric bill or a cell phone bill.  If the loan officer did not investigate those types of credit history, then they can't really say you have no credit history.


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