How can I build credit?

Chris: How can I build credit?
I have a capitalone mastercard that i’ve had for a year and i’ve only used it a few times and i’ve always paid the balance in full every month. They increased my credit limit to $ 750. So I just applied for another credit card from my bank but I was denied because I “have no credit history.” WTF?
I’m not asking how to make money. I don’t need money I have 20k in the bank. I’m asking how to build my credit.

Answers and Views:

Answer by stan c
You can run your free credit reports through annualcreditreport.com or just call Trans Union toll free @ 1-877-322-8228 for all 3 reports. It is possible they do not belong to all 3 bureaus although they should. Call their toll free # on the back of the card and just ask why it’s not being reported.

Answer by Dixie Darlin’
To build credit, make sure the bank reports to the credit bureaus, otherwise it will do no good.

Go to the bank or a local credit union you do business with (or get a secured card online if they do not offer one),ask them if they have a secured credit card, if they do open a new account with $ 300 – $ 500 tell them you want a secured credit card against that account. Use the card for small purchases like gas or food and pay the card off entirely each month on time.

Also you can take your savings account and save until you have $ 1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.

After a few months you can try for an unsecured card. Retail store cards and gas cards are normally easier to get.

It takes 24 months of consistent on time payments to establish good credit history

Answer by Lou
For you to establish a credit history it is better that you make monthly payments instead of paying the credit card off. If you take the minumin balance and double it each month, you are still paying ahead on the interest, this also will help you to establish a monthly payment pattern history. When you make a payment within the 30 day billing period it’s reported as a R-1. If you pay off the balance early you will only have only one R-1 rating that’s report, and if you pay during the course of the year you have a 12 month history with all R-1’s on it, that’s where you establish your payment history, I hopes this makes sense. It take’s between 6-12 month’s (not 24 like some people seem to think) to establish a history, and you can also reapply for credit after 6months it will not go against you with credit inquiries after that time.

Answer by Dan
Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments – creditreport.imess.net