How can I build up credit if I have none?

Kimberlina®: How can I build up credit if I have none?
I am 18 and I have NO credit at all. So, I decided to apply for a credit card (I CAN make the payments, thats not a problem) but I was declined due to “insufficient credit history”. How can I build up credit now?
I thought about applying for a card with Best Buy, because I shop there a lot, but now I’m afraid I’ll get declined for that also.
What can I do? Thanks!

Answers and Views:

Answer by Really
You have to start somewhere and Best Buy is as good as any

Answer by Alex
To build a credit score, look into a secured credit card. A secured card means you put the money down up front. The credit limit will be equal to the amount you put down. Creditors do this to ensure they can take the money if you miss payments.

Shop around before applying to a secured credit card. Some of them charge outrageous fees and interest. Also make sure the card reports to the credit agencies, otherwise it’s not building your credit score.

Answer by Meghan
Store cards are good places to start, but I would recommend against Best Buy. There is nothing wrong with the company, but most of their items are very expensive and it would be very easy to run up alot of debt quickly.

I’d recommend a place like Kohl’s or JC Penney or even try getting a Target card. Another good place to start is your own bank. Many of them have credit cards, in addition to their debit cards attached to your account. Or talk to them about taking out a small personal loan (like $ 1,000) to build your credit history.

Answer by ladydi
Some banks offer a credit card where you start it up with secured funds (in case you should default payment)…they hold the money in reserve. Then a card is issued with a minimal amount. It gets increased in time and you should repay on time to show you’re responsible. From there, you will start to receive many other offers–so choose wisely….and vow to protect your good credit throughout your life.

Answer by Beau.Love
The answerers above are correct. You’re best and maybe only option is a secured credit card through your local bank or credit union, preferably a credit union because they usually don’t charge annual fees or account set up fees. Other companies such as Public Bank charge fees so be sure to go to a bank or credit union. A secured card pretty much requires a deposit, usually $ 200-$ 500 and up, and that money is “locked” away to secure the credit card. So you can’t use that money to pay off the balance. Then for the next few months and the duration of the account, utilize less than 15% of the credit limit and pay it off in full before its due date. This will help jumpstart your credit history and on your way to great credit scores. The bank may then increase your limit without you depositing more funds into the account.

If you’re absolutely against the secured credit card (which I still highly recommend), I would suggest that a parent or someone you know who is responsible with credit cards, add you as an authorized user on their account. Some credit companies don’t report to the authorized user’s credit history, so make sure that his/her’s does. In a few months, the company may send you a pre-approved offer for your own credit card. Keep in mind though that a “pre-approved” offer does not gaurantee that you will get approved for a credit card. Sorry, I wrote a lot. But, good luck and build up great credit! 🙂

Answer by tim g
jewelry and furniture.

Answer by Jon
There are many credit cards available to people with poor / no credit. Orchard Bank is one the most popular issuers. You’ll also have to decide between ‘secured’ and ‘unsecured’. Since you won’t pay a security deposit with an unsecured credit card, I would try that first.

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https://www.bestcreditrates.net/

Answer by William
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 – buildcredit.ifastnet.com