Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Chibi75

0 Contributions
0 People Helped
How do I get started on establishing credit?
I have no credit what so ever and am trying to start somewhere. I tried to get a loan from the bank but got denied even with a co signer. Where do I start?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1131 People Helped

You start by reading, a lot of reading. In order to win at the game of credit you need to understand how it works and that is done by reading. You NEED to start out with a SECURED credit card that is reported to all three credit bureaus. Capital One is a lender that I suggest checking with, ONLY after you have done some serious reading on credit, how it works, how to build it, how to use it, etc.

Top Contributor
269 Contributions
114 People Helped

There are several companies that offer secured credit cards, such as Capital One and Discover. From what I've heard Credit One is horrible, although I have no personal experience with them. Your own bank is another potential source for a secured card. I started out with a secured card from Wells Fargo with a $300 limit. 
Once you get one, make your payments on time and don't ever go over the limit. On the closing date, try to make sure your balance is no more than 30% of your limit at most, and keep it under 10% for best score results. 

Step two: Store cards are also good for the building credit phase. Comenity bank handles credit accounts for many stores; Google and get a list--there are probably a couple in your area. My next two cards were both Comenity bank cards.

Above all, do everything you can to avoid derogatory marks. Don't let a bill go to collections if you can work out a payment plan, and if you're having financial difficulty communicate with your creditors right away and tell them what's going on. A single collection account has a HUGE impact on your score. My last one finally fell off and my score went up 55 points overnight.

Best of luck to you.

Top Contributor
7347 Contributions
3805 People Helped

Credit Karma is here specifically to teach people how credit works and how to improve their credit score.  There are articles here and financial tools that can be used after you start building credit so that you can see how certain activities may impact your score.  I was trained in business but learned more about credit on this site than all the college classes. This knowledge is valuable and essential in today's world. Start with a secured card and gradually build from there.

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.