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AmberDawne2012

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how to get credit? 21 no credit some advice would help!!
I am only 21. I had Zero credit until 4 months ago. I opened a Kay's Jewlery card because it was the only place that would give me a creit card. I have made my payments on time. My credit is at 582 now. I really just dont know how to get it going in the right direction. Me and my boyfriend are trying to get our first place and his credit is trashed so im trying to figure out how to get mine in good standing??
can someone please help me??!?

thanks everyone!!

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Everyone is pointing you in the right direction, the kays card is a good start but you need to get another credit card. I would suggest a secured credit card. Secured cards report and are just as effective as a unsecured credit card the only difference is that you set up a saving account and deposit money into that account and what ever amount you deposit becomes your credit limit. Example: if you put 100 dollars in the account your credit limit will be $100 and so on and so forth. Normally you can do up to 3k so you could create a credit card account that has a nice credit limit with out having to worry about being approved, just make sure the bank reports to all three bureaus before you get your card (try capital one). Since you are borrowing based off a saving account the secures the credit card you are pretty much guarantee approval. This will save you from adding unwanted hard inquires which could potential hurt your score. If you dont have a lot of money just put 100 or 200 dollars in there and pay on time every month. Keep your balance between 1%  and 20% Then in 6 months check your score and apply for a unsecured credit card.

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Take out a loan

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Our bank told my sons when they turned 18 to take out a $500 loan and pay it off over 6 months. That will help establish and increase your credit score. You have to pay over 6 months for it to show up on your credit, so don't pay it off early!!

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Helpful to 2 out of 2 people

Continue to pay in a timely manner. Also, try to open another account and make sure you keep it paid in full. 

Reply by
Dontblameme1

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"paid in full" is confusing. If he lets it go to statement each month with a zero balance he has zero utilization. I don't think that is nearly as helpful for building credit as if he kept a few percent utilization.

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Great credit by starting early.

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Starting out takes time, you have to be patient. You have one card, start with that. Continue to make payments on time, preferably more than the minimum amount. Considering the one card you have is a Kay's Jewelry card I would get a card that can be used for normal purchases, because then you can do what I did. I started when I was 18. I got a Capitol One card and it was only $500 limit but it was a start. I used it to buy books for college each semester and pay them off slowly over the school year. Even better once the semester was over I would sell my books back and get some money at the end of the semester. If you are not in school you could easily use it to pay for gas and just pay it down as you go. The good thing about this approach is that it will give you that continued card utilization that keeps your score from stalling out. You want to use no more than 20% of your limit if you can. Once you build your credit little by little card companies will begin to send you pre-approved offers for cards and generally they are for an intro period of zero percent interest which is perfect. The good thing about pre-approved offers is that 99% of the time they don't count as a hard inquiry so it wont affect your score to accept an offer. Also contrary to what many believe the more lines of credit you have the generly the higher your score will go if you are disciplined and continue to pay everything on time. So after I got my first pre-approved card I would use that card to buy books and gas for school and because it was a zero percent interest for 12 months it gave me time to pay down the card without any interest added to the card. I did this every year. I would open a new card everytime my intro interest rate ran out. I am 25 now and doing this I was able to buy a car at 22 in 2010 for a $10,000 loan with a rate of 7.5 percent, refinance it six months later down to 4.3%, then last year at 24 in 2012 I bought a house because it was the perfect time to do so and I was able to get an excellent rate of 3.75% on a loan 227,500. Through the years I never once closed a credit card account, a number of them have been closed buy the companies due to inactivity I think, but usually they just send a new card when the expiration date hits. Also they often increase your limit when they see that your score is increasing. The problem with closing accounts is that a major factor for a good credit score is the length of your open credit lines. That is why my credit score is a 755. The highest I have had is 772, since I recently bought a house it is rebounding off of that.

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get family to help

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If you can try to see if you have any family members willing to add you on as an authorized user. You don't even need to have them give you a card just beign added on their account shows up in your credit history. Just be careful which cards they sign you up with. Older cards with higher credit limits and low utilization looks best.You don't want to be added on a card that has a $500 credit limit that is only a year old that is maxed. It will hurt more then help.

Wife has been denied for years trying to get credit as she has NO history at all. I ended up adding her to a couple of my cards and low and behold she got approved for CapOne with a $1000 limit. They have denied her many times prior to this for no history and the only thing that really changes is her beign added as an auth user on my cards. interesting enough she actually has a higher credit limit through CapOne then I have with them. 

If you can also try to apply for a couple other cards. If you are going to do it though from my understanding is it is best to do it all at once. The way the scores are treated is if you apply for multiple cards on one day they get treated as one hit on your report rather then multiple hits if you spread them out.

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Hope this helps

Helpful to 1 out of 1 people

Get a real card from a "big" bank. No annual fee should be a requirement IMO. Just keep paying it on time, and try to keep your utilization under 20%. I don't think anyone knows for sure what the best utilization percent is, but I try to keep mine at 7%. Keep in mind that the amount on the STATEMENT is what determines the utilization. Also, do not go over 3 "hard inquires" in a rolling 2 year span. Two hard inquires would be even better. Hard inquires for you will most likely be applying for credit cards and loans.

Of course try to find out if there are detrimental marks on your credit report. If there are, maybe they can be fixed.

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Hope this helps

Helpful to 1 out of 1 people

Get a real card from a "big" bank. No annual fee should be a requirement IMO. Just keep paying it on time, and try to keep your utilization under 20%. I don't think anyone knows for sure what the best utilization percent is, but I try to keep mine at 7%. Keep in mind that the amount on the STATEMENT is what determines the utilization. Also, do not go over 3 "hard inquires" in a rolling 2 year span. Two hard inquires would be even better. Hard inquires for you will most likely be applying for credit cards and loans.

Of course try to find out if there are detrimental marks on your credit report. If there are, maybe they can be fixed.

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Get a different card

Helpful to 1 out of 1 people

Get a different card - I am in the same boat (new immigrant) - with no credit history.

I was able to secure a Captial One card with no credit history or score, it only had a $500 limit - 6 months later, my score is not 743 and the limit was automatically raised to $2000.

Granted because I actually have no history (this takes roughly one to two years to get) I still get denied for store cards such as Lowes or Target.

It takes time and patience.  

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Thanks!!

Thank you all for the help !! I really appreciate it! I'm going to try what ever says and hopefully it helps! My boyfriends credit is shot so I'm trying to get mine better so we can get our first place! Again thanks to everyone! :) 

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