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Recommendation for a blank slate?

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Anonymous
Not applicable

Recommendation for a blank slate?

I was talking with a friend tonight and found out she has no credit history whatsoever - no auto loans, no CCs, no SL's, no mortgage and certainly no baddies or derogs... she doesn't even have utility bills. I'm guessing her current car could go belly-up at any moment, in which case she'd need to get a new car and having a credit history would be useful.

 

I'm thinking she needs to get a CC of some sort to jump-start her credit. She shops at REI regularly but I'm not sure she would be approved for an REI Visa. She also shops at Target sometimes, so a store card there could be an option. Does anyone have any recommendations for a 24-year-old with no credit history?

 

 

ETA: She is no longer a student, but out of curiosity - are student cards still an option for her? I was approved for a USBank Student Visa at age 19 with no prior credit history...

Message Edited by pez478 on 07-21-2009 09:38 PM
Message 1 of 4
3 REPLIES 3
haulingthescoreup
Moderator Emerita

Re: Recommendation for a blank slate?

Her best bet is to get to a local (not national) credit union and make some friends there. Since she has no credit history, she might need to bank with them for a while --this sort of thing is so variable among lenders. She should first hit the Yellow Pages to find a CU that issues CC's --obviously, that's pretty important. When she finds one she likes (and she should go interview them with the idea that she is the party who needs to be pleased), she should open a share (savings) account to get in with them. With luck, she might find one that will issue her a secured card.

After she has had credit reported for 6 months, she'll have a history and a score.

Also, local CU's are generally the best source for auto loans, so this might lay some useful groundwork if her clunker finally takes its last breath.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 4
Anonymous
Not applicable

Re: Recommendation for a blank slate?

I had an Orchard secured card for $250 for my first card, the initial fees were horrible but I just made sure I used and PIF each month, after 3 months I then got a Capital One card (although I was still showing no history or report at that time) with an unsecured $500 limit, they increased that through the credit steps program to $1500 over 7 months (where it still sits now)

 

A credit union is a great way to go but if she wants a secure card now and has the money to put aside for a year (that was how long I kept mine for reporting purposes) then Orchard may well do it

Message 3 of 4
Anonymous
Not applicable

Re: Recommendation for a blank slate?

Become an authorized user on as many old, clean, little utilized, high credit limit credit cards as possible from friends and family.
Message 4 of 4
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