Building my credit

[Anonymous]

Hello everyone:

I am new to this forum, a friend recommended me here. I am interested in building up my credit. Currently I have no credit cards, loans, of any type. What would be a good way to go about building my credit up to start small. Maybe something like a secure pre-paid credit card? Any info would be much appreciated. Thanks

[RobertEG]

Welcome to the forums.

You will get many different strategies for rebuilding.  Of all factors in credit buidling, obtaining revolving credti would be first on my list.

Application for new credit will intitially be difficult, in that with no existing credit, you currently have no credit score upon which a credtior can rely on in their credit decison.  You will probably have to start with a secured credit card.  The credit card forum is a good place to check out.

I would suggest also  joining a credit union, and opening a savings and checking account witth them.  Then apply for a credit card with them.

[llecs]

OP, also know that there is a terminology issue too. "Pre-paid" cards are cards that you pay $$$ in advance, usually loaded with fees, and then you can use that card up to the amount of money you pre-loaded into it. Once the money depletes, you have to shell out more money in order to use it again. Most usually, and despite promises by many companies, they don't report to any of the major credit reporting agencies (which is what you want).

Now what I do recommend starting out are secured cards. Secured cards report to the big 3 CRAs, and whatever you fork out becomes security for a new credit card. These are exactly like unsecured CCs and you have the ability to raise or lower your credit limit based on the amount of money you provided as security. These report ot your CRs usually as a secured CC, but FICO scores secured and unsecured CCs equally. Once you pay off the card and opt to close it, then the CCC will refund your secured amount.

IMO, starting with a secured CC, when you have none now, is the best way to go. It'll minimize on inquiries and you get to control the CL.

[MarineVietVet]

Hello and welcome.

I agree with Robert about talking to a credit union. See if there is one or more in your local area. CU's are an under used resource as far as I'm concerned. It's nice being able to walk into an office and visit face to face.

I also agree with llecs that starting with a secured credit card is a good idea. A CU can help and explain all of that to you.

I'm glad you found us. These forums are a great source of information, advice, and suggestions. I hope you stick around! One more thing. You will see lots of Abbreviations used around here.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

[LIGHTNIN]

Hi and Welcome to the forums

Ask a parent or trusted family member, if they would add you as AU.

Just make sure the CC has a long clean history(no late payments) with little or no util..

Only put items on CC that you can PIF by the due date.

Understand how FICO scores are calculated, here's a link to get you started.

 http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx 

Glad  you posted your questions You've come to the right place