How can I re-build my credit when I have none?

sciachir · ‎01-18-2015

I just got off of the phone with Equifax after trying to purchase a copy of my FICO score. I was told I don't have a FICO score because I don't have any credit cards, nor have I, for the past 2 years, so there wasn't one available for me.

Now what? My home is paid for, and (of course), so is my 22 year-old car. I should state that my home is a (manufactured home). My only income is what I draw from Social Security retirement. I also have a VERY small amount in an IRA.

Can anyone offer advice on what I should do? I've called, and am being mailed, a copy of my credit reports, which shouldn't show much (if any) information.

Any advice anyone can offer would be appreciated.

Thanks!

Call me "Lost"

Anonymous · ‎01-18-2015

You should go with a rebuilder card(secured card) with Capital One, Wells Fargo, Bank of America or US Bank. But, Cap One would be my first recommendation. If you have a Credit Union, go in and talk to them about a secured card also.

Use that card for about six months, paying some of your expenses with it and paying it off or down to about $10 bucks? From there, you should be in a position to get a second card, BoA or Wells Fargo,etc. This process will take a little time, but you can do it.

And as I am sure you are aware, you gotta make your payments on time.

Anonymous · ‎01-18-2015

@sciachir wrote:
I just got off of the phone with Equifax after trying to purchase a copy of my FICO score. I was told I don't have a FICO score because I don't have any credit cards, nor have I, for the past 2 years, so there wasn't one available for me.

Now what? My home is paid for, and (of course), so is my 22 year-old car. I should state that my home is a (manufactured home). My only income is what I draw from Social Security retirement. I also have a VERY small amount in an IRA.

Can anyone offer advice on what I should do? I've called, and am being mailed, a copy of my credit reports, which shouldn't show much (if any) information.

Any advice anyone can offer would be appreciated.

Thanks!
Call me "Lost"

@sciachir ,

I agree with the poster above.. It is not difficult to start as you can do that with a secure card.

Anonymous · ‎01-18-2015

The only thing I difer with, is on the secured card you should apply for. I'd apply for the secured card from BofA. They are better at graduating the card to an unsecured version. And usually do it much faster, on average, than crap one. Good luck.

Anonymous · ‎01-18-2015

As others stated, a secured card is the way to go. If you have no open accounts reporting your score goes away. Once even one account opens if you have a credit history based on closed accounts that were open in the last 10 years, you can get a score back soon after the new account reports since you will already have 6 months of reported credit history. If all your older accounts are more than 10 years closed, however, you will have the wait till you get 6 months of credit history with your secured card.

Simply put, you need 6 reported months of credit history and at least one open credit account for a credit score. Thus, if you already have 6 months of reported credit history in closed accounts that were closed within the last 10 years, the moment you open account reports you should have a score. Otherwise, you will have to wait for 6 months of reporting which usually will be 7-8 months from now (since the 6th statement will have to cut and be reported to the credit bureaus).

Revelate · ‎01-18-2015

@Anonymous wrote:
As others stated, a secured card is the way to go. If you have no open accounts reporting your score goes away. Once even one account opens if you have a credit history based on closed accounts that were open in the last 10 years, you can get a score back soon after the new account reports since you will already have 6 months of reported credit history. If all your older accounts are more than 10 years closed, however, you will have the wait till you get 6 months of credit history with your secured card.

Simply put, you need 6 reported months of credit history and at least one open credit account for a credit score. Thus, if you already have 6 months of reported credit history in closed accounts that were closed within the last 10 years, the moment you open account reports you should have a score. Otherwise, you will have to wait for 6 months of reporting which usually will be 7-8 months from now (since the 6th statement will have to cut and be reported to the credit bureaus).

This; if you still have history you may not even need to use a secured card. I'd talk to whatever financial institution you use for banking and see if they can do anything for you... not having a score isn't the end of the world, not having anything on your report at all is a problem. You only need six months on the new card to recover a score and if those old tradelines boost you, then you can pick whatever you want next to make certain you don't wind back in thin file land later.

If it's the second one issue of a no file, then I would suggest getting a secured card from BOFA (best in the industry by a massive amount) and potentially one more from your financial institution, and go from there.

elim · ‎01-18-2015

State Department Federal Credit Union.

No Credit Pull to get a secured loan and a chipped card for the same $500 (minimum $250 and more if you want).

Open the Share Savings Account and they will put a hold on $500 for a $500 low interest share secured loan. Then they will deposit the loaned $500 back into your account and you can use that $500 to open their Low APR Chipped Secured Card. As you pay off the Shared Loan it will free up that much of your savings after each payment.

2 bangs for your buck.

Great CU and great card.

coldnmn suggested SDFCU to me for my GF's daughter and it worked out great!

https://www.sdfcu.org/share-secured-loans

https://www.sdfcu.org/emv-creditcards

the loan and CC will give you a better mix and better score when your scores generate and you will have 0 HP's on file to start your new unsecured apps.

edit: I forgot to mention... No Annual Fees

Features & Benefits

Low 6.99% APR*
No income verification or credit check required
Limits as low as $250
Secure chip-enabled technology
No foreign transaction fees
No annual fees
Flexpoints Rewards for every $1 spent

sciachir · ‎01-22-2015

Thanks for all of your responses. I will go to my credit union and find out about getting a secured card. I will also look into some of your other recommendations.

I appreciate the advice!

sciachir · ‎01-22-2015

One more question.. Because I don't have cash readily available (since I live Social Security check to Social Security check), would it be okay if I take money out of my IRA to obtain a "secured" card?

Thanks, again! I love all of your advice!

Anonymous · ‎01-22-2015

yeah, would highly recommend getting a secured card from bank of america. I like them a lot