#1 Posted by sublime90 (538 posts) -

right now i have NO credit at all. i want to get some credit so i can get a damn phone and eventually a car. ive tried to apply for basic ass credit cards and i get declined everytime. how am i suppose to establish credit? i cant use co signers because both my parents have shit credit. any suggestions? thanks

#2 Posted by Oscar__Explosion (2326 posts) -

try getting a credit card from your bank (assuming you have a bank account)

#3 Posted by NoXious (1338 posts) -

Work - save up money - buy phone - buy car - work some more to fill up the gap in your savings you just made.

What is it with this generation just buying shit on credit... Do you know what credit stands for?

#4 Posted by Spoonman671 (4648 posts) -
@NoXious said:

Work - save up money - buy phone - buy car - work some more to fill up the gap in your savings you just made.

What is it with this generation just buying shit on credit... Do you know what credit stands for?

Agreed.
#5 Posted by myketuna (1710 posts) -

I have been wondering about this question myself. I don't work, but I have also wondered what the deal with credit is? I kind of just want to use cash/debit for everything, but I know for some things you need "credit".

#6 Posted by Unchained (1081 posts) -

@NoXious said:

Work - save up money - buy phone - buy car - work some more to fill up the gap in your savings you just made.

What is it with this generation just buying shit on credit... Do you know what credit stands for?

How is he going to get a job without a phone? I can't think of any employer who would look at "Phone: N/A" and not throw that resume/application in the garbage.

Go to various banks a find someone willing to give you a low-credit Visa, or Mastercard. Then, don't keep a balance. Ever. Pay it off every month. Start building your credit score that way. If you don't have any co-signers, you are going to have to have an incredible credit score to ever get a mortgage. Shit's rough.

#7 Posted by amomjc (977 posts) -

The fact that you keep applying for credit is hurting you a lot more than you think. I would look into maybe one of the credit cards they send you in the mail, or just get a steady job, sometimes that's more important than a shining credit report. You can just buy a home phone and answer calls from there (not to mention an answering machine), people were getting jobs before cell phones you know.

#8 Edited by James_ex_machina (905 posts) -

Don't keep applying for credit. That hurts your credit.DO NOT sign one of those credit card offers in the mail! The interest rate is crazy and you will be stuck with it. Start saving money in a savings account and a checking account. Pay your bills ON TIME@!

I would then suggest you use $250 to $500 of your saved money to get a prepaid credit card from your bank. Basically they hold that money and give you a credit card for that amount. You still need to be approved but if you start out with one of these cards with a minimum amount you will slowly build credit. If you pay your credit card on time and don't abuse it in 18 months or so your credit will increase drastically. Then go to your bank and ask for a real credit card for a larger amount.

If all you need is a phone right now, just get a go phone of some type. You can get some for around $20 at Walmart and just buy minutes to put on it there. Piece of cake.

In the meantime STOP applying for credit cards, loans, etc etc. AVOID the credit card offers in the mail.

and the best advice on top of this I can give is, once you get the credit card BUY with cash

#9 Posted by iam3green (14390 posts) -

what other people said, go to bank, ask for a card there. when i turned 18 my dad brought me to the bank to get a debt card.  i co-signed for a car, i have credit there. 
 
go to walmart buy a phone with prepaid time on it.

#10 Posted by BraveToaster (12589 posts) -

Get a pay-as-you-go phone (or whatever the hell they call them).

#11 Posted by Lunar_Aura (2779 posts) -

Use your favorite search engine and look into "secured credit cards"

#12 Posted by Wolverine (4281 posts) -

@Unchained said:

@NoXious said:

Work - save up money - buy phone - buy car - work some more to fill up the gap in your savings you just made.

What is it with this generation just buying shit on credit... Do you know what credit stands for?

How is he going to get a job without a phone? I can't think of any employer who would look at "Phone: N/A" and not throw that resume/application in the garbage.

He can always get a prepaid phone for now until he is eligible for credit.

#13 Posted by sublime90 (538 posts) -

thanks for the replies. i should have stated that yes i have a job. yes i have a checking and savings accounts and have had them for a few years now. i'll look into getting a credit card from my bank and some pay as you go phones. the main reason i want some credit at all is just because a lot of things require a credit history. i cant get a phone plan without credit (even though pay as go is probably cheaper in the long run anyways) but dont most places like car dealerships look at credit history before selling you a car? i know some people even check your credit before you can get a place to live. i dont want credit so i can get a credit card and spend money, i simply want credit because having credit is better than having NO credit.

#14 Edited by Warchief (658 posts) -

Just wait until you get to college, you will have 5 credit cards by the time you walk out of the student union!

real answers: Ask your bank if they have a credit card they can issue to you. You can also try to get a department store card or a gas card.

Some advice: Once you get a credit card, use it sparingly. I have 1 credit card now with a manageable limit [meaning I could pay it off in 2 months if maxed in an emergency], everything else is cash. I have gotten in the habit of saving up for things.

#15 Posted by Marcsman (3209 posts) -

Put some utilities in your name. A water bill, electric bill, internet, cable providers. You can never be turned down for utilities unless you owe money. It's a slow way to build credit, but it will build it.
#16 Posted by eshchan (47 posts) -

@sublime90: While I don't live in US, I found that you have no credit puzzling because you have a savings account and a job and if you are paying taxes you should have a credit score - which determines if you are eligible for loans/mortgage/etc. I can understand if you are not approve for a car loan but a credit card is much easier because they can adjust your credit card limits base on your credit score.

You can try to get a credit score to see your credit rating and see if there is something wrong. Warning though, I heard your credit score will lower a little if you ask for a credit rating but if you do it once or twice a year it should be fine.

#17 Posted by Twisted_Scot (1180 posts) -

You gotta work and save before the bank will give you anything. No quick fix bud. But once you have bank credit they will throw cards at you.

#18 Posted by lazyturtle (1229 posts) -

Find a small business that sells something you need and can afford on credit, like furniture. You could also take some classes at a community college (whatever minimum is required to get a loan), take out a small loan to cover the courses, dump the courses and pay the loan back in full (this will cost you some money though, with loan originating fees, school fees and non-refundable stuff from the school). 
 
Also, get utilities in your name and pay them on time. Once you get a card, keep it, even if you don't use it. Having available credit is a good think from the ratings perspective.  Keep a bank account with $ in it. Get a job. Rather than responding to credit requests by mail, call a bank and ask them what you can do to get a card. You could also just try to take a personal loan out at a bank (whatever the minimum is), but it can't be for a used car unless the car is 5 years old or less. 
 
Also be aware that the credit rating system is proprietary. No one really knows exactly what improves or reduces your score (aside from the obvious of having credit, making your payments and having debt that is something you can realistically repay).  
 
I never pay for anything with cash, to the point that if a business doesn't accept cards, they don't get my business. I only get cards with cash back rewards (currently all my cards get me 3-5% cash). I do have to juggle cards (this one for gas, that one for groceries), but I also get a couple hundred bucks a year for stuff I was buying anyway.