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Get a bank account and never do anything shady. After 6 months, talk to a bank officer about a limited line of credit.
Alternative: At some store which offers credit to most anyone, like a jewelry store, offer to buy an item on 6 month time payments, and they retain possession of it until paid for, then sell it back to them at split wholesale, all by arrangement, specifically to create a credit reference. Then use this reference to apply for credit elsewhere. Good Luck! Regards, Larry.
I posted this elsewhere but its absolutely relevant to you.
Assuming you’re too poor a credit risk to get a normal card, this is what you do:
Apply for a secured credit card (basically a horrible invention by banks that requires you to pay a sum of money in advance, then they send you a credit card with that same limit, minus an annual fee, plus interest. Total scam, but its all you can do. They start at $150-$300).
Wisely use your credit card on a monthly basis, do not surpass 50% of your credit limit, and make your payments on time.
Within a year, you should be approved for a legitimate credit card.
Continue to pay your other bills on time.
Actively work to close out each debt you have, ONE AT A TIME. So if you have 3 $50 a month minimum payments, and $200 to spend, spend $100 on one, and the $50 minimum on the other two so that you can eliminate the one debt quickly.
Obtain a copy of your credit report from each of the three bureaus and go over it with a fine tooth comb. Make sure there’s nothing on there that you don’t know about. When you close out a debt, send notice in writing to the debtor that you want written proof of your successful payment, and that you want each credit bureau notified immediately that you have completed your obligation. Then send that written notice to each of the three bureaus, and check back in 120 days with a new credit report and make sure they actually did their job.
Be responsible with your debt, try to make sure all of your obligations are manageable, and don’t make stupid purchases. Switch to online banking where possible, so you can set up alerts for payments and the like.
Go to your bank with $2000. Tell them you want to take out a guaranteed loan. Put the $2000 in an account with them that you arent allowed to access. Make payments and pay them interest until the loan is paid off (18 months for example).
You now have $4000 and the bank reports the loan to the credit bureau as good credit. Make sure the bank will report the loan to the credit bureau.
Most banks are happy to do this for you as they are guaranteed the loan is paid in full one way or another and they make the interest money with no risk.
The minor interest fees you pay far out weighs the credit rating you get in exchange.
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June 3rd, 2010 at 8:48 am
I got top notch credit without ever paying a penny interest.
You get one store card and one gas card.
You pay them in full each month – the second you get the bill in the mail.
After 6 months you get a visa/mc and pay in full.
You never need to carry balances to get top credit. That simply is 100% myth.
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