What is the best way to build your credit score when you have no credit history?

I'm a new resident, i have no credit history. nobody wants to give me a credit card or a loan that i can start with, i did get a credit for a car but with 14% intrest! seems like I can never get out of this circle, you need good credit to get a loan you need a loan to build your credit.

What you are saying has alot of truth in it. It is hard at first. but it will get better as long as the credit you do get is paid on time all the time.

Now that you have a car loan - pay it. Pay it all the time every time. after a little while it should show up (if they are legit) If you did it through a small company they may not be telling the credit agencies... and then you will be back to square one.

I had that happen back about 13 years ago. we got our first car loan and figured this would help our credit. Well the wonderful owner of that place never sent in any info about us so it was never even recorded that we had that loan ever....

Good luck.

Here's some info. Hope it will help you.

Do you have a bank that you have any accounts in? if you do they may be willing to make you a small loan. Everyone has to start somewhere. (how can anyone ever get a loan if they didn't have credit? think about it... Everyone had to have a "first" loan - it's from that point that you will establish if you are trust/creditworthy or not) so don't blow it. Pay that loan when you do get it.

Take it from me. I was young and foolish and thought what some people do. I racked up my cards and had the plan to pay them off slowly so that I could "build my credit" This is not what happend... What actually happend is I *** BUILT MY DEBT *** Don't attack your credit from this angle. Credit is not a matter of holding a balance. You will NOT get better marks or a higher credit score for holding a balance in your accounts. What you WILL get is more interest to way you down.

If you want to have great credit just remember not to be late on any bill - utiliies and mortgages included. Don't miss payments. Keep small balances if you must but try to pay them off 100% if you can. Don't live on borrowed money. Good rule of thumb... if you will not have enough money to pay your CC bill in full when the bill comes - you shouldn't be buying what ever it is you are looking at. Use your credit cards for their intended purpose. They are ment to be a tool. Kept in your wallet so that you don't have to carry around cash every where, and so that you can have an organized statement at the end of the month to see where you are spending your money. Pay it in full and after years of doing this it will gradually bring your credit score up and up. There is no FAST way to build credit. the most crucial factor in the equation is PASSING of TIME. As long as you are paying everthing by the due dates, with no misses You will be golden :) Time will keep ticking away, and your credit score will keep rising. (Keep your oldest cards open - even if you don't have huge balances on them - They still count towards TIME ) If you want to keep a steady payment history going from month to month I would use it sparingly and then pay it in full each month.

Credit cards show on your report - they will either show that there is no balance or that there is a balance. So don't worry about them not reporting for several months if you don't have any outstanding debt. This is NOT a "ding" on your credit record.

there are credit card companies that deal with people with no credit.(it's often worse than bad credit)they call it a secured credit card.They will open up a line of credit for you.Say $500.00.When you pay this back,you are on your way to developing good credit.These companies charge high percentage rates.However,once you have created good credit with them,it will make it easier to apply for and get credit cards with more reasonable rates.The
process takes awhile,but good credit is a warm and fuzzy feeling.Don't ever be late with a payment.It will ruin your future credit very quickly.Look for ads in the paper and on T.V.Good Luck.

Try a loan with a co-signer. There are also bank credit cards that ask you for a deposit, then issue a card up to that deposit limit. Find a local store than you can purchase some item that will extend you credit. Sometimes local stores are more lenient than the national chains. Try the national stores like Sears next. Try gasoline companies for a card. Open a savings account! Try to re-finance that car loan. It truly is a catch-22. Whatever you end up doing, don't get caught up with a bunch of payments for stuff you didnt need anyway...and make the payments on time!

DO NOT - REPEAT - DO NOT GET A CREDIT CARD! Do not start digging a hole that will trap you for DECADES!What you need to do is live on less money than you make. Never borrow money for anything. EVER (except maybe a house when you have enough saved for a downpayment) Credit card companies are SCUM! If you fall into the revolving credit trap now, think of where you'll be 5 years from now after you've applied and received your 7th credit card because you went $50k into debt maxing out the other 6! You can literally be a millionare at retirement if you start saving now - if you are currently 21, even if you save only $100 a month you will have $1,326,952.26 by the time you are eligible to take out your 401k money (at age 59 1/2 assuming 12% return which is the historical average). Believe me, A LOT of people would like to retire a millionare at ALL, let alone 59 1/2!!! Think about your future - by postponing a little bit of pleasure now, living on less than you make and NOT going into debt you can change yours and your family's life for the better - forever!

Save your money in a bank and spend less than you make. Soon you will be flooded with junk mail from all these companies who want your money.

Or do like my friend did and buy a car...that is always the quick and easy way to build your credit history..

Get yourself a credit card and use it as much as you can, but the key point is to pay off the ENTIRE balance when you get the bill. If you cannot afford to pay for it when you get the bill, don't buy it. Too many new credit card owners use credit to get things they cannot afford. That will not build your credit rating and could get you into debt trouble.

Make yourself a budget, know what you can afford to spend each month, then use your credit card to make the purchases, (like gas, food, clothes etc) but pay off the whole balance when you get the bill.

Alot say that having a cell phone serice is a good way to build up a good credit!

Get the small credit cards like walmart or furniture cards and private unions. Buy everything you can on them on continual basis and pay it off ASAP and more than the card says for a month. If you have house or rent it goes to be favorable to your credit.
Buy used cars the experts will tell you that. 14% is too much get refinanced. Under 5% is considered descent. Citigroup largest company in world will do free finiancial reassesment at your home for free but have to go to a hour session. They might beat 14% for your business.

You can get a credit card from one of the higher interest card companies (Capital One, Providian)that basically gives credit to first timers or those that don't have good credit.

Here's the way to build it fast, without getting into debt. Use the credit card to ONLY pay your regular monthly bills (electric, gas, fuel, water) and pay it in full each month. You have already budgeted for that money with your income so it is easy to pay it in full, and you are building your credit with the card company as well as your utilities company. While building credit, do not use the card for any other purchases. It can quickly sneak up on you and backfire. The high interest won't affect you since you are paying the bill in full every month. Soon that company will raise your limit, and you are open to the world of credit!!!

Good Luck!

Try getting a job if you have a job you may put money in a bank and if you have money in a bank they would probably not mind if you asked for a loan and get a credit card. When you get a credit card buy small things not expensive junk things like household items a box of noondles or toilet paper. Remember to get big you must always start out small.

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