I’m 35 and i’ve never done anything on credit. I’ve purchased everything in my life by saving and paying cash. Yes, even my car. Obviously i’m not a homeowner at this time.
I’m at the point where I would like to purchase my own place in the relatively short term. Also, I’m just thinking it might be a good idea to have access to credit if I ever need it.
About a month ago, I applied for a credit card because I’m taking a trip to Europe in September and felt it might be a good idea to have a credit card available as a backup. (currently anything that requires a credit card to secure, I get by fine using my debit card drawn from my checking account). I was declined and the explanation letter stated it was due to ‘insufficient credit history’).
What’s the best way to get a credit history started for someone who has NO credit history? (my salary is mid $40’s if that matters) Also, if anyone who answers this works in a position approving credit, how common is it for someone to reach 35 without ever using credit?
Well, i was declined for a credit card due to not having a credit history. It seems a catch 22.
So what type of credit should I apply for that is likely to approve me? I don’t want to have multiple applications denied because that’s bad for your credit score.
Try a store card. Alternatively, sign up for one course at a community college near you and, once you can claim you’re a student, you’ll be able to get approved much more easily.
Once you have a card, use it A LOT, but pay it off before you’re even back in the house. You’ll pay zero interest but keep getting these letters saying that your credit limit has been increased for being such a good customer.
:eek: are you serious ? Who knows, maybe you are right. But, i’m 35, I have a long and stable work history. I’ve already already done college. Are they actually gonna be more inclined to approve me because I go sign up for an art class at the community college?? Weird. On that note, I always figured they gave cards to college students thinking mom and dad would ultimately help pay it off if it got outta control. Not to mention the interest rates are probably extortionary.
I’m wondering if the “long and stable work history” is something a bank is going to look a lot harder at than a faceless, automated CC company. Seriously, go talk to a real human at a bank. They may be able to help you out in your “special” situation.
Btw, there’s lots of 35 yos without credit histories. But they’re typically immigrants without any kind of other histories. Also, you should have really thought about doing this a year or two ago
Try getting credit cards from some of the “easier” sources. Orchard Bank does a secured card, easy to get some credit started that way. I also got one from Credit One Bank, started with a $500 limit (unsecured) and since I keep paying them regularly they keep upping my limit. I never make just a minimum payment, I usually have some low amount on there so they make a little bit of money off of me, and I use them so there is always activity. Start small & work your way up.
Does a ‘secured’ card actually build credit? Isn’t a secured card just a glorified debit card? Except they charge me interest to spend money i’ve already given them? There must be a better way.
This is a good idea. If they can’t issue a credit card, they may still be able to issue a personal loan (which also helps build credit) or establish a line of credit linked to the checking account.
I’m another one who started with store credit, at Sears. It helped to get a card at a retailer that carried lots of stuff-- I could charge tools, tires, clothes, dental work, etc.-- so that I’d be likely to use it more than occasionally. Within a few months, I was approved for a regular bank credit card. I’m actually still carrying both cards 15+ years later, which also looks good on credit reports.
It shows up on my credit report, shows my payment history and everything. I’m sure if I am late making a payment, even though they already have my money, it would show up as late!
Yes. My classmates in grad school (all foreigners over 25, with no previous work history or at least not in the US) got offered credit like we were Hilton family. Those of us who knew better didn’t take it, but some guys were over 40K in debt within one year of landing in the US - and that’s with free tuition and a 12K/year salary (which was enough to live on, in Miami, so long as you didn’t like brand stuff and didn’t mind sharing a bedroom which you never visited anyway).
Harris: I don’t care what you think of me because I have something you will never have.
Drug Dealer: What’s that?
Harris: Credit! You ain’t nobody until you can sign for something with dignity!
I second Orchard Bank/HSBC as a good start. They’ll approve you for at least a secured card (you put down a deposit, and you’ll get it back after a year of good payments) and probably a low limit ($250-$500) regular card.
Use it sparingly, pay it off each month, and in no time you’ll have a good credit history.
ETA:
The fees suck, $49 app fee and $49 annual fee, but it might be worth it. They report to all three credit bureaus (a big plus in your case)
Gasoline credit cards are the place to start. It’s real easy to get one. Shell is an excellent one, because after you’re with them they will offer to upgrade you to a Citibank/Visa -Shell credit card.
Store cards are great too. Pennys is a good one. Sears and Wal-Mart have a link up through Discover so try them.
The trick is once you get a card, you need to USE it and you need to make ONE big purchase and pay it off over time.
I know this will cost you money. If you buy a $300 iPod and pay 10% interest, it’s more money than paying the $300 at the end of the month and avoiding interst, but paying everything at the end of the month doesn’t show you can handle credit.
So once you get a store card, go buy something over $300 and pay it off over the next 6 months. Then the credit offers will come in. Do the same with your gas card. Pay almost all of it off each month (to save on interest) but show you can make responsible time payments
I don’t agree.
I got my first credit card through my bank.
I always paid off the lot every month.
Every couple of years, they offer me a higher limit.
I’ve shown I can handle credit by never getting into debt.
To the OP, I think that your problem is that you haven’t applied to enough places for credit. Some suggestions have been provided in this thread. My suggestion is to just go to your bank or credit union or wherever you do your banking and tell them you want one of their credit cards. I personally can’t quite identify with not being able to get credit because I’m inundated with offers for credit, which I quickly run through the shredder.
