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DH and I are young and have no credit (as far as I know), at least not from credit cards- neither of us has ever had one, by choice (which also means no CC debt!). However, for the past year we HAVE been trying to get one just to build credit (we'd use it like a debit card- no use unless the money is there, and then we "take" the money out...we're very good with our finances). But we canNOT get approved!! I've tried the cards for limited to bad credit, no credit, student cards (I'm a student), and even the no min. income ones (we don't have a large income, and that was one of our problems the first few times we applied). But every application comes back saying there isn't enough credit information for them to approve us or something...can't really remember, but it's always been pretty much the same.

So anyway, that's not really my point, but I understand that making payments on things can build your credit score, too. We've NEVER made payments (even on medical bills) because I've always felt so much more at peace about it when we just have the money and pay it off at once. But now I think I'll start setting aside that money (making sure we still already have it, though) and making a couple payments on things when I can (nothing where interest is charged, though- in those cases we'll pay in full up front). Would that be a good way to build some credit???

Are there any other ways??
 

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You can get a secured credit card from a bank or credit union without any problem. Basically, you open a CD or savings account with the bank and they issue you a c.c. with the amount on deposit as collatoral.
 

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Quote:

Originally Posted by Herausgeber View Post
You can get a secured credit card from a bank or credit union without any problem. Basically, you open a CD or savings account with the bank and they issue you a c.c. with the amount on deposit as collatoral.
I actually applied for one through our bank (WAMU) and still couldn't get one?!?!
 

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I couldn't get any CC's at first, I just sent in every single "preapproved" application that I received - I finally got one from Discover (very high interest, etc.) and that allowed me to build credit to get better offers. I still keep the Discover account open because it's my oldest, I just don't use it much.
 

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Hello Babysmom,

I have made exactely the same experience. It is soo hard to get a credit card to build some credit and just because I don't like loans and prefer saving money and paying for a new car up front. I pay my bills on time and nothing seems to help. My fiancee tried under the same conditions and was accepted without a problem, I have not been succesfull at all at this endeavour. So, our plan now is, to wait a bit longer and than just simply adding my name name to his card (and his credit will magically become mine...). This might be an option to consider for you - if maybe one of your parents has good credit and is willing to add you for one of their cards for a while, their credit standing will become yours!

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But now I think I'll start setting aside that money (making sure we still already have it, though) and making a couple payments on things when I can (nothing where interest is charged, though- in those cases we'll pay in full up front). Would that be a good way to build some credit???
My experience ist, that this did not help. Besides, I just have no clue where to start with these things - luckily I have been only once at the doctor this year so far, I don't want a new couch or a new TV or a new whatever. And I don't see the point for spending money just to get good credit to get a better loan.
 

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How about this - you don't NEED "good credit" - heck you don't even need credit!

you've been doing a fab. job your entire life managing your money. You have been able to pay for everything in cash. So keep doing that. Start saving now if you need a new car. Start saving your home downpayment now, you CAN get a mortgage w/o a credit history.

You have no negative credit history, no need for credit cards, and steady income. You should be a lenders dream come true! Unfortunately, the banks don't always feel that way, but there are other ways to get a loan for a house or car, and you can save cash for anythign else you need.
 

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Originally Posted by GoddessKristie View Post
I agree with Lisa2976, sounds like you're doing a great job. Is there a specific reason you want to build your credit history?
Untill last summer I would have agreed with you, but it seems that one needs a credit histroy pretty much anywhere - even care insurance is more expensive if you don't have a credit history, as they assume (as we were told), that responsible drivers are responsible with their money. If you want to get a cell phone, one has to put down a large deposit. Even some companies, want their employers to have a good credit history. Rental places now want to see your credit history. How do I know - we moved a couple months back, and it seems to get more and more popular to ask for these information.
 

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No, not true. You can get a mortgage w/o credit. You just have to use a traditional underwriter rather than your local bank branch. With a decent downpayment, and no "bad" credit (i.e. all the utilities never reported) and steady income, you can get a mortgage with the same APR that the banks offer.

As for the "needing" credit history, sure, all those things are legit ways people use your credit score to check on you, mostly to cover their arses. We just rented a place (we own our home) and are moving, and most of the places wanted to do credit checks, we asked if there was another way (just curious) and they were all willing to rent with a slightly higher deposit or references from previous landlords, slightly higher being 1.5 months and sometimes 2, not a huge amount.

I've never had issue with the cell company, they never checked my credit.

And yes, auto ins. is higher but if you are a longstanding customer with a company you can point that out and they will often find some other discount to use.

We're working our way to "no credit" right now- our scores are great, but in about 8 years we'll have had no activity for 7 yrs on our cards, good or bad, and they will roll off our reports. We intend to go to a cash lifestyle and be able to save and live comfortably w/o credit.
 

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Quote:

Originally Posted by lisa2976 View Post
No, not true. You can get a mortgage w/o credit. You just have to use a traditional underwriter rather than your local bank branch. With a decent downpayment, and no "bad" credit (i.e. all the utilities never reported) and steady income, you can get a mortgage with the same APR that the banks offer.
I am curious, but what is a traditional underwriter, and where can I find one?

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I've never had issue with the cell company, they never checked my credit.
I am amazed, I have went into stores and called most (all?) companies available in our region, deposits ranged from $120 to $1400 depending on the comany, there was not a single one, that was willing to sign a contract without a (good) credit history.

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And yes, auto ins. is higher but if you are a longstanding customer with a company you can point that out and they will often find some other discount to use.
Which only works if you don't move across the country to frequentely.

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We're working our way to "no credit" right now- our scores are great, but in about 8 years we'll have had no activity for 7 yrs on our cards, good or bad, and they will roll off our reports. We intend to go to a cash lifestyle and be able to save and live comfortably w/o credit.
I love the idea and that is the way I used to live in Europe (where everyone is assumed to have good credit untill you really miss some bills and are reported to ONE agency). Life is so much easier that way. The car insurance for 12 months for 2 cars plus renters insurance costs us right now about $100 per month, without the credit history, it would have been $130. That is a lot of money, if you are a young couple/family just starting out.
 

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Merlin, yah, unfortunately lots of things depend on credit. If I could go back to the OP and be 21 and do it all again, I'd do so many things differently, including not getting any credit! OP is in a great situtation with potential... aah I miss those days!

Anyhow, to get a mortgage w/o a FICO, you need to use a manual underwriter. Many banks offer this, some don't, some of the bigger places don't either because it's actual work vs just reading your FICO. It's better to find a local bank or company instead of a national one, the local ones tend to work with you while the national ones really just do their thing. http://www.churchillmortgage.com/ is one good company, and if they don't operate in yoru state they will refer you to a broker or two that do, so you can get a local mortgage. You can also just call around to local banks and ask if they offer manual underwriting for a mortgage.

You will be asked to bring in proof of "good status" - i.e. a letter from landlords and utility companies showing you pay on time, a doc letter saying you never missed a bill, etc.

We have our auto ins. with a national company, so no matter where we move we can maintain our coverage and good history with them.
 

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Quote:

Originally Posted by lisa2976 View Post
Anyhow, to get a mortgage w/o a FICO, you need to use a manual underwriter. Many banks offer this, some don't, some of the bigger places don't either because it's actual work vs just reading your FICO. It's better to find a local bank or company instead of a national one, the local ones tend to work with you while the national ones really just do their thing. http://www.churchillmortgage.com/ is one good company, and if they don't operate in yoru state they will refer you to a broker or two that do, so you can get a local mortgage. You can also just call around to local banks and ask if they offer manual underwriting for a mortgage.

You will be asked to bring in proof of "good status" - i.e. a letter from landlords and utility companies showing you pay on time, a doc letter saying you never missed a bill, etc.
The people who bought our house had to do something like this; the husband was a seasonal worker.
 
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