How can I get a credit rating? I have none.?

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As a child, I was taught that credit was a bad thing, and should never be used. When I married, we bought our house on Land contract rather than a mortgage, and paid it off. I do not drive, but my spouse financed the car through his credit union. When we divorced, as a single parent I could get no credit. Back then they wanted single women to have a co-signer to pay cash! *LOL* Now I am a senior citizen, and need to borrow money to do some major repairs on my home. I own it free and clear. However, I am told that having no credit score is worse than having a bad credit score, and I cannot even get a Home Equity Loan. I am told I should get a credit card and charge small amounts and pay them off monthly to get a credit score, but no one will give me a credit card. Some businesses in my area are no longer accepting checks. They want either cash or a credit card, as they’ve had too many losses on bad checks. Now my social security is direct deposited to my checking account, and as I don’t drive and there is no public transportation here, it is very difficult for me to get to the bank to withdraw cash. I cannot afford the fees to withdraw from an ATM machine. Anyone have any ideas on how I can resolve this impasse?
Dixie Darlin’ I think you mised the point. I can not GET any kind of credit account t o pay off to give me a credit rating. My Social Security Income is less than $ 600.00 per month, so there is no question of my being able to save up $ 300.00 or $ 500.00 or $ 1,000.00 in a savings account to get a Secure card or account to use in building my credit. I thought I could maybe rent something at one of those Rent-A-Center places, expensive as they are, to build my credit, but the weekly payments on the things I need are more than I can afford.

  1. Reply
    Dixie Darlin'
    May 4, 2011 at 1:10 am

    You will have to start building your credit rating with secured credit. Make sure the banks report to the credit bureaus, otherwise it does no good.

    Go to the bank you do business with, ask them if they have a secured credit card, if they do open a new account with $ 300 – $ 500 tell them you want a secured credit card against that account. Use the card for small purchases like gas or food and pay the card off entirely each month on time.

    Also you can take your savings account and save until you have $ 1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.

    After a few months you can try for an unsecured card again. Retail store cards and gas cards are normally easier to get.

    It takes 24 months of consistent on time payments to build a good credit rating.

    On Additional Details: There are a few companies known for helping people build credit, they are First Premier Bank, HSBC and Capital One. If you get turned down by them you will not get a unsecured credit card.

    Rent-A-Centers do not report on your credit report. Only repaying borrowed money (loans or credit card bills) will build credit.

  2. Reply
    Frank B
    May 4, 2011 at 2:08 am

    If you want to build credit then start with a credit card.
    Here is a place to get one for people with all different kinds of ratings and also cards for people with no credit rating.
    Good luck. there is a card there for you.


  3. Reply
    May 4, 2011 at 2:13 am

    Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments –

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