Never had any loans. How can we establish credit?

Deal Score0

Me and my husband are in need of a good used car and home repairs. We applied for a small loan at our local bank but was turned down due to we have never had any loans before to establish credit. We were told that we could apply for a low interest credit card and that would help but no one will accept us based on a no credit background and I just recently found out that several inquiries that we tried to get like apply for credit cards and the loan will bring our credit score down. How can you establish credit without hurting it.

5 Comments
  1. Reply
    the eyes have it!
    July 21, 2011 at 3:43 am

    you have a loan if you own a home. otherwise, get a visa or mastercard, or store credit card. also, if you have no credit, you have no score to bring down. this doesn’t make sense

  2. Reply
    American
    July 21, 2011 at 4:25 am

    pre-paid credit cards, personal loans, dell will give just about anybody credit, etc … do what you can to get a histroy going

  3. Reply
    Amanda
    July 21, 2011 at 5:14 am

    get a credit card at capital one

  4. Reply
    spalmer
    July 21, 2011 at 6:12 am

    Good credit can be established by paying each and every one of your bills on time monthly (rent, phone, cable, internet, etc.). If you own your own home, then you have a mortgage loan. If not, you could try to take out a small personal loan. Put it in the savings, and make monthly payments to pay it off. Or, apply for 1 or 2 store cards. Make sure that you go for stores that you use regularly. Only buy what you normally would and pay the balance in full each month (or you’ll be killed by the interest rates). Applying for 1 or 2 store cards is not going to hurt your credit that much. If you are applying for a lot of cards right before you go to get a loan, then yes, it can cause a denial. However, you’ve already been denied and have no choice but to build your credit. Longevity of credit is a big factor that you cannot control in the credit score. My longest line of credit is 12 years old, yet my credit report still states that longevity is the only negative in my report (and obviously I cannot do anything about that but keep waiting). Good luck!

  5. Reply
    Ian
    July 21, 2011 at 6:45 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 – buildcredit.ifastnet.com

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