10 Comments Add your own

• 1. Angel    May 3rd, 2008 at 6:56 pm

  I applied for Target, JCP, Sears, Wal-Mart, Macys and Sears they rejected my credit card application because I have No Credit history?! I think, No credit is much better than Bad credit!!!!

  What can I do in this case? I need to build up my credit history.
  Please advice.

  Angela

• 2. Jack Olson    February 2nd, 2009 at 3:57 pm

  Angel,

  Get added onto someone elses credit card as an authorized user. This will put that account onto your credit report. Despite any rumors you may have heard, do this and your scores will respond. make sure the payment history is clean and the balance is below 50% of the credit limit.

• 3. SLP    February 27th, 2009 at 3:32 pm

  Apparently, this “RULE” was changed so “Authorized” users do not generate a Credit Score any longer. This was modified in 2008 under the Bush Administration.

• 4. H    March 2nd, 2009 at 2:38 am

  Actually authorized users are reported to the credit bureus. And being added as an AU is an awesome way to gain credit, especially if the primary is really good at keeping their account in good standing.

• 5. Bridget    April 28th, 2009 at 4:37 pm

  Try Macy’s. I have bad credit and I got approved for a Macy’s card. They may start you off with a 300$ limit but its better than nothing. Also maybe just try for a regular card just don’t try Total Visa, I had one of those and if you are even a single day late, they call you 10 times a day!

• 6. Jorge    May 23rd, 2009 at 5:48 am

  Angel, before you do anything else, stop trying to get store cards at this time. Your already developing negative marks on your credit as you have already stated you’ve applied at 6 dept stores. These inquiries will stay on your credit report for two years and drop your score. It’s great that you have “No Credit History”, but you need to do this right. “Piggybacking” is one way, but you have to make sure that the “AU” your using has great credit as well and usually this will only last for 6 months.

  I actually helped consumers with their credit issues and help them create a new credit file… So your getting this info for free…So, I’ll give it to you in steps. Five Steps To Obtaining A-1 Credit: Walk away with 3 bank loans, Visa, MasterCard, & 2 dept. store cards!
  Now that you understand the basics of what credit is, and why it is so important, you are ready to follow a plan to get you well on your way toward building a solvent and solid credit record. Follow my 5-step process and you will finish with 3 bank loans, a Visa and MasterCard credit cards, and at least 2 major department store credit cards. But that’s not actually the end; it’s just the beginning! You will then be in control of your financial destiny and will be better able to make the kinds of purchases embodied in the American Dream.
  As you follow each step, remember that lenders and retailers count on making loans or selling goods on credit. The system helps them as much as you. They want to extend credit to you. Through this plan, you make them do so gladly and legitimately.
  Step One - Obtaining Bank Loans
  Laying the Groundwork
  The first objective after developing a new credit file or removing negative credit from your report is to add positives. This can be achieved by obtaining three bank loans to serve as credit references for future maneuvers. Have you ever noticed that most loan applications require three credit references? Follow this first step and you will have three impeccable references to use for various kinds of credit and loan needs.
  This step requires some up-front capital to get you going. The results can be achieved using anywhere from $300 and up, although I recommend investing $1,000. Take heart - the money will not be spent, but is used as secure backing in a savings account until the plan is completed. If you need to raise the cash, you can do so through creative means such as a temporary, part time job or a garage sale. You can also consider borrowing the money because, again, it will not be spent.
  Just be careful not to start off with funds that you may be likely to need in the weeks to follow. Withdrawing this money before the plan is completed would jeopardize your credit and potentially leave you in greater debt. LOCATING THE RIGHT LENDERS
  Now you are ready to locate your three lending institutions, which can be banks, savings and loans, or credit unions. You can use the bank where you currently have your checking or savings account, although you will still be opening a new savings account. Use your local yellow pages to call area banks and ask these questions:
  What is the mini mum amount they will loan on a passbook savings account?
  What is the percent you can borrow?
  For these purposes, you are interested in opening only a regular passbook savings account, so don’t get more details than you need about other types of special account and offers.
  Choose a lender that offers high yields and allows you to borrow as much as possible against a secured account. We will now label the banks you have selected Bank A, Bank B, and Bank C.
  DEPOSIT, BORROW, AND PROSPER!
  Go to Bank A and open a savings account with your $1,000 (or whatever amount you have allocated). This should be an interest-bearing account earning the highest rate you can find. Take your passbook home and wait three days.
  Return to Bank A (dressed and poised for success) and ask to see a loan officer. Take your passbook with you, and explain to the officer that you wish to take out a loan, for which you are willing to place your savings account as collateral. This is the easiest type of loan to obtain because it is completely secured with cash. Be prepared to name a reason for the loan, although it should be granted regardless of the purpose because it will be backed by your savings account. Make sure you obtain an installment loan, amortized over one year with monthly payments required. Remember, you are building credit, so a loan that is due all in one lump sum at the end of 180 or 365 days will not serve your purpose. While a credit check is not always made for this type of loan, be prepared to acknowledge any bad marks on your credit record and explain that you are trying to re-establish your credit. Assure him/her that you will faithfully make your loan payments.
  Assume you get a loan for 90% - or $900 - of your savings account, with a 6% interest rate. On a $900 loan you would pay $29.52, owing the bank a total amount over one year of $929.52. Your monthly payments will be $77.46.
  Once this loan is made, Bank A will freeze your $1,000 so your loan collateral cannot be withdrawn. However, each time you make a payment on your loan, an equal amount (minus interest) will be unfrozen in your account and available for withdrawal.
  Take your loan check for $900 to Bank B and open another savings account with this amount. Wait three days, and get your second loan - this time for $810 (90% of $900). Your monthly payments here will be $69.71. (Again, assuming 6% interest)
  Now use your $810 and open an account at Bank C. Wait three days, and obtain a 90% loan for $729, with monthly payments due of $62.74. DON’T PANIC!
  By the time you obtain your third loan, about two weeks have passed. You now have three bank loans totaling $2,439 and $729 in cash (your loan from Bank C). How will you pay these loans back? It’s easy. Use enough of your $729 to make your first payment on your Bank “A” loan ($77.46). Do the same at Bank “B” and Bank “C”. You should now have made payments that are ahead of their due dates by about one week at Bank A, two weeks at Bank B, and three weeks at Bank C. You have used about $200 of your $729, but you have also freed up frozen funds that can be withdrawn later.
  Now wait about another two weeks and repeat the loan payment process described above, making another set of payments with your remaining cash. At this point, you should be approximately one full month ahead on all three loans. With the balance left from your cash loan, make your third set of payments on the second payment’s due date. By now, your $729 should be almost depleted. Approach each bank and withdraw the funds that have been unfrozen to use towards your next set of payments.
  Continue this process until at least six payments have been made on each loan. You can pay off your loan in full, if you wish, after that point. Do not pay them off before six months, because this is the time frame usually considered when a payment history is calculated as a possible credit reference. This ends step one. Hope this helps.

• 7. Ashley    September 27th, 2009 at 7:42 pm

  Ok I have to say…

  1.) some of you people write too damn much &..
  2.) if you want to build credit, go to a credit union, they can help you out alot!!! plus it helps you stay out of that “bad cedit” zone.. they can let you know what your credit score is even if it’s as low as 600 to as high as 850.. mine is at about 701.. thanks to my credit union!

• 8. Ashley    September 27th, 2009 at 7:44 pm

  And Bridget.. are you blonde or something?.. The girl said she applied for Macy’s and got denied!! READ my dear.. hahaha!!!

• 9. Dianne    October 27th, 2009 at 4:37 pm

  I ‘m wanting to opt out of a couple credit cards because of the increase rates they are changing to,will that hurt my credit at all.If I haven’t used a credit card for a long time or haven’t activated it ,can I just cut them up and assume I’m not on their list of credit card holders anymore?

• 10. Roxy    November 3rd, 2009 at 10:22 pm

  How exactly can applying for credit if you have no credit count against you as a person who has credit? My husband is from another country and has been trying to get credit. I declared bankruptcy, so I have no credit to add him to help him out.

  The rejection letters say that he is denied because he “has no credit file”. How exactly can the inquery go against him if he has no file.

  He has a social and a green card and has an unrestricted social… I have tried to sign up with Trans Union, Equifax to pull his credit but they of course do not have anything for him so I can’t pull his credit and see what it looks like cause even the credit bureau says it doesn’t exist. Do we have to call the bureaus and have them “set up” a file?

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