Bad Credit Agency

what is the best way to obtain credit with like 8k cash and absolutely 0 credit? (no good and no bad.) 1 am 20

yrs old and have a hard time conducting business because i have 0 credit. I've always paid everything upfront with either cash or check, but now, i cant get even a simple $500 limit credit card or a small personal loan.... thanx

Public Comments

1. Your best bet would be to find a really good co signer that trusts you... Take out a small loan, and pay it on time... do that a few times and lenders will be more flexable with you... Thats what I had to do... I took out 3 small loans, one after another, and started to get credit cards in the mail and all that good stuff.... Good Luck
2. Another way would be get a secured credit card. Call up a bank and tell them that's what you want. You will deposit $500 and they will give you $500 cc. Pay it off few months and you have a credit history! :) Rival
3. get a credit card or buy a car.
4. Go get a few credit cards and use them for your day to day needs. You may need to pay a fee or get a secured card initially The sooner you do this the quicker you'll get credit. If you are trying to purchase a house, you need to generally have a two year history of revolving debt with 3 to 5 trade lines. These can be auto loans, student loans, credit cards..... The greater the available credit, relative to your actual balance, the higher your score will be. Try to stay below a balance of 25% as your score will be impacted when you go above 25%, 50% and 75% of the available balance. It can be a bit confusing. There are other ways to show that you have credit, such as utility bills, auto insurance, rent, cell phones, etc. depending on what you are trying to accomplish, this may be an option. If you are simply trying to get going...do the credit card route. By the way, don't close out credit cards that you don't use, unless they charge you a fee. The available balance improves your credit.
5. Congratulations! you sound like a gut that has his "ducks in a row". Either a secured credit card or get a secured (with some of your cash) personal loan. Next time you want to make a major purchase, contact your local bank. Want to buy a $2,000.00 sound system? Don't just go by it. Talk to your bank. Tell them you want to establish some credit by borrowing the 2k and deposit 2k from your savings w/them. They will be pleased you approached them. If you have your 8k in their bank, they may loan you half of the money, unsecured. Once you get this loan, make your monthly payments. Resist the temptation to pay it off. The bank wants to see that you have the maturity to make payments on time. Second loan will be much easier.
6. your bank or credit union will give you a credit card or personal loan. pay it on time and you should see it on credit reports withing 3 months.
7. This is one of the most common questions on this board. How do I build/establish credit? First off you need to be educated about how credit works in the U.S. Every credit decision a lender makes is driven by FICO credit scores. You can go to www.myfico.com and look in the Credit Education section to learn how FICO credit scores are determined. To build your credit you have to place positive credit items on your file that will report positively for 6-12 months minimum. If you want your credit to be in the Excellent category (FICO score 750+) then your goal should be to have 3-6 revolving accounts(dept. store, gas cards, Visa. etc.) WITH NEAR ZERO BALANCES and 1-2 installment loans(car, mortgage) that are reporting positively. I would start out with a Bank of America or Wells Fargo secured Visa card. Both banks have great programs with low annual fees, low starting amounts ($300.00) and no junk fees. After 12 months of positive on time payments you will graduate to an unsecured status. Then you will probably be approved for other cards such as dept. store and gas cards. Good Luck
8. Try going to your bank or credit union and ask for a secured credit card or a secured line of credit. You use your own money to borrow against it and it is reported every month to the three main credit companies. Just try to only use no more than 50% of your available credit, that way your scored will go up faster. I work with people every day who are trying to do the same thing. You may want to get at least 3 different account established.