P-chan asked in Business & FinanceCredit · 1 decade ago

Best way to earn credit?

I'm 21 and haven't been able to establish ANY credit, I apply for credit cards and I'm denied due to my lack of credit.

My mum tells me that going to the credit union and taking out a small personal loan then paying it back after a couple months is the easiest/ fastest/ most efficient way to earn credit. Is there anything else I could do to help raise my credit?

I have no unpaid bills or anything that will hurt with my credit so there is no need to tell me anything like that.


4 Answers

  • 1 decade ago
    Favorite Answer

    sounds like you are applying for the wrong card since you are just starting credit you will have to start with a low end card and work yourself up to a better one, check out www.fastcreditcardapprovals.com under no credit section and you should get approved for one of these cards use it for a few months just enough to build credit and then drop it and get a better one.

  • Me
    Lv 5
    1 decade ago

    The guy above me is right if you have an awesome job and access to lots of money. Most people can't afford to buy a car or a house in cash. Having good credit is what's going to get you the better interest rate and allow you to buy that home. If you've never even had a credit card, nobody will know if you are responsible or not and probably won't take the risk lending money to you.

    So, get a credit card! Don't overdo yourself. Pay it off every month on time!! I can't stress the on time enough. Are you a student? You can try chase.com or citicards.com. You should be able to get something. Worst case scenario, call them, tell them your situation and get a secured credit card (You pay the money upfront but still build credit.)

    Source(s): 23 and have a mortgage, car loan, student loans, and credit cards. I know a little about this stuff.
  • 1 decade ago

    Go to your bank and apply for a secured credit card --you pay a deposit which is held as collateral against the line of credit. Use the card for small purchases and pay in full every month. This will build good payment history. After about a year, you should be able to convert the account to a regular account.

  • 1 decade ago

    Yeah. Save your own money and pay for things with cash. You don't need credit for anything. Not even a house. Just pay your rent on time every month and save your money. Why pay interest when you can earn it?

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