Establishing A Credit History?
What is a good credit card to get to establish a good credit history? I have 1 card from a store because thats all that will aprove me. I have applied for a mastercard, one of the ones that says that its for those with limited or no credit history, and even they denied me. What about one from a place like orcahrd bank? I know you have to pay for them but would it help or will people see in the future that I had a credit card from a company that gives them to people with bad credit? Thanks. Orchard Bank*
Public Comments
- What about a prepaid credit card? There are such things. You deposit cash into a bank and get a credit card for a limit lower than the amount of the deposit. I know they're available online.
- Orchard bank is not bad to deal with! I have one of their cards and they will report to the credit bureaus for you so keep making your payments on time! Go to my website and read it all! You will really benefit from the "how credit scoring works" section! I had to recover from ID theft and a bankruptcy, which is common with those who have little or no credit history, so you should find my site useful! If you know how to go about repairing your credit, you will also know more about how credit works and you can use this information to your best advantage! I got my score up from 486 to 729 in a little over a year!
- The best way to establish credit is to make on time payments. If the only credit card you can get has an annual fee take it. It is worth the $35/year to build you credit. The APR shouldn't matter at this point, your objection should be to use the card every month for a small purchase or two and pay it off. Another factor most people don't realize is balances close to your credit limit lower your score. If possible try to keep the balance below 50% utilization.
- As far as sub-prime cards go, Orchard Bank is the best credit card to apply for. Orchard now has several options to ensure you can get a credit card, you can read about the many cards they offer here http://www.creditimes.com/ochard-apply.html Make sure you don't keep applying for cards as that will reduce your credit score. Keep your payments on time with the 1 store card you have now and if you can get your car on an auto loan or with a co-signer you will be on your way to establishing credit
- Orchard Bank is good if you're wanting to establish credit because they not only offer low-limit unsecured cards, but secured cards as well. Another option that may be easier would be the secured credit card route. Since a deposit is placed upfront as collateral, you would be assuming the majority of the risk. For example, if you deposited $300, your credit line would be $300. Keep in mind that a lot of major banks (Bank of America, Wells Fargo, USBank) offer these cards, and it does help your credit when you have a reputable credit card company on your report, and most if not all the secured credit card companies report it just like a regular card, the only people that know it would be secured would be you and the credit card company. One of the biggest advantages to a secured card would be that you have more control over the credit line by adding to the deposit you can increase it. Usually after a year or so of paying on time and keeping the account in good standing, the card converts to a regular card or a better card's offered, and more importantly, the deposit isn't needed anymore and it's given back to you. I went ahead and posted several links to some secured cards as well as the link to Orchard Bank I thank you for reading and good luck!
- check out www.myfirstcreditcard.com.au to see what the providers are after they are some non bank lenders on the panel good luck
