How do you build credit? It seems like a catch 22 when you have no credit history or thin file CR. What is one to do? I here you all talk about the perfect mix of credit products (cc, department store, loans, etc.) but then on the flip side you mention that the quality of these products plays a big difference in the eyes of the credit approvers and even to your selves? Help, I am confused and the one thing I have learned from this board is don't waste hard inquiries. I have to start building up my credit beacuse I want to open my own business and need to build up my own personal credit worthiness to back it if need be.
I think the best way to build credit is to attend college. If I had it to do all over again, I'd sure do a better job. While I was in school I had American Express (green, corporate and Optima), Citibank and MBNA accounts. They all offer special student cards that are easy to get even with a blank credit file. My MBNA had a $5,000 limit, my Citibank never got past $500 and my Optima had a $2,500 limit. If I had played my cards right I'd have stellar credit right now, all from having a few student cards in college. If all you want to do is build credit and there are no negatives on your file, go down to the local community college and look at some of the credit card applications they no doubt have all over the place. See how many credits you have to take to be considered a student for each application. Sign up for that many credits and get a letter from the registrar to send in with your applications. You don't even have to go to any of the classes once you get your cards.
I got a full scholarhsip for undergraduate studies and currently enrolled for my Master while I work. I always had a cash attiude or parents who paid for everything. I ran into trouble when I started to let firends use my name or roomates who skip out on the utilites and rent. But now that is behind me, does that work for people enrolled in graduate studies?
thanks Dave. I will have to hurry up beacuse I just submitted my thesis.... still a little lost in the catch 22 situation. I guess I will have to start applying for "subprime" credit offers only because of thier gurantee.
