Hi, I do not have a credit history as of now, I just graduated from college and I tried to apply for a few credit cards not knowing what I was doing at all. I just got a letter in the mail saying that my credit rating is bad because there have been so many credit inquiries on my account recently. I am getting a secured credit card (hopefully soon.) What else can I do to improve my credit history? I pay my bills on time. Is there anything else to help?
Time and number of accounts are important. Try to start several accounts over the next year or so, make the payments on time, and let them "age" to about 2 years, and all of a sudden you will have a perfect credit record. For a variety of reasons, including credit scoring, it's good to diversify your sources of credit. Get that secured bank card, and try to work up to three unsecured cards. Get a retail card and a gas card, which are some of the easiest cards to qualify for. Even with excessive inquiries, you should be able to get retail and gas cards soon, as long as you don't have any unpaid accounts or late payments.
you should have applied for credit when you was a student. They practically gives those away for free. ( well that is what they want you to think ).
I was in the same situation a couple of years ago when I graduated from college. I kept getting rejected for a bunch of regular Visa/MC cards. I was eventually approved for a Providian Visa with a $1,000 limit and no annual fee, but it didn't come with a grace period. I made a couple of payments and got approved for Discover Platinum and MBNA Platinum. A good way to start building a credit history if you've already finished school is to apply for the so called subprime cards. They may be expensive at first, but once you've made a few payments you can go for some prime cards and cancel the subprime account. I don't like secured cards because your limit is dependent on the amount of your deposit, but that's just me.
