I need easy credit

[Microwave]

So I just went to www.annualcreditreport.com and got my credit reports.

I basically have nothing on my credit report whatsoever.

Nothing.

Nada.

I took out a loan in 1996 and paid it off by 1997 and that's the only credit I've ever had.


I want to get a credit card for emergencies and to help build my credit score. ANyone know what is the easiest credit card to obtain for someone without any credit?

thanks.

[Sachin]

You would probably need a secured credit card.

Sachin

[Ian Lozada]

You would probably need a secured credit card.

Sachin

Not necessarily. He does have some credit. The bank I started at would have given him the card.

[Sachin]

Wasn't that Tony's Loan-o-Rama? "All loans backed by Patrick Ewing's guarantee"?

Sachin

[GringoTex]

I want to get a credit card for emergencies and to help build my credit score. ANyone know what is the easiest credit card to obtain for someone without any credit?


Your bank will issue you a card with a low limit and a high interest rate. Doesn't matter. Charge $100 a month to that card and pay it off in full each month AS SOON AS YOU RECEIVE THE STATEMENT. This way, you can build your credit score without paying interest or accruing debt.

[junjunforever]

does using credit card really build your score? i heard otherwise.

[Matt in the Hat]

Here's a way I was able to raise my FICO score without spending any money. Should work for developing a credit history as well.

1) Go to your bank and buy a 6 month CD at the lowest dollar value that you can (approx $500 to $1000)

2) About 2 weeks later, return to the same bank and apply for a loan for the value of the CD. The bank really has nothing to lose since they have 100% colateral on the loan

3) Pay off the loan on time. You must take a minimum of 6 months to pay it back for it to show up on your credit report so try to get a loan with a 1 year payback plan. Pay half off in the first payment, than pay off the loan as normal for the next 5 months.

4) Cash the CD and put the money back in your pocket.

[Ian Lozada]

Here's a way I was able to raise my FICO score without spending any money. Should work for developing a credit history as well.

1) Go to your bank and buy a 6 month CD at the lowest dollar value that you can (approx $500 to $1000)

2) About 2 weeks later, return to the same bank and apply for a loan for the value of the CD. The bank really has nothing to lose since they have 100% colateral on the loan

3) Pay off the loan on time. You must take a minimum of 6 months to pay it back for it to show up on your credit report so try to get a loan with a 1 year payback plan. Pay half off in the first payment, than pay off the loan as normal for the next 5 months.

4) Cash the CD and put the money back in your pocket.

If you do have to do a secured loan to build credit, this is the best option. Do not get a secured credit card, as they will hold on to the collateral money as long as the card is open. This route allows you to build credit within a reasonable timeframe WITH A CLOSED END.

You know how I feel about tying up money for no good reason.

[striker]

2) About 2 weeks later, return to the same bank and apply for a loan for the value of the CD. The bank really has nothing to lose since they have 100% colateral on the loan


Why is the CD considered a colateral for the loan. One can cash out the CD any time.

[Ian Lozada]

Why is the CD considered a colateral for the loan. One can cash out the CD any time.

Because the bank freezes the appropriate amount in a savings/money market account situation, and holds the actual certificate in the CD scenario.

[peledre]

Because the bank freezes the appropriate amount in a savings/money market account situation, and holds the actual certificate in the CD scenario.
In a secured card situation, there are a lot of lenders (my company for example) that will let you put your deposit into an interest bearing 18 month CD as collateral for your secured card. At the end of the 18 months, the bank will review your account, and as long as you've been on time and your account is in good standing, they'll give you the option of converting your account to an unsecured account if you so choose. Otherwise, they'll cash in your CD, pay off your balance and give you the remaining balance (including the interest earned on the CD). Microwave, if you want additional info PM me.

I believe the minimum is $200 and the max is $1500 or $5000, I can't remember which.

So you can go with a secured card that has a closed end scenario.

If you can avoid secured cards, do so. If you do have a low credit score, but good payment history on the loan that you did have, there are a lot of banks that will offer you unsecured cards, but you'll probably have to pay an annual fee on the card of anywhere from $0-$75, but in that case, you wouldn't have your money tied up in a CD.

[peledre]

does using credit card really build your score? i heard otherwise.
Using credit cards doesn't build your credit score. Making on time monthly payments on said cards, and only using about 40% of your revolving credit builds your credit score.

[Microwave]

Thanks for the replies.

Here is the thing, I think that since a company looking into your credit can affect your credit score up to year, then each company should disclose by law the minimum credit score you need to obtain credit.

For instance, my credit score is 688 or something like that (I forget the exact number).

So I want a credit card with citibank visa, well they should tell me that you need at least a 700 to obtain credit with them, otherwise it's a waste of time for both of us and more importantly the fact that they ran a credit check on me can alter my credit score.

So why not save the hassle and make them disclose their criteria for obtaining credit?

I can only assume my score is below 700 because of credit checks done on me which are listed on my credit report. I don't have a credit card, mortgage or car loan. So WTF?

But on my actual report I see that my auto insurance looked into my credit, a employer, my bank and a few others.

[peledre]

Thanks for the replies.

Here is the thing, I think that since a company looking into your credit can affect your credit score up to year, then each company should disclose by law the minimum credit score you need to obtain credit.

For instance, my credit score is 688 or something like that (I forget the exact number).

So I want a credit card with citibank visa, well they should tell me that you need at least a 700 to obtain credit with them, otherwise it's a waste of time for both of us and more importantly the fact that they ran a credit check on me can alter my credit score.

So why not save the hassle and make them disclose their criteria for obtaining credit?

I can only assume my score is below 700 because of credit checks done on me which are listed on my credit report. I don't have a credit card, mortgage or car loan. So WTF?

But on my actual report I see that my auto insurance looked into my credit, a employer, my bank and a few others.
Citibank generally caters to lower-risk customers. So it is a bit tougher to get a CBNK card vs. an HSBC, Discover, MBNA, or Chase, etc... card.

Generally, to get a standard CBNK card, you'll need around a 700 FICO with no derogs, public records, or late payments in the last year. In your case, I would apply for a Platinum Select Mastercard with an initial $1000 Credit Line. With a 688 you'll probably get approved. Can't make any guarantees obviously but with a 688 and good payment history on that loan you had you'll probably be ok. I see our customers FICO's every single day and there's quite a few under 700. I just got my employee account last month, and I don't have a 688.

And to your question about inquiries. Yes, overall if you have a high number of inquiries it will eventually lower your score because you're applying for a lot of credit, but 2-3 a year isn't going to change your score by any amount that would have a negative effect on you.

[peledre]

So why not save the hassle and make them disclose their criteria for obtaining credit?

Because Credit applications are considered on an individual basis, not benchmarks across the industry to get approved/denied.