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Thread: Building credit

  1. #1
    Featured Member keira0304's Avatar
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    Default Building credit

    I want to be able to finance a car when I go to buy one (probably not for another year), but I have absolutely no credit. I have a washington mutual debit/credit card with a mastercard symbol on it that I've had for over a year, but whenever i go to apply for financing things (like when I had to fix my computer, a 700 payment, and when I bought my mattress, a 1000 purchase), it ALWAYS denies me. I rent apartments, i don't own my car (my parents own it and i've used it since I was 16) and I don't have anything that would help my credit score.

    How the hell am I supposed to build credit, when I can't even get approved for a credit card?? I read about secured credit cards, but that's exactly what my wamu card is!!!

    Are there any credit card companies that have good rates for students trying to build credit???

    also: I did not pay taxes last year because I was living in hell and it was too confusing and overwhelming and I was a student, and technically, half of what I made went to someone else....so it's not like I kept all 35K of what I made

    and also.....I intend on paying taxes this year, but i'm not going to start counting what I make as income until I get completely back on my feet again, because right now I'm starting from square one. I am keeping track of tax write offs for work and holding on to receipts. Would it help me or hurt me to not start counting my income until i'm on my feet? It will probably take me around 2 months of straight working until I feel like I'm financially stable again.
    Last edited by keira0304; 08-19-2008 at 09:31 PM.
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

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  2. #2
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    Default Re: Building credit

    You can get a secured credit card to build up credit. That is where you are issued a credit card from a bank, but you are required to keep a balance in the bank that is at least as high as the credit you are issued. Here's a link with applications for secured cards:

    http://www.creditorweb.com/categorie...dit-cards.html

    Make sure you check their fees before you apply for one.

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    God/dess Lysondra's Avatar
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    Default Re: Building credit

    You're being denied because you have no provable income. Work on that first.


    Look like a woman
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  4. #4
    Featured Member keira0304's Avatar
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    Default Re: Building credit

    seeee my "i hate money thread"
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

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    God/dess Lysondra's Avatar
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    Default Re: Building credit

    I don't see what that has to do with the fact nobody will lend you money with no provable income.


    Look like a woman
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    - My Great Grandmother Bessie's Recipe for Success

  6. #6
    Featured Member keira0304's Avatar
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    Default Re: Building credit

    b/c the thread is about my plans regarding taxes so I can prove I have income so I can build credit and buy a car,house take out loans etc.... i'm starting from square one.
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

    [/URL]

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    God/dess Lysondra's Avatar
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    Default Re: Building credit

    So then...what's the point of this post if you figured that out already? I'm so lost.


    Look like a woman
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    Act like a lady
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    - My Great Grandmother Bessie's Recipe for Success

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    Default Re: Building credit

    deleted.
    Last edited by Brendita; 10-12-2008 at 03:52 AM.

  9. #9
    Featured Member keira0304's Avatar
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    Default Re: Building credit

    a credit union? I didn't think of that.
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

    [/URL]

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    God/dess virgoamm's Avatar
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    Default Re: Building credit

    Getting credit cards is easy if you're a student. Well, it used to be, anyways. I had no problem being 20 with no credit, filling out card apps and saying that I was a student and made around 10k a year.
    Last edited by virgoamm; 08-20-2008 at 02:33 PM.

  11. #11
    God/dess anomar's Avatar
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    Default Re: Building credit

    First of all, you should check your credit report. The 3 major credit tracking agencies are required to give you a free one, no strings attached, ever year. You can do this at . Since you have moved a lot it is very possible that you have had notices not arrive to you/gotten lost in the mail, etc. It only takes about 10 minutes. Just make sure that all of the info in them is stuff you have done. If there are mistakes, that might be why you are getting denied.

    Then I agree that a CU is the best way to go. One nice thing w/ CUs is that they are not banks (banks suck) and also you can transfer your acct between CUs with very little trouble. After you get a bank acct you can get a CC with them too.

    Also, i know in Portland they have an ad in Exotic magazine for 'industry friendly' car dealerships. Don't know if they have that in CO too.

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    Banned Melonie's Avatar
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    Default Re: Building credit

    see other threads on the new lender regulations re 'subprime' borrowers starting a phenomenon where self-employed persons are now classified as being high risk borrowers no matter what their credit rating happens to be.

  13. #13
    God/dess anomar's Avatar
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    Default Re: Building credit

    Ha... I think a self-employed person is less likely to get fired or laid off than the majority of 'gainfully employed' people I know.

  14. #14
    God/dess Deogol's Avatar
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    Default Re: Building credit

    Quote Originally Posted by anomar View Post
    Ha... I think a self-employed person is less likely to get fired or laid off than the majority of 'gainfully employed' people I know.
    True dat.

    A lot of circumstances are changing in this country. A lot of chaos until it gets figured out again... if ever.

    "Future Shock" by Alvin Toffler told how (in the 1970's even!) change was occurring so fast that people didn't know how to keep up with it all.

    I think the rate of change in our society has been increasing non-linearly since then.

  15. #15
    Featured Member keira0304's Avatar
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    Default Re: Building credit

    i checked my credit report- absolutely nothing came up. i have noooo credit.
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

    [/URL]

  16. #16
    God/dess Deogol's Avatar
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    Default Re: Building credit

    Quote Originally Posted by keira0304 View Post
    i checked my credit report- absolutely nothing came up. i have noooo credit.
    I honestly think there is coming a time when you will be glad of that.

  17. #17
    Veteran Member BabyGirlKylie's Avatar
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    Default Re: Building credit

    This is my take on credit cards as it relates to income, as it relates to credit scores.

    You can apply for a "student" credit card, which isn't based on income. They assume you are a broke student, who has the potential to make money after graduation. You will have a low limit ($500 or so) and a high intrest rate (after those teaser introductory rates). It's mostly about marketing here, since it's your first card, the banks bet on the fact that you will stay with them when you are making the big bucks.

    If you are a student, keep your low-limit cards in good standing for two or three years while in school. Pay your bill in full, and never be late. This builds your credit Slooooooowly.

    As a dancer, you make much much more then the average student working a minimum wage or work-study job. You want credit NOW. You can afford a car, you are ten steps ahead of everyone else saving to buy a house. How do you improve your credit? PROVE YOUR INCOME.

    Students get low limit cards because it's assumed they have no income. Start there. If you have income? Then pay your taxes.

    Credit limits are established in part by your debt-to-income ratio. Nobody is going to loan you $20,000 for a car if you claimed you made $3,000 on your taxes. And if you lie on the application forms, holy shit, watch out (I know Melonie can chime in on this one!)

    There you go. Start small, be responsible, be patient, and be honest.
    "I believe that if life gives you lemons, you should make lemonade.
    And try to find somebody whose life has given them vodka and have a party."
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  18. #18
    Veteran Member Rockell's Avatar
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    Default Re: Building credit

    I am not too sure about how this works or anything, but you can be put on someone with good credit's account as an authorized user and within about 30 days your credit report will show their good credit history. If you don't know someone that is willing or able to make you an authorized user on their account, you can purchase "seasoned trade lines" that work in much the same way. I have never done this or really know that much about it, but I read about somewhere on the internet. I'm pretty sure that it's legal, but I think if purchasing the trade lines is kind of expensive. Just a thought.

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    Banned Melonie's Avatar
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    Default Re: Building credit

    ^^^ actually, the newly issued gov't regulations on lenders is now forcing them to check / verify incomes and assets ... which has pretty much killed the use of 'seasoned trade lines' in order to 'rent' a good credit rating when applying for new loans. Put simply, the banks are FIRST saying 'show us the income' - which for self-employed persons now means 3 years worth of tax returns. AFTER seeing the proof of income, THEN banks want to see a credit history showing 3 years worth of paying bills on time.

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    Veteran Member Rockell's Avatar
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    Default Re: Building credit

    Quote Originally Posted by Melonie View Post
    ^^^ actually, the newly issued gov't regulations on lenders is now forcing them to check / verify incomes and assets ... which has pretty much killed the use of 'seasoned trade lines' in order to 'rent' a good credit rating when applying for new loans. Put simply, the banks are FIRST saying 'show us the income' - which for self-employed persons now means 3 years worth of tax returns. AFTER seeing the proof of income, THEN banks want to see a credit history showing 3 years worth of paying bills on time.
    Would they be helpful in a case where the person DID have proof of income (whether it be filed income tax returns for someone who's self employed or a person with a regular job)? Is this practice legal? Does it really help your credit score and by how much if you have no credit to begin with? I don't know that much about this and it seems interesting to me.

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    Banned Melonie's Avatar
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    Default Re: Building credit

    in principle, this practice amounts to the APPARENT substitution of another person's credit, but the de-facto substitution of only the other persons credit history ... which at one time was enough to allow lenders to give a wink and a nod and put the loan request through.

    But these days the verification requirements essentially make the practice worthless, because the substitution of another person's credit history is not the same thing as the substitution of another person's actual credit i.e. a CoSigner.

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    Featured Member veronicachick's Avatar
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    Default Re: Building credit

    Quote Originally Posted by Lysondra View Post
    You're being denied because you have no provable income. Work on that first.
    I don't think that's entirely it. I held the same day job for over a year... had the same bank account for over 2 years and couldn't get approved for any credit card I applied for.

    I was in the same situation as you... I had absolutely no credit... car in my parents name... only had a bank account... and I applied for the wamu credit card... VS credit card... got denied for all of it. until I applied for capital one... and I finally got approved. It is not the best interest rate and at first I only had a credit limit of 300... but it was a start. The more on-time payments I made, the more my credit line increased. Try applying on capitalone.com.... don't try to pick the best card they have because they will likely deny you. I applied for the limited credit one. good luck. :-)

  23. #23
    AudreyLeigh
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    Default Re: Building credit

    Hooters (hooterscard.com) will approve you also... theyre like cap 1 - for limited/no credit history. High APR.

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    Default Re: Building credit

    im in the same boat, my mom doesnt know i dance so everytime she asks me about this stuff i change the subject and i have no one i can talk to about it.

    its all very overwelming.

  25. #25
    Featured Member keira0304's Avatar
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    Default Re: Building credit

    I applied for a citi student credit card with 12.99 apr and will know in 30 days.... i said i made 12000/year. we'll see.
    "Life and death, energy and peace. If I stop today it was still worth it. Even the terrible mistakes that I made and would have unmade if I could. The pains that have burned me and scarred my soul, it was worth it, for having been allowed to walk where I've walked, which was to hell on earth, heaven on earth, back again, into, under, far in between, through it, in it, and above."

    [/URL]

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