How can a young adult create a credit history good enough to actually be able to

1. 74

   thranaxposted 10 years ago

   How can a young adult create a credit history good enough to actually be able to get a credit card?
   
   Many 21-30 year olds find it incredibly difficult to get a credit card. Every application they submit is declined based on "Lack of Credit History". While school loans are one way of making a credit history, what options are there for those who work multiple minimum wage jobs and don't attend school anymore?
   
   

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2. 72

   Aime Fposted 10 years ago

   I finally got approved for a CC for the first time at 25 after being declined for 6 years due to lack of credit. It took about 2 years of paying gas, cable and telephone bills to establish any credit. And then of course you'd have to pay those bills on time so that your credit is good.

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3. 61

   Lea Childposted 10 years ago

   I was able to get a credit card fairly easily when I was about 23. It was my first time applying for a credit card and I had absolutely no credit at this point. I got a credit card designed for students and, since then, it has upgraded to a regular credit card. My advice would be to search out your options. Look at major banks (Wells Fargo, Bank of America, etc.). Also, go in and talk to the people first. See if you can find out if you would be accepted before you apply. Don't just apply to a credit card because you got a good offer in the mail.

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4. 83

   wychicposted 10 years ago

   Sadly, there aren't a lot of options out there. I didn't go to college, so none of the "student cards" were an option, and never had anyone to co-sign for me or any student loans. Despite reliably paying rent, utilities, etc., I couldn't get any credit line at all -- in fact, I can't find any place that really takes these "non-traditional credit" sources into account. Add to that, I'm self-employed, so there's no pay stubs or the kind of job history that credit officers want to see -- never mind that I have 8 years of self-employed tax returns to show. I was able to get a couple of small loans from a credit union in my early 20s, but they don't report to credit bureaus and had a very limited number of things they could do. Both were paid off on time.
   
   Now I'm 28, and finally broke down and got a secured credit card. They're anywhere from $100-$300 minimum balance, but they do report to credit bureaus (read their TOS very carefully so you get one that reports to all major bureaus). If you're really careful with how you manage it, it doesn't have to cost much. The banks tell me that they'll want to see 6-12 months of good payments, then they might be willing to start talking about financing (specifically, home and land loans in this case). I don't know for sure, but I'd assume that the unsecured credit cards want to see something similar.

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