Loans With No Credit Record

softwarewiz

Registered Member
#1
Hi,

I'm new to the forum and am hoping some more experienced guys can give me some advice on quite a few matters.

I guess my most pressing item right now is that I've just graduated from college and have my first job, which is not really what I want to do, but is a stepping stone.

The problem is that I lived at home and then at the student dorm and never really built up a credit record. Now I'm finding it really difficult to get credit. It seemed like I should have taken up one of those millions of offers I got for a student credit card, but I was afraid I might go out and buy that computer I really wanted :-/

Now, when I send in applications, because I haven't worked for long, I'm not getting anywhere. Does anyone have ideas for getting credit/loans (I'd like to buy that computer I really wanted now that I have a fairly secure job) for someone in my position?

Thanks for any help or advice.
 

Mirage

Administrator
Staff member
V.I.P.
#2
You could go to a local bank and ask them what their lowest limit credit card is. Probably $500 or so. It won't be that great, but you should be able to get one, and just be sure to use it when paying for gas and things that you need. You don't want to miss payments on it, so make sure you at least pay the minimum.

I have heard mixed stories on whether or not it's good to carry a balance, but I personally try not to carry one if possible. I buy things from stores on store credit cards that offer 24 months no interest, and things like that, and that helps, but that's as much as I like to keep a running balance, just to avoid the extra fees.
 

MenInTights

not a plastic bag
#3
Get a secured Visa. With a secured visa, you deposit a few hundred in a savings account and when you use the visa, it draws money off the savings account. Most credit unions will do it without a yearly charge or a very low yearly. Here's the important part: FICO and the credit agencies cannot tell the difference between a secured and non-secured. So, nobody but you and the bank will know that it isn't a "real" card. Get the card and every 3-6 months increase the limit by sticking more money in the account. That kind of activity will shoot your credit score up very quickly.
 

softwarewiz

Registered Member
#4
Hey guys, thanks for the advice. I've been to my bank, but they were not helpful at all, which I thought was pretty crummy since I'd had an account with them since my parents opened one up when I was small. Not that it exactly ever had a lot of money in it though :lol:

I knew about secured credit cards, but didn't know that they don't show up as any different on your credit record, so that info rocks! Thanks. I think that's the road I'll take once I've got a few hundred in the bank.

I'll let you know how it turns out and thanks again for the advice. Cool forum.
 

Mirage

Administrator
Staff member
V.I.P.
#5
I didn't even know about that Spence. That's a great idea. That's sounds similar to a debit card but instead of pulling directly from your bank account, it pays from a prepaid account that you set up? Is that correct?
 

MenInTights

not a plastic bag
#6
exactly- this is the page from the bank I use:
http://www.alaskausa.org/consumer/loans/securedVisa.asp
I think it is the best secured visa deal in the country (IF you are a member of the credit union)

I tried to find some documentation on using a secured visa to boost your credit score, but I obviously got a ton of junk to sort through. But, as I said, its a simple idea, just increase your limit every 3 months and it will send your credit score flying.
 

softwarewiz

Registered Member
#7
Hi Spence,

Thanks a lot for digging up that information for me. I really appreciate it :D

I've been doing a bit of reading on the secured credit card, and it looks like the money I deposit stays there and is only drawn upon if I don't make payments on the card. I don't want to put you to any trouble doing research on this for me, but if you know that off the top of your head, that would be great.

Also, just off the top of your head, do you know if I ever get the money I put to secure the card back, if I pay the bill off every month, which is my plan. Again, I can find this out on my own time if you don't know the answer right away. You've already done a lot to help me on this. Gonna go call some credit unions while I'm still at lunch at work.

Thanks again ....
 

stockbroker

Registered Member
#8
credit-land.com There is two card from orchard bank. There is an unsecured one that they will give to anyone who has an address, phone and makes more than $12k a year. Or they have a secured card that you can get if you have an address and phone, no earnings requirement. Plus Orchard bank reports MONTHLY to all three major credit bureaus.

Unsecured: credit-land.com/details/details_page_13372_32278_2196.php?page_no=32278&prd_id=2196

Secured: credit-land.com/details/details_page_13372_32278_2197.php?page_no=32278&prd_id=2197
 

MenInTights

not a plastic bag
#9
its like you have a savings account with no atm card and no withdraw slips. The best way to access the savings account is to use the visa.

So, in actuality, there are 3 ways to get the initial money out.
#1 Use the card
#2 Close the savings account and get a refund
#3 Keep the card long enough (12 months in most cases) and the bank will convert the card to a regular visa and give you a refund.

bankrate is the site I was trying to think of earlier that has some good info on this:
http://www.bankrate.com/brm/news/cc/19990823.asp
http://www.bankrate.com/brm/news/cc/19980213.asp

or just do a bankrate search for secured credit card:
http://www.bankrate.com/brm/searchR...ut=xml_no_dtd&getfields=*&web=brm&advSearch=0
 

MenInTights

not a plastic bag
#10
stockbroker said:
Plus Orchard bank reports MONTHLY to all three major credit bureaus.
[/qoute]


In all this talk, this is the big thing. If they don't report to all 3 credit bureaus, its a waste of time. Most of the unsecured cards will, but don't sign anything until you get this in writing.