Good credit but zero score

[esm]

Hi Guys,

I'm in a somewhat unique situation. Last week I applied for a car lease and the guy who pulled my credit told me: Hey, you got a great credit, nothing negative at all. There's just one slight problem: your last entry is from 1996. What have you been doing all those years? I had to admit that I hadn't owned a credit card since then. He told me that no bank would underwrite a lease and I should go out, get a credit card and build my credit.

I'm afraid no one will give me a credit card with my zero score and I don't want to apply all over the map only to get shot down.

Since I need some tools ($200 worth) I was thinking to apply for a Sears card, pay it and apply for a real credit card. Does this make any sense?

Thanks,

Ed

[BigNate]

I would go for a normal credit card from your bank or from a major company rather than a sears card. Set it up so you can pay online and email you when you have a bill ready.

[esm]

Well, I had planned to apply for a normal credit card too (my bank doesn't offer one) but I don't know which one to go for.

[freesia39]

Try Capital One (and be super careful with them). You can also apply through Citibank or Chase.

[BigNate]

I like my citibank one, it's amazingly easy to pay online. I have a citibank that gives 3% back on gas, groceries, and pharmacy purchases, 1% on everything else. I've gotten over $250 cash back over the 2 years I've had the card and never paid a single dime of interest or a single fee.

[alimfp]

I go through Orchard Bank. It's for people with not so great credit, or at least that's what my card is for (somewhere on a FICO site they state this card is normally approved for people with a score down to 550! I'm above that, so I can't say for sure..). It's $59 per year, I forget the APR at the moment.. but it's easy to pay online and such.

I agree with the others. In reading about improving a credit score, it's better to get a regular card vs. a store card.

[abentley]

This happened to me as well. Over the years everything kind of ended up in my dh name. Silly...but it took a death of a close friend to make me look into my own finances, not just our joint. anyway....I thought long and hard about what I wanted to buy...furniture, and opened an account. 0% interest...but building my history back up. My score was 790....but no activity since 1994!!! Crazy!!

[pryan67]

one more reason Ramsey is an idiot *LOL*

I'd get the Sears card actually...it's useful, and you WANT store cards on your report for the FICO boost...but you also need "regular" cards...

[esm]

I applied for the Sears card and I found out that they don't run that business anymore. They've sold it to Citi Group. In their final screen message they said I would get a response to my application within 30 days! How's that for speed?

I still need to get a regular card but now I'm not sure that my pending Sears card application would turn against me?

[kaplanham]

one of the fastest score boosters are installment accounts..for instance a furniture account that you pay down..or if you get a loan from a finance company..say 1,000 and pay it on time..you're good. the interest sucks but just pay more per month and you'll pay less interest in the end. The providians and orchards of the world are okay byt the limits are not hig enough to show any real responsibilty. they start you off at 300-500 and every six months you can jump 100.00 or so..good for solidfying a payment history...

[kdymott]

Hi Guys,

I'm in a somewhat unique situation. Last week I applied for a car lease and the guy who pulled my credit told me: Hey, you got a great credit, nothing negative at all. There's just one slight problem: your last entry is from 1996. What have you been doing all those years? I had to admit that I hadn't owned a credit card since then. He told me that no bank would underwrite a lease and I should go out, get a credit card and build my credit.

I'm afraid no one will give me a credit card with my zero score and I don't want to apply all over the map only to get shot down.

Since I need some tools ($200 worth) I was thinking to apply for a Sears card, pay it and apply for a real credit card. Does this make any sense?

Thanks,

Ed

Have you been saving money instead of going into debt since 1996? Maybe you are doing something right!! I would tell the guy trying to sell the lease that I would keep shopping around..... I find it hard to believe no bank will help you out with a vehicle, but I have never leased....

[BigNate]

That's pretty cool that citi runs sears credit stuff now, I may apply for one next time I need some tools.

[esm]

I eventually got a car loan from my local bank but they don't offer credit cards.

Has anyone any experience with the ebay/paypal card?

[conj]

I eventually got a car loan from my local bank but they don't offer credit cards.

Has anyone any experience with the ebay/paypal card?

we have a paypal credit card... they got bought out by.... WaMu? We don't use it much, so I can't tell you anything other than we have not had any problems

[esm]

As I had expected, the Sears card was denied for "lack of revolving credit history".

[fairydustcrissy]

I have no advicer, but hubby is in the same boat. Zero credit history. Zero credit. Zero loan approvals :( He has tried applying for cards, and always gets rejected for the same reason. We are going to be opening a secured card when we can in order to build *something*. We would like to buy a house one day, and this seems teh only way.

[esm]

I've applied with several credit card companies (one card was advertised on www.creditcards.com for people that are new to credit) but all rejected me for lack of credit history. Looks like I'll never get a CC in my life. :-)

Ed

[freesia39]

Have you tried getting a secured card? that may be your best shot right now.

[chrisjuvers]

store creditcards are the easiest to get. get one of those and then progress to a mastercard or visa. It's probably going to cost you but you can get an orchard bank card fairly easily. That was the first card I got before anyone else would give me one. You had to pay a annual fee of$60?, I think. If worst comes to worst you can get a secured card. You pay a deposit and they keep it to determine your creditline. That way if you default, they have your $$. Installment loans are a fast credit booster also. Those "quick cash/easy money" places. The interest is high, like 30-50%. Say you borrow $100. Then you pay back $50 a month for 3 months. It's a quick booster and those places will usually lend you money if you don't have negative credit. Just be sure to keep the initial amount to give it back!

[mom2monkiesx3]

I have an account AND car loan with a newer company called USBANK. I have loved everything about them so far.

I hear that Capital one is supposed to be the easiest to get...but I don't know. ISn't the Sears card now a VISA or Mastercard card that can be used everywhere not just sears anymore...I could have sworn I heard that someplace....

Capital one used to (might still) do car loans, they send you a black check that you can write with the amount you were approved for, there rates were low but we got the dealerships 1.9% offer instead

GOOD LUCK!

[siczlo]

I started my credit when I was 18. I opened a checking and savings account. Then I took out a $500 secured installment loan. I paid it on time, then I applied for a store credit card. (I think it was Fashion Bug) About 6 months later, I applied for a Visa and was approved. Credit takes time to build. Too many inquires hurt your score, and make you look desperate, which is a red flag.
Good Luck to you.

[Gloey]

I have an account AND car loan with a newer company called USBANK. I have loved everything about them so far.
U.S. Bank is great. They are actually headquartered in Minnesota I think but they have some branches here. We have our financial planning account there and our rep is wonderful.

[esm]

I've tried the Sears card, which no longer is Sears, I've tried Citibank and Capital One, no luck. In order to avoid too many inquiries, I have given up for now.

[kranky]

Did you ask for reconsideration on any of the declines? That can work.

[pryan67]

try orchardbank

revolving accounts are better than installment accounts for building credit

[curtisekarr]

What about applying for a credit card from the place you bank at? Also a very small personal loan from them would also help build your credit history.

[esm]

My own bank doesn't have credit cards but they gave me a car loan. How long does it take to show up in the credit report?

Currently I don't want to apply so I don't generate too many inquiries.