Eli5: how people initially start building credit.

1.04K viewsEconomicsOther

It’s weird to me. I recently applied for a bunch of rentals and my lack of credit has been the main thing holding me back. I have resolved to get a secured credit card but like how tf do people usually build credit anyway? I got denied by several other credit cards.

I also tried to apply for a loan earlier last year for a tow behind camper and even with 10k down on a 16k camper they said no. It’s like they can’t comprehend what I mean when I said I don’t have a credit score…it’s not a bad credit score….it’s that I have literally zero history. I’ve paid for everything in full including my car and the travel trailer that I ended up buying and yet I’m punished for it.

Anyways, how do most people get their name in the system? Is it always with a secured credit card?

In: Economics

20 Answers

Anonymous 0 Comments

When I was 16 I was able to get a small $4000 loan from the bank with my parents as guarantors. I paid it off over  a year and that gave me a great starting point.

From then on out, Ive used a credit card to pay for literally everything and then at the end of a pay cycle (weekly, fortnightly or monthly) I pay 90% of it from my cheque account, so that I can have revolving credit yet not pay any interest. 

You are viewing 1 out of 20 answers, click here to view all answers.